Bob Buerkle responds to a long time STRS retiree: How STRS changed the game AFTER you retired

October 30, 2020

Facebook

Ronald P. Bedra (on Facebook): I retired in 1978 and haven't had a problem yet.

Bob Buerkle's response: Ronald P. Bedra I'm happy for you that you have had a long 42 years in retirement. I am not jealous that you received 21 years of 13th checks from STRS. I believe you deserved the free Health Care you received from STRS until 1993. I am glad for you that you received Legislative ad hoc raises. I think you deserved the 5% Formula increase you received in 2000 from Sub. Senate Bill 190. And I am glad that you were provided a 3% COLA for every year from 1979 through 2012 because those 33 years represent exactly what it takes to double your original pension with a 3% simple COLA.  According to the official STRS Cost of Living Comparison dated 07/01/2020, even with all of these benefit increases Ron, you are still behind your original retirement purchasing power by 22.2%.

STRS Retirees since the turn of this century are in a whole new paradigm. They have no COLA now or the prospect of one for the next 18-20 years, no chance at all of ever seeing their original pensions double, even if they live to be 120.  Forget all of the extra benefits that you received besides your COLA, simply not having any of the COLA payments like you received; can you even imagine how far behind today's STRS Retirees purchasing power will be if they live 42 years into their retirement as you have done?  

Todays retirees also pay through the nose for Health Care until Medicare age and while your payroll contributions were never more than 8%, today's teachers pay 14%.

When you retired the retirement rules for an unreduced pension were 30 years at any age. Most of today's teachers will not be able to retire without a reduced formula unless they are at least 60 years of age, and for the 22-year-old beginning teacher that means that they will have to work for 38 years.

RON, NONE OF THIS IS YOUR FAULT AND WE DON'T PLACE ANY BLAME ON YOU WHATSOEVER BUT REALIZE THIS; THE GAME HAS CHANGED. POOR STRS PLANNING, COMBINED WITH UNDERPERFORMING INVESTMENT DECISIONS AND THE LACK OF LEGISLATIVE LOBBYING FOR NEW SOURCES OF INCOME HAVE LED US TO THIS TIME AND PLACE.