Wednesday, May 23, 2012

RH Jones: If OPERS can 'grandfather' their COLA changes, why can't STRS?

From RH Jones, May 23, 2012
Subject: RHJones on: Fw: Well stated (on your blog) Kathie!
To all:
Please read John and Kathie's original message below.
Me, in contacting a OH STRS board member about in a STRS motion to place STRS employees into our STRS for their retirement pension and HC/Rx, I was told that this was illegal; and that he had checked that out when he first became a STRS board member. However, I am wondering, therefore, why the board cannot put STRS employees into our retirement system instead of OPERS. This is at a time when our board so easily suggested to the legislature that our non-compounding COLA be cut 33-1/3%. Is our COLA not "grandfathered"? Is to suggest our COLA be cut "after the fact", which may be illegal also? This is, after all, our State Teachers Retirement System and we should be able to dictate to our employees to be able to pay into our system as well as we do.
This positive action for our STRS most likely would quickly bring us up to the 30-year amortization goal. We welcome this change as being good for us and good for the employees. For after employees are allowed in, if STRS were to fail there will be no jobs for the employees as well as no pension for us. Employees prudent investments, and prudent necessary use of our money, would be much greater if it was their money as well as ours. Is that not the "bottom line"? The motivation would be there; and, further, trust would be restored to the Board and to the employees.
By the way, the OPERS, in their latest newsletter stated that their non-compounding 3% COLA is "grandfathered". If theirs is "grandfathered", why is not our STRS?
RHJones, proud to be a CORE member
From John Curry
Sent: Wednesday, May 23, 2012
Subject: Well stated (on your blog) Kathie!
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