Comments on: SIX GOOD REASONS TO GET INVOLVED (ACTIVES and RETIREES)

From Nancy Hamant, April 12, 2011
Subject: Comments on: SIX GOOD REASONS TO GET INVOLVED (ACTIVES and RETIREES)

I don't believe #1 is accurate, all the rest are correct in their assumptions. In #1 Kasich has said reduction of 2% of the current 14% that districts pay for pensions will amount to $229 million. However, teachers will have their STRS pension contributions will raise from 10% to 12%. Even though the shift is 2% for both districts and teachers, the end result for the pension is not a "wash" or no change. All kinds of interactions, such as some teachers leaving the profession and consequently withdrawing their 12% from the Pension Fund will cause reductions to the Pension Fund. An actuary would have to determine all of the parameters than calculate the projected impact on the Pension Fund, but there will be a loss to the Pension Fund.

Nancy