Robin Rayfield's speech to STRS Board February 16, 2023

Good morning. My name is Robin Rayfield. I am a retired STRS member and Executive Director of the Ohio Retirement for Teachers Association.

On several occasions I have addressed the STRS board asking what is the ‘pathway’ to restoration of promised benefits. My request for a plan or pathway to restoration of benefits has not been provided. We often hear statements from STRS leaders that ‘the current plan is working, our funding ratio is improving each year’. Or something like ‘the measures taken with regards to pension reform have proven to be successful. It just takes time’. These statements lead me to believe that STRS’s plan is to keep doing what it is currently doing and things will improve with the next economic cycle. What the plan seems to be in reality is this: 

• Make people pay more, work longer, and collect less.
• Cut benefits to retirees.

I’m sure that is not how this pension reform was advertised nor how it was communicated to members of STRS. I have been asked by STRS management what My plan might include. OK here are some of the ideas I have:

1. Transition to more indexed-based investment strategies. The returns will be better as verified by the auditor of state Faber. 

2. Passive investing will require a significantly smaller investment staff saving money.

3. Eliminate the PBI program.

4. Eliminate all fringe benefits such as cafeteria services, childcare services, and gymnasium services that carry any financial burden to the STRS pension system.

5. While transitioning to an indexed based investment system, provide transparency with all investment information. Do not invest in any strategy that claims trade secret status and is not made public.

6. Explore all strategies to increase revenue to STRS that show promise such as employer contribution increases, and or investment strategies.

7. Sell the building and move into a site that costs less. With so many staff working from home the need for space must be less than before.

As I have stated many times before, ORTA (and many other individuals) are ready to be partners in the solutions to our pension’s problems. After all, the current leadership has dug the current hole we are in and it's not getting better. It's time for changes in the direction at STRS.