Greetings ORTA Members! I trust everyone enjoyed a Merry Christmas and will have a great New Year.
The newsletter from ORTA this month will be brief as we are busy preparing our annual ‘hard copy’ newsletter that will come out towards the end of January 2025. There are, however, a few items of note that we wanted to share.
1. You may have seen in the social media posts of a recent vote taken in congress about the WEP (Windfall Elimination Provision) and the GPO (Government Pension Offset) legislation that passed both the US House and Senate and is on the desk of President Biden. This legislation is known as HB 82 and would repeal the WEP and GPO for all public pension recipients in the US. If you are unfamiliar with these two draconian statutes, the GPO prevents widows and widowers from receiving their spouse’s social security payments because they are receiving a public pension. Of course, this measure has made no sense since its inception. In addition, the WEP reduced the amount that a person who worked the required number of quarters by as much as 2/3rds because they received a public pension. Many Ohio public employees, including educators, were penalized from receiving the amount due because of the WEP. As we wait on Biden to sign this bill, we encourage all to voice your support for this legislation.
2. ORTA concluded its endorsement process in mid-December and has endorsed three candidates for the election of STRS board members this spring. The election will take place in late April through the first week of May 2025.
Endorsed candidates:
Dr. Rudy Fichtenbaum for the retiree seat. As we all know, Rudy has been a strong supporter of reforms at STRS.
Michael Harkness for one active contributor seat. Michael was appointed to his seat after former board member Steven Foreman retired from education and was no longer able to hold his seat. Michael Harkness has also pledged to fight for transparency from STRS and force reforms at STRS.
Chad Smith is endorsed for the 2nd seat for active members at STRS. Chad was very adamant that change at STRS is essential. All three candidates are committed to change and or reform at STRS, something ORTA has been advocating for several years. Although the process of reform for an organization that has had no oversight for decades is slow, the changes are progressing.
Holding seven of the 11 seats on the pension board would bring about real change at our pension. As retirees, your support of Dr. Fichtenbaum is essential to continue the battle to restore our promised benefits. As retirees, you are also able to encourage active members that you know to vote for Chad Smith and Michael Harkness.
The front page of ORTA’s website (www.orta.org) has information on these three candidates including each candidate’s petition. Retirees can only sign petitions for a retired seat and active contributors can sign for active member seats only. Please help get petitions signed for all three endorsed candidates.
Once signed, send them to:
ORTA
250 E. Wilson Bridge Rd. Suite 150
Worthington, Ohio 43085.
3. STRS has begun the process known as ‘asset allocation’ for pension investments. This is noteworthy because over 50% of our ability to pay pension benefits comes from what our investments can earn. ORTA has suggested that the investment allocations are far too heavy in 'alternative investments and real estate.’ These allocations are much more expensive and yield lower returns than passive investments in fixed income and broad-based equity indexes. ORTA will remain vocal in its support of reducing the nearly $1 billion paid in fees and expenses to Wall St. and our active management program, providing better returns and lower costs.
4. As we begin 2025, I hope that all ORTA members can see the value in membership to ORTA. Since 1947 ORTA has been the voice of advocacy for STRS members. With dues that cost $2.50 each month ($30 per year), the value of an ORTA membership exceeds the cost. As has been stated many times, our voice is only as strong as our membership. I urge all ORTA members to encourage your friends and colleagues to join ORTA in the battle to restore STRS benefits.
5. Another piece of legislation, Ohio HB 278, passed and was signed by Governor DeWine. This bill allows a retired and rehired educator to run for a retiree seat on the STRS board. As you may be aware, this large group of people has been in limbo as far as STRS is concerned. This group receives benefits from STRS AND makes ongoing contributions but were not able to hold a seat on the STRS board. This statute rectifies this situation.
6. Pension Defense Fund – ORTA has been steadfast in its support of both Wade Steen and Dr. Rudy Fichtenbaum. ORTA stands behind these two reform members as they are under attack by Ohio Attorney General Yost. ORTA’s Pension Defense Fund has paid legal fees to defend both Fichtenbaum and Steen. ORTA welcomes any donation our members can make to protect these two men from the governor and attorney general.
7. ORTA is offering something new this year, allowing a purchase of an ORTA membership for a friend or relative. These ‘gifted memberships’ are perfect for those hard to buy for people in our lives. Several people have gifted membership to a friend or former colleague this holiday season.
8. Have a wonderful 2025 and look for our mailed newsletter later this winter.