Rudy Fichtenbaum responds to STRS Board chair Rob McFee's "Why now?" post on FB

Posted on Facebook April 4, 2022 by Rudy Fichtenbaum

Rudy Fichtenbaumc

Y1tesgterdayp0 natrt0e d5:39au9 PM 
 · 

A Response to Rob McFee’s “Why Now?”

Dr. Rudy Fichtenbaum

April 4, 2022

A couple days after the March meeting Rob McFee posted on Facebook “Why now?” in which he said, “During the meeting Mr. Fichtenbaum implied that the only reason our board was considering a COLA at this time for our retired members was because of the Board election.” He then goes on at the end of his remarks to say that my opinion was “insulting to every board from 2017 until now.”

I could spend the entirety of this post complaining about the ways in which my integrity has been attacked or the insulting and demeaning treatment I receive at nearly every Board meeting. But the real people who are being insulted are the members. STRS is not about the staff, and it is not about the Board; it is about the members.

Changing the age requirement and giving a one-time 3% increase to retirees is a cynical attempt to get active members and retirees to vote to reelect Board members who have lost touch with the members.

What is insulting to members is to read Facebook posts from Rob McFee telling them that the way we can restore benefits is through excellent investment returns, knowing full well that that the Board just approved a plan that is expected to earn 6% on investments while knowing we need to earn 7% or the unfunded liability will increase, and the funding ratio will go down.

What is insulting to members is that the Board is talking about writing a promissory note in the future, knowing that when the note comes due there will be insufficient funds. We have all seen this before. This is the ultimate insult to members because it assumes members are too stupid that to figure out that promising to restore COLAs in the future, without earning more money, is just an empty promise.

That’s why both Wade Steen and I say at almost every meeting to our consultants and staff, we need to find a way to earn more money without taking more risk.

It is an insult to members to brag that the funding ratio is 88% or that STRS outperformed 96% of 200 pensions in the Callan database. If we are doing so great why do active members have the worst deal in the country, contributing $1 to the pension so they can get $0.77 when they retire and why is STRS the only pension in Ohio without a real COLA?

It is insulting to members to post on Facebook while you are campaigning and turn off the comments! Are you afraid of hearing from members? If everything is so great turn the comments on and let’s hear what the members think.