Bob Buerkle explains just how much $$$ you and I have lost, thanks to the gross mismanagement of our notorious pension system, STRS Ohio

From Bob Buerkle

September 27,2024

July 1, 2012 and earlier Retiree Losses to Date and into the Future

July1, 2012 and earlier retirees are behind by 26% in their unpaid but promised 3% COLAs as of this current fiscal year. Here are two facts for a $50,000 pensioner, that show how devastating this is for our STRS Retirees.

First, their pension base is now behind by $12,990 per year and can never be improved without extraordinary and unprecedented legislative corrective action. This was derived from the eight and two-thirds missing 3% COLAs since 2013.

Second, the benefit they were promised now has a cumulative loss to date of $63,000. This was calculated from the missing forty-two COLA values worth $1500 each, between 07/01/2013 and 06/30/2025. Without a COLA for the next 10-years their losses will grow to $280,500 and their pension base will be behind by $27,990 per year.

Even if the 3% COLA is restored next year and every year thereafter, these retirees will still be behind by $205,890 by 2035. This was determined by adding the missing $63,000 of COLA values with this year's missing base pension pay of $12,990 plus 10 more years of missing base pay, or $12,990 per year times 11 = $142,890 for a total loss of $205,890.

READ THAT LAST SENTENCE AGAIN. In the 2013 STRS CAFR [Comprehensive Annual Financial Report], the actuary said these pension changes would save $15.7 billion dollars. We're only about a third of the way there today.