Robin Rayfield Reports.....

The following is taken from the December 2020 ORTA News and was written by Executive Director Dr. Robin Rayfield.

Forensic Audit 

ORTA’s effort to raise money to pay for a forensic audit of STRS investments and expenditures has been successful, to say the least. As I write this update, we are on the cusp of over $50,000 raised! With only $25,000 more needed, it appears as though we will reach our goal. Thus far nearly 600 donors have contributed over $48,000. Several local chapters have sent in donations, new ORTA members (roughly 200) have donated; non ORTA member retirees and active STRS members have also stepped up to the plate. And, as you no doubt already know, many faithful ORTA members have contributed to the cause. I am optimistic that many more ORTA members will step up and send in their donations to close out the fundraising effort and get the important work of a deep dive into the way our pension fund is managed begun. I would be remiss if I did not acknowledge the fantastic donation sent in by the members of the Hamilton County RTA. Hamilton Co. sent ORTA a donation of $15,000!

 I am very humbled by the donations sent in so far. I have received several calls and notes from ORTA members along with their generous donations. One note comes to mind. This person, who wishes to remain anonymous, wrote that they have been retired for many years and had enjoyed the promised COLA for several years and, even benefited from the 13th check program years ago. The last several years, however, have been a struggle as she had lost her spouse of many years and, as a result lost her spouse's Social Security benefit. Times were very difficult, but she wanted to contribute to the forensic audit because she felt like she had been lied to by STRS. She was adamant that she "only wanted" what she was promised and guaranteed by law at the time of her retirement. She was frustrated by the yearly salary increase awarded STRS employees and the performance incentives paid each year to STRS employees even though they were failing to pay her guaranteed retirement benefit. I could not agree more. I think she describes what all retirees are feeling.

Let’s push the donations across the finish line and get Mr. Siedle started on his important work. We deserve answers to our questions and the sooner we get them the better. If every person that receives this email sent in $5.00, ORTA would reach its goal and retirees could begin getting answers to questions about our pension system.

STRS News

As I write this update, I am waiting for the STRS board to begin its December 2020 meeting. The recent meetings of the STRS Board have provided interesting exchanges between STRS employees and a couple STRS Trustees. Specifically, Wade Steen has asked several questions of the STRS employees that go well beyond the surface. Mr. Steen has also acknowledged that STRS is not meeting its obligations to the retirees. He has challenged everyone at STRS to find ways to fund the COLA and improve the financial position of the STRS system.

Much of the information covered at the STRS Board meeting on Thursday Dec. 17, 2020 concerned the benchmarks for STRS investments. In fact, from 10:00 am until 3:00 pm each of the asset class benchmarks were discussed. What I was able to discern from five hours of discussions about benchmarks is that these metrics are not understood by any of the STRS board members. In fact, one STRS board member said, "I guess what we know about our benchmarks is that these benchmarks are not helpful in determining the performance of our investment staff"’. A few things are clear. STRS staff are being paid tremendous incentives and NOBODY can say for sure if the staff have met the benchmarks established or if the benchmarks really provide a measure of whether STRS staff performance warrants an incentive bonus.

STRS Elections

This spring two retiree seats on the STRS Board are up for election. I have received calls from OFT leaders and from individuals interested in running for a seat on the STRS Board. ORTA will seek information from each person that declares their candidacy for these positions. So far, I have received information from one person that has declared his candidacy; Ron Donatone is an ORTA member from Northeast Ohio. Ron is hoping to get the signatures required to be placed on the ballot. If you would like to help Mr. Donatone get his signatures, you may contact him via email at rdonatone@hotmail.com

OFT has reached out with names of two candidates. Rudy Fictenbaum and Elizabeth Jones have declared their intention to run for STRS Board. I do not have information from these people, but I will reach out and get platforms from all candidates for next month’s newsletter.

Best Holiday Wishes,

Dr. Robin Rayfield

ORTA Executive Director