Dan MacDonald to STRS Board: STRS needs to return to pre-reform benefits for actives and an annual 3% COLA for retirees.

Dan MacDonald's comments to STRS Board

February 19, 2024

STRS, WHAT’S YOUR PERFORMANCE? 

Mr. Chair and members of the Board good morning and a twenty-four-hour belated Happy Valentine’s Day. I am Dan MacDonald, an STRS retiree with 38 plus years of service. I am also the Executive Director of Local 279R, Northeast Ohio AFT retirees.

I am sure you know these figures, but the 2023 calendar year closed with the DOW up 12.7%, NASDAQ up 43.26%, the S&P 500 up 24.23%, the STRS benchmark Russell 3000 up 23.95%. Are these not the figures we are searching for from STRS? I fully realize that STRS is on a FY, not a calendar year. These figures certainly are not reflective of pre-December’s STRS monthly financial reports. The Board needs a discussion of the “why”? Reality in the real world needs to reflect the actuality of STRS pension fund. It is emphasized that STRS does well when the market does well. NASDAQ up 43%? Will STRS be near 43% by July?

Cheiron’s report, the FY 2025 budget, the Performance-Based Incentive Policy, so much going on at STRS over the next couple months. Governor DeWine is looking at STRS closely. Real estate expert G. Brent Bishop never presented on the STRS real estate portfolio. Why? Is that the reason he left? Now we have Investment Expert Brian Perera, the Ohio Senate Finance Director. Welcome. Maybe you might comment on hedge funds and fees and the investment portfolio. Meanwhile, where is Wade Steen? STRS is certainly into politics and saving its own behind with executive and legislative cover. When will actives and retirees truly be the central figure of this pension fund which is to provide Ohio’s educators a foundation for their financial security?

On another matter, hopefully all Board members know that Routine Matters no longer is a distributed item. TRANSPARENCY. Approved Minutes of Meetings are no longer being sent by mail although available online under Past Meetings. 

STRS needs to return to pre-reform benefits for actives and an annual 3% COLA for retirees.