Dan MacDonald's speech to STRS Board 4/21/22: the staff should be included in the pain

Good morning.  I am Dan MacDonald, an STRS retiree with 38 years of service in Cleveland Heights – University Heights City Schools, plus some retired/rehire years. 

STRS is working on its 2023 Budget.   I implore the Board to not have merit-based pay raises this year.  Since 2017 thru 2021, inflation has been calculated at 14.5%.  During those years, most STRS staff have received, on average, a 3% raise. I am not talking PBI’s; I am addressing merit-based pay increases by department. STRS and the Board make it clear when dealing with actives and retirees’ members, that everyone should feel the pain or exaltation. Since this pension plan is funded by member moneys, I  think the staff should be included in the pain. Additionally, when the PBI Policy comes under scrutiny, I think the language around 5-year smoothing should be removed. Either meet the benchmark every year, or like the rest of us, hurt. I would also suggest that the benchmarks be further discussed. Either beat 7% or do not issue an incentive. Since we have a dynamite in-house investment team that never reports losses, at least in public sessions, either beat the 7 percent set by the Board, or live on a 3% merit-based raise which, as stated, should not be part of this year’s budget.

Additionally, 4 of my members over the past 6 months, have been involved with the denial of rehab services while in a rehab facility. AETNA probably based denial on non-progress. HPIAA blocks total understanding. Rehab facilities sent one home because there was a safety plan that could be met at home, the other three were charged over $14,000 plus for a month’s “housing”, nice word, right? One is still being charged in retroactive costs because a safety plan can’t be made and therefore he/she can’t be released.  Another’s daughter became the premier advocate questioning everyone and everything and ultimately received reimbursement when discovering paperwork was not properly filed as the paperwork was not submitted. The Benefit Department should design and present educational seminars on the ins-outs of health plan coverages and non-coverages. In the best of circumstances, Medicare covers fully only the first 20 days of rehab, then 80% for the next 80 days, then costs are on the individual. Actives need to know. There is an STRS push to not rely totally on pension moneys, there needs to be a similar push to not totally rely on health insurance plans.

I am running out of time; this needs to be further addressed.  Retirees find out their costs are not being covered days before the cut-off.  An Appeal is made; denied; reappealed….all in the midst of stress from injury.

Actives need their benefits enhanced beyond the elimination of an age requirement and retirees need a permanent COLA.  Thank you.