Sponsor Testimony for House Bill 78: Regarding State Teachers Retirement Board elections and membership

Majority Floor Leader Bill Seitz and Representative Joe Miller

The Ohio House of Representatives

March 28th, 2023

Sponsor Testimony for House Bill 78: Regarding State Teachers Retirement Board elections and membership

Chairman Young, Vice Chair King, Ranking Member Lightbody and Members of the committee, it is my pleasure to present sponsor testimony on HB 78.

This legislation addresses voting procedures within the State Teachers Retirement System (STRS). Currently, the STRS Board includes five members representing actively employed teachers, elected solely by actively employed teachers, and two retiree members, elected solely by retiree members. This in itself is interesting because currently, there are just about as many retiree members as there are active members in STRS.

That disparity is a subject for another discussion, and we are proposing a more modest step that corrects an anomaly in current law whereby a re-employed retiree (someone who was an active STRS member, then retired, and now is re-employed in an STRS-covered position) is ineligible to run for the STRS Board either as a representative of the active members or as a representative of the retired members. Effectively, these individuals are entirely disenfranchised. Our legislation simply proposes that re-employed retirants be eligible to run for election either as a representative of the active members, or as a representative of the retired members, but with the further caveat that if they are elected as a representative of the active members and cease their re-employment, they must step down at that point.

We believe this modest proposal is fair and will give a voice to the not insubstantial number of re-employed retirants working in the STRS-covered positions. In addition, we believe the voice of these older persons may provide wisdom and maturity that would improve the overall functioning of the State Teachers Retirement System.

HB 78, as introduced is supported by both Republicans and Democrats, as well as The Ohio Education Association and the Ohio Federation of Teachers.

Thank you again for the opportunity to provide sponsor testimony on HB 78, I would be happy to answer any questions that the committee may have.

Channel 5 ABC Cleveland spotlights the mess at STRS 4/12/2023

https://www.youtube.com/watch?v=rI_iRSxdU6g

Click link to view the video.

Bob Buerkle's rebuttal to STRS "The Real Story, Part 2 -- Pension and Benefits" (or Apples and Oranges)

Below you will see STRS' version of "the real story". If you want the true story, read Bob Buerkle's comments, which appear below in boldface. Anything not in boldface comes from your illustrious pension system. Could they be trying to sway the election? You be the judge. 

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From Bob Buerkle

April 12, 2023

STRS is trying to interfere with the election by writing this e-update. It does not present all of the facts and it compares Apples to Oranges. Read my response to their email below, which is in bold print.

Bob Buerkle

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From STRS

April 12, 2023

The Real Story (Part 2) — Pension and Benefits

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.

In this edition of "The Real Story" we'll share more undeniable facts about your STRS Ohio pension and benefits:

FACT 1:

The average new STRS Ohio retiree receives an annual pension benefit of about $46,000.* HOWEVER, THE AVERAGE STRS TEACHER RETIRES WITH JUST OVER 30 YEARS OF SERVICE, NOT 24.8 YEARS LIKE SERS AND NOT 23.5 YEARS OF SERVICE LIKE THE AVERAGE OPERS RETIREE. ALSO PAYS 14% IN CONTRIBUTIONS AND MAKES A FAS OF OVER $75,000.

The average new OPERS retiree receives an annual pension benefit of about $31,000.** PAYS 10% IN CONTRIBUTIONS AND MAKES A FAS OF ONLY $46,575.

The average new SERS retiree receives an annual pension benefit of about $18,000.* PAYS 10% IN CONTRIBUTIONS AND MAKES A FAS OF ONLY $38,250.

FACT 2:

STRS Ohio Defined Benefit Plan participants receive 77% of the average of their five highest salary years with 35 years of service credit. Both OPERS and SERS Ohio Defined Benefit Plan participants receive 78.5% of their FAS with 35 years of service credit.

FACT 3:

Health care coverage (medical, dental and vision) is available to qualifying STRS Ohio benefit recipients and their families. This coverage is popular, with 108,847 enrollees in the STRS Ohio Health Care Program.*** PLEASE GIVE ME THE OPERS HEALTH CARE BENEFIT. I'D TAKE IT IN A HOT MINUTE.

*Defined benefit plan participants in fiscal year 2022.

**Defined benefit plan participants in 2021.

***The number of enrollees as of April 2023. Access to health care coverage is available under the STRS Ohio Defined Benefit Plan and Combined Plan. Health care coverage is not guaranteed.