Nancy Hamant: Many of the Board's proposed solutions have been sought by CORE for years

From Nancy Hamant, January 16, 2011
Re: COLA discussion

Folks,

It is interesting that many of the proposed "solutions" to STRS Pension Fund have been sought by CORE for years. First and foremost is the immediate halt to the "Enhanced Benefit" which provides for 88.5% calculation of benefits since FY 1999 and a $One Billion hit to the STRS Pension Fund.

It shall be very informative to note the number of STRS "players" who immediately "jump ship" to retire in any timeline that the Ohio Legislature provides in halting the Enhanced Benefit. I do believe that you will note that the persons responsible for the inception of the Enhanced Benefit will be those who immediately retire to take advantage of it.

In addition, STRS retirees who can least afford reductions to their economic bottom line will be hit the hardest by any COLA reduction. It also means that all STRS members will be paying to bail out the STRS Pension Fund that was decimated by two economic downturns, in early 2000 and in 2008.

Also, it is unfortunate that any STRS Board member places the blame for the unfunded liability on any STRS member--either active or retired. STRS members are guilty of two things--believing the "rosy" picture that has been painted in ALL STRS publications provided to them and trusting that elected Board members would fairly and equally represent all STRS Members and look out for their interests whether active or retired.

In 2003, STRS members found out that the "rosy" picture was not exactly as presented to us.

Nancy B. Hamant