Will Tim Myers attend the June 9 meeting in Lima at Apollo Career Center?

From Dennis Leone, May 24, 2009

Folks……it is this simple: Tim Myers knows that certain people in attendance on the 9th (Leone and Stoll in particular) will hold his feet to the fire and ask him to explain his public actions and public statements – such as:

1. Why, Tim, did you tell the Elida teachers in writing that their pensions were secure?

2. Why, Tim, did you put in a NW-OEA newsletter that reducing bonuses aversely impacts the BASE SALARIES of investment staff?

3. Why, Tim, didn’t you want stop the FY 2009 bonuses in September after the backlash of paying $6 million in FY 2008 bonuses (which you voted for, Tim) and after STRS lost $12 billion in assets in the preceding 10 months?

4. Why, Tim, did you vote no on the original motions to: (A) Suspend the bonuses; and (B) Establish a $65 billion threshold for assets in order to trigger maximum bonus potential in the future?

5. Why, Tim, after you voted no in January to suspend the bonuses, did you say publicly (and were quoted in the Columbus Dispatch) that the STRS Board was “breaking a promise” by suspending the bonuses? Why did you say this, Tim, when all investment staff received a letters in July of 2008 that the said the bonus plan could be modified or terminated by the board at any time for any reason?

6. Why, Tim, did you allow Leone’s motion on May 15, 2009 (to NOT pay the 7/12ths bonuses for FY 2009) die without a second?

7. Why, Tim, did you recently write to a supt and say that the board might lose 10 times the cost of the 7/12ths bonuses in litigation if the bonuses were NOT paid? Wouldn’t possible litigation be a non-issue, Tim, had you and your fellow board members stopped the bonuses last fall, when you could have?

There is much more………..it’s really not hard to see why Tim Myers might avoid a meeting where he could be asked these questions.

Dennis Leone

Columbus Dispatch on 5/15/09 bonus vote

Board eliminates bonuses in bad years
THE COLUMBUS DISPATCH, May 16, 2009
By James Nash
Dozens of investment officers for the state teachers' pension will lose their merit bonuses completely if the fund dips into the red.
The board of the State Teachers Retirement System voted yesterday to eliminate merit bonuses for investment officers in years when the pension fund posts an overall negative return.
For months, activist retired teachers have pushed for such a change, saying it's disrespectful to pay bonuses that sometimes top $100,000 when the fund is losing money. The pension board voted in January to slash bonuses during down years, but not eliminate them.
Under that formula, the pension system would have paid $3.4 million in bonuses to its 89 investment officers this year.
Yesterday, however, the board voted unanimously to eliminate bonuses in down years and to reduce them if the pension fund gains value but falls short of $65 billion. The fund currently has about $51 billion, down from its October 2007 peak of $80 billion.
"I think it was extremely important for the board to take this step, especially in light of changes that will adversely affect not only retirees but active members as well," said Dennis Leone, a pension board member who pushed to cut the bonuses.
On Monday, state Rep. Matt Huffman, R-Lima, introduced a bill to ban the merit bonuses during years when the pension system posts an overall loss.
jnash@dispatch.com
Investment officers won't get the payouts if the fund sees an annual loss.

Lima News: The Huffman bill and a subsequent STRS bonus vote

STRS board decision mirrors Huffman's bill

Lima News, May 15, 2009
Beth L. Jokinen

COLUMBUS - The State Teacher Retirement System (STRS) board voted Friday to eventually do the same thing a local state representative hopes to put into law.

The board voted that starting in fiscal year 2011, no performance-based incentives will be paid out to investment staff if the retirement fund sees a negative overall return, said board member Dennis Leone, of Chillicothe.

Ohio Rep. Matt Huffman, R-Lima, introduced legislation earlier this week that would ban the STRS bonuses when the fund is not making money.

"Rep Huffman's bill had an impact on those votes occurring," Leone said. "I appreciate him stepping up to plate with the proposal."

All eight STRS board members approved the decision. The board also voted to eliminate bonuses in fiscal year 2010, which begins in July, if there is a negative return.

Also, for the investment staff to qualify for bonus potential, the fund's total asset has to climb to at least $65 billion. It is currently $51 billion. If there is an increase, but it doesn't reach the $65 billion, a formula will determine the bonus amounts.

The staff could still see bonuses from the first half of fiscal year 2009, which ends June 30. The board suspended its existing bonus program for the second half of fiscal year 2009, meaning the payments are based on just the first half of the fiscal year.

Preliminary reports show bonuses likely paid for fiscal year 2009 to about 90 employees total nearly $3.4 million. They range from $162,488 and $480. Leone made a motion to not pay the bonuses, but it died for a lack of a second. The board still needs to approve the bonuses by its September meeting.

http://www.limaohio.com/news/board-37401-bonuses-fiscal.html

STRS Board actions on bonus-related motions proposed by Dennis Leone May 15, 2009

1. Bonus plan for Fiscal Year 2010: motion made by Dennis Leone, seconded by Craig Brooks; passed 8-0.

• Voting yes: Leone, Brooks, Burch, Meuser, Myers, Ramser, Puckett, Cervantes.

• Absent: Hayden & Chapman.

• Plan prohibits bonuses if overall return is negative.

• Plan restricts bonuses unless total STRS assets return to $65 billion (we now stand at $51 billion).

• For every $1 billion our total assets fall short of $65 billion at the end of FY 2010, bonuses will be reduced by 3%. Example: If we have $54 billion at the end of FY 2010, this is $11 billion under $65 billion. 11 x 3% = 33% reduction in bonus potential.

2. Motion by Dennis Leone, seconded by Craig Brooks: to prohibit bonuses beyond FY 2010 in years in which total returns are negative. Motion passed 8-0.

3. Motion by Dennis Leone: to remove Investment Chief Steve Mitchell from PBI (Performance-Based Incentive) Plan; motion died due to lack of a second. Dr. Leone cited conflict of interests concerns since Mitchell evaluates other bonus recipients.

4. Motion by Dennis Leone: to deny FY 2009 bonuses; motion died, due to lack of a second. This means between now and September the Board will have to vote on the actual payments for the 7/12 FY 2009 bonuses.
May 15, 2009

STRS Board votes this afternoon on 2010 PBI program

From STRS, May 15, 2009
Subject: [News] Board Takes Action on PBI Program

During its May 2009 meeting, the State Teachers Retirement Board adopted a Performance-Based Incentive (PBI) Program for 2010 for eligible Investment associates that includes a provision for no incentives being awarded if the STRS Ohio total investment fund has a negative absolute return for the fiscal year (July 1, 2009-June 30, 2010).

The vote followed months of discussion and consideration regarding incentive compensation. Other key components of the newly adopted incentive program include provisions adopted by the board at previous meetings:

- If the STRS Ohio total fund earns a positive absolute return but the total market value of investment assets is less than $65 billion by the end of the fiscal year (June 30, 2010), then incentive awards will be reduced by 3% for every $1 billion (and fraction thereof) of the shortfall from $65 billion. For example, if assets on June 30, 2010, are $55 billion, earned PBIs will be reduced by 30%. As of April 30, 2009, total fund assets were approximately $51 billion.

- The new PBI program will enhance earned PBIs when the absolute and relative performances are high.

The board also adopted a motion that said in future years, when the total investment fund returns are negative, no Investment staff will receive PBIs. This is effective with fiscal year 2011 going forward.

Additional information about the May Retirement Board meeting will be published in Board News on Monday.

Lima News editorial re: STRS...."If you're not making money for your client, you don't deserve a bonus."

From John Curry, May 14, 2009
Editorial: No gain, no bonus is common sense
"Rewarding someone to lose money, though, is just obscene."
"If you're not making money for your client, you don't deserve a bonus."

The Lima News, May 13, 2009

Wall Street wasn't the only place where investment executives earned bonuses to lose money. It's been happening in Columbus with the State Teachers Retirement System, too.

The private sector is perfectly fit to make the changes needed on Wall Street, but a state system requires intervention of the kind state Rep. Matt Huffman, R-Lima, proposes. Huffman this week introduced a bill that would ban performance-based incentives if the teachers retirement fund isn't making money.

Preliminary reports show half-year bonuses for about 90 employees of the State Teachers Retirement System will total almost $3.4 million. That's a handsome reward when a fund has lost more than $33 billion over the last 16 months. And it's a reward that 460,000 public educators and millions of taxpayers alike would have to contribute to.

"All of these employees who are to receive these bonuses are already compensated for the work they perform, with some earning a six-figure salary," Huffman said. "When many Ohio citizens are losing their retirement investments in this economy, how can STRS of Ohio justify giving these bonuses?"

That's a good question.

A newsletter tried to justify the bonuses by saying the fund could have lost more than it did. That's a bold statement: You get to pay us even more money because we've only lost so much of yours.

Some people won't like that the average salary among those handling investments at the State Teachers Retirement System is $156,000, but some careers paying far better than others is part of life. Rewarding someone to lose money, though, is just obscene. Other states have eliminated bonuses. Ohio should at least go as far as Huffman wants: no bonuses in a year with negative returns.

The State Teachers Retirement System board is scheduled to vote on the bonuses in September. Other state lawmakers should join Huffman in seeing that such a vote isn't needed. If you're not making money for your client, you don't deserve a bonus.

http://www.limaohio.com/articles/bonuses-37333-state-retirement.html

Lima News....'Local retired teachers supporting bill'

From John Curry, May 12, 2009
Huffman bill would cut STRS bonuses
Local retired teachers supporting bill
Lima News, May 12, 2009
Beth L. Jokinen
COLUMBUS -When the State Teacher Retirement System (STRS) is losing money, local retired teachers and one local state representative believe it is no time to be handing out bonuses.
Ohio Rep. Matt Huffman, R-Lima, introduced legislation this week that would ban STRS performance-based incentives when the retirement fund is not making money.
The board suspended its existing bonus program for the second half of fiscal year 2009, which ends June 30. The suspension means the payments are based on just the first half of fiscal year 2009. Preliminary reports show bonuses likley paid for fiscal year 2009 to about 90 employees total nearly $3.4 million, Huffman said.
"All of these employees who are to receive these bonuses are already compensated for the work they perform, with some earning a six-figure salary," he said. "When many Ohio citizens are losing their retirement investments in this economy, how can STRS of Ohio justify giving these bonuses?"
The STRS board is scheduled to vote on the preliminary 2009 bonuses in September, but it could occur sooner. STRS spokeswoman Laura Ecklar said it is standard procedure for the board to vote on the bonuses after the fiscal year ends. The bonus plan for fiscal year 2010 is still under discussion. Possible changes are being discussed, Ecklar said.
"They are very aware of the issue of compensating investment professionals in times of significant market downturn," she said.
The bonuses are for investment staff. They range from $162,488 to $480. The top salary exceeds $300,000, according to George Doyle, president of the Allen County Retired Teachers Association. The average salary is $156,000. While the bonuses were suspended, Doyle said, employees received raises.
"In business and industry, when they are losing money, they certainly do not take on more employees and give them bonuses. They cut back," he said.
The retirement fund lost $33.2 billion over the past 16 months, Doyle said. It now sits at $47 billion. The stock market lost $33.3 billion. A March newsletter sent to STRS members maintained the bonuses were justified because the fund could have lost more than it did, Doyle said.
Huffman's bill specifically says that in any year with a net negative return, no bonuses will be paid.
"My big issue is I don't think there should be bonuses paid when what is paid out to the teacher could be potentially damaged or less," Huffman said.
John Bos, of the local retirement group, said some states eliminated the bonuses. The group is lobbying Ohio Gov. Ted Strickland to intervene.
http://www.limaohio.com/news/bonuses-37288-huffman-bill.html

PENDING LEGISLATION ON BONUSES

From John Curry, May 12, 2009

Here it is...House Bill # 177...yes, it is Bipartisan!

Note from John...if you don't see your state representative listed below PLEASE contact them and ask them to join on as a co-sponsor.

http://www.legislature.state.oh.us/BillText128/128_HB_177_I_N.html

Click images to enlarge.

Subject: Knock, knock...STRS...you might want to see this! Notice that it is sponsored by representatives from BOTH parties?

From John Curry, May 12, 2009

"The bill, sponsored by representatives from both parties and supported by local retired teachers, specifically says that in any year with a net negative return, no bonuses will be paid out."

Huffman bill aims to ban teacher's retirement system bonuses

Representative Matt Huffman

Lima News, May 12, 2009
Beth L. Jokinen

COLUMBUS - Ohio Rep. Matt Huffman, R-Lima, introduced legislation this week that would ban performance-based incentive for the State Teacher Retirement System (STRS).

The STRS board suspended bonuses for the first half of this fiscal year, which ends June 30. The board is considering giving the bonuses back to about 50 employees, Huffman said. The bonuses total nearly $3.4 million.

The bill, sponsored by representatives from both parties and supported by local retired teachers, specifically says that in any year with a net negative return, no bonuses will be paid out.

"My big issue is I don't think there should be bonuses paid when what is paid out to the teacher could be potentially damaged or less," Huffman said.

The bill still needs to be assigned to a House committee for further discussion. Huffman hopes to have the bill in place before the STRS board makes a decision in September.
http://www.limaohio.com/news/bonuses-37288-huffman-bill.html

Read more about this story in Wednesday's The Lima News.

Mr. Mahoney...please relay this to Ms. Frost-Brooks

John Curry to Mike Mahoney, May 12, 2009

Mr. Mahoney...would you please see that OEA President, Ms. Brooks, receives this? She didn't send the original to me but rather relied on you to forward so..I'm asking for a return favor.

I would think that the OEA, as stated by Ms. Brooks in an April 2009 letter (below) to me, will back Representative Huffman's bill as Ms. Frost-Brooks in her letter to me stated, "In light of the magnitude of market losses, we support the Board’s actions to suspend the bonus program and make reductions going forward." Please let me know if Ms. Frost Brooks and the OEA WILL BACK this bill. I will be eagerly awaiting your (or her) response.
[Link to Patricia Frost-Brooks' letter of 3/31/09: http://kathiebracy.blogspot.com/2009/03/ms-frost-brooks-forgot-to-mention-how.html]

Thank you,
John Curry
A retired stakeholder of STRS
A former 30-year member of the OEA
A member of Concerned Ohio Retired Educators

Dennis Leone responds to the rhetoric

From Dennis Leone, May 4, 2009
Subject: Thank You

Jerry – Thank you for writing what you did to Meuser. I am sick-to-death of the Meuser/Myers/Ramser/Cervantes/Chapman/Nehf/Mitchell rhetoric of the bonuses being justified because the investment staff is providing “value added” (which means that our returns for the first 9 months of FY 2009 were -32.1% in comparison to Wall Street average market loss of -32.2%).

The union block on the STRS Board simply do not want to hear that base salaries averaging $156,000 for the investment staff (and spectacular fringe benefits) certainly pays for the so-called “value added.” No, they say it justifies giant bonuses on top of that.

I am also tired of hearing the age-old argument that the bonuses also are justified because we’d be spending more money using external money managers instead of our own internal money managers. Everyone could make an argument that it would cost him/her more money if they did things in a different way.

I guess I should have told my school board that I deserved a bonus check because I never recommended that my district hire a 2nd assistant supt, and therefore I was “saving” my district money by never recommending such. Maybe my wife and I are “saving” money by not buying a Florida condo that we can’t afford anyway.

Dennis Leone

The bonus situation explained.....

From Dennis Leone, May 1, 2009

Most of the confusion surrounds the fact that the board votes each spring to adopt a new bonus plan for the upcoming fiscal year (which begins each July 1), but then 6 months later the board votes to approve the cash bonus payments for the PREVIOUS fiscal year (which is 12 months after the work is done).

This means: The board voted 8-1 to adopt the fiscal year 2009 bonus plan in March of 2008, then voted 8-1 in September of 2008 to approve the actual $6 million bonus payments for the previous fiscal year (fiscal year 2008, which ended 6-30-08). This is when the firestorm really started.

But instead of stopping the bonus plan for fiscal year 2009 at this time (September, 2008), everything went forward (with only me complaining). A Columbus Dispatch article in December of 2008 said I was the ONLY board member who was pushing to have the bonuses suspended.

Then in January of 2009, the board voted 6-3-1 to approve my motion to suspend the fiscal year 2009 bonus plan effective 2-1-09. This meant two things:
...(1) No one would get bonuses for their work in the final 5 months of FY 2009; and
...(2) The board would at some point have to vote yes or no on the cash bonus payments for the first 7 months of FY 2009 (which will be $3.3 million).

The board has itself in a real pickle now. If the board votes no, the door will be open for staff to sue and argue that they have already done the work for the first 7/12 of the fiscal year.

If the board votes yes on the 7/12 cash payments, board members will look stupid because they chose NOT to stop the bonus plan last September when they could have.

STRS Board policy permits the board to modify or terminate the bonus plan at any time, and all investment staff members received a letter early last summer that explains this. The comments by board members Tim Myers and Mary Ann Cervantes that appeared in the Columbus Dispatch after the board voted 6-3-1 to suspend the bonuses effective 2-1-09 were dead wrong. Both voted no on the suspension and were quoted as saying that board was “breaking a promise” by suspending the bonuses. No promise was broken. It was dishonest to make such a statement, and they both know it.

Between the years of 1995 and 2004, approximately 350 non-investment staff members at STRS (in addition to approximately 100 investment staff members) also got big bonus checks every year. This was a major component of my 2003 report. The board finally voted to end bonuses permanently for non-investment staff in 2004. Another elimination I pushed for, which was adopted in 2005, was the STRS practice of basing bonuses paid to investment staff, in part, on SUBJECTIVE factors. It’s gone now. How stupid was that past practice? Very Wall Street.

~~~~~~~~~~~~

"The PBI program may be interpreted, amended, rescinded and/or terminated at anytime by the Board."
~ STRS Board Policy Manual, page 33

OEA and a half-truth

From John Curry, April 30, 2009

Below is a March 20, 2009 memo from OEA President Patricia Frost-Brooks to OEA District Leaders and OEA Presidents stating (see the yellow highlighted area) Ms. Frost-Brook's apparent disagreement "with bonus payments to investment officers in years when STRS loses money."

Now, please read the two attachments taken from the "approved" STRS Board meeting minutes of March 20, 2009. These two pertinent pages are attached and labeled "XIV" and "XV" and show how three of the OEA's active teacher Board members actually voted on the first round in the voting to accept the "Staff Benefits Committee's recommendation dated March 20, 2009" to temporarily suspend the bonuses. You will notice that the OEA-endorsed active teacher Board members Tim Myers, Mark Meuser and Conni Ramser all voted "no!" The only OEA-endorsed active teacher Board member who cast a "yes" vote to temporarily quash the investment bonuses was Columbus Education Association's Tai Hayden. She is to be congratulated for her courage and insight.

After another vote (see the attachments) and the statement from STRS's Executive Director Nehf that the State Teachers Retirement System staff could live with the suspension of the bonuses did two of the OEA naysayers (Myers and Meuser) finally come around to vote to temporarily freeze the bonuses. Still, on that final vote, OEA's Conni Ramser cast an "abstain" vote. Ms. Frost-Brooks didn't mention, in her letter above, the whole story, did she? What she related was a half truth. Of course, most active educators will not know that, will they? I'm also sure the OEA won't go out of their way to present this documentation to their membership.

John Curry

P.S. Concerning Ms. Frost-Brooks reference to Dr. Dennis Leone as a "dissident board member"....he is "fearful about the financial future of STRS." Well, so is STRS Board candidate Jim Stoll and so should every reader of this email be "fearful about the financial future of STRS." Dr. Leone has curbed more entitlements at STRS during the past four years as a board member than I have fingers and toes. Ms. Frost-Brooks didn't go into specifics on that one either, did she?

From Michael Mahoney, March 20, 2009
To: OEA Board of Directors
OEA District Leaders
OEA Local Presidents
From: OEA Communications and Governmental Services
Re: STRS Bonuses, Investment Performance and Board Elections
Relaying a message from the OEA officers:

STRS Board candidate James Stoll recently distributed an e-mail to many Ohio educators that seeks to further his election campaign by alarming members of STRS about the fund’s market losses and “outrageous” bonuses for employees. STRS lost $33 billion in market value in its most recent fiscal year. The STRS system also paid bonuses to 83 employees for outperforming the market - losing less than comparable funds.

The Ohio Education Association is deeply concerned about STRS market losses. OEA does not agree with bonuses payments to investment officers in years when STRS loses money. As a result, OEA commends the recent vote by the STRS board to suspend 2009 bonuses, as well as formation of a board committee of the whole to address investment performance. However, OEA feels strongly that Mr. Stoll’s recent e-mail was a cynical exploitation of the emotions of educators, including a quote from dissident board member Dennis Leone, in an attempt to make them fearful about the financial future of STRS and cast a vote for Stoll.

During comments to promote his candidacy during the public participation period at the STRS board meeting this week, another odd practice, Stoll boasted he has a list of 145,000 educator e-mail addresses, presumably to further his campaign. Earlier, he had sued to obtain e-mail addresses from STRS, but the Ohio Supreme Court declined to hear his case, upholding a policy to protect the privacy of member e-mail.

OEA has recommended the election Stoll’s opponent, Carol Correthers of the Lorain Education Association, to the active STRS board seat. We believe she has the temperament, qualifications and judgment to serve on the board.

Stoll never sought OEA’s recommendation and did not go to an OEA screening. Moreover his recent e-mail confirms our position. OEA must address this situation, but we apologize for any inconvenience our e-mail to you may cause. If you do not want to receive further e-mails on this subject, please click here or send your request to communic@ohea.org.

Cc: All OEA Staff
Click images to enlarge.

.................................................................................

And OEA insists they legally do not and cannot tell STRS Board members what to do and how to vote: yet we know they do from STRS Board members -- though fearful of even saying it publicly.

~ Molly Janczyk

Superintendents getting a heads-up re: Bonuses

From Jim Stoll, April 29, 2009
Subject: RE: STRS - State Teacher Retirement System - Outrageous Bonuses 2009

Jerry,

Thanks to you and other Superintendents for getting involved. You are absolutely correct in that taxpayers foot 14% of this bill and that 8 - 10 % of every School Districts budget goes to STRS and they are going to pay the (ATTACHED) 7/12 Bonuses despite losing 33 billion in the past 18 months. Additionally, they continue to send out email responses which you've already received trying to defend this nonsense, which they themselves, by suspending then changing the PBI plan have recognized as extremely flawed. You are the fifth Superintendent that has contacted me today so you are not alone. Many thanks for taking action. I would agree that we need to move our efforts to legislators to stop these bonuses as the Exec. Dir. and Board are not responsive to the members overwhelming desires to Eliminate these bonuses. I have met with my legislators here in Southwest Ohio and they are most interested in the issue of these bonuses. Will let you know of developments.

Jim Stoll
Director of Athletics
Sycamore Schools
7400 Cornell Rd.
Cincinnati, Ohio 45242
cell 513-615-4690

From Jerry Harmon, April 29, 2009
Subject: RE: STRS - State Teacher Retirement System - Outrageous Bonuses 2009

To All;

Below is the action I took with my staff – I sent it to all of them because I haven’t seen an announcement by STRS eliminating raises and bonuses for this year. My understanding is that it is within the power of the STRS Board to do this. This is my first action that did not just involve those directly involved with this baloney.

As I stated earlier, I am not going to sit by while we go down the toilet. If I don’t hear something by the 1st of May, I will send letters to major newspapers expressing my outrage and encourage them to investigate and report in depth. I didn’t believe it would go this far, but I am too old to abide stonewalling about anything like this. With aggressive action now, we all can avoid the dreaded questions in the aftermath that go something like this: Why didn’t someone speak up? How could you, as a Board, do this? What do you say to taxpayers who will foot the bill by way of larger employee and employer contributions? All of this as the reporters totally display the waste and abuse even in past years.

I am also sending this to my state Senator and State Representative.

I saw a good quip the other day & it fits somewhat in this situation:

“THE PROBLEM WITH SOCIALISM IS THAT EVENTUALLY YOU RUN OUT OF OTHER PEOPLE’S MONEY.

Respectfully,
Jerry W. Harmon, Superintendent
Jackson Center Local Schools

From: John Lazares, April 28, 2009
Subject: FW: STRS - State Teacher Retirement System - Outrageous Bonuses 2009

Superintendents:

Please forward to your staff.

Thank you.

John Lazares, Superintendent
Warren County ESC

From Jim Stoll:

Dear Superintendents:

It may have been brought to your attention, and I am sorry to report, there are some serious problems with STRS, our State Teachers Retirement System.

Did you know that STRS paid 11 Investment associates total compensation exceeding $400,000 last year? The highest topped out at $529,000.

Did you know that two investment associates got RAISES from 2008-2009 of $39,500. (yes, that was their RAISE. (See links below for all 83 investment associate raises.)

Did you know that this September, in spite of losing $33 Billion in the past 18 months and exploring “CUTTING” member benefits, they are paying “7/12 BONUSES” to 83 STRS Investment Associates, – one bonus for losing 33 Billion is in excess of $160,000 !

See Below for entire details….Many thanks to Superintendents John Scheu, Jerry Harmon and Rod Russell for getting on board and leading the fight to hold STRS accountable for this waste of member contributions and taxpayer dollars. In most school districts 8 – 10% of your entire BUDGET goes to STRS. IS THIS THE WAY YOU FEEL THOSE DOLLARS SHOULD BE SPENT – for outrageous salaries and bonuses?

Please email STRS Exec. Dir. Mike Nehf nehfm@strsoh.org and the Board board@strsoh.org and advocate for them to eliminate the 7/12 Bonuses for this year. Feel free to cc (copy) me at jastoll@yahoo.com.

Please feel free to call or email if I can be of further assistance. Upon request, I'd be happy to send the entire spreadsheet of salary, bonus and compensation totals separately, so you can share with your staff minus what may be construed as a political message below..

Respectfully,
Jim Stoll
Director of Athletics
Sycamore Schools
7400 Cornell Rd.
Cincinnati, Ohio 45242
Cell 513-615-4690
jastoll@yahoo.com

Jim Stoll to Tim Myers: 400 e-mails and an invitation to a debate

From Jim Stoll, April 27, 2009
Subject: Re: [QUAR] RE: Bonuses

I'll be happy to bring over 400 physical email responses as evidence of my position and would welcome for you to bring your positive responses to compare the positions and true feelings of your membership.... I'd love for the other Board members to weigh in on what responses they've received overall as well. My guess is that our responses may have some deviation and prejudice built in, but theirs would be more close to the norm.

Let's meet anytime, anywhere at a place of your choosing to debate the issue of these "7/12" Bonuses in an open forum and have Ms. Ecklar and Mr. Nehf use your email database to invite the membership.

Better yet, let's allow the membership to vote on this issue as a referendum.... I'm sure sending ballots out would not cost anywhere near the 3.3 million of the Bonus payouts.

I wonder if your positive respondees have any idea of the contingencies the Board is planning to their benefits in light of these bonuses. ie. Friday's Board discussions of possible 4% increase in contribution rates, raising of minimum retirement age to 60, changing the Final Avg. Salary Calculation, reducing Cola's for retirees, using flat 2.2% formula for all years of service etc. - Be assured, with my email database, if you don't share this with them - I will.

Regardless, I will bring my copies of all email responses to the next board meeting and share them with everyone in my allotted 3 minutes. Would welcome for you to do the same and share your responses as well.

Looking forward to you accepting my invitation to debate the Bonus issue - just let me know where and when - I will definitely be there. If you want to debate in a closed forum with no audience and then put the debate on "You Tube" for the membership to access, I'd welcome that if you were fearful of audience applause or emotion, coming into play.

Jim Stoll Director of Athletics
Sycamore Schools
7400 Cornell Rd. Cincinnati, Ohio 45242
513-615-4690

From Tim Myers, April 26, 2009
Subject: Re: [QUAR] RE: Bonuses

Since I am mentioned in this email I will respond:

I have a completely different experience than the one cited below [See post immediately below: Ralph Graham to Mark Meuser: Now they have negative results and shouldn't be rewarded]. The members that have replied to my response are thankful that I have given them the information that they were missing when they sent the original email. One superintendent even told me to keep up the good work and that he was pleased that he voted for me last year! An Athletic Director apologized for sending out the earlier letter without checking the facts first. He then sent out my reply to the same list that he had previously used.

So, far from alienating members, it seems that the more members know, the less upset they are.

Tim

From Ralph Graham, April 14, 2009
Subject: Bonuses

Dear Mike Nehf and STRS Board:

I've just received an email from James Stoll and I must say as a member of STRS I am outraged at the lack of common sense. A bonus is something to be given when job performance exceeds expectations. That is not the case with our investment advisors. They are paid a very good salary to perform a job they were hired to do, unfortunately they didn't perform very well and DO NOT DESERVE a bonus. I am tired of hearing the same bogus response that started on Wall Street that these bonuses will help retain quality people. First, I'm not sure we want to retain people that underperform and second, I seriously doubt quality people will walk away from quarter million dollar salaries. I have no problem rewarding individuals that perform at an exceptional level, but that is not the case here. I can guarantee you that I will be voting for James Stoll to protect the investment I have in STRS. I strongly encourage you to ELIMINATE these bonuses that are currently on the table.

Sincerely,
Ralph Graham
Southeast Local Schools

Jim Stoll's speech to STRS -- and a challenge to OEA -- April 23, 2009

STRS Board -- Jim Stoll, Member of STRS who has paid into the system for 23 years now.

I'd like to share an analogy or example with you….. Sycamore Schools, where I'm the athletic director, has a Catholic high school within our district called Moeller. Several years ago, my football coaches came to me and said "Jim, Moeller's recruiting all of our good football players"; they complained and said I should turn them into the OHSAA for recruiting violations.

I asked our coaches one question: Name for me the best five eighth grade football players that we have at Sycamore Jr. High….. They couldn't -- coaches couldn't give me the names of our best five players…..they weren't doing their job. Moeller wasn't violating rules, they were OUTWORKING US.

My question/challenge to ANY board member, and to the Executive Director is the same which I had for my coaches….. Name me one "INDEPENDENT" professor (expert) that any one of you took the Bonus plan to and asked them for an evaluation??? Mike, did you go down the street and walk into the Business School at Ohio State to ask someone to evaluate it? Tim, did you go up to Bowling Green or Toledo and ask for an independent evaluation or critique of it????..... If any of you, INDEPENDENTLY, took it to someone outside the confines of these walls, please be SPECIFIC and give us the person you took it to…

I did; I consulted with a professor at the prestigious Farmer School of Business at Miami University…

He/We are all flabbergasted and amazed that you would, ON THE FLY, BY THE SEAT OF YOUR PANTS, make changes, revisions, motions, and votes and approve things in a plan that make no sense to experts in the field. MY ADVICE is ELIMINATE the PROGRAM, TAKE a year to get independent compensation experts from 13 universities throughout OHIO and build some consensus for the program. That is what a leader would do, and a prudent board, but this group seems to be neither, so I'd suspect you'll continue down the same ill-fated path.

I hope you realize that the field you're playing on has changed. Last week I sent an email to only 25,000 STRS members, one-fourth of our list. Based on the feedback you and I've received -- there is little or NO support for your continuation of this ridiculous Bonus plan or your defense of the Bonus plan. Superintendents and school boards are now getting on board.

As a successful coach, having won an OHIO STATE BASKETBALL TITLE in 1985, I understand a few things about MOTIVATION. There are two kinds of motivation. Intrinsic and extrinsic.

Intrinsic is the kind every teacher in OHIO is motivated by -- doing a good job, inspiring kids to achieve. It's the best kind of motivation; it encourages integrity and provides achievement that makes a person's heart and soul feel great about accomplishment! It lasts forever.

Extrinsic is the kind you are motivating through these bonuses. Extrinsic motivation is corrupt and greedy; it is fraught with problems and rarely lasts. Extrinsic motivation is giving material things for doing a person's JOB!

You want to MOTIVATE your investment associates -- fire a couple! Jack Welch, CEO who led GE to its greatest heights, states in his book, Jack -- Straight from the GUT, that to keep a business on the cutting edge at the top of its game and to attract the best and brightest talent that he would fire the bottom 5-10 percent of his management team every year! In your case, Human Resources would make a list of their 90 investment associates and rate them from 1-90. Whoever was listed 85-90 is non-renewed, let go, and you hire in five more of the best and brightest to compete and keep everyone motivated. School districts do it all the time by non-renewing the contracts of sub-par teachers. Want to intrinsically motivate your staff and not cost the members a penny…..adopt Jack Welch's strategy.

If the emails you've received haven't convinced you and the Executive Director that YOU are out of touch with your constituency, then you ought to rethink your roles and positions.

Lastly, as a basketball coach of an inner city school in the 1980s and at the college level, I've been spit on, had racial epithets thrown my way and other things occur to me, so in a political campaign, to receive criticism is somewhat amusing to me…..

I would like to say one thing to the OEA and those board members who were endorsed by that group. I'm the one running for a seat on the board -- my name is James A. Stoll.

Any criticisms should be directed at me, not a current sitting board member. For OEA to write a memo to their members and/or district leaders calling Dennis Leone a "Dissident STRS Board member" is APPALLING… I'd only heard the word "dissident" used referring to someone in China, Russia, North Korea or Cuba.

I've got news for Mr. Mahoney and Mr. Leibensperger at OEA -- if you want to take someone on, you better come after me because DR. LEONE is way out of your league! Dr. Leone has done more to protect the Active and Retired Teachers from abuses and mismanagement of STRS than everyone at OEA and STRS combined. He's not a part of this race, but I certainly thank them for putting me anywhere in his category -- based on my email response -- it has garnered me more votes than you know.

Thank you for your time.

Jim Stoll

Donna Seaman to Mike Nehf and STRS Board re: Credibility, respect and trust

From Donna Seaman, April 22, 2009
Subject: Board mtg.

Board members and Mr. Nehf:
This month's board meeting continues to bring you challenges. Your recent STRS glowingly written newsletter reports that "89% of STRS retirees say you have earned their trust and confidence." In this "random sampling" of STRS recipients, my opinion has never been sought. But I do not trust or have confidence in you, my STRS board! Many of us have lost credibility, respect and trust because of your recent and past decisions! Your survey also showed an interesting statistic: much fewer of respondents believe you are managing operating expenses prudently (66%)!
You continue to ignore my concerns and frustrations, and those of many other writers. You do not respond, or direct Mr. Nehf to respond, to our suggestions. While Mr. Nehf claims he supports transparency and open communication with retirees, I see virtually no follow through on issues of highest importance to retirees.

You continue to allow OEA to be your puppeteers and to pull many of the strings for your decisions! You continue to permit OEA to criticize and put down board member Dr. Leone and candidate Jim Stoll, who strive to advocate for retirees.

As you meet again this week, and in the coming months, these issues must be resolved:

• Performance benefit incentives/bonuses must be totally eliminated. Not suspended with the likelihood of paying investment staff for 7/12 for FY 2009, but eliminated! PBI's should be reinstated only if and when the 13th check for retirees is reinstated. Your newsletter states "Total operating expenses are expected to be about $6 million lower than the budgeted amount of $98.8 million for this year," yet you are still discussing pbi payments of $3.3 million (or more) for this year. This is insane! Look at what is happening in neighboring states, such as Missouri, and the stand that governor has taken against public pension bonuses. He should have a phone conversation with Gov. Strickland about this! Benefits and fringes provided to STRS employees should never be better than those provided to your constituents, retirees.
  
• Health care coverage for retirees should be comparable with the coverage you provide for STRS employees, no better, no less!
• STRS staff must be cut to reflect the loss in portfolio assets value! Even one of your board members' school districts has had to lay off teachers and dramatically reduce staff because of decreasing revenue. Why is STRS staff exempt from reductions and cuts that are being made in virtually every segment of our economy? I applaud your decision to increase the work week to 40 hours and to place a wage freeze through 2010. That is a good start, but more cost-cutting measures must be taken.

These issues must be discussed and resolved now, not put on hold until Dr. Leone's board term ends, or until new, inexperienced board members are installed this fall.

You must begin to listen to us! Your credibility, trust and respect depends on it! I look forward to being there and hearing your discussions this week.

Donna Seaman, 2002 retiree
(These opinions are my own, and do not reflect those of any organization.)

Supt. John Scheu: These bonuses need to be eliminated -- not just suspended

From John Scheu, April 13, 2009

To All: As a contributing member to STRS, I am appalled by the actions of the STRS Board on your decision to pay 7/12 bonuses for 2009 to investment associates employed by STRS. Despite the vote to suspend the bonus plan in February, it is my understanding these bonuses will still be paid in September of 2009. Then when I read that $39,500 raises were given to two investment associates in 2009, I became even more upset. With our Pension Assets losing $33 billion - how can you even think about awarding such salary and bonus increases? These bonuses need to be eliminated -- not just suspended. And as a member of STRS -- I am one who wonders why STRS seems to be constantly in financial straits, and am concerned about STRS providing health care benefits for retirees in the future.

John Scheu
Superintendent
Hardin-Houston Local Schools (Shelby County)
5300 Houston Rd.
Houston, OH 45333
937-295-3010 ext. 224

Dr. Leone challenges the OEA to a debate! "OEA can pick the date, the time, and location. I will be there."

From Molly Janczyk, April 20, 2009
OEA hides behind closed doors when asked for open debate.

They have never even responded to requests.

Not their style which is to hurl accusations hoping something sticks with their loyalists regardless of truth-even when facts are proven correct by their opponents.

Silence is their modus operandi coupled with repeated attacks of any who may disagree with them. They haven't the nerve to debate. Bill L. literally shakes when directly aproached with facts, hangs his head and cannot come up with on the spot reasons for his behind the scenes letters. His way is to write letters without any resistance and put out inuendo.

HOW DO I KNOW? I have directly approached him, confronted him, met with him when he was in the room with those who politely do not support him. I and others have noticed his obvious discomfort in a 'live' venue. Easy to sit behind a desk and issue statements, tell others he will help them write letters and speak to supporters or to STRS behind a podium with no one able to question him.

He hasn't the courage for a real debate in a live setting.

My opinion based on years of communication with him.

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Dennis Leone: A bold challenge to Pat Frost-Brooks, Bill Leibensperger and Tim Myers

Think they're up to it?

From Dennis Leone, April 20, 2009

I remember several things very, very clearly about the statewide communication by OEA President Gary Allen in the summer of 2003. (It advised OEA members to contact Bill Leibensperger if they had further questions.) Allen described my 2003 findings of STRS board/staff wasteful spending (and this is verbatim) as “misrepresentations,” as “destructive” and “written with unclear motive.” These things I will never forget. He also wrote in this statewide email of how OEA supported Herb Dyer and the big spender STRS board members of that time period (six of whom – Jack Chapman, Hazel Sidaway, Eugene Norris, Debra Scott, Michael Billirakis, and Joe Endry – all were later convicted in court of ethics violations, along with Herb Dyer himself). Allen wrote this during the summer of 2003, after my 13-page report came out in May of that year. In the recent 2009 statewide email, OEA is now calling me a “dissident board member.” While I was the only board member who originally pushed for the suspension of bonus checks – which OEA now says it supports – OEA-backed board members Ramser, Meuser, and Myers did NOT vote in support of the bonus suspension. OEA writes that it is proud of these three STRS board members – but strangely did not say it is proud of STRS board member Tai Hayden, who also is an OEA member. Was this because she voted in favor of what I proposed, which was the bonus suspension? OEA has sunk to a new low, and apparently is not even aware that its own board members at STRS (except Tai Hayden) are voting against what OEA says it supports.

I would love to have the opportunity to debate the current STRS issues in a public forum with Patricia Frost-Brooks and Bill Leibensperger sitting across the table. Is there anyone out there who could arrange such a thing? OEA can pick the date, the time, and location. I will be there. Board member Tim Myers says the teachers he has spoken to in his district – Elida Local Schools – are NOT opposed to the current bonus checks. I’d love to have the opportunity to address them as well. Betcha Myers isn’t willing to set it up. I recall once asking for an audience with the Dublin City School District teachers after the Dublin teacher union president Dawn Leibensperger (does that name sound familiar?) gave her opinion of my 2003 report to the teachers there. My “equal time” request, of course, was denied by Mrs. Leibensperger. In fact, she expressed her distaste that I even asked for it.

There are emails, letters, and tapes that verify everything I have said above.

Dennis Leone

Deja vu.....Sen. Wachtmann re: STRS in 2003 -- did he have a crystal ball and gaze 6 years into the future?

He must have!

From John Curry, April 20, 2009

Below is a letter I received (in 2003) from Sen. Wachtmann re. my letter to him regarding misspending, mismanagement, and the entitlement mentality at STRS. That was even before the bonus controversies (yes, there was more than one bonus controversy) , 6 criminal ethics convictions of former STRS Board members and a former Executive Director, and a host of other travesties brought to light by soon-to-be-retired STRS Board member Dr. Dennis Leone.

I take particular note in what Senator Wachtmann said in that letter (attached) concerning health care as, this week, the STRS Board will begin to discuss more cuts to benefits AND increased deductibles as well. Here is what he said on that cold February day back in 2003:

"STRS has not been as farsighted as other systems, such as the Public Employees Retirement System, on managing its portfolio and especially taking early steps to prevent more drastic measures to ensure health care benefits are there for all of the retirees in the future."

We have(n't) come a long way, baby!

John Curry

P.S. The OEA was also searching for that "dedicated stream of (healthcare) revenue" back then... they still haven't found it, have they?
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