June 2024

President’s Report

Greetings and Happy Summer!

     It is the end of the year (yes, we are still on school year time) and what a year it was. It started with the Special Election in August 2023 then the November election, through a year of STRS turmoil and the election of new STRS Board members. And let us not forget that as I’m writing this newsletter article, the President of the United States, Joe Biden, is not yet on the ballot for reelection in the state of Ohio!

     Through it all we remained UNION STRONG: voting in elections, signing petitions, making phone calls, writing postcards, and showing up when needed.

     Thank you for all of your efforts thus far as we continue the fight against the gerrymandering of our state’s voting districts, and the efforts to help restructure the STRS Pension Board. Who’s afraid of some seniors? Sounds like the Governor of Ohio is…since supposedly we have initiated a so-called “hostile takeover” of STRS by voting for the Board members who we want to represent us.

     If you enjoyed the drama this year, just wait until August as we actively begin the campaign to re-elect Senator Sherrod Brown. He is genuinely concerned about the well-being of seniors and working people in the state of Ohio, has the voting record to prove it, and deserves our support. Please plan to help us in this effort!

     Senator Sherrod Brown moves legislation through Congress on our behalf, and is currently pushing to repeal the Government Pension Offset and Windfall Elimination Provision. GPO and WEP are two federal statutes that financially penalize seniors who get a government pension such STRS or SERS, and also worked other jobs that paid into Social Security, by unfairly cutting their and their spouse’s SS benefits.

     Over 100 members attended the May meeting to hear speaker Cynthia Dempsey, Chairperson of the Cuyahoga Democratic Women’s Caucus, discuss the upcoming elections.

     Special thanks to Thea Wilson, a 279-R member, retired CMSD educator, and children’s author. She sold copies of her children’s book, 13 Peas, and donated $132 (50% of the proceeds) to the 279-R Scholarship Fund.

Annual 279-R June Luncheon

     The 279-R Scholarship Luncheon will be held on Friday, June 21, at 11 a.m. at the Cleveland Marriott East, 26300 Harvard Road in Warrensville Heights. Last-minute reservations can still be made---mail your reservation form on page 5 in this newsletter and $40 payment ASAP, so we receive it by June 14.

     We will have the popular basket raffles again at the luncheon. All monies from the scholarship raffles, at the annual luncheon and at the monthly meetings, go into our Scholarship Fund at Cleveland State University. Thank you to everyone who donated items for the baskets.

     Our speaker will be David Pepper, political activist, author, adjunct professor, and former Chairman of the Ohio Democratic Party. He will discuss his latest book, Saving Democracy: A User's Manual for Every American. The book is available on Amazon and at your local library. You are encouraged to read it before the Luncheon.

     Also, there will be a short video message from Senator Sherrod Brown to 279-R members.

Donations to Scholarship Fund

     Thank you to those who donate to the scholarship fund. You can donate in memory or honor of any family member, friend, loved one, or colleague. 

     Recent donations were made by: Ruth Billingsly in memory of George Billingsly; Betty Crouther in memory of everyone listed on our donation form; and Lydia Martin.

     Remember, all scholarship donation checks must be made out to:  279-R NEO AFT. On the memo line of the check, write Scholarship Fund. 

     If we missed listing your scholarship donation, please contact us at 216-482-2281. We appreciate your generous support of the 279-R Scholarship Fund at Cleveland State University.

How to Contact Us

       Our direct numbers are: Membership Information 216-482-2281; Pension Line (STRS or SERS) 216-482-2282; other calls 216-482-2280. If no one answers, please leave a message spelling your last name, and phone number. You will receive a call as soon as possible. We encourage 279-R members to access our retiree link from the CTU website.  The website address is listed under the letterhead of this newsletter. Check it periodically for other news and updates.

     Enjoy your summer---I know I will! And Happy Father’s Day to all the fathers, grandfathers, and father figures. We appreciate you.

Hazel Hicks

Good dads forgive your mistakes.

Great dads help you hide them from mom.

--Bill Gray

Legislative/Political Update:

A Hot Political Summer Ahead?

     As the summer months approach, activity is heating up in the Ohio Statehouse.  Unfortunately, as we have mentioned in the past, this is not exactly positive for public education.  

State News

     On the State level, as this newsletter goes to print, Governor Mike DeWine has called for a special session of the Ohio General Assembly, May 28-29, 2024. The issue: will President Biden be on the Ohio Ballot in November?

     Ohio’s Constitution requires candidates to be certified for the November ballot by August 7. The Democratic National Convention that will nominate President Biden will not be held until August 19. 

     In the past, when this situation occurred, Ohio’s elected officials came together to ensure a major party candidate would be on Ohio’s ballot. 

     However, the current nature of the abhorant partisan politics in Ohio is preventing this from happening. The Republicans want something in return, and that something is banning foreign donations from ballot initiative, as was the case of Issue 1 in August and November. 

     Actually, campaign finance is something the General Assembly should look at, but not just foreign influence.  The corruption and influence that occurred with the Republican party around First Energy, Speaker Larry Householder (now in federal prison), Governor Mike DeWine, and many other Ohio Republicans continues to be investigated.  Personally, I think the issue of President Biden on the ballot should be a single issue, and by all means, the General Assembly should do a deep dive into campaign finance.

     On a positive note, Governor DeWine signed a school cell phone bill that would require schools to adopt policies banning student access to cell phones during the school day.  A number of school districts have attempted to address this problem. The Cleveland Teachers Union just negotiated language in their Collective Bargaining Agreement around cellphones. Kudo’s to CTU on ratifying their new CBA!

     Unfortunately, two other bills targeted at teachers are being looked at in Columbus.  HB 168 is aimed at easing teacher licensure to allow anyone with a Master’s Degree to enter the profession by simply passing a state test. This is their attempt at addressing a teacher shortage. It is amazing how often Republicans look to lower the bar regarding standards rather than lift up the profession by addressing pay and working conditions. Stay tuned.

     Additionally, HB 556 would charge teachers and school district librarians with felonies for “pandering” so-called “obscene” material. The Republican who introduced the bill has been vague on offering up examples of what is occurring that requires this bill, but most look at it as another attack on the LGBTQ+ community by going after schools, teachers, and librarians. 

     STRS is still looking for legislation to increase the employer contribution to STRS by 4%, phased in over the next five years. No formal legislation has been introduced, and with the current drama playing out at STRS, it may be a while before we see actual legislation.

Federal New

     On the Federal level, our good friend Senator Sherrod Brown will be in Columbus on Friday, June 7, to hold a field hearing on his Social Security Fairness Act aimed at repealing WEP (Windfall Elimination Provision) and GPO (Government Pension Offset).  Any retiree impacted by WEP/GPO is encouraged to attend. The hearing will be held at the Columbus Firefighters IAFF Local 67 Hall, 379 W. Broad Street, Columbus, OH 43215, beginning at 10 a.m.

     Finally, a huge shout out to Pat Zawadzki and Ruth James Dickens, our two 279-R members working with OFT as Member Mobilization Leaders, on their incredible work at collecting signatures to get the redistricting initiative on the November ballot. They’ll be keeping all of us busy this fall as we head into an election season. Please plan to donate some of your time when they contact you.

David Quolke, Legislative Chair

Membership Report

     Greetings from the Membership Committee! We had 103 members at our May meeting, and are looking forward to seeing everyone at the annual luncheon on Friday, June 21.

     Why is Cripple Creek so well known, other than being a song by The Band? Cripple Creek, Colorado was the site of a miner’s strike in 1894. When silver took a downturn and there were many silver miners out of work, the gold mine owners associations colluded to change the $3, 8-hour day to a 10-hour day with no increase in pay.

     The miners of the Western Federation of Miners union organized a strike. The mine owners had such control over local law enforcement that strikers were being arrested on false charges.

     The Governor then sent in 300 state militia officers to protect the strikers/mine workers---the FIRST and ONLY time a state militia has been called out to protect striking workers.

     Although, in the end, the strike was not successful, the union grew at such a rapid pace that it organized more than 200 local unions in thirteen states over the next ten years. It set the pattern for an 8-hour day in future mining contractual agreements.

     Today, we send supportive thoughts to the United Auto Workers (UAW) in their vital work of organizing, and hope they do as well as the miners did over 120 years ago.                                                  In Peace,

Alanna Meyers-Kiousis, Membership Chair

Travel News

In May, we went on our last trip for this year to the First Ladies Museum and the Antique Car Museum. The best part was lunch at the Hartville Kitchen Restaurant. Our meals are sometimes the most fun. We also enjoyed coupons for shopping.  If you have any ideas for a trip in the fall, please call me at 440-842-9524 and share your suggestions.

 Linda Opaluch, Travel Coordinator

 

STRS May Board Meeting Report:

Minority Becomes Majority 

     Rob Walters and Dan MacDonald attended the May STRS Board meeting of May 15-16. The 1pm Wednesday agenda was approval of minutes, governance and Board policy discussions, and executive session. 

     An immediate visual change was obvious in the room: the Attorney General Office and Parliamentarian had seats where outside consultants and presenters usually were located. All Board members were present. The April minutes were not immediately approved. Some members argued that the previous meeting was never officially adjourned and that the Chair walked out. To be truthful, we are not sure of the final language, something to the effect of “the meeting adjourned without a vote.”

      Ultimately, the minutes passed 6-5 as amended, with the more newly elected Board members and appointed Board member Steen in the majority. Board member Sellers then moved to replace the Chair and Vice Chair. Chair Price moved the motion out of order, but that was defeated. 

     After much discussion by all Board members along with the AG’s and Parliamentarian’s input [maybe don’t do it and fiduciary duty threats], Chair Price and Vice Chair Correthers were replaced by new Chair Fichtenbaum and Vice Chair Jones [both retirees]. Again a 6-5 vote.

     A 20-minute break then occurred, during which time heavy media presence interviewed Wade Steen and some of the Board members. STRS’s chief legal officer then presented on the loss of outside consultant AON and the seeking of new fiduciary council. Some discussion followed, and the Board proceeded into Executive Session. 

     The Board meeting resumed on Thursday at 8:30 a.m. to a full audience of retirees. Chief Legal Office Wideman opened the meeting with the approval of committee charters and reports. The audit, investment, legislative, and governance committees gave their reports which were accepted by 10-0 votes [Steen was not present]. The approval of Board policy updates, which Board member Davidson asked to postpone, was defeated 5-5; Steen was absent. The updates were not approved.  

     Benefits were then discussed, regarding aligning the health care subsidy with the recent pension change allowing retirement with 29 years of service (YOS) with reduced benefits. This moved the subsidy from 60% to 72.5% for non-Medicare and from 52.8% to 63.8% for Medicare. This impacts only those with 29 YOS; those with 30 YOS or more are at 75%. Vote 10-0, Steen absent. 

     The Investment Department saw a preliminary March return of positive 2.05% with a preliminary total fund return for the fiscal year at positive 8.81%. April was not strong. The net return for April was a negative 2.04%, reducing the total fiscal year return to a positive 6.63%. [Remember the goal is to be above, as far as possible, 7% by the end of June.) Total investment assets ended April at approximately $92.6 billion. 

     Acting Executive Director Hoover then gave April and May Director reports. The Ohio Retirement Study Council released a report on all five pension systems. STRS was found to be under good stewardship [forget that the Governor and AG are attacking two Board members]. STRS is preparing a website covering the push for an increase in employer contributions [4% addition spread over 8 years bringing the employer rate to 18%]. Board member Davidson emphasized this as a win/win for actives and school districts. Other areas were covered. 

     Outside actuarial consultant Cheiron then presented live modeling of potential plan changes with modeling reflecting the Sustainable Benefit Plan, de minimis, plan changes, and asset performance. Board member Davidson emphasized that no member on the Board desired the destabilization of the general fund. He also pointed out that an assumption discount rate of 7.25% would allow COLAs and 33 YOS. Ten-year economic projections do not allow 7.25%, according to Cheiron. Numbers were placed into the live modeler and discussions followed.  

     Fifteen people addressed the Board during Public Participation including Michelle Flanigan, the active member who was just elected to the Board in May. Her term begins in September 2024. Speakers addressed STRS concerns, including the AG’s just-announced investigations into Steen and Fichtenbaum not fulfilling fiduciary duties [all seen as BS and the Ohio government not appreciating the reversal of minority “reformers” to the majority on the Board].  

     After lunch/executive session, Acting Director Hoover presented the 2025 Performance-Based Incentive (PBI) plan. Hoover pointed out that only 15% of total STRS employees are eligible for performance-based incentives. She mentioned that for every $1 spent there was a $57 return. Much discussion followed. Lots of probing questions. Board member Falls pointed out that the investment staff costs are .0035% of a 94-billion-dollar business. No motions made. No vote taken. 

     Acting Director Hoover followed with the proposed fiscal 2025 budgets. The operating budget was up 2.3%. Of the 2.3% increase, “3% is budgeted for merit increases compared to the national average of 3.85%, OPERS at 6.5% and SERS at 4%” [quoted from handout]. Davidson suggested giving non-investment staff a bigger pay raise, the $50,000 to $70,000 personnel. The capital budget was up 1.7%. Discussion was held. No motions made. No vote was taken. 

     Routine Matters followed. 

     Under Old/New business, the meeting remained active for an additional hour. Former Board members Perena and Bishop’s legal expenses were paid by STRS; current Board members Steen’s were not.  The AG stated that Steen hadn’t requested payment, and he should talk to his lawyer. The AG representative explained that there is a wall between enforcement and advising, and that the AG is fair. 

     Sellers moved that Fichtenbaum’s and Steen’s legal fees be paid by STRS. The “advising” AG rep stated that no information had been shared regarding the AG’s filing to remove Steen and Fichtenbaum from their Board seats for failure in their fiduciary duties. The representative said she found out during yesterday’s Board meeting.  [This action to remove would reverse current voting patterns of 6-5]. Ultimately, motion and second were withdrawn. 

     Steen reported threats of violence to his family and his person if he remained on the STRS Board. Sellers sought information about the 14-page letter sent and delivered to the Governor’s office. AG warned of whistleblower’s protection. [Comments were made that the letter was written by STRS staff and delivered by an STRS staff member.]

     Davidson proposed that a di minimis amount be determined in October or November for FY 2026 budget, to determine whether a check might be issued in December 2024 [think 13^th check, a one-time only payment that will not permanently affect your pension] and a COLA for 2026. Vote 8-2 with 1 abstention.

     Another vote was taken allowing Neville to remain on leave until June 30, 2024, and Hoover remaining as acting director during that time. Vote 9-2. 

     Another vote was taken calling for a Special Board meeting on May 30, 2024, at 1 p.m. to discuss the Board Election Policy and allow an Executive Session. Other agenda items were suggested. The Chair will set the agenda.  

     The next regular Board meeting is scheduled for June 20-21, 2024. Remember to register online at www.strsoh.org beginning a week prior to the meeting. STRS will send you a link so you can watch the meeting online.

Rob Walters & Dan MacDonald 

Dan’s Public Participation Comments at the May STRS Board Meeting:

Hostile Takeover? Really?

     Mr. Chair and members of the Board, good morning. I am Dan MacDonald, an STRS retiree with 38 plus years of service.  I am also the Executive Director of Local 279-R, Northeast Ohio AFT retirees.     

     Hostile takeover. Really?   STRS, of course, will take no ownership. STRS needs two people disqualified, an appointee and an elected Board member. The Board will have to appoint the elected seat. 

     I’ve attended most of these Board meetings since 2014. Each meeting brings up concerns that I address in Public Participation at the following meeting. My own Local 279-R Board passed a motion to speak at each meeting until COLA is permanently restored. I suppose our local is as villainous as ORTA is being characterized.

     By the way, did STRS ever contemplate that the governor’s original appointment would rightfully show up at a Board meeting? Then the swearing in fiasco---are G. Brent Bishop, and Brian Perera also the current holders of the governor’s appointed seat? 

     Will the Board allow the Parliamentarian to explain how a Board meeting can be adjourned by an Attorney General representative who is here, like me, as an observer?   I respect the Chair, but someone prompted him to focus on Routine Matters and a fast, wrongly-declared adjournment. Thanks to the so-called reformers, Robert’s Rules are now part of policy and not “guidelines.” Remember when legal would point out Robert’s Rules of Order were not part of STRS policy?

     “No bad news” STRS Ohio is fully functioning behind a smoke screen with Attorney General Yost, the Ohio Ethics Commission, the Ohio Retirement Study Council, Auditor Faber, Treasurer Sprague, Secretary of State La Rose, and “relevant” members of the Ohio General Assembly to make sure a Board will always approve merit-pay raises and investment incentives, and whatever the gerrymandered government officials in Ohio desire, probably money flowing to Wall Street. Actives and retirees continue to pay the price for more costly and diminished pensions.

     As always, you can try to shut observers up and place blame elsewhere, but until actives and retirees’ benefits are restored, you will hear from us.

     By the way, I am happy that AON is gone, now that they presented more limits to, or even the elimination of, public participation [at Board meetings], and their expensive fiasco in Pennsylvania was revealed.

     Once again P.T. Barnum said it best: “You can fool all of the people some of the time, you can fool some of the people all of the time, but you can’t fool all of the people all of the time.”

    

R+R Sunshine R+R

Mary F. Kelly passed on March 30, 2024.  Send online condolences at www.ripepi.com.

Elizabeth J. Molnar passed on April 23, 2024.  Send online condolences at www.johnsonromito.com.

Marian Harty-Conroy passed on April 24, 2024. Send online condolences at www.chamberfuneral.com.

Audrey Louise Glaser passed on April 30, 2024. Send online condolences at www.obits.cleveland.com.

Janice Capezzuto is having knee surgery. Send get-well wishes to her at 1493 Wallings Road, Broadview Hts., OH 44147.  

John Arrigoni has been in and out of the hospital. Send get-well wishes to him at 2702 Riverchase Drive, Millertown, OH 45042.

Theresa Ormandy 216-741-6764

An Addition to Your Reading List…

     Planning to attend the June luncheon? Our speaker will be author David Pepper.

279-R members are encouraged to read his latest book, Saving Democracy: A User’s Manual for Every American, that details how we all can and must play a role in saving democracy at this fraught time. It explains how all levels of the pro-democracy side, from national political leaders to grassroots activists to everyday Americans, must switch to offense, and how to stay on offense and win.

Have a great summer!

The 279-R Newsletter will resume

in September 2024.