The picture at STRS is NOT rosy, as Bill Neville would have you think (see article above); far from it! Remember: he's trying to save his cushy job. Read on!

From Joe Lupo

May 16, 2023

My Response to William J. (Bill) Neville's Guest Opinion in The Columbus Dispatch Today, May 16, 2023 (see above article).

When I read this guest opinion by Bill Neville, titled "STRS director: Teacher 'pension reform is working, Board balancing needs of retirees, future," the only thing that came to mind is how the propaganda stream just never stops. In fact, Neville and his communication department have become quite adept at taking the facts and distorting them however they want. Then they turn around and accuse those of us on social media of misinformation when it is they who are guilty.

I also need to clear the clouded vision of Neville and all staff members before responding to specific statements in his guest opinion. Neville refers to STRS as if were a stand alone independent organization that provides us with services and a retirement much like Social Security or a welfare-type agency. Wrong and wrong again based on the following:

IT IS THE MEMBERS THAT ARE STRS. RETIREES AND ACTIVE MEMBERS ARE CONTRIBUTORS TO STRS. THOSE THAT ARE EMPLOYEES OF STRS ARE NOT CONTRIBUTORS TO STRS.

WHEN STRS IS REFERENCED, THE FOLLOWING SHOULD BE MADE CLEAR: STRS IS A RETIREMENT SYSTEM OWNED BY THE MEMBERS AS STAKEHOLDERS AND STOCKHOLDERS AND REPRESENTED BY A BOARD WHO SERVE AS THEIR FIDUCIARIES.

That having been said, I will now move on to the content. Neville stated the following: "It is critical that the STRS Ohio Retirement Board balance the interest of current retirees with the need to maintain the fund for young teachers who may be receiving retirement benefits into the next century". Where was the concern for 30-plus years when money was spent like water on a multitude of unnecessary expenditures that were of no direct benefit to the retirees or active members? And by the way, Mr. Neville, you are also guilty of continuing unnecessary spending practices. Where was the concern over the years that resulted in $20 billion in unfunded liabilities? No mention of that either.

After Neville brags about the $7.4 billion in benefits paid and the $418 million in health care, he then has the bold face audacity to state the following; "The majority of benefits are paid from investment returns, not educator or employer contributions" Really? He conveniently left out the part that all the money used for investments come from the educator and employer contributions. Since Neville and none of the staff pay into STRS, we know the money certainly doesn't come from them. Fact is, our pension funds are used to pay the employer contribution for their retirement to OPERS (Ohio Public Employee System).

Once again Neville had to blow his horn stating; "Ohio investment managers rank in the top 10 per cent of public funds for the three-, five- and seven-year periods ending December 31, 2022." However for the first half of 2022, STRS in real estate investments performed worse than all the other Ohio public pension systems. So, Neville is obviously cherry-picking the facts. He moves on to talk about the $20 billion made for the teachers. However he conveniently fails to mention the billions of investment losses and the millions paid in bonuses. He fails to mention those periods of underperformance by the investment staff. Isn't telling the whole story the same as misrepresentation and misinformation?

Neville states that; "In 2012, following the Great Recession, the laws governing Ohio public pension systems were amended to preserve the systems' fiscal integrity". All these changes were at the request of STRS and were blindly approved by the Ohio Legislators, thus providing the opportunity for Neville and the board to make changes that continue to impact us as members. The least Neville could do is be forthright with his information. Neville should not have to spend one minute thinking about why the members do not trust him. The reasons should be very clear by simply reviewing his actions as ED.

He states; "Fortunately, pension reform is working." STRS Ohio's financial condition has improved dramatically over the past 10 years." He mentions the 3% one-time COLA, but fails to mention all the years retirees have gone without a COLA. He also fails to mention that Ohio teachers' pay one of the highest, if not the highest employee retirement contribution percentage in the country. The hard, cold fact is the improvements to the financial condition have been on the backs of the members. There has been no skin in the game by the employees who continued to receive raises, bonuses, performance-based increases, vacation and sick leave buy-backs and the employee perks that members are forced to subsidize.

In Neville's last comment he talks about the protection for Ohio Teachers for over a century. Actually, the protection provided has been at the expense of the members and was not some unpaid benefit. The money protecting us is our money. Unfortunately due to STRS's sordid past and present, our protection has diminished in value, and unfortunately will diminish even further for future retirees.

Mr. Neville's primary problem is that he and the employees of STRS do not live in our world. There are both retired and active members who are having difficulty making ends meet while millions are being spent on staff salary increases and bonuses. The current economy has further impacted them because Neville and the majority board members have taken away their ability to have adequate finances. Neville attempts to paint a rosy picture. When the glitter is removed, it is just another attempt by him to whitewash a very dark situation that many retirees live with every day while the majority board members continue to support the downward spiral that Neville has put us in.