Rudy Fichtenbaum responds to Molly Janczyk and Milly Ganz re: COLA

From: Rudy Fichtenbaum 

Sent: Sunday, April 11, 2021 

To: Molly Ganz 

Cc: Molly Janczyk

Subject: Re: COLA
Molly,

I agree with you that trimming parking, staff salaries and benefits will not provide STRS with the money to reinstate the COLA. One of the reasons we have a problem is because over the years a culture has developed that does not put member interests first. The bonuses and other benefits, along with the art work etc. are the symptoms.

To reinstate the COLA we are going to have more transparency. In addition, we need to cut investment expenses, starting with all of the money we pay for alternative investments. Half of all investment expenses are attributed to alternative investments, which have consistently underperformed. We also need to start looking for new investment strategies that can increase returns without taking on more risk. Finally, we need an increase in employer contributions. Active members saw their contributions go up by 40%. Employer contributions have not increased in over 35 years and are at the low end of employer contributions for non-social security pensions. The Board should support this effort but it will ultimately be up to members who should be working with the Board to convince our elected leaders that we need an increase in employer contributions.

Best,

Rudy Fichtenbaum

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From Molly Ganz

Apr 11, 2021

Subject: COLA

Hello there, How about we get these new people elected first? There has been a lot of our money wasted, as you are well aware. I hope they start there. $100? Not everyone is up that high! My net gain after a cola increase was $45, but it added up over the years we received it.

Molly Ganz

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From Molly Janczyk

Apr 11, 2021

Subject: COLA

I am a retired and want my pension maintained over all else.

Question:

Where is the money to reinstate COLA?

Figuring just $100 a month for just 150,000 retirees, the figure is

15,000,000 per month times 12 months is 180,000,000 a year.

Trimming salaries, benefits, parking, and all else does not generate that amount.

I want COLA as much as anyone finding increasing costs outweigh income.

We all want COLA but where is the funding?

What will happen with the next economical downturn like the Great Recession?

Molly Janczyk

Retiree