Dan MacDonald's report on April 18, 2024 STRS Board meeting

WADE STEEN SEATED. CHAIR ADJOURNS MEETING WITHOUT VOTE. 

Rob Walters and Dan MacDonald attended the April 18, 20224 STRS Board Meeting.  

Four committees met before the actual Board meeting.  Governance, Audit, Investment, and Legislative. All the committees voted on a chair and reviewed a committee charter document which was to be motioned and voted in the Routine Matters portion of the agenda.  The report out by committees nor the vote on the documents happened. [More to follow.]   

The actual April Board meeting started at 10:35 am with approval of March minutes followed by a presentation by outside consultant Mary Remson, PRP, CPP-T, regarding what is a Retirement Board Committee and what are common procedures. [The Funston Audit pushed the Board to have more active committee work.]  Following, outside consultant AON presented on STRS’s Board move to an Enterprise Performance Risk Management framework which is a holistic approach noted in the Funston Audit to improve the current risk assessment process.   

Public Participation was next.  Ten people spoke.  One active and 9 retirees.  The active spoke on STRS “staying the course” the other nine addressed concerns, including concerns/outcomes of the move from Express Scripts to CVS prescription plan.   

A ninety-minute Executive Session/Lunch break was then declared. Toward the end of the ninety minutes Wade Steen appeared and told the gallery he was back. [Wade Steen went to court after his removal from the Board by Governor DeWine. The court ruled on Thursday morning, 4/18/2024, that he had the right to the seat and Mr. Steen immediately came with the court order to STRS.]  When the Board returned the most recent DeWine appointee, Brian Perena, was gone and Wade Steen was in his seat complete with name plaque. Chair Price called the meeting back and Mr. Steen requested he be sworn in once again.  The Chair objected.  The Parliamentarian said no person could take over the meeting when Steen moved to be sworn in. Motions were made.  Comments were made.  Votes went 6-4; Herrington was not present. Ultimately, Steen was ceremonially sworn. When decorum returned, Chair Price altered the agenda to Routine Matters.  No committees reported out, finances and approvals were made. At the end of Routine Matters Chair Price hammered the gavel and declared adjournment without the Board voting to adjourn. [If the video is posted on STRS, watch the end of the meeting.]  Ultimately the meeting went into a recess, and after a short time a representative of the Attorney General’s Office went to the podium and declared the meeting adjourned and refused to take questions.   

[The Board, STRS, the AG office should be ashamed.  We do not know who directed Chair Price to manipulate the meeting to Routine Matters and Adjournment, or whether he did this on his own, but contributing members and retirees deserve non-political, functioning Board meetings.  The 2024 Budget was not presented [think salary increases]; the 2025 Performance Based Incentives were not discussed [think major divide]; the Investment Department did not share its monthly review [March a positive 2.02%, investment assets $94.6 billion]; there was no Executive Director’s Report; there was no Disability Review Panel Follow-up [think removing Board members from panel], nor Old/New Business.  In other words, the afternoon agenda was abandoned by the Chair. Chair’s after meeting remarks are below in STRS’s E Update.] 

The next meeting dates are May 15-17, The Board meeting should be May 16th.  

SHORT TERM SOLUTION VS. LONG TERM PROBLEM 

Mr. Chair and members of the Board, good morning.   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.       

 

At last month’s meeting a big decision was made. Cheiron made its presentation and listed options.  During Public Participation amongst fifteen participants, 2 actives and 2 retirees addressed striking a balance and enticements for a teaching career. Personally, I am worried about the creation of a divide between contributing members and retirees.  Board members, you are being closely watched.  Two of you seated up there were not present during Public Participation. One departed toward the end of the Executive Director’s Report, and the other left 14 seconds into the Chair’s statement concerning Public Participation.  Both returned after the lunch break.  Emergencies happen. I hope handed statements are read.  

 

After lunch the sustainable benefits enhancement plan, the di minimis plan, was shared and, eventually, a vote.  34 years was established.  34 years until 2036 and a 1 percent COLA was really not discussed at all and mentioned only in passing.  Vote 11-0.  For balance, the Board needs to make clear retirees are not forgotten.  The di minimis plan will continue to give di minimis results which yearly will pit contributing members against retirees.  There needs to be developed a financial plan to address the fund’s shortage of funds.  Contributing members should not reach 30 years retirement at the expense of retirees.  Furthermore, contributing members will soon discover no COLA and being screwed by an increase in FAS, YOS, formulary and other reductions, their lesser amounts of pension without COLA will find them battling the same problem that now exists.  Your short-term solution is not addressing the long-term problem.  Add to that, if the legislature passes a 4 percent employer contribution increase spread over 8 years, the fund is still short, better, but short.  All of you are passing the buck down the road and if you truly look at STRS Members Only Forum and STRS Ohio Watchdogs, your constituents do not understand.  

 

As always, actives need their benefits restored and retirees need permanent living purchasing power, COLA, restored. 

[After Public Participation Board Member Davidson gave me a paper titled “STRS ACTIVE vs RETIREES BENEFIT RESTORATIONS.”  

ACTIVE:  

Spring 2022 – Eliminate Age 60 Requirement $0.9 billion 

Spring 2023 – Temporary 34-year Unreduced Eligibility Period $0.365 billion 

Total Restoration $1.265 Billion 

 

RETIREE: 

Spring 2022-One Time 3% COLA $1.6 billion 

Spring 2023-One time 1% COLA $0.460 billion 

Total Restoration $2.96 billion] 

 

[My add: ACTIVE $0.838 billion Spring 2024 Unreduced retirement at age 34 years permanent, reduced at 29 years. Pretty close keeping in balance, BUT this insight should have been brought up during the public Board meeting for all to know at least one member's thought process.]