Ohio STRS, COLA and the GPO

From John Curry, June 6, 2009

Retired teacher benefits misunderstood

Dayton Daily News, June 4, 2009
Letter to the editor

Re “Courage, hard choices can protect retirement,” May 24: You may believe that a cost-of-living increase for teachers is compounded on last year’s benefit, as it is for Social Security, government retirement or military retirement. It is not.

Cost-of-living increases for teachers are based on their retirement pay the first year they retired. The cost-of-living pay is based on that every subsequent year. There is no compounding.

If, as the State Teachers Retirement System staff has suggested, it is cut to 1.5 percent, the increase will go back to the first year that teacher retired and the teacher’s cost-of-living increase will be 1.5 percent of that first year’s benefit.

Also, the retired teachers are hit hard by another law that most people are not aware of. By and large, they cannot collect from their husband’s Social Security, even if he dies, because of the “offset” law that lowers the benefit a dollar for every dollar they draw from STRS. So, in most cases, as in mine, I collect nothing from my husband’s Social Security, even though we have been married for 53 years.

Nancy Keggan
Beavercreek

http://www.daytondailynews.com/opinion/retired-teacher-benefits-misunderstood-148347.html?printArticle=y

STRS ASSET ALLOCATION: Stocks v Bonds

Part II: WALL STREET REBUTTAL

From Mario Iacone, June 6, 2009

Bonds have outperformed Stocks in the last 40 Years. Use GOOGLE, type Rob Arnott to read and view all the discussion.

STRS MEMBERS should urge STRS Investment Department to research and consider increasing their percentage of Treasury and government bond assets as one means of reducing the effect of huge short term stock market losses on our pension fund.

Reference the previous post where research developed the following conclusion.

'for 10 years, 20 years, even 40 years, ordinary long-term Treasury bonds have outpaced the broad stock market.'

and later:

Wall Street pundits have not denied the accuracy of the research, but have pronounced several rebuttals.

REBUTTAL ONE: The fact that Bonds outperformed Stocks in the LAST 40 years does not mean that they will do so in the NEXT 40 years. True, but the same logic can be applied the other way. What guarantee is there that stocks will outperform bonds in the next 40 years?

REBUTTAL TWO: Economic factors over the last 10, 20, 40 years were ideal for bonds. One of the pundits states that it is mathematically improbable for those conditions to repeat over the next 10, 20, 40 years. However, those same economic factors also allowed the DOW to reach an all time high of 14,000.

IMPORTANT CONSIDERATION:

Stocks GO DOWN in cycles and if those cycles are not managed effectively to limit losses and protect profits, sizable gains are reduced and/or erased and as in the case of STRS, heavy losses are incurred.

STRS Flashback - 6 Years Ago(June 8, 2003) - The Plain Dealer exposes STRS in its first investigative report re: STRS!

From John Curry, June 5, 2009
Click images to enlarge.

Larger print version: http://www.capitolbeat.org/contest/2004/04winningentries/Single%2075%2B.pdf

From Representative Kevin Bacon......

June 5, 2009
Thanks so much, Kevin! I really appreciate your support on this. You should receive my "snail mail" letter today or tomorrow.

Kathie Bracy

From: Kevin Bacon
To: kbb47@aol.com
Sent: Fri, 5 Jun 2009 9:50 am
Subject: (no subject)

Kathie,

I read the letter that you posted on your blog. I am very supportive of HB 177. I actually offered my assistance to Matt Huffman when he introduced it. Feel free to indicate as such on your blog!

Thanks Kathie.

Kevin Bacon

From WPKO Radio.......

Event: 'OPEN MEETING FOR ACTIVE & RETIRED MEMBERS OF STATE TEACHERS RETIREMENT SYSTEM (STRS) TONIGHT....' in calendar ''

Date: Tuesday, June 09, 2009 At 09:00:00 PM

On June 9, the Allen County Retired Teachers Association will be hosting a town hall meeting with invited guests from the State Teachers Retirement System (STRS), Ohio Retired Teachers Association (ORTA), Ohio Education Association (OEA) and active and retired teachers, including STRS Board member Dr. Dennis Leone and the recently elected STRS Board Members. All educators are invited to attend.

The purpose of this meeting is to get all educators (retired and active) involved and better informed on what is going on with our retirement funds. There will be a discussion-type forum followed by a question and answer period.

The meeting will be held June 9, 2009 at 7:00 p.m. at:

Apollo Career Center,
3325 Shawnee Rd.,
Lima, OH 45806

Reservations are not required, but the planning committee would appreciate RSVPs and any advance questions/concerns. These may be sent to George Doyle at gdoyle@limachamber.com This e-mail address is being protected from spam bots, you need JavaScript enabled to view it or 144 S. Main Street, Lima, OH 45801; telephone 419-222-6045.

http://www.peakofohio.com/component/option,com_jcalpro/Itemid,99999999/extmode,view/extid,1462/

Tom Curtis: Letter to House Speaker Budish

From Tom Curtis, June 5, 2009
Subject: 060509 Rep Budish, Re House Bill # 177...yes, it is Bipartisan!

Hello Rep. Budish,

I am writing to ask you to add your name as a co-sponsor to this bill. The STRS investment employees should not be receiving bonuses whenever the fund has a negative return for the year. It is unbelievable that these same employees have already been awarded $6 million dollars this year for a past years' negative returns. This has to be stopped.

This is the kind of nonsense that occurs when the OEA is permitted to buy the seats on the board and fill them with unqualified people.

Thank you for your support and would you kindly respond to my request?

Tom Curtis
N. Canton, OH 44720

Tom Curtis: Letter to Rep. Oelslager

From Tom Curtis, June 5, 2009
Subject: 060509 Rep Oleslager, Re House Bill # 177...yes, it is Bipartisan!
Hello Rep. Oleslager, (2nd sending)

I am writing to ask you to add your name as a co-sponsor to this bill. The STRS investment employees should not be receiving bonuses whenever the fund has a negative return for the year. It is unbelievable that these same employees have already been awarded $6 million dollars this year for a past years' negative returns. This has to be stopped.

Once again, as I have indicated to you before, this is the kind of nonsense that occurs when the OEA is permitted to buy the seats on the board and fill them with unqualified people.

Thank you for your support and would you kindly respond to my request?

Tom Curtis
N. Canton, OH 44720

Tom Curtis: Letter to Rep. Slesnick

From Tom Curtis, June 5, 2009
Subject: 060509 Rep Slesnick, Re House Bill # 177...yes, it is Bipartisan!
Hello Rep. Slesnick,

I am writing to ask you to add your name as a co-sponsor to this bill. The STRS investment employees should not be receiving bonuses whenever the fund has a negative return for the year. It is unbelievable that these same employees have already been awarded $6 million dollars this year for a past years' negative returns. This has to be stopped.

This is the kind of nonsense that occurs when the OEA is permitted to buy the seats on the board and fill them with unqualified people.

Thank you for your support and would you kindly respond to my request?

Tom Curtis
N. Canton, OH 44720

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

As Introduced

128th General Assembly Regular Session 2009-2010

H. B. No. 177

Representatives Huffman, Bubp

Cosponsors: Representatives Morgan, Sears, Maag, Chandler, Burke, Blair, Grossman, Boose

A BILL

To enact section 3307.045 of the Revised Code to provide that investment personnel of the State Teachers Retirement System may not receive performance-based bonuses or premiums in years of negative investment returns and to declare an emergency.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That section 3307.045 of the Revised Code be enacted to read as follows:

Sec. 3307.045. (A) As used in this section, "investment officer" means a person employed by the state teachers retirement board for purposes of engaging in securities transactions or making any other investment of funds on behalf of the state teachers retirement system.

(B) For each fiscal year in which the state teachers retirement system experiences an absolute overall negative return from the investment of the system's funds, an investment officer is entitled only to consideration for services the officer renders in that capacity, and is not entitled to a performance-based bonus or premium in addition to or as part of the consideration. Any term or condition of a contract or other form of employment agreement between the state teachers retirement board and an investment officer that provides a performance-based bonus or premium is void.

Section 2. Section 3307.045 of the Revised Code, as enacted by this act, applies only to contracts and other forms of employment agreements that are entered into, amended, or renewed on or after the effective date of this act.

Section 3. This act is hereby declared to be an emergency measure necessary for the immediate preservation of the public peace, health, and safety. The reason for such necessity is that the improper use of State Teachers Retirement System funds conflicts with the fiduciary duty of the State Teachers Retirement Board. Therefore, this act shall go into immediate effect.

Active and retired educators invited to meeting on June 9

Ada Herald, June 4, 2009

On June 9, the Allen County Retired Teachers Association will host a town hall meeting with invited guests from the State Teachers Retirement System (STRS), Ohio Retired Teachers Association (ORTA), Ohio Education Association (OEA), and active and retired teachers, including STRS Board member Dr. Dennis Leone and the recently elected STRS Board Members. All educators are invited to attend.

The purpose of this meeting is to get all educators (retired and active) involved and better informed on what is going on with retirement funds. There will be a discussion-type forum and time for questions. The meeting will begin at 7 p.m. at Apollo Career Center, 3325 Shawnee Road, Lima.

Reservations are requested to George Doyle at gdoyle@limachamber.com or 144 S. Main St., Lima, OH 45801 or 419-222-6045.

http://www.adaherald.com/main.asp?SectionID=2&SubSectionID=5&ArticleID=102022&TM=56170.8

Letter from the Seamans to Speaker Budish and two Representatives

From Donna and Dean Seaman, June 4, 2009
Subject: HB 177

Dear Speaker Budish, Rep. Goyal and Rep. McClain:

Please continue to support HB 177 and schedule a second hearing on this important issue. We are Ohio retired teachers who receive pensions from Ohio's State Teachers Retirement System (STRS), and have followed closely for years the mismanagement of retired teachers' funds, and past ethics violations of STRS leaders and board members.

HB 177 would prohibit STRS from paying its own investment staff bonuses (they call them performance based incentives!) in years when the total fund is in a downturn, as it is now. As you know, the STRS board has permitted and encouraged enormous bonuses to STRS investment staff who are already extremely well paid and have far better fringe benefits than any Ohio teacher, working or retired, ever had! These bonuses, paid to staff for the past several years, have totaled millions of dollars on top of salaries that are averaging $150,000 per year plus.

The STRS portfolio value is in the same economic crisis as the rest of our state and nation, and indeed is down at the moment over 40% or $32 BILLION this fiscal year. For the STRS board to even consider paying bonuses to investment staff is insane! Many of us retired teachers have pleaded individually and collectively with board members to totally remove, once and for all, any incentives. Personally Dean and I would want to see incentives removed forever, but particularly so when the fund is showing substantial losses as it is currently.

STRS operations continue as "business as usual." There have been NO cutbacks in STRS staff, no reductions of benefits or salaries, and virtually no efforts to cut expenses. Meanwhile the STRS board has cut health care benefits for retirees, increased co pays and premiums, now discusses ways to further reduce health care coverage including reducing our cost of living adjustment from 3% to 2%. Retirees are suffering because of STRS losses and continued exorbitant spending, but STRS employees are not impacted at all!

Please continue to support this issue and schedule another hearing. Ohio's teachers depend on our legislators to begin oversight of STRS operations and spending!

Thank you,.

Donna Seaman, 2002 retiree; Dean Seaman, 1986 retiree
Shelby, Ohio

A call to action for all STRS members

From Kathie Bracy, June 4, 2009

To STRS members statewide and elsewhere:

We need to take seriously the call to write our state representatives and House Speaker Armond Budish if we want bonuses stopped at STRS when times are tough, economically, as they are now.

While HB 177 (to stop bonuses at STRS in years of negative investment returns) has received one hearing this week, there is absolutely no guarantee it will receive a second hearing. This is why it is imperative that we write our legislators to urge them to join with Aging and Disability Services Chair Deborah Newcomb to schedule a second hearing. We must act now.

If you have not seen the latest information on proposed legislative action in Dennis Leone's June 3 Update on HB 177, you can read it here: http://kathiebracy.blogspot.com/2009/06/from-dennis-leone-important-house-bill.html

You can find contact information on your state representative here: http://www.legislature.state.oh.us/

Contact information for House Speaker Armond Budish:

The Honorable Armond Budish,
Speaker of The Ohio House of Representatives
77 South High Street
14th Floor
Columbus, OH 43215-6111
E-mail: district08@ohr.state.oh.us
Phone: (614) 466-5441
Fax: (614) 719-0008

Please write to both, and be sure to include your address and telephone number. Sample letters may be found on my blog: www.kathiebracy.blogspot.com, posted today; and hopefully there will be more to post very soon.

We ALL need to pitch in if we want to get the job done. This is NOT the time to leave it up to somebody else. Please help to spread the word. It's your future.

Thank you for your time.

Kathie Bracy

Bankruptcy due to inability to pay for medical bills -- even WITH healthcare insurance?

Some deny this is a fact....ask researchers at Harvard and.....Ohio University!
From John Curry, June 4, 2009

"The researchers found that "more than 75 percent of these bankrupt families had health insurance but still were overwhelmed by their medical debts." Most of them were "well-educated, owned homes and had middle-class occupations," the researchers from Harvard Law School, Harvard Medical School and Ohio University wrote in the American Journal of Medicine. "

Study: Medical Bills Underlie 60 Percent Of U.S. Bankruptcies

Kaiserhealthnews.org, June 4, 2009

"Medical bills are involved in more than 60 percent of U.S. personal bankruptcies, an increase of 50 percent in just six years, U.S. researchers reported on Thursday," according to Reuters. The researchers found that "more than 75 percent of these bankrupt families had health insurance but still were overwhelmed by their medical debts." Most of them were "well-educated, owned homes and had middle-class occupations," the researchers from Harvard Law School, Harvard Medical School and Ohio University wrote in the American Journal of Medicine.

The authors of the study, Dr. David Himmelstein and Dr. Steffie Woolhandler of Harvard, are single-payer plan advocates. "Only single-payer national health insurance can make universal, comprehensive coverage affordable by saving the hundreds of billions we now waste on insurance overhead and bureaucracy," Woolhandler said. Neither Congress nor President Barack Obama is seriously considering a single-payer proposal.

Their research, which "surveyed 2,134 random families who filed for bankruptcy between January and April in 2007, before the current recession began," was funded by the Robert Wood Johnson Foundation. "While only 29 percent directly blamed medical bills for their bankruptcy, 62 percent had medical bills that totaled more than 10 percent of family income, said an illness was responsible, had lost income due to illness or some other medical factor," Reuters said (Fox, 6/4).

The LA Times adds that "President Obama's push for healthcare reforms gets a boost" from the study. The increase in medical bankruptcies "occurred despite a 2005 law aimed at making it more difficult for individuals to seek court protection from creditors" (Girion, 6/4).

CQ Politics also reports on the many insured Americans whose "policies just aren’t comprehensive enough to protect them from potentially crushing bills." "As costs rise and employer benefits become weaker, the phenomenon of 'underinsurance' has become increasingly common, patient advocates say." A Commonwealth Fund study found that "about 25 million Americans had inadequate health coverage in 2007." Regulation of insurance plans historically "has been left up to the states, with the result that insurance protections vary widely around the country." Consumer groups say the federal government should take a new roll in "spelling out exactly what should be covered." But conservatives say it's not the role of the government, and they "question whether Congress is capable of coming up with a workable solution." An important question in regulating insurance plans is "where to draw the line between guaranteeing that benefits will be adequate and requiring so much coverage that all policies become more expensive" (Benson, 6/4).

http://www.kaiserhealthnews.org/Daily-Reports/2009/June/04/Medical-Bankruptcies.aspx

Linda Meinelt's letter to House Speaker Armond Budish

Linda Meinelt to John Curry, June 4, 2009
Subject: HB 177

Please feel free to use any part of this you wish. A similar letter is going to my rep, Kevin Bacon. Be sure to include your address as they do not consider requests from non-constituents.

Thanks,
Linda

-----
Honorable Armond Budish,

As an STRS retiree, I urge you, along with Aging and Disability Services Chair Newcomb to schedule a hearing on HB 177.

With the economic downturn, many of our retirees can barely meet their daily expenses. The cost of our healthcare has climbed substantially, benefits keep decreasing and out-of-pocket expenses keep rising.

Additionally, the Board is talking about taking away COLA which has helped many to stay afloat.

Please help STRS retirees and prohibit the awarding of performance based incentives by STRS, at least until economic times turn around and the fund can support retirees and their health benefits.

Sincerely,

Linda Meinelt
Columbus, OH

Letter to Representative Kevin Bacon re: HB 177

The Honorable Kevin Bacon
The Ohio House of Representatives
77 South High Street
10th Floor
Columbus, OH 43215-6111

June 4, 2009

Dear Representative Bacon,

On Tuesday of this week (June 2, 2009), HB 177 was given a first hearing. As you know, if passed, this bill would prohibit the awarding of performance-based incentives (bonuses; PBIs) to investment personnel or other employees of the State Teachers Retirement System of Ohio in years of negative investment returns. The STRS Board, in the midst of a drastic downturn in the nation's economy and in its infinite lack of wisdom and common sense, has CONTINUED to award MILLIONS of dollars in bonuses to the investment personnel, except for a brief period, in spite of repeated outcries from the STRS membership; mainly retirees, since the Ohio Education Association has failed miserably in its job of keeping the active membership informed about such matters.

It is wrong, wrong, WRONG that 87 investment personnel, who are highly paid to begin with, and who still have jobs, unlike thousands of their counterparts on Wall Street, should become very wealthy at the expense of thousands of retirees, many of whom are barely able to make ends meet and whose healthcare premiums continue to skyrocket while their benefits plummet. At every STRS Board meeting, we hear more and more talk about how they want to make up shortfalls by taking money away from retirees. Right now the Board is talking about taking away our COLAs and stopping healthcare altogether for those of us who are Medicare age; that will shorten a lot of lives right there.

I know the investment personnel are not to blame for what happened to the economy and deserve generous bonuses when the money is rolling in. However, right now I need to see some real evidence of belt-tightening at STRS, as is being done everywhere; and having lost many BILLIONS of dollars in the past year, no matter where the fault lies, it would seem the best place to start is with those bonuses. It is obscene that they should still be awarded when times are this tough. I don't want to see their big, fancy houses, cars, vacations and giant bonuses; I want to see food on the table for those who are having a hard time and medicine provided for those whose lives depend on it; and necessary medical procedures for those who need them to survive. HB 177 badly needs and deserves a second hearing. I cannot urge you strongly enough to please urge Aging and Disability Services Chair Newcomb and Speaker Budish to schedule such a hearing. For the sake of those who have the most to lose -- the very necessities of life -- those bonuses must be STOPPED until times are better for everyone who is being hurt by the downturn in the economy.

Thank you.

Sincerely,
Katherine B. Bracy, STRS retiree
Columbus, OH

A similar letter is being sent to Speaker of the House Armond Budish.

Please write those letters today if you haven't done so!

As Dennis Leone has suggested in his June 3 message below ("Important House Bill 177 Update"), you need to contact two people now to get those bonuses stopped: your state representative and Speaker of the House Armond Budish. Please reread Dr. Leone's message and then send yours to your rep and to Mr. Budish. You are welcome to use my June 4 letter to Rep. Kevin Bacon as a model, if you wish.

You can find your representative's contact information here.

Contact information for Speaker of the House Armond Budish:

The Honorable Armond Budish,
Speaker of The Ohio House of Representatives
77 South High Street
14th Floor
Columbus, OH 43215-6111

E-mail: district08@ohr.state.oh.us
Phone: (614) 466-5441
Fax: (614) 719-0008

Kathie Bracy

From Dennis Leone: Important House Bill 177 Update

From Dennis Leone, June 3, 2009

Note the news service summary paragraph below on proposed HB 177. I actually was given the opportunity yesterday at the statehouse, during the sponsor testimony by Representatives Matt Huffman and Danny Bubp, to answer questions that some of the lawmakers had. Questions asked of me included how many investment staff members STRS has, whether the STRS investment staff members have individual employment contracts, and how many investment staff members received bonus checks most recently.

I also spoke to several of the lawmakers who had other questions when the committee meeting adjourned. Representative Chandler, in particular, asked me questions about what other big changes are on the horizon at STRS. She expressed concern over the matter of retirees having to pay more for health insurance year after year. During his sponsor testimony,

Representative Bubp read aloud a statewide OEA email that opposes bonuses in down stock market years. Bubp said: “We should enforce what OEA says it wants in this matter.” He also criticized OEA for referring to me as a “dissident board member” in the statewide email, and he publicly said that he appreciated my reform initiatives at STRS. A couple of lawmakers told me that despite the recent OEA statewide email, OEA is now stating its opposition to HB 177 because it singles out STRS (and not the other public pension systems).

In response to a similar question asked by Committee Chair Newcomb, both Huffman and Bubp said that the calls of concern from their home districts were coming from retired teachers, not retirees from the other pension systems. It is undetermined at this juncture if a second hearing, for proponent testimony, will be scheduled. Retirees who agree that a second hearing is needed should contact their own state lawmakers and ask that they communicate this desire to the Aging and Disability Services Chair Newcomb and to Speaker Budish.

Dennis Leone

BILLS HEARD IN COMMITTEE
HOUSE AGING AND DISABILITY SERVICES
Rep. Newcomb: 614-466-1405 Tue., Jun. 2, 2009
HB177 STRS INVESTMENT PERSONNEL (Huffman M) Provide that investment personnel of the State Teachers Retirement System may not receive performance-based bonuses or premiums in years of negative investment returns and to declare an emergency.
Reps. Huffman and Bubp gave sponsor testimony on the bill, which would prevent the State Teachers Retirement System (STRS) from paying performance-based investment bonuses to system employees in years of negative investment returns. They said the bill sparked from angry sentiments about the bonuses expressed by retired teachers in their districts, especially in light of news that STRS might cut benefits, move back the retirement age, or increase contribution requirements to account for a steep drop in the investment portfolio as a result of the economic downturn.
Huffman said bonuses aren't warranted when the fund loses investments, especially at a time when state workers are being laid off and those still employed have made significant concessions under the latest union contract. "It is appalling to me to think that anyone on that [STRS] board would vote to give a bonus in these times," Bubp said.
They noted that while the STRS board has suspended performance-based bonuses for now, they still might vote in September to pay bonuses for the first half of this fiscal year. Bubp also noted that the board has discretion to change or eliminate bonus payments at any time. They said dozens of investment workers got bonuses on top of six-figure salaries, and that some of the bonuses were six figures as well.
While they professed sympathy for the need to retain talented employees, Huffman and Bubp still said the bonuses were not merited. "I think in this market we should be happy that we still have a job," said Bubp.
Rep. Harris asked why the bill didn't address the other four state pension systems. Bubp and Huffman reiterated that the bill was in response specifically to retired teachers who are upset with the STRS board, and said they weren't as familiar with the other retirement systems. Huffman did say STRS also has a higher percentage of its portfolio managed in-house than the other systems.
Rep. Wachtmann commented that the Ohio Retirement Study Council would be able to provide a lot of information on STRS and the other state pension systems.
Rep. Harwood asked what bonuses are paid by contractors managing investments not held in-house. Huffman, who expressed an ultimate preference to see most investment managing done by contractors, said he didn't know, but that it would be important to get as much information as possible when deciding policy changes to the retirement systems.
Rep. Lehner said she wondered if the Aging and Disability Services Committee was the best place to debate this topic, especially with the requests for information about all the pension systems.
Rep. Newcomb, the committee chairwoman, noted only that the issue is currently assigned to her committee.
HOUSE EDUCATION
Rep. Williams: 614-644-5085 Tue., Jun. 2, 2009
HB178 DISTRICT BOARDS OF EDUCATION (Wagner J)=2 0To eliminate certain requirements and prohibitions applying to school district boards of education.
Rep. Wagner said the bill is a "radical" attempt to address the issue of state mandates on K-12 education, "Over the last several years, we have heard two main complaints from our school districts," he said. "First, obviously, is school funding. Secondly (and not far behind) is state mandates. We have all heard it from our local districts." Wagner said the bill would eliminate all state mandates except those addressing the follow items:
- federal requirements
- school district organization
- achievement testing
- compulsory attendance
- teacher licensure
- minimum high school curriculum
- basic health and safety
He said the issue is not whether other categories should be retained, but that in his view, those decisions should be left to local control. "I would submit to you that what works for Columbus City Schools might not be the best for Bettsville Local Schools in my district," he said, noting the latter graduates 20 high school students each year.
Wagner said he didn't have wild hopes of moving the bill out of committee but believed HB178 could become a starting point for "a long and meaningful discussion amongst thi s committee about mandates and the consistent erosion of local20control in our school system."

NURSING HOMES RATED - from Suddenly Senior

From John Curry, June 2, 2009

NURSING HOMES RATED

By JANE ZHANG
Wall St. Journal
June 1, 2009

The federal government is stepping up efforts to improve the quality of nursing-home care and now has an online tool consumers can use in evaluating facilities.

The Centers for Medicare and Medicaid Services, or CMS, will start running a pilot program this summer to see if cash incentives to nursing homes can improve the care they provide, especially in areas such as nurse staffing and preventable hospitalizations.

Separately, in December, the agency started ranking facilities based on government inspection results, staffing data and quality measures. This "Nursing Home Compare" system, which gives one to five stars to 16,000 nursing homes, is available at www.medicare.gov/NHCompare.

The agency also flags some of the most troubled nursing homes -- now about 135 -- on the Web site.

"We are certainly taking assertive steps to make sure nursing-home residents are adequately protected and to stimulate improvement on the part of various providers," says Thomas Hamilton, director of CMS's survey and certification group.

About three million Americans need nursing-home care at some point each year, and the care is often costly. Unlike with most other health-care needs, many elderly and disabled Americans have to pay for nursing homes themselves, either because they earn too much to qualify for Medicaid or they don't qualify for Medicare's coverage.

Limited Medicare Coverage

Many seniors are surprised by Medicare's limited coverage for nursing-home care: up to 100 days after a hospitalization of three days or more.

To qualify, a patient must have a doctor's order to go to a nursing home for the same illness or injury that he or she was treated for at the hospital, for services such as physical therapy or IV injections, according to AARP, an advocacy group for older Americans.

The beneficiary pays nothing during the first 20 days at a nursing home, $133.50 a day after that and the full cost after 100 days.

Advocates say consumers should do their homework before choosing a nursing home, because care can vary widely. They suggest that patients -- or their family and friends -- visit a nursing home in person, talk to residents there and look at data on the facility.

New Online Information

The U.S. "Nursing Home Compare" Web site is a good place to start. It lists nursing homes with summarized data from state and federal inspections and information the nursing homes reported to regulators.

There are some caveats. The National Citizens' Coalition for Nursing Home Reform, an advocacy group, warns that some data provided by nursing homes to the Nursing Home Compare Web site may contain errors.

Consumers, the group says, should also check with states and other sources to get a better picture of facilities.

CMS says consumers should check for updates -- which can appear every month -- because nursing homes often have high turnover rates, which affect patient care.

The government labels the most troubled facilities as "Special Focus Facilities" -- a designation that shows up when you look up one of those facilities in Nursing Home Compare.

North Carolina State Treasurer halts bonuses for state pension fund managers

From John Curry, June 1, 2009

Treasurer suspends bonuses for pension managers

From wral.com, June 1, 2009

State Treasurer Janet Cowell said Monday that her office won't dole out bonuses to pension fund managers for the 2008-09 fiscal year because of a tight state budget.

The move follows similar action last week by the Office of the Commissioner of Banks. The banking office drew legislative fire over $500,000 in bonuses handed out last August and planned to reward top employees again this year with $200,000 in bonuses. (Read the rest of the article here.)

http://www.wral.com/news/local/politics/story/5257415/?print_friendly=1

Open Town Hall Meeting for

Active and Retired Members of

State Teachers Retirement System

of Ohio (STRS)
Tuesday, June 9, 2009, 7:00 p.m.
Lima, Ohio

On Tuesday, June 9, 7:00 p.m., the Allen County Retired Teachers Association will be hosting a Town Hall meeting with invited guests from the State Teachers Retirement System (STRS), Ohio Retired Teachers Association (ORTA), Ohio Education Association (OEA) and active and retired teachers, including STRS Board member Dr. Dennis Leone and the recently elected STRS Board Members. All educators are invited to attend.

The purpose of this meeting is to get all educators (retired and active) involved and better informed on what is going on with our retirement funds. There will be a discussion-type forum followed by a question and answer period.

The meeting will be held June 9, 2009 at 7:00 p.m. at:

Apollo Career Center
3325 Shawnee Rd.
Lima, OH 45806
(Map, directions)

Reservations are not required, but the planning committee would appreciate RSVPs and any advance questions/concerns. These may be sent to George Doyle at gdoyle@limachamber.com or 144 S. Main Street, Lima, OH 45801; telephone 419-222-6045.

TOWN HALL MEETING
at
Sidney High School Auditorium
Sidney, Ohio
1:00 p.m., Friday, June 12, 2009

Guests include: STRS Board Member, Dr. Dennis Leone; newly elected STRS board members; State Senator Fred Strahorn; and State Representative Richard Adams

• Your presence at this meeting is extremely important because large numbers of people who voice a common concern get the attention of officials. Join us and voice your opinion.

Reservations are not required, but the planning committee would appreciate RSVPs and any advance questions/concerns via e-mail to:

Jim Conard jlconard@embarqmail.com or Leon Knore attaway2000@yahoo.com or
Brooks Ware bware@woh.rr.com

Educators, did you know????

• There may not be enough money left in the teacher retirement fund for future retirees.

• STRS had assets as of 10/31/07 totaling $80.1 BILLION. The most recent calculations in April, 2009, show $47.6 BILLION in assets.

• While losing money, bonuses over $205,000 were given to ten STRS associates with salaries over $210,000 for a total take-home pay of more than $521,600 for two investors. (That's more than the U.S. President's pay!).

• STRS increased 2009 salaries for two investors by $39,500 (14.6%) for a total of $309,500 each! 33 investment associates received raises between $10,000 - $39,500; 27 received raises of $5,000 - $9,999.

• An STRS official publicly stated, "Teachers think this is their money. It's not; it's OUR money."

Is the STRS Board doing its job?

The Ohio Revised Code 3307.15 states the STRS Board and officials need to "...discharge their duties solely in the interest of the participants and beneficiaries..."

Changes ARE going to occur at STRS.

You have an opportunity to learn about the latest events at STRS and voice your concerns at the June 12, 1:00 p.m. Town Hall Meeting at Sidney High School:

Sidney High School
1215 Campbell Rd
Sidney, OH 45365

Map, directions

Website: http://www.sidney.k12.oh.us/schools/shs/

May 15, 2009

STRS Flashback - 6 years ago - Paul Kostyu promised, "It won't!"

From John Curry, June 1, 2009

Then again....we can always go to 'early bird specials,' can't we?

John

“Several months ago when I'd asked (health care) questions of Hazel (Sidaway, a board member from Canton), I found her to be quite arrogant, insulting and degrading. She suggested that we go to ‘early bird specials’ and learn to live more modestly! She even suggested that my husband and I move to Florida where we might find (health care) more reasonable!”
(From an STRS benefits recipient)

Readers show intense concern about STRS, not to mention anger

Canton Repository, June 20, 2003
By PAUL E. KOSTYU
Copley Columbus Bureau chief

COLUMBUS -- At 6:30 a.m. today, a group of people planned to meet in the parking lot of McKinley Senior High School in Canton to car- pool to Columbus. Depending on traffic, they should arrive in plenty of time to attend the 10 a.m. meeting of the State Teachers Retirement System board.

They are coming to express their concerns about the spending habits, policies and attitude of the board and its executive director, Herbert L. Dyer.

Ever since the story broke almost two weeks ago that STRS spent more than $15 million over the past three years on staff bonuses, artwork and travel even as the system’s portfolio lost $12.3 billion, a lot of people have reached their own conclusions. [Click here to view that story, from the Cleveland Plain Dealer.]

Many have sent them to me in 40 e-mail messages and close to a dozen telephone calls. They have come from as close as Canton and as far away Arizona and Florida. If we printed all of the messages as letters to the editor, they would take up a page and a half in the newspaper. I plan to respond to each one of them, as is my normal practice. Readers should rest assured we are paying attention to their concerns. Here are some of them:

Getting involved: “Is there any sort of ‘grass roots’ movement forming among state retirees in Ohio? I, for one, would love to have an opportunity to fight this kind of impropriety. I worked hard for my retirement and to have it ‘ripped off’ by the very people who are supposed to be protecting it really makes me angry.”

Sources in our stories can lead to other people interested in the same fight.

Angry in Hiawassee: Most writers were just downright angry, particularly with Dyer. A Georgia writer commented: “As a retired teacher I am appalled at the arrogance of the STRS director and board. What a bunch of spendthrifts and jerks.”

He was not alone. “They played on my money. Impeach every single one of them. There should be no bonuses for anyone. A good job is rewarded with your salary. ... Honesty and common sense. None of the current board members have either one. As far as I am concerned they stole my money.”

Another wrote: “We are just in shock over these reports.”

And this from Canton: “The STRS shenanigans are a travesty! As a retired educator, I am appalled with the arrogance of OUR STRS board.”

A teacher wrote: “I've had my experience with Mr. Dyer. I can't get over the fact that these people feel and truly believe that it is their money to spend and they're damned well going to spend it all. ... I don't get any bonuses for doing my job.”

Health care woes: Many, like this Arizona retiree, worried about their health care: “Under the current plan our health care and medicines will take well over 30 percent of our current pension income. We cannot drop our insurance as I am in remission for cancer and my husband had heart bypass surgery (six times). Our lives depend on STRS and the current board seems to be trying to kill us off by making health care and medicine unaffordable.”

Writing the board and legislators: Some folks want to contact legislators and board members directly. Others already have and are less than thrilled with the experience. Information about board members is available at:

http://www.strsoh.org/

Keep in mind Dyer intercepts their mail.

One who got through had this experience: “Several months ago when I'd asked (health care) questions of Hazel (Sidaway, a board member from Canton), I found her to be quite arrogant, insulting and degrading. She suggested that we go to ‘early bird specials’ and learn to live more modestly! She even suggested that my husband and I move to Florida where we might find (health care) more reasonable!”

The names and addresses of legislators can be found at:

http://www.state.oh.us./

Forget about writing — clean house: To improve STRS, many writers followed this line of thinking: “Things must change with STRS and the first item would be the immediate dismissal of Herb Dyer.” Or this, “Mr. Dyer needs to resign NOW.” Or “Shame on them and fire their sorry butts, maybe even jail time. At least, they should pay back the misappropriated funds and resign.”

Keep reporting: “Down here in West Virginia, when we publish the amounts of public employee bonuses, we don't use titles. We use actual names. I recommend the practice.”

Finally, one writer suggested, “This story should not be allowed to die.”

It won’t.

Hearing on STRS bonuses scheduled for the Week of June 1, 2009

From John Curry, May 31, 2009

Maybe next time STRS will listen before retirees have to go the legislative route? The right words placed in a sympathetic legislator's ears work wonders, don't they? John

HB 177 STRS BONUSES (Huffman, Bubp) — 1st Hearing-Sponsor.

From The Dayton Daily News, May 31, 2009

Click here to see what else is on the docket.

http://www.daytondailynews.com/news/ohio-news/legislative-schedule-141342.html?printArticle=y