Robin Rayfield to STRS Board, 2/17/22; Paying people far more than they are worth does not make you a top tier pension system. Paying people a pension that is commensurate with their contribution rate and paying retirees what you promised would be a start towards earning a top tier designation.

From Robin Rayfield

February 17, 2022

Greetings STRS Board Members:

My name is Robin Rayfield. I serve as the executive director of the Ohio Retired Teachers Association representing thousands of STRS beneficiaries. I am a STRS retiree having retired in 2011 with over 30 years of service.

As a retired principal and superintendent, I had the great fortune to hire many first-year teachers over the years. I always stressed that, even though the pay for a beginning teacher was low, they would receive step increases each year and that their pay would increase at a rapid pace. I also explained how the STRS retirement system worked and that when retirement came, they would be happy that they paid 10% or now 14% of their salary towards STRS.

I think of how that conversation would go if I were working now… Well son, the beauty of the STRS system is that you pay 14% and the district pays 14%. Let’s look at what you get for your fourteen%... For every dollar that you contribute, STRS will give you seventy-seven cents when you retire. Doesn’t that sound great? Just think of it, you will pay 14% directly out of your salary and you will get a benefit that is worth 10.8%.

And, you will know that as an STRS member, you will be a part of the only pension system in the US where the individual pays in more than the pension is worth. That’s right, you truly will have the worst deal in America. Your contribution rate will be the highest in the US while your employer pays the lowest rate in America.

Make no mistake about it, STRS and the consultants that they hire will tell you that STRS is a top tier pension system. Never mind that:

·        • Retirees have experienced a reduction in the benefits promised in each of the last several years

·        • Active teachers pay more than their pension is worth

I guess the reason STRS considers itself a top tier pension system is because their employees are paid so well. Sixty-five people at STRS make over $200 K per year which is tops in the US public pension world.

Newsflash for STRS Board Members, paying people far more than they are worth does not make you a top tier pension system. Paying people, a pension that is commensurate with their contribution rate, and paying retirees what you promised would be a start towards earning a top tier designation.