James Carr: I cannot imagine a public pension that that treats its members with less respect than STRS.

From James Carr

August 13, 2025

A defined benefit pension without a COLA is not a fixed income, it's a declining income that eventually results in poverty.

I remember, 17 years ago when I was meeting with an STRS retirement counselor, he told me that the 3% annual COLA was more than a benefit, it was a lifeline that would prevent me from sinking into poverty in my old age. He was, of course, 100% correct in his assertion. 

The problem is he neglected to mention one very important caveat. In the alternate universe of STRS, there is no such thing as a defined benefit pension because in a defined benefit plan you know exactly what the benefits are. There are no surprises. The whole purpose of a defined benefit plan is to eliminate risk. Surprise.

It amazes me that STRS will move Heaven and Earth to make sure that employees will receive their 6 digit bonuses and annual raises, but when it comes to the COLAs that were an integral part of the defined benefit plans, tough luck.

I cannot imagine a public pension that that treats its members with less respect than STRS.