Trina Prufer: At what point does “sustainability“ turn into “unjust enrichment”?

From Trina Prufer

August 13, 2025

At what point does “sustainability“ turn into “unjust enrichment”?

At what point does the “sustainability” rational turn into “unjust enrichment” of the STRS system? How many yachts does a senior employee need? 

In 2012, the State of Ohio used its police powers to negate the defined-benefit obligation of a 3% annual automatic COLA for retirees, claiming there was no other way to ”sustain“ the fund. The consequences of this legislation were predictably dire for older retirees, as without Social Security and time to plan for a second income stream, many would drift into poverty. In fact, this has happened and disproportionately affects the aged and most vulnerable, as a greater proportion of income is spent on basic needs.

As compared to many other public pension systems in the same predicament after the 2008 recession, STRS chose a particularly unique and harsh solution to its budgetary shortfall. STRS is an outlier in not taking into consideration the diminishment of the benefit over time. The fiscal analysis accompanying the bill does not address its effects on members.

During this same period of time, STRS, the pension system, has prospered and provides one of the best compensation packages in the country for its own employees. In reality, much time is spent at monthly board meetings touting the superiority of its investment staff, rationalizing bonuses and looking at compensation studies on how much its employees should be paid. You would never know STRS is a public pension system that is so underfunded that it cannot (or will not) pay what it owes to members.

At what point does the “sustainability” rational turn into “unjust enrichment” of the STRS system? How many yachts does a senior employee need? The monthly board agenda NEVER seems to address the basic questions of equity, fairness and purpose of a public retirement system. If STRS creates poverty, by taking more than it gives back ( 14% contribution rate; 11% normal cost)  why does it exist?