Trina Kay Prufer: It’s elder abuse because it involves a significant loss of income previously assured.

From Trina Kay Prufer

October 22, 2023

The reality of BENEFIT REDUCTION in retirement - A term we are not using but should.

This is the betrayal factor. Why? Because aging retirees can’t make up the difference. It’s elder abuse because it involves a significant loss of income previously assured. Ohio‘s public workers do not have Social Security as a back up, so benefit reduction is drastic, impactful and cruel. Also, the monthly loss is exponential; without an adequate cola, inflation reduces the benefit by an ever increasing percentage.

So, have any other teacher retirement systems, in non Social Security states, had to reduce benefits? Yes, but rarely, and not to this extent. What separates STRS from the norm is that STRS does not use any metrics (the CPI) to protect retirees from inflation, can make decisions harmful to membership independent of the legislature, and spends money without regard to its fiduciary duties. In short, it acts irresponsibly and not for the benefit of its membership.

How can we fix this? By looking at other states and their policies, especially the protections built into legislation. Other states have reasonable limits, and guardrails, STRS does not. It‘s only by comparing STRS to similar teacher retirement systems that we understand its deviance from the norm. How much time has been devoted to this discussion during recent STRS board meetings? Zero minutes. That tells us why we need fresh ideas and new leadership.