RH Jones: OH STRS Defined Benefits, HC/Rx & 3% fixed COLA is a good investment

From RH Jones, February 10, 2011

To the Honorable Representative Lynn R.Watchman (R), District 51, and all:

As you stated in your Feb. 2 sponsor testimony, you noted the importance of preserving Health Care (HC) coverage for retired public employees. However, the words you used “if possible” and “coverage” left me wondering. Of course, retired teachers can purchase their own coverage for HC/Rx, but we were promised such when we accepted the lawful contract to retire. A COLA is an important part as well. The yearly very fairly calculated Supplemental Check always helped.
Without these inflation fighting programs, a proper pension is impossible for the retired teachers. Yet, even, the non-compounding 3% COLA does not keep us up with the compounding living expenses. Everyday the media tells of rising costs. Today, it is corn prices raising the costs of food - that is being due to corn purchases for ethanol; yesterday, it was the +14% in airfare; even McDonald’s is raising the price hamburgers. And everyone knows that oil is high, and that has an affect on all prices.

The fact being, that almost everyone has a mother, sister, or cousin, who is a retired teacher – not many men in the profession – should awaken a sense of responsibility to provide employer contributions to the STRS that would make it sustainable for the requirement of the 30-year fiduciary goal set by law.

It is an exaggeration for an average citizen to think Ohio is not coming out of the Great Recession and cannot afford an employer increase for the STRS. The sales of motor vehicles are currently reported to be at an all-time high and this is a wealth-producing industry of high paying jobs. Related to that, in today’s new high-tech economy, we will always have citizens who, for whatever reason, are unemployed. A “dumbing down” of Ohio, by cutting public investment in education to the bone, can only result in hyper-recession, or worse; but, for the real fact of the matter Sony of America says, that technology doubles every 2-years.
Therefore, Ohio needs to come on strong in support of traditional public education. Traditionally, education is and has been the driving force behind a thriving business community, which is continuing to ask for even more highly educated workers. Much of the manual labor is being replaced by robotics. Note: the Ohio Turnpike is now using machines rather than people to collect fees; additionally, Sony even says that by 2013, a supercomputer will be invented to surpass the human intelligence of our entire species.

Going forward, then, Ohio must maintain a strong Defined Benefits (better known as deferred compensation) in the STRS in order to maintain and garner the best professional educators, both men and women, for Ohio’s youngsters Pre-K-16. A healthy, thriving STRS defined benefits program is a key part of the total education package. Changing to defined contributions will only help demolish a great STRS that has existed and served Ohio’s retired educators since 1920.

Thanks again, any increased costs of traditional public education and its retirement system will benefit Ohio in meeting the challenge of the new computer age -- a revolutionary change as large and as dynamic as the industrial revolution.

Robert H. Jones, a proud retired teacher member of the OH STRS