Dan MacDonald to STRS Board: A wake-up call? Are you awake or like a teenager ignoring the evidence?

Dan MacDonald's speech to STRS Board

June 20, 2019

A wake-up call? Are you awake or like a teenager ignoring the evidence? Good morning, STRS Board. I am Dan MacDonald, an STRS retiree with 38 years of service, and Executive Director of Local 279-R NEO AFT retirees. 

First, I would like to recognize a passed CH-UH active, 54 years young, who died on May 20 with 32 years of Ohio teaching service. He didn't get to retirement. He would have retired at 30 years, but rules change. How many have our actuaries predicted will not make it to full retirement, 35 years? There is a number out there. How much money does STRS "save" by an active's death?

Moving on, a lawsuit has been filed for retirees and the recovery of the COLA. My organization sent a formal letter from our president and corresponding secretary to the Board regarding COLA, dated February 14, 2019, which has never been responded to by Board or staff. Rudeness or arrogance or one-voice silence? 

I have spoken monthly, as have others. Arguments about 85% and actuary oversight are not a response. Suddenly a lawsuit; is anyone really surprised? A wake-up call.

As long as this Board speaks in one voice and argues behind closed doors, the public is not going to trust the Board. As a matter of fact, the week of May 26, I was personally told by a retiree that Board members must pledge that each will vote publicly in union. I asked where this was heard, and did not receive a traceable answer; but I can tell you retirees are thinking and sharing this concept. 

It came up again at another meeting I attended last week. This time the source was alleged to be two former STRS Board members. Once again, Fiduciary Loyalty comes forth. I'd suggest each Board member respond to this allegation individually during the next meeting, or even this afternoon. 

Have you all succumbed to peer pressure? You now have a bigger problem at hand, an expensive problem, win or lose, than you would have if responses came during Board meetings.

A Pathway discussion should show the current thoughts of the Board as far as percentages funded. I've attended meetings where 125% or higher have been mentioned. What are the goals/outcomes for active and retirees once whatever percentage is reached? 

Addressing the 2020 Budget...shared pain or just plain STRS gluttony? Again the Board's silence in discussion is deafening; disemboweling actives and retirees is quite real.

Thank you.