Dan MacDonald's speech to the STRS board December 12, 2024

From Dan MacDonald

December 16, 2024

CHANGES ARE SLOW BUT HAPPENING

Mr. Chair and members of the Board, good morning/afternoon. 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. Happy Holidaze. Thanks for moving up this meeting date.

“It was the best of times; it was the worst of times” is a famous opening line from A Tale of Two Cities by Charles Dickens. I have used this opening a couple of times since 2014. The phrase suggests that contradictory extremes can happen at the same time.  The 2024 calendar year is ending. Time to reflect.

If one follows STRS Ohio Watchdogs and/or Ohio STRS Member Only Forum, STRS and the Board grades would be an F and on a quadrant chart would appear in the lower right quadrant with its peers almost all above.

Let’s reflect for a moment, over the past 5 years this Board has substantially changed both in elected and appointed members. Terms ended, courts make their decisions, Board members entered retirement, elections happened and will again this spring. Many reasons for the turmoil. Yet reading news articles and following computer posts, every Board is held immediately accountable for current decisions and past decisions.

Changes from 2012 are being addressed. Yes, we are not back to 30 years with an enhancement if choice is to 35 years. Minimum age 60 for retirement has come and gone. A yearly 3 percent COLA is obviously not back, but current Board members have certainly tried to be creative in reducing the mandatory years of service along with a couple of COLAs and now a supplemental check. The televisions in the ante room were not present in 2019 although the glass wall existed and, now from the internet, I know its history. The agenda was not available a week in advance.  The handouts were not in color.  Yes, some of these are very minor, but they exist. The Board demanded the changes. Current Board members question/push/challenge STRS staff.

Reading a recent Toledo Blade article, I questioned the FY23 external management expenses that STRS reported as $256.2 million for the 2025 budget and the Blade has as $629 million paid to Wall Street. Point? Transparency is still hard to find, but maybe that will also happen with new leadership at the top of STRS management. This Board will determine the new leadership.

Point? Systematic changes did not occur overnight. I’m appreciative of the steps toward a better, more understood, more transparent STRS.

As always, actives need their benefits enhanced and retirees need a 3% COLA restored.