Mario Iacone: COLA Clarifications

From Mario Iacone, May 27, 2017

For those of you that have sent me questions and information on COLA!!!

FALSE COLA FACT #1

Only new retirees will lose their COLA.

    Read p.3 at the top of the STRS letter we just received. It states,
        "The cost of living increase will be reduced to 0% for all benefit recipients."
            That is a direct quote.  Worse comes to worse, call STRS.

FALSE COLA FACT #2

COLA will be restored in five years.

    Read p.3 at the top of the STRS letter we just received. It states,
        "...in 2022, the board will evaluate whether an upward adjustment of the cost of living increase is payable without materially impairing the fiscal integrity of the retirement system."
            That is a direct quote.  Worse comes to worse, call STRS

TRUE COLA FACT #1

In order to have the COLA restored five years from now, INVESTMENT EARNINGS

would have to meet the target of 7.45% just to stay even.

Then, at least another 10 BILLION DOLLARS would have to be made.

TRUE COLA FACT #2

Even, if all foes well as described in TRUE COLA FACT #1, there is another factor.

THE UNFUNDED LIABILITY.  Right now, FUNDED RATIO stands at approximately 56%.

Even with great investment returns over the next 5 Years, if the funded ratio does not get close to 90% or so, COLA WILL NOT BE RESTORED!

Please start to build your STRS email recipients as we are trying to develop a huge network of recipients for possible future actions.

Wanna see what those guys in the Investment Dept. are getting (while your income keeps shrinking away) ?

Jim Stoll to John Curry and Others

May 23, 2017

John and All,

This salary and bonus chart paid to our 88 investment staff should make us all sick.. 88 STRS employees collected over $7,000,000 in bonuses for a performance way less then the 7.5% return which is STRS goal each year!  This is crazy! How does losing your Cola feel now?

Jim Stoll

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