Dan MacDonald to STRS Board 2/17/22: Actives need their future benefits enhanced and retirees need their COLA fully restored. I hope there are no shenanigans happening.

From Dan MacDonald 

February 17, 2022

Good morning.  Happy Belated Valentine’s Day. I am Dan MacDonald, an STRS retiree from Cleveland Hts University Hts City Schools with 38 years of service plus some more after retirement. I am Executive Director of NEO AFT Retirees,a Local 279R. I would like to give kudos to the Benefits Department, particularly Greg Nickell and his staff, for their swift resolution of issues that arose in December when some of our members’ spouses attempted to change Medicare plans and suddenly were without a health plan after deadlines.  To the best of my knowledge through the work of many, including STRS Benefits, plans launched on January 1 as they should have.  

Along with Mr. Price and other Board members at January’s board meeting, I was surprised by a scorecard projection that gave a score of zero both under the current baseline and Lever 2.  The STRS developed scorecard is set to a target range of 2.5% - 10% funded ratio. The ratio is specified in the board’s funding policy. Although I do not have the policy language, a few years ago, the STRS actuary was built into policy language around the consideration of a COLA.   Although I heard the internal actuary state that tremendous progress had been made through sacrifice, sustained focus and good fortune, the considered lever is still outside policy range and the lever will increase risk. Is the internal actuary on-board with Lever 2?  That isn’t what I heard, I heard serious concern. I also didn’t hear a no and I also did not hear a yes go for it.  I did hear stated that levers would need to go through the state legislatures if a serious financial downturn occurred. I bring this up since the Board is under an election cycle of three seats, two contributing seats and one retiree seat.  I hope that the serious consideration of Lever Two is not being considered to preserve the status quo on the board and within STRS.  Since August 2021, meetings have shown that the Board is questioning one voice. The timing of Yoel Mayerfeld replacement by the treasurer of state to appointee Scott Roulston adds to my concern. I know I can be cynical, but all this coming together at this time makes me wonder.

With that said, our retirees appreciate a move to a COLA and I hope the actives appreciate the consideration of the elimination of age sixty. Still, actives need their future benefits enhanced and retirees need their COLA fully restored. I hope there are no shenanigans happening.  Thank you.