Any last-minute voters out there who think STRS is the cat's meow? These words of wisdom from a seasoned, highly informed retiree might persuade you to think again and vote for the reform-minded candidate for STRS Board, Pat Davidson

From Bob Buerkle

April 29, 2023

STRS even lies to their own new employees in their welcome handbook. The 3rd sentence on page #3 says "STRS Ohio is one of the nation's leading retirement systems." Here's the link. file:///C:/Users/user/Downloads/47-900Ba_CYS-WrkBook_1222.pdf

It should read, STRS Ohio WAS ONE OF the nation's leading retirement systems UNTIL 2012, BUT SINCE THEN IT'S BECOME ONE OF THE WORST PENSION SYSTEMS. STRS IS PROVIDING NO COLA TO ITS RETIREES, FORCES TEACHERS TO WORK 5-9 YEARS LONGER TO RECEIVE AN UNREDUCED PENSION FORMULA, CHARGES ACTIVES 40% MORE IN CONTRIBUTIONS THAN IT DID 10-YEARS AGO AND IS THE ONLY PUBLIC PENSION PLAN IN THE COUNTRY THAT REQUIRES CONTRIBUTIONS OF 14% FOR A PENSION BENEFIT WORTH ABOUT 11%, ACCORDING TO THEIR OWN ACTUARIES.

 

Message from Dan MacDonald to Bill Neville and STRS Board: Am I missing something?

From Dan MacDonald

April 29, 2023 

So why am I confused?  In 16 days,  the average STRS pension benefit goes from $46,000 to $69,000?  Am I missing something?   

Dan MacDonald, Executive Director, 279R

April 29, 2023 

The Real Story [Part 2] April 12, 2023  STRS E Update

FACT 1:

The average new STRS Ohio retiree receives an annual pension benefit of about $46,000.*

The average new OPERS retiree receives an annual pension benefit of about $31,000.**

The average new SERS retiree receives an annual pension benefit of about $18,000.*

*Defined benefit plan participants in fiscal year 2022

  ~    ~    ~    ~    ~

The Real Story [Part 3] April 28, 2023 STRS E Update

FACT 1:

These new STRS Ohio retirees receive on average an annual pension benefit of about $69,000.*

The median annual pension benefit — meaning half of these new STRS Ohio retirees receive a lower pension benefit and half receive a higher pension amount — is $65,000.*

*All figures are from fiscal year 2022.

 

Dean Dennis (Columbus Dispatch 4/28/23): "What STRS doesn’t admit is the truth: They have no real plan to restore benefit cuts and to provide a COLA for retirees,"

Ohio teachers pension fund leaders have no real plan only propaganda: Retiree leader

Columbus Dispatch

April 28, 2023

"What STRS doesn’t admit is the truth: They have no real plan to restore benefit cuts and to provide a COLA for retirees," Dean Dennis

Dean Dennis

Guest columnist

The recent article “Ohio teacher pensions: Control of the board, $95B at stake in election” is certainly correct in making the statement that the State Teachers Retirement System of Ohio board election — which is now taking place — is a pivotal moment for the State Teachers Retirement System. 

However, the issues in this election centered around an “unproven investment strategy” are incorrect. If anything, the issues center around the current STRS investment strategies, which have failed to deliver the resources needed to keep the promises made to Ohio’s teachers. 

More:Ohio teachers pension fund faces pivotal moment with upcoming board election

Recently, investment expert Richard Ennis, who was hired by Ohio to help clean up the mess at the Bureau of Workers Compensation in the aftermath of “Coingate," wrote a Toledo Blade essay essay that explained how STRS had “underperformed a passively investable benchmark by 1.62 percentage points per year for ... 13 years...” and “much of the underperformance could be attribute to unrecouped expenses incurred by STRS.”

Active teachers are working longer and paying more, but will receive less when they retire. 

A large part of what they will not receive is their guaranteed cost-of-living adjustment, which the STRS Board eliminated. How will active teachers fare over time, since they will not receive Social Security in retirement and will also not have a COLA?

Those who are already retired did so with the promise  that they would receive a COLA; however, after making that irrevocable decision, they have found over the last decade that the STRS Board reneged on its promise. Retirement for active teachers and for those already retired without a COLA is a formula for impoverishment.

In Ohio, a non-Social Security state, asking active teachers to work longer, pay more, receive less, and retire without a COLA is asking them to take a vow of poverty in their golden years.

This hurts all Ohioans. It will also surely drive the best and the brightest teachers, who are among the most educated individuals in Ohio, to look for work elsewhere or to choose a different profession. That is what is truly at stake in this election.

Dean Dennis is a retired Cincinnati Public Schools teacher and administrator.  He is president-elect of the Ohio Retired Teachers Association.

CORRECTION: The Columbus Dispatch was incorrect in stating that Dean Dennis is a retired Cincinnati Public Schools administrator. Dean was a lead teacher, not an adminstrator.

https://www.dispatch.com/story/opinion/columns/guest/2023/04/28/ohio-teacher-pensions-board-strs-has-no-real-plan-to-restore-benefit-cuts-provide-cola-election/70160143007/

"Mr. Faber’s transparency award is worse than undeserved. It crosses the line to harmful by validating the myth that STRS is open and transparent, when in reality it is still closed and self-dealing."

Toledo Blade Editorial: Transparency award joke

THE BLADE EDITORIAL BOARD

APR 27, 2023 

Auditor of State Keith Faber can’t make up his mind on the State Teachers Retirement System of Ohio.

This month the auditor honored STRS with the Highest Achievement in Open and Transparent Government Award. It is the third year in a row that Mr. Faber has given STRS his highest rating for transparency.

But in his Dec. 29 Special Investigations Unit probe of STRS (“No illegal activity in the $90B Ohio teacher retirement fund, special audit finds,” Dec. 29) Mr. Faber made lack of transparency in the alternative investment portfolio an issue of concern. The auditor said STRS should “strive for transparency” and recommended ending the practice of classifying dark market investments as “trade secrets.”

Transparency is also a huge issue regarding the highly controversial payment of bonuses to STRS investment staff. Mr. Faber recommended that the basis for bonus calculation and whether they should be paid at all, is ripe for review by the General Assembly. Incredibly, next month the STRS Board is set to vote on a 30-percent increase in the investment staff bonus budget.

Investment expert Richard Ennis wrote in a March 4 Saturday Essay (“STRS investment performance measure flawed”) that STRS bonus benchmarks are the antithesis of transparent by design.

“The convention among large public pension funds like Ohio STRS is for the staff and consultant to work together to contrive a benchmark that no one else could reproduce if their life depended on it: one that is opaque, complex, and purely subjective; one that is tweaked regularly by the staff and/?or consultant; one that demonstrably understates a fair return for the risk assumed; and one that invariably gives the misleading impression that the fund is outperforming passive management — adding value — when it is not. That, unfortunately, is today’s convention.”

There is little incentive for STRS or the General Assembly to seriously consider Mr. Faber’s concerns and recommendations on transparency when he hands STRS an award for the highest achievement in open government. The damage is compounded when a purposefully complex benchmark is used to pay six-figure bonuses to investment staff for performance that lags a market index. The December audit concluded STRS would have improved results by a stunning $90 billion by using a low cost S&P 500 index.

Mr. Faber’s transparency award is worse than undeserved.

It crosses the line to harmful by validating the myth that STRS is open and transparent, when in reality it is still closed and self-dealing.

Rudy Fichtenbaum: STRS's version of "The Real Story" is a complete distortion of the reality faced by most retirees

From Rudy Fichtenbaum

April 27, 2023  

The Real Story

STRS Staff have put out their 3rd "Real Story" during the election campaign. I wonder why! But what they are calling the "Real Story" is a complete distortion of the reality faced by the majority of retirees.

The real story is that when you talk about income you should use the median not averages. It is a well known fact, taught to every student in principles of economics, that the income distribution and the distribution of wealth are skewed to the right. This means the majority of people are piled up toward the low end of the distribution. This is why government statistics on income and wealth always use medians as the best measure of central tendency. In statistics there are three measures of central tendency, the mean (average), median and mode. In a normal distribution (a bell shaped curve) they all coincide so using the mean is fine.

But income is not normally distributed. In a distribution that is skewed right, the median is in between the mode and the mean which is why it is used as a measure of central tendency when discussing income or wealth. But I guess the Department of Propaganda must think teachers are too stupid to know that the mean presents a distorted view of what most retirees receive.

My father always used to tell me if our neighbor has $2 million and we have nothing, on average we are both millionaires!

Moreover, the bigger question is what will most retirees do after 20 years of retirement without a COLA? With just 2.5% inflation after 20 years, the real value of their pensions will decline by 39%.

In addition, the numbers in the "Real Story" are just for people with at least 34 years. But many of our retirees, especially women who might have taken time off after having children, or worked in more than one state, do not have 34 years. The Department of Propaganda, probably because it is headed by men, didn't consider the median income for all retirees, because it would have run counter to the narrative they were trying to promote.

If you want to know why people don’t trust the numbers put out by STRS, the latest "Real Truth" helps to explain this sad state of affairs.

Dr. Rudy Fichtenbaum is Professor Emeritus of Economics at Wright State University. He is also an elected member of the STRS Board since 2021.

Hot off the press: Your pension system's version of The Real Story #3 (but never fear; Rudy got it right in the above article)

From STRS

April 27, 2023

The Real Story (Part 3) — Pensions for Educators With 34 or More Years of Service

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 the pensions enjoyed by many new STRS Ohio retirees with 34 or more years of service.

FACT 1:
These new STRS Ohio retirees receive on average an annual pension benefit of about $69,000.*

FACT 2:
About one in five retiring educators elect to receive a Partial Lump-Sum Option Plan (PLOP) payment immediately upon retirement. The average PLOP paid to these new retirees was approximately $157,000.*

FACT 3:
Removing reductions for PLOP payments and Joint and Survivor Annuities (many choose to protect loved ones via these options), the average new STRS Ohio retiree with 34 or more years of service receives an annual pension of more than $77,000.*

*All figures are from fiscal year 2022.

An enlightened STRS stakeholder gives us the TRUE story, not the garbage our pension system puts out in their eUpdates, which they call "The Real Story". Read the TRUTH below, in capital letters.

One of our STRS stakeholders just penned a response to the latest STRS eUPDATE that came out this morning in another attempt to interfere with the current Board Member Election.

April 27, 2023

The Real Story (Part 3) — Pensions for Educators With 34 or More Years of Service

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. LIKE WHAT? EXAMPLES PLEASE!

In this edition of “The Real Story” we’ll share more undeniable facts about the pensions enjoyed by many new STRS Ohio retirees with 34 or more years of service.

FACT 1:
These new STRS Ohio retirees receive on average an annual pension benefit of about $69,000.* THIS IS THE SIMPLE RESULT OF NEW RETIREES WITH 34 OR MORE YEARS OF SERVICE ARE RETIRING WITH A FINAL AVERAGE SALARY (FAS), OF OVER $92,000. OF COURSE, WITH A 5-YEAR FAS OF $92,000 THEY HAVE BEEN PAYING CONTRIBUTIONS OF $12,880 A YEAR INTO STRS, PLUS THE EMPLOYERS HAVE PAID IN ANOTHER $12,880 EACH OF THE LAST 5-YEARS; THAT'S $128,000.

FACT 2:
About one in five retiring educators elect to receive a Partial Lump-Sum Option Plan (PLOP) payment immediately upon retirement. The average PLOP paid to these new retirees was approximately $157,000.* THESE RECENT RETIREES HAVE BECOME MORE EDUCATED AND AWARE OF STRS MANIPULATIONS THAT HAVE STOLEN BILLIONS OF DOLLARS OF THEIR FUTURE BENEFITS BY ELIMINATING THEIR COLA. THEY KNOW FOR SURE THAT THEIR PENSION WILL SEE NO INCREASE FOR AT LEAST THE NEXT 5-YEARS. THEY ALSO KNOW THAT THE 2013 RETIREES SAW NO COLA INCREASE FOR 9-YEARS. THEY ALSO HAVE LEARNED THAT THEY CAN INVEST THEIR $157,000 AVERAGE OF PLOP MONEY INTO THEIR PERSONAL IRA AND POSSIBLY DOUBLE, TRIPLE OR QUADRUPLE THEIR MONEY DURING THEIR LIFETIME. AND, UPON THEIR DEATH, ALL OF THEIR REMAINING FUNDS WILL GO TO THEIR HEIRS, UNLIKE THEIR STRS PENSION, WHICH KEEPS ALL OF THE REMAINING FUNDS BEYOND THE DEATH OF THE RETIREE AND/OR THEIR BENEFICIARY.

FACT 3:
Removing reductions for PLOP payments and Joint and Survivor Annuities (many choose to protect loved ones via these options), the average new STRS Ohio retiree with 34 or more years of service receives an annual pension of more than $77,000.* THIS SIMPLY SHOWS THAT A STRS RETIREE’S PENSION IS REDUCED BY ABOUT 10% FOR PROVIDING PENSION PROTECTION FOR THEIR SPOUSE OR OTHER BENEFICIARY.

*All figures are from fiscal year 2022.

James Carr on why we need Pat Davidson on the STRS Board

From James Carr 

April 27, 2023

STRS increased active teachers' contributions from 10 to 14% and delayed their retirements, requiring them to work for 35 years. In addition, STRS reneged on it's promise to provide an annual COLA, forcing thousands of retirees to subsist on fixed incomes.

The question each and every teacher should be asking is, where did all our money go?  All of us are recieving only a fraction of what we were promised when you consider that we are working longer, contributing more, and being robbed of a COLA that was supposedly prefunded.

The truth is, we are never going to get any answers from STRS unless the Board is controlled by reformers. That's why it's so important to elect Pat Davidson. Until that happens, the secrets will stay buried and our money will continue to vanish as it gets  sucked into the giant black hole called STRS.

 

Joe Lupo proposes an austerity program for STRS to correlate with the shameless harm they are inflicting on their victims: the teachers

April 24, 2023

By Joe Lupo

At the recent STRS Board meeting information was presented of a 100% FR (Funded Ratio). The 100% FR is aspirational and not necessary since 85% is considered healthy. The concern in this aspirational goal of 100%, is the time it would take STRS to achieve a 100% FR. The year would be 2032 for STRS to realize the restoration of "anything" which includes changes to the current retirement requirements and COLA. And with this, there is still no guarantee.

It takes only simple math to quickly calculate that it will 10 more years of being victims while STRS staff continue to enjoy the sweat of our labor and continue to fill their pockets. Once
again, the austerity program are the members while everything else at STRS is business as usual.

Since the culture at STRS expects us to continue to swallow their supposed austerity program, I am proposing an austerity program for STRS that will for the first time give them the opportunity to have skin in the game.

I offer the following to see how well they are able to swallow what they have been jamming down our throats:

1. All staff salaries frozen and no consideration of raises until 2032

2. Investment staff bonuses frozen until 2032.

3. No staff PBI's until 2032.

4. Moratorium on purchasing of accumulated staff sick leave and vacation leave until 2032.

5 Hiring moratorium on any new staff positions until 2032.

6. As attrition occurs, vacant positions will remain unfilled until 2032.

7. Moratorium on Board member, staff including the ED travel for any purpose until 2032.

8. Moratorium on any spending outside of providing current payroll to staff and benefits to members until 2032.

9. Cafeteria, childcare and fitness centers shut down immediately.

10. Board meetings to be held online, using Zoom or other Internet software, eliminating travel, meal expenses, and hotel rooms for Board members until 2032.

11. All Board agendas and correspondence sent on the Internet as a part of the overall cost reductions until 2032.

12. Elimination of all expenditures not relating to the direct benefit of members.

13. A moratorium on all other expenditures not included above until 2032.

The items listed above are just a start of what is actually necessary to restore the current solvency of STRS, and should not be interpreted as a complete laundry list. This would be an excellent opportunity for STRS staff to have some skin in the game since they have played a major source of the depletion of our retirement funds.

It would be more than interesting to see how they like a plan where they now become the victims and feel the pain that many of their members are experiencing, and justly reap what they have sown.

Does STRS really expect us to accept a 100% ratio which obviously buys them time between now and 2032 to cover up all the holes they have dug the past 30-plus years? We can only wonder why.
This is is exactly why we as STRS members are hostile with our postings and comments. If the tables were turned, I know without a doubt, the STRS staff would be equally or more hostile.

If 2032 is their attempt to provide a resolution to us as members, they have sorrily underestimated what has been going on since 2017. 

Joe Lupo is a retired school administrator and founder and administrator of the 33,500 member Facebook reform group, Ohio STRS Member Only Forum (“MOF”).

 

"Buckeye Marv" (Marvin M. Stotz): Questions for the STRS Board 4/20/2023

From Marvin Stotz

STRS QUESTIONS April 20, 2023

Buckeye Marv, aka Marvin M. Stotz

1. What are the Investment, overpaid, advisors' FEES ???? ______%

2. President Joe Biden proposed a 5.2% raise in military pay, the largest in 40 years!!!

3. Why did former STRS Treasurer, __________ (Scott Roulston) RESIGN???

4. Why did Robert Bob Stein RESIGN, AFTER GETTING REELECTED???

5. According to EDWARD SIEDLE, whistleblowers can get up to 30 % of any reclaimed funds ………….. Is there a long time STRS BOARD MEMBER willing to be a WHISTLEBLOWER , about the EXACT EXCESSIVE FEES PAID, and alleged kickbacks, pay to play, Wall Street secret deals, etc.?????

6. My 3 years retirement at TIAA.ORG, from University School, Private Boys School in Shaker Heights, OH, in the late 1960’s is an AMAZING, FISCALLY TRANSPARENT (stating all fees on each type of account), and well funded retirement plan!!!!

7. TRANSPARENCY LACKING, per State of Ohio Auditor!!!!! Page 95 and 95 of the Book , HOW TO STEAL A LOT OF MONEY – LEGALLY, by Edward Siedle, gives graphic examples!!!!! Investors do NOT HAVE A CLUE about the FEES AND EXPENSES they are paying!!!!!

8. Page 241 also mentions CLIFFWATER has admitted … that the firm receives undisclosed amounts of compensation from one prominent firm, BROWN BROTHERS HARRIMAN – a private equity manager!!!!! Another example of HIDDEN FEES!!!!!!

9. As I requested in November 2022, Please state the investment fees when you first started on the STRS BOARD, and what at the investment fees today???? _______ % , ________%;

Thank you for your honesty and transparency.

Buckeye Marv, aka Marvin Stotz