Dean Dennis corrects misleading statements in a recent STRS publication, eUPDATE

Dean Dannis’ speech to the STRS Board

April 20, 2023

Dean Dennis, retiree from Cincinnati Public Schools, ORTA President Elect, Watchdog Administrator, Member of MOF, Member of 1520-R and Hamilton County Retirees Chapter. 

"There's been a lot shared about STRS Ohio lately on social media, the internet and email. Sadly, much of this information has been incomplete at best and incorrect at worst."  

This is how both editions of the  STRS eUPDATE "The Real Story" begin.  Perhaps these social media groups exists because of the way the STRS has been mismanaged the pension.

Let's look at the April 5, "Real Story" edition. 

"Fact 1," talks about the State Auditor’s report, skirting the fact that the Auditor also shared,

“You need to keep the promises to the people, who were made reliant based upon those promises. And, a lack of transparency, whether actual or perceived, has spawned the distrust, misunderstandings, and accusations that made the special audit necessary.”

In the second edition of "Real Story," released on April 12, "Facts 1 and 2" paint a rosy picture of how good active teachers have it under the STRS pension.

For example, the "Real Story" shares that the average STRS retiree receives an annual pension benefit of about $46,000, and receives 77% of the average of their highest five years. STRS compares this with the average OPERS Retiree receiving about $31,000 and then the average SERS Retiree, receiving about $18,000. I guess the STRS strategy was that if you tell members this information, members will forget about their 14% contribution rate, forget they must work 5 years longer, and forget there isn't a COLA in their future.   

Let's compare a teacher's retirement to an STRS staff member’s retirement; who pays into OPERS. The average STRS staff employee (comparing all 504 employees) currently earns over $137,000 (bonuses included for the investment department). So the average STRS staff member pension average well be around $107,000. Note they receive 78.5% for their 35 years, after an average of their highest three years. And yes, they also will receive a COLA. 

Board Members, is there going to be another Real Story before the election? Perhaps this is an executive session topic. For some reason this feels like election interference.

Lastly, where is the leadership at STRS? The problem has been obvious for years. STRS needs to find $4 billion a year in investments, because the employer contribution rate lags non-Social Security state peers by 10%. It's evident from the several billions STRS has clawed back from members. Your plan to invest your way out of the problem isn't working. Knowing that for years you needed more employer contributions forcing you to claw monies from members, one would think STRS leadership would be using their lobbyist to expose the problem and be shouting from the rooftops. Instead, crickets. Members demand change.  Scapegoating social media groups isn't the answer, members know who is the problem.