A message to STRS retirees from former CORE president Dave Parshall

From Dave Parshall

January 17, 2014

As you all know by now the error in the predicted unfunded liability will have to be made up. There are ways that this can be done and some questions that need to be asked.

1. What effect will the increased returns from our investments help to lessen the blow?  The market continues to roar.

2. Will STRS follow the other Ohio retirement systems and protect their older retirees with pension in the 30’s [$30,000 annual pension] or below?  Remember they have been taking it on the chin for years now.  Only STRS does this to their older retirees.  I was always told by STRS that this doesn’t matter because most of them have a second income.  This should have no bearing on the issue of fairness.  The fact is tens of thousands of retirees are totally or almost totally dependent on their pensions for survival.

3. One answer may be that if a retiree took advantage of the unearned 88% increase benefit, then they do not get a COLA until they are 70 years of age. It no longer makes sense that they should enjoy an enriched retirement at the expense of older retirees with much lower pensions but similar number years of teaching.

4. Ask school boards to pay more into the system.  If you sell this idea as protecting the older retirees, it must might have a chance.  Everyone knows that the 88%  pensions are draining the system. End the 88% option NOW!

5. Most active teachers today have been hit hard also, but they need a lesson in the history of their professions.  Most actives are now making 2 or 3 times what many of us older retirees made.  We could only dream about the kind of pension they will have, and at time when most Americans will have none, only their worthless 401 Ks.

6. Contact all STRS Board members with the above question or ones of your own. Younger retirees will see no problem because they are doing so well. Write ORTA as John did and ask that they take a stand to protect retirees and not just roll over for OEA. After decades of working to organize teachers for OEA in several districts and actually getting my school board to give us a written guaranteed contract, I still remember how shocked I was to discover that once retired, OEA does not give a hoot about you.  Why can’t ORTA see this?

7. By all means, vote in November. The folks who came after our pensions  just can’t wait to come after us again. Remember the party who, in a hearing, said that the state should pay our pension at 50 cents on the dollar? I think you know which party he was from. Please don’t vote against you own best interests!

Dave Parshall

Letters from the Sniders to STRS retired board members Stein and McGreevy and to ORTA's Ann Hanning

From Duke and Jane Snider

January 14, 2014

Mr. Stein and Mr. McGreevy, It's also time for you to go to bat for the retirees.  Rather than repeat the email below, please read it as this also applies to you.  If you remember correctly, when you visited CORE and wanted to be on the STRS board a few years ago, you were asked about having backbone and being able to stand pressure being a board member.  Now it's time to show your real colors.

Duke and Jane Snider

...and we feel certain many other southern Ohio retirees feel the same as we do.

Sardinia, Ohio

.

Ms. Hanning,

It's time for you to stand strong and fight against any future COLA cut for retirees as John indicated below.  Why didn't ORTA  fight to reinstate the three percent COLA as things got better instead of a solid 0% for one year and 2% thereafter?  What is it that is not understood by many? If it weren't for active teachers and retirees there would be no STRS?

Respectfully, Duke and Jane Snider

...and we feel certain, many other southern Ohio retirees feel the same as we do.

Sardinia, Ohio

Now comes the talk of "further cutbacks" for STRS......

http://www.dispatch.com/content/stories/local/2014/01/14/futher-cutbacks-for-teachers-possibility-looms.html

Further cutbacks for teachers? Possibility looms

By  Darrel Rowland

The Columbus Dispatch

January 14, 2014 6:29 PM

The 480,000 current and retired Ohio teachers won’t be asked to make additional sacrifices to help their pension fund – for now.

“Nothing on the immediate horizon would indicate a change would be coming along those lines,” said Nick Treneff, spokesman for the State Teachers Retirement System.

But the possibility of further benefit cutbacks or higher employee contributions grew today when it was revealed that a consultant for the pension fund had made a miscalculation in its actuarial study last year.

In November, Segal Co. of Chicago said the teachers retirement system’s funding period was 36.1 years. That was still above the maximum of 30 years required by state law, but pension fund officials projected meeting the threshold if financial projections hold.

However, due to a “programming error,” the funding period actually is 40.2 years, the company now says.

The question is whether the fiscal expectations that would have brought the 36 years down to 30 can now move the 40 years to 30. If not, the only option may be to hit teachers in the pocketbook yet again. Sweeping changes to the system enacted last year saw teachers pay more into the system, increases in both retirement ages and years of service, as well as cuts to cost-of-living increases for retirees.

Since the retirement system is out of compliance with Ohio law, its board already was required to develop a corrective plan – due Feb. 24 with the Ohio Retirement Study Council.

That will be a key topic at an upcoming board retreat Jan. 30 and 31, Treneff said.

The error by Segal, hired to a five-year contract last April, does not affect the pension fund’s reported assets or liabilities, nor does it impact the retirement system’s reported unfunded actuarial liabilities or funded ratio.

“It doesn’t impact our ability to pay benefits,” Treneff said.

drowland@dispatch.com

Back to the drawing board...but this time keep your fingers off our COLA!!!

Report from STRS

Jan. 13, 2014

The Segal Company Reports Error in its 2013 Pension Valuation Report for STRS Ohio

On Jan. 9, STRS Ohio’s actuarial consultant, The Segal Company, notified the retirement system that Segal had discovered it made an error in a calculation contained in Segal’s November 2013 Pension Valuation Report. Segal’s error does not affect STRS Ohio’s reported assets or liabilities, nor does it impact the retirement system’s reported unfunded actuarial liabilities or funded ratio.

Segal made a programming error that miscalculated future member contributions and the ability to pay off the system’s unfunded actuarial liabilities. Pension reform changes implemented in 2013 had a substantial impact on STRS Ohio’s financial condition, improving its funded ratio to 66.3% from 56.0% and reducing the funding period from infinity. Segal projects that, once corrected, the valuation will show that STRS Ohio’s funding period increased approximately four years beyond the 36.1 years previously stated in Segal’s November report.

STRS Ohio Executive Director Michael Nehf said the retirement system was disappointed to learn of Segal’s mistake, but emphasized that the error does not impact STRS Ohio’s ability to pay benefits.

John Curry: An open letter to Ann Hanning, Bob Stein and Jim McGreevy

From John Curry

January 14, 2014

Ann, soon your organization, which purportedly represents retired teachers, will have a chance to go to bat for retired teachers once again. Will your organization, once again, go along to just get along with other board members, one of which will demand more COLA cuts for retirees for a corrective action to the pension system? Or, will you, unlike what you and your organization did before, stand strong and fight against any future COLA cut for retirees? Time will tell, won't it? Ann, try to develop a backbone and stand up for retirees.....the same ones who pay your paycheck.

John Curry

.
Bob and Jim,

Now is the time for you to really go to bat for retirees....especially since both of you were elected as "retiree" members of the board. Will you fight for us or.......will you go along with other OEA affiliated board members when the time comes and someone suggests a further cut to the COLA so that you can just "present a unified front?"  "Cut the 88% payout (sooner, rather than later), we can't afford to wait," can we? All the other systems only pay 77% for 35 years, don't they? So should we.....like right now! Don't penalize retirees further....most of them aren't physically able to take that "second job" to make up the difference, are they?

John Curry

John Curry: An open letter to Ann Hanning, Bob Stein and Jim McGreevy

From John Curry

January 14, 2014

Ann, soon your organization, which purportedly represents retired teachers, will have a chance to go to bat for retired teachers once again. Will your organization, once again, go along to just get along with other board members, one of which will demand more COLA cuts for retirees for a corrective action to the pension system? Or, will you, unlike what you and your organization did before, stand strong and fight against any future COLA cut for retirees? Time will tell, won't it? Ann, try to develop a backbone and stand up for retirees.....the same ones who pay your paycheck.

John Curry

.
Bob and Jim,

Now is the time for you to really go to bat for retirees....especially since both of you were elected as "retiree" members of the board. Will you fight for us or.......will you go along with other OEA affiliated board members when the time comes and someone suggests a further cut to the COLA so that you can just "present a unified front?"  "Cut the 88% payout (sooner, rather than later), we can't afford to wait," can we? All the other systems only pay 77% for 35 years, don't they? So should we.....like right now! Don't penalize retirees further....most of them aren't physically able to take that "second job" to make up the difference, are they?

John Curry