Respect Ohio's Teachers, Restore Their Promised COLA and Benefits

Respect Ohio's Teachers, Restore Their Promised COLA and Benefits

Started
May 7, 2018
Signatures: 48,617Next Goal: 50,000
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Why this petition matters

Started by Dean Dennis

Teachers in Ohio were always promised a simple Cost-of-Living-Adjustment (COLA) upon retirement. It is only through a COLA that teachers can keep up with inflation.  The State Teacher Retirement System (STRS) and elected official have broken their promises to Ohio's retirees and have placed an unfair burden on STRS Ohio members. Inflation can run out of control and Ohio teachers are not permitted to pay into social-security. Their pension is their only inflation protection.

How did this happen? The Ohio Legislature created this problem when they punted control of the COLA to the STRS Board of Trustees. The Legislature gave the STRS Board of Trustees the authority to "adjust the COLA."  However, in 2017, STRS Trustees eliminated the COLA upon the advice of STRS Management. This was due in part because our Trustees weren't diligent in monitoring the lack of transparency and mismanagement of the funds.  

STRS Members are paying the price. STRS receives 14% from every active teacher's paycheck, which is one of the highest teacher employee contribution rates in the nation. Additionally, STRS receives a 14% contribution from every teacher's employer; thereby STRS is receiving a whopping 28% in contributions from every teacher's salary. However, according the calculations of the STRS actuaries in the STRS 2022 Annual Comprehensive Financial Report (see page actual pp.83 or 86 of 94)  the "normal cost" value of  active teachers 14% employee contribution projects to only 11.09%. This means that for the 2022 fiscal year, for every $1.00 an active teacher contributed, they are only receiving 80 cents in value towards their pension. So, the current snap shot for active teachers is if they were to retire today, is that their retirement benefits should have cost them 11.09% of their salary, but they had to pay 14% of their salary. This is a direct reflection of mismanagement of funds and a lack of oversight. This is why  active teachers in Ohio contribute more, work longer and receive less pension value for their contributions than teachers in other states.

STRS Management is doing fine, they don't share any of the pain. STRS Trustees continue to provide numerous large annual performance bonuses of over $100,000 plus to many members of their investment staff.  Some receive bonuses over $250,000 dollars. Last year performance bonuses totaled over 10 million dollars while the pension lost over $5 BILLION. 

If the STRS cannot provide teachers a COLA  and other promised benefits, STRS management and investment staff salary increases should be frozen. Trustees certainly should not be rewarding  performance bonuses. It's time to demand significant change at STRS. Your future depends upon change.

Note (1):   If you are a teacher or friend of a teacher and not on Facebook, up may click this link for more updated information: https://www.strsohiowatchdogs.com/

Note (2): There is an STRS Trustee election in 2023, The following groups have endorsed Pat Davidson (see here): Ohio STRS Member Only Forum (found on Facebook), Ohio's Retired Teacher Association (ORTA), Ohio's American Association of University Professors, the Ohio Federation of Teachers (OFT) and the STRS Ohio Watchdogs. In addition, please consider joining and supporting these organizations. 

 

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Signatures: 48,617Next Goal: 50,000
Support now
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