Joan Bellner: Some words of wisdom for the STRS Board going forward

Joan Bellner's speech to STRS Board

May 18, 2023

I learned many important lessons early in my adult life -- two stand out. The first is that people, and entities, who are truly great -- NEVER have to tell people they are great -- Others. Just. Know.

The second lesson, is what Henry Ford told us: "If You Always Do What You've Always Done, You'll Always Get What You've Always Got."

If there's one thing the Pandemic taught us, it's that times change...

Just because some practice was discussed and rejected in the past, doesn't mean it shouldn't be revisited. And, just because a practice worked before, does not mean it works now.

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Many members were disappointed after the last Board meeting... when budget figures were presented that confirmed we cannot afford an ongoing COLA -- or even a decent one-time COLA -- OR reduction in years of service, at this time.

The big questions, for me, are

1) How do we cut costs, examine investments, improve income, and continue to decrease, or better yet, eliminate our negative cash flow?

2) How do we get back to 85% or higher funding, ASAP?

In my opinion, these two things should be a priority -- and, the main focus of this Board.

The huge issue -- which no one brings up -- is NOT the fact that we are a mature system. It's the fact that our membership, as of March 2023, is made up of 33%active, 31% inactive and terminated, and just 30% retired. 

Roughly ONE-THIRD of our membership is people who have either been terminated or have left the field of education early. .. While their money is still in the fund for now, and being used to earn interest on investments; they are not contributing -- and won't be contributing -- any new money. 

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I was encouraged when a board member made a suggestion at the April Board meeting... to have a portion of every Board meeting devoted to what's being done for the membership.

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This does not mean staff bragging about customer satisfaction rates from meetings with counselors... or similar presentations.

It means rolling up sleeves and digging into the ongoing work that needs to be done to actively restore funding to sufficient levels -- restoration of which is required by law -- ...so that "enhancements" also can be restored... including, decent ongoing annual COLAs... and reduction of required service time to earn unreduced benefits.

We do not need 100% funding levels to afford ongoing annual COLAs... and we should not wait another 11 - 14 years, until the system is 100% funded, to provide them. 

If the authentic agenda addition of... "what's being done?" --- does not happen organically, I encourage every Board member to make a motion, second it, and vote in favor of mandating that it be a part of every month's agenda, going forward.'

Thank you.