Mario Iacone: The greatest reasons to elect Dennis Leone to the STRS Board

From Mario Iacone, January 8, 2013

STRS BOARD ELECTIONS

GREATEST REASONS TO ELECT Dennis Leone to the STRS Board

EXPERTISE and GOOD JUDGEMENT!

In March of 2007, Dennis Leone Urged the STRS Board to Prepare for Significant Stock Market Downturn

(The following excerpt is taken from a report by Dennis Leone (STRS Board member 2005-2009) in March, 2007 and submitted to the Ohio Retired Teachers Association for publication in the ORTA QUARTERLY; ORTA refused to publish it, but his full report was published in this blog: http://kathiebracy.blogspot.com/2007/03/dennis-leone-strs-report-march-2007.html)

Among a number of items Dennis reported and discussed in his ORTA Quarterly report was "….I am hopeful my fellow board members will be agreeable to approving a contingency plan to minimize the negative impact of a significant stock market downturn…."

Dr. Leone was suggesting a contingency plan way ahead of the 2008-2009 Stock Market Decline, when STRS was worth approximately 80 Billion Dollars.

THE FUNDING PERIOD WAS AT 26.1 YEARS! After the stock market decline, the FUNDING PERIOD became INFINITY as STRS asset value spiraled down to approximately 47 Billion.

Had Dennis Leone's advice been taken, active and retired teachers would have been spared SUBSTANTIAL losses to their retirement benefits.

Note: This was also was the report in which Dr. Leone wrote how he was in disagreement with his fellow STRS Board members over the projected, unrealistic 4.0% payroll growth assumption (from active members) which STRS insisted on using at that time. Everyone else was fine with it…..but Dr. Leone was NOT.