So, who is stretching the truth.....is it Sen. Faber or is it Executive Director Nehf?

From John Curry, June 19, 2011

A fellow STRS retiree was sent the letter below by Senator Keith Faber. Notice the accusations Faber makes in this letter. Someone is stretching the truth, aren't they? Please share this letter with other STRS stakeholders.

John

From: Senator Faber
To: (REDACTED)
Sent: Wednesday, June 15, 2011 11:22 AM
Subject: Pension Provisions

Thank you for contacting my office regarding the pension provisions of the biennial budget. I always appreciate hearing from my constituents.

The reports that the so-called “12/12” provisions of the budget will result in an increase of 15 years to the amortization period for STRS are the result of misleading statements from persons who should know better. During the Senate Finance Committee I asked the Executive Director, Michael Nehf, what affect the 12/12 provisions had on their amortization period. Mr. Nehf conceded that all other factors staying the same, the contribution shift from 10/14 to 12/12 would only add one half of a year to the amortization period. This is a small change that pales in comparison to other unfunded liabilities of the pension system, and is a far cry from statements made to the media and STRS members about the effect this provision would have on the system’s solvency.

Although the 12/12 provision was removed from the budget in the House Finance Committee, this issue will continue to be examined as a part of pension reform. Furthermore, statements by retirement system representatives suggesting such shifts have a detrimental impact on the solvency of their systems appear to be incredibly misleading and only serve to create unnecessary confusion.

Again, I want to thank you for your thoughts. I can assure you that as we move forward with the budget and pension reform we will keep in mind the financial security of retirees and all Ohioans. Please do not hesitate to contact my office if you have any additional questions or comments

Sincerely,
Keith Faber
President Pro Tempore
12th Senate District

[View Mike Nehf's response here.]