Thursday, May 11, 2017
STRS retiree to John Curry
May 11, 2017
John, I am looking into finding an apartment due to increase. As my STRS
check is going down, I have to look into lower living costs. I just can't
believe I am facing this due to the incompetency of STRS. I only fear more doom
is coming. I have called several places and told them about STRS and its
financial condition. Several of the resident managers said they have gotten
calls from people like me and the STRS mess. Isn't that just wonderful??? I
can't believe I am facing this at age seventy. Can't something be done with this
STRS group? I know they meet next week, but they seem insurmountable.
John Curry: the STRS investment staff should participate and retire in the same system they invest in
John Curry to Dean Dennis
May 11, 2017
Subject: Re: What STRS isn't doing
Dean...well stated. Another concept that I would like to see is that the
STRS investments staff be forced to participate (and retire in) the SAME SYSTEM
that they invest in ....rather than retiring in OPERS as they currently do.
Maybe that would cause them to invest smarter and be more conscious and
responsible with their investing. As it is now....if they make risky investments
to pad their healthy bonuses and FAIL...they simply don't get the bonus....but
their nice salary remains intact and the retirement system THEY retire in
doesn't take a hit for their careless risk taking.
John Curry
Dean Dennis: What STRS isn't doing
Dean Dennis to Jim Stoll
May 11, 2017
Subject: What STRS isn't doing
Jim,
I've been going to the STRS meetings with Bob lately trying to
encourage them to make investments in our interests. For instance, why has STRS
lowered their earning assumption to 7.45%? This makes no sense. Are they trying
to enrich their investment staff or our pension fund? I say this because S&P
500 has historically annually averaged over 9% since the 1920's. There have been
sixty (60), thirty year (30) cycles from which to measure. In other words, over
a thirty year cycle how much will the S&P 500 return on an annual basis? The
answer is the S&P has always returned greater than 8% and over a third of
the time has returned greater than 10%. Simply investing in ETFs (Equity Trading
Funds) tied to the S&P 500 lowers risks and provides a greater return that
STRS performance.
Also consider this, why aren't they investing significantly in other
baskets of ETF's in different segments to increase what they can earn with our
monies? Here are four: XSD (a basket of semi-conductor stocks) it has returned
157% over the last 5 years, PSCT (a basket of information, software and
electronic stocks) it has returned 142% over the past 5 years,-VHT (a basket of
stocks tied to health care) it has averaged 124% over the past 5 years, XBI (a
basket of biotech stocks) it has returned 170% over the past 5 years.
My point is the above basket of ETF's have averaged 18% annually over
the last 5 years. Why are we investing in hedge funds, foreign equities and real
estate. It take very little research to discover that Foreign Equities have
under performed US Equities over the last 5, 10, 15, 20, 25 year periods. That
said, STRS likely pays a quarter of a million annually to outside firms who
either don't share this information, or it is simply ignored. Bottom-line, when
you refuse to look at solid investments maybe you do need to lower your earning
assumption expectations to lower than the market provides.
Dean Dennis
Jim Stoll: Public records request to STRS for investment staff salaries, bonuses
From: jastoll@yahoo.com
To: treneffn@strsoh.org
CC: nevilleb@strsoh.org, board@strsoh.org
To: treneffn@strsoh.org
CC: nevilleb@strsoh.org, board@strsoh.org
Date: 5/11/2017 2:06:34 P.M.
Subject: Investment Staff Salaries and PBI Bonuses for Fiscal year ending 6/30/2016 and 6/30/2017
Subject: Investment Staff Salaries and PBI Bonuses for Fiscal year ending 6/30/2016 and 6/30/2017
Nick,
I'd Like to make a public records request that you send me the Salaries and
PBI bonuses and total compensation for each of our entire investment staff via
email or in electronic form for the fiscal year ending 6/30/2016. I'd also like
the same for fiscal year 6/30/2017 as soon as that year is calculated.
Thanks in advance and I appreciate your help. Feel free to call if you
have any questions.
Sincerely,
James A. Stoll
John Curry: Time to change the Ohio Revised Code
John Curry to Jim Stoll
May 11, 2017
Subject: Re: Fw: STRS Investment Staff
Agreed, Jim.....AND....the ORC needs to be changed to "force" the STRS
investments staff to pay into and retire with STRS rather than OPERS as they
should be risking their own retirement security with their investments. As it is
now...they can take huge risks and if they fail.....they just don't get their
bonus....but their retirement system's health is not affected.
John Curry
Jim Stoll: Why STRS Ohio is losing money and what's keeping the investment staff VERY happy
Jim Stoll to John Curry
May 11, 2017
John,
This is exactly why STRS OHIO is losing money and why our pension dollars
should be invested in Index Funds..... It is ridiculous for STRS to pay 88
Investment staffers Millions in salary and millions more in BONUSES for subpar
performance.... They should NEVER receive a bonus if they fail to beat their own
7.5 % investment return Benchmark. We should heed Warren Buffett's Advice.
Jim Stoll
Wednesday, May 10, 2017
Bob Buerkle: A letter to STRS retirees and active teachers
From Bob Buerkle
May 10, 2017
To all STRS Retirees and active teachers,
When STRS held a March, 2017 informational meeting in Cincinnati, Nick
Treneff and Gary Russell told the audience that STRS was still considered a "Top
Quartile" pension system. NO WAY JOSÉ!
That boat shipped out on 01/07/2013 when the Ohio Legislature gave STRS the
authority to eliminate our COLA.
STRS is now back to treating our money as if it was theirs again. They want
to fund their ideas, not deliver on the pensions they promised. That is exactly
what got STRS Director Herb Dyer fired in 2003. Dyer
wrote a retiree saying “the pension system’s money is the Board’s money to spend
as they see fit,” and “perhaps retirees should go out to dinner less often.” A
few months before this time Dyer spoke at a meeting in Cincinnati covering his
infamous leaky bucket of health care funds. That time he suggested to the
audience that they "should consider downsizing from a Cadillac to a
Chevy".
We did not expect to buy Cadillacs in the future, since few of us
bought them when we were working. Instead of STRS Management telling us to how
to manage our finances after they have ravaged them, let's put the real problem
out there. STRS keeps losing more of our money, our finances! "I say,
Just invest our money in the various indexes that historically have always
returned over 8% over 30 year periods. That is the only requirement necessary
so STRS can fulfill the retirement promise that was made to us. That is STRS'
most important job! That's what you are employed to do, and at our expense".
Remember, it is our money not yours. You are supposed to be our Fiduciary and
deliver the Benefit what was codified and Defined by law when we
accumulated our benefits while working, and which were specified by law when we
retired.
STRS Management and the Board have now stolen over 25 Billion dollars
of our promised pension benefits in their two money grabs. It is our money but
they think they can do what they want with it by telling us that this is what
they need to do to provide assurance that STRS will be able to pay future
benefits. That's hogwash! This is a smoke and mirrors game by management and it
is not what the retirees and current members need or want.
After the first 13 Billion Dollar grab in 2014 no lawsuits were filed
by any Union, any Organization, any Individuals or any Class Action Lawyers.
Emboldened by this non-reaction to the STRS pension takeaways, they looked ahead
to other takeaway ideas, describing them as "necessary to be able to pay future
pension benefits". So in February, 2015 the STRS Board voted to adopt a
"30 Year Closed Amortization Funding Period". This is costing
Billions of your pension dollars to implement and it was not necessary. This is
a lofty goal but should only be attempted when it could be achieved without
destroying retiree pensions. A good year that this could have started would have
been in 2000 when STRS had a funding ratio already at 92%. In 2017 STRS is in no
position to start a 30 year closed funding program when we have a funded ratio
standing at only 69%. All they are doing is stealing our money to fund
their project. This is something that STRS Management wants to do for
their own self desire and self aggrandizement. It is not what retirees need,
it's what STRS wanted to do with your money, not what you wanted and not what
you needed!
It is also not a Legislative Mandate. And if "Closed Funding" is so
great, why doesn't OPERS do the same thing for their members and retirees? OUR
STRS EMPLOYEES ARE IN THE OPERS RETIREMENT SYSTEM. WHY DON'T THEY RAISE THE
ROOF OVER THIS NOT BEING DONE FOR THEIR OWN PENSION SYSTEM? WHY DON'T
LEGISLATORS FORCE THEIR OWN PENSION SYSTEM TO DO THIS FOR THEM? AFTER ALL YOU
KNOW, THIS "30 YEAR CLOSED FUNDING PERIOD" IS ALL THE RAGE NOW! The path chosen
by the STRS Board and Management is not mandated and should be shelved
for now.
STRS already had the tools to deal with 30+ year unfunded periods like
they used in the 1980's, 1990's and through 2006. Then STRS management came up
with a plan in 2010-11 to seek legislative authority to reduce and/or eliminate
our COLA. That is so much easier than writing those time consuming annual
letters to the Ohio Retirement Study Council explaining how STRS will get back
under a 30 year funding period over a period of years. By the way, this process
was followed many, many times in the past and STRS was always able to work their
way back under 30 years of funding and this is still the Legislative
Mandate. One of the most recent periods occurred after the 2001 recession. STRS
wrote their plan each year. In 2005 the plan that was written to work our way
back under 30 years of unfunded liability by 2020. Instead of taking 15 years to
achieve this it was accomplished in just two years and by 06/30/2007 the
unfunded period was reduced from 42 years to 26.2 years.
We should demand that no more unnecessary and non-mandated ideas be
implemented until all lost pension benefits are repaid to retirees and restored
for current workers.
Bob Buerkle