February 2022 OEA Retirement Systems Update
OEA Endorses McFee, Rhodes and Walters for STRTS Board
The OEA Board of Directors has endorsed three candidates for the STRS Board. Robert McFee and Jeffrey Rhodes are seeking re-election to the STRS Board as representatives of active members. Rita Walters is seeking re-election to the Board as a retiree representative.
As Board members, these candidates and OEA members have been dedicated to improving the funding status of the pension plan to make pension benefits more secure for all members. Over the past four years, the funding ratio of the pension plan has improved significantly. The STRS Board is now able act on resumption of the cost-of-living adjustment (COLA) for retirees coupled with improvements for active teachers.
Robert McFee and Jeffrey Rhodes (active seats)
Robert McFee is a math teacher in the Willoughby Eastlake City Schools. Jeffrey Rhodes is an Industrial Education teacher in North Royalton City Schools. Both have served on the Board since 2018.
Rita Walters (retiree seat)
Rita Walters retired with 35 years of experience as a classroom teacher with Switzerland of Ohio Schools. As an active teacher, she served as president of her local association and on the OEA Board of Directors for 12 years. Walters was elected to the STRS Board in 2017.
- Improving Funding
After the Great Recession, STRS was projected to run out of money. Since McFee, Rhodes, and Walters have been on the Board, STRS funding has greatly improved making our future pensions benefits more secure and reliable. - Restoring Benefits
Improved funding means that STRS is now able to begin restoring benefits. McFee, Rhodes, and Walters believe this must benefit all STRS members—active and retired. In addition to bringing back a COLA for retirees, active teachers should benefit from an earlier retirement age (removing the age 60 requirement). - Securing Health Care
Once projected to run out of money, the STRS Health Care program is now fully funded, and retirees have received premium rebates for the past two years. - Protecting Our Pension
Recently, two STRS Board members proposed investing up to $65 billion (2/3 of STRS assets) in a firm with no clients and no track record of success. Our endorsed candidates will fight against unproven investment schemes targeting our pension dollars.
In early April, ballots will be sent to all STRS members. Active employees, those currently paying into STRS are eligible to vote in the election for the active member seat. STRS retirees, are eligible to vote in the election for the retiree seats.
OEA’s endorsed candidates for the STRS Board are proven leaders who are looking out for the best interests of their fellow educators. These three candidates are dedicated to improving benefits for active and retired teachers while ensuring that the pension plan is sustainable into the future.
We need to do everything we can to re-elect Robert McFee, Jeffrey Rhodes, and Rita Walters to the STRS Board
OEA Urges COLA Payment, Removal of Age 60 Requirement at STRS
At the February meeting of the STRS Board, OEA Secretary-Treasurer Mark Hill addressed the Board to advocate for restoration of cost-of-living adjustment (COLA) payments for retirees coupled with changes benefiting active teachers. Specifically, he voiced OEA’s support for options that would pay a 2% COLA for eligible retirees coupled with removal of the age 60 requirement for retirement eligibility. This would allow unreduced benefits with 35 years of service at any age from August 2023 and beyond. A second supported option would include those two items and a 1% decrease in the employee contribution rate from 14% to 13%. A copy of the statement is attached.
The improved funding level of the pension plan make these recommended benefit improvements possible. In 2017, the STRS pension plan did not meet the requirement in Ohio law that period needed to pay off the unfunded liabilities of the system cannot exceed 30 years. The STRS Board voted to suspend COLA payments to shore up the long-term funding of the pension plan. The Board stated that they would review the change within five years and subsequently adopted a funding policy to consider changes that do not impair the fiscal integrity of the pension plan once the plan was 85% funded.
Given the strong investment returns of last fiscal year (over 28%) and due to the shared sacrifice of both active and retired members, STRS is now over 85% funded on a market basis. OEA believes that both active and retired teachers should benefit from this improved funding status. The proposed changes can be afforded without putting the long-term solvency of the system in jeopardy.
The STRS is expected to vote on possible changes at its March meeting. The Board will examine the proposals outlined above as well as the possibility of a multi-year COLA or a COLA of 3%–
Click here to download a copy of this February 2022 Report to the OEA Board of Directors. Previous Retirement Systems Updates can be viewed under the Affiliate Resources tab on the OEA website.
February – March 2022 Ohio Schools
- COVER STORY: Pathways to Success – Educational Pathways program aims to set future teachers up for success.
- MAKING THE GRADE
- Ohio Paraprofessionals Honored as Ohio’s Nominees for National Recognizing Inspirational School Employees (RISE) Award
- OEA Members Recognized as Top NEA Cyber-lobbyists
- A Typical American Teacher’s Brain on Any Given School Day
- POLITICAL ACTION
- Biden Administration Delivers Results for Public Education and America in First Year
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OEA condemns latest version of House Bill 327
[February 16, 2022] The Ohio Education Association (OEA) stands with the majority of Ohioans who believe all children deserve the opportunity to receive an honest and reflective education that empowers them to become critical thinkers and strong future leaders.
OEA is appalled by the continuing efforts of certain politicians to force through House Bill 327, which would force educators to whitewash our history and distract from the real issues facing Ohio’s schools. OEA calls on the Ohio House of Representatives to end consideration of the bill.
The revisions included in substitute HB 327, as introduced Wednesday, do nothing to address the irreparable harm this legislation would cause to Ohio’s students. And it actually makes the potential dangers to educators and administrators more confusing. The current version replaces the bill’s original and undefinable “divisive concepts” language with vague references to the 1964 Civil Rights Act, apparently requiring Ohio educators to become constitutional law experts in order to understand what the bill’s sponsors don’t want them teaching.
“Make no mistake, this latest version of HB 327 is just another exercise in smoke and mirrors by some state leaders to deflect their constitutional responsibility to fully fund all of Ohio’s public schools and provide Ohio’s children with the resources they need to succeed,” OEA President Scott DiMauro said. “The lawmakers behind this horrendous bill can dress it up anyway they want as they continue to do the bidding of a national network of extremists who are looking to control the political narrative at any cost. But this new version is just as outrageous and inexcusable as the prior version. And in some ways, it’s worse.”
OEA will continue to stand up for honesty in education and against government censorship in the classroom. Ohioans must come together and call on their elected leaders to do better for Ohio’s students.
“Educators and parents know children must have the opportunity to reckon with the mistakes of our past in order to create a better future for all of us,” DiMauro said. “Instead of anti-freedom state censorship laws, let’s work on pro-student policies like fair funding and better access to learning opportunities for all students.”
Backpack Bill would come at enormous cost
“Ohio lawmakers have a constitutional responsibility to fund Ohio’s public schools and ensure a high-quality education for all of Ohio’s kids. HB 290 would force local communities to rely even more heavily on local property taxes to fund schools for the 90 percent of Ohio children who attend public schools. There’s evidence under our current voucher system that public schools out-perform the private schools,” OEA President Scott DiMauro said, citing a Cincinnati Enquirer investigation that found nearly 90% of all voucher students do worse on state tests than students in traditional public schools in the same zip codes.
“Dumping precious resources into a universal voucher system that provides zero auditing requirements for the private schools that would rake in the taxpayers’ cash is just wrong,” DiMauro added. “This is especially true now, when Ohio finally has a public school funding system worth investing in after the adoption of the Fair School Funding Plan in the last state budget. Our lawmakers must hold up their end of the deal to fully fund that system before going off on yet another ideological misadventure with our hard-earned tax dollars. Taxpayers don’t need another ECOT-level disaster and scandal.”
Disturbingly, even with these vouchers, most families still couldn’t afford tuition at the private schools in their communities, and this exponential expansion of a vouchers system in the state would only further contribute to racial segregation in our schools. In Ohio, only about 50% of the subsidies currently being taken are being taken by non-white parents, even though the communities where about 95% of the vouchers come from are nearly 70% non-white. Only 37% of students in Lima City Schools are white, yet Temple Christian School gets $242,000 in taxpayer tuition subsidies and took 100% white students. Likewise, Lima Central Catholic takes more than 70% white students, St. Gerard and St. Charles take about 80% white students. Simply put, these private schools do not reflect the racial makeup of the communities that are forced to pay their bills.
“Ohio taxpayers can’t afford to shell out more money for voucher programs that weaken the public schools that serve the vast majority of Ohio’s kids,” DiMauro said. “We’ve been down this road before and we know it is a dead end in Ohio’s budget. When only 74% of students were eligible for government subsidized private school tuition in 2017’s SB 85, the non-partisan Ohio Legislative Service Commission estimated the cost as high as $1.2 billion. And that was with lower subsidy amounts. This bill will cost (conservatively) two or even three times that amount. Asking Ohioans to pay for that at the expense of their neighborhood public schools is irresponsible and wrong.”
OEA Hopes Court Decision on Maps Will Be Lesson Learned
“The Ohio Education Association celebrates the courage of the four State Supreme Court justices who have demonstrated their steadfast commitment to upholding the law and defending the will of the people. Ohio voters have spoken and have overwhelmingly demanded fair maps to ensure they will finally have a real voice in the Statehouse. It’s clear the state’s highest court will not let that voice be ignored any longer.
The Redistricting Commission reminds me of students I’ve had at times who spend more time creatively cheating than doing their work. Like those students, if the Redistricting Commission had put as much time into actually following the instructions of the Constitution as they did into coming up with creative ways of sidestepping the rules, they would have passed with flying colors. Moreover, if they had put as much work into following the will of the people rather than trying to get around the will of the people, we’d all have the maps we deserve.
The Commission members must understand that Ohioans have a constitutional right to choose their politicians, not the other way around, and Ohio’s broken mapmaking process must finally come to an end.
OEA looks forward to seeing the Commission’s third attempt at district maps and continues to put its faith in the State Supreme Court to ensure Ohio finally has fair maps if the Commission again fails to deliver on that promise.”