Deliberate deceitfulness on the part of STRS exposed by Robin Rayfield

From this month's ORTA Newsletter 

April 20, 2022

STRS Report to ORTA members 

By Robin Rayfield

The STRS board will meet on April 21. Since the COLA issue was resolved in the March meeting, I suspect that the business will involve reports from the financial the department and from the investment department. Currently, the board of trustees at STRS are divided along two separate camps. One camp is committed to maintaining the current status quo that includes suspension of COLA and providing a pension that is worth less than the individual’s contribution. Those are the incumbent members of the board. The other camp includes Dr. Fichtenbaum and Mr. Steen. These board members are committed to making changes at STRS that will lead to a pension that is commensurate with the contribution rate members pay and also includes a commitment to a COLA for retirees.

Remember, ORTA endorsed the following candidates for the election that is taking place this month:

Retiree candidate = Elizabeth Jones

Active member candidates = Steven Foreman and Julie Sellers

STRS members recently received correspondence from STRS that refutes the claim made by ORTA and many others that active members receive .77 cents on each dollar that they contribute. I will attempt to explain ORTA’s claim of .77/dollar contribution rate. All pensions (STRS included) provide a calculation called the ‘normal cost’. This normal cost provides the members with the ‘value’ of their pension. STRS calculated and publishes that the normal cost of an STRS pension is 10.8%. You can find that figure in STRS literature, (most notably in the ACFR). Knowing that the contribution rate for STRS members is currently 14% and the ‘value’ or normal cost is 10.8% we know that the actives currently pay 14% for a 10.8% benefit. If you divide the normal cost (10.8) by the contribution rate (14) you get .77. Thus, members get 77 cents on the dollar. Boston College ranks public pensions across the country. STRS Ohio is the ONLY public pension that has a normal cost less than the contribution rate. STRS knows this and also knows that it is deceitful to tell people otherwise. Of course, they will not admit that STRS retirees and actives have the worst deal in America.

Dr. Robin Rayfield is Executive Director of the Ohio Retired Teachers Association (which is also open to active teachers) and an outspoken advocate for ALL teachers, active and retired, where STRS matters are concerned.