Akron Beacon Journal Journal

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AKRON BEACON JOURNAOURNAL© Copyright 2010 Beacon Journal PublishingL Co. $1.50 SUNDAY , June 20, 2010 ABC News OnlineON OHIOwww.ohio.com . COM H ome D eliveryHome 800 Delivery - 777 - 2442 800-777-2442$1.50

SINGLE DAD CHERISHES DECISION AN OHIO M anytop NEWSPAPERS TO ADOPT SPECIAL REPORT COMMUNITY , B1 Tod a y’s report examines publicly funded educators pensions as Ohi o’s lawmakers consider options A kron ’ sD evo to improve the solvency of these funds. has ‘ S omething I nformation supplied by the pension funds enabled reporters from the state’s eight largest double dip for E verybody ’ newspapers to identify thousands of public PREMIER , E1 employees who are working in public office and collecting pension payouts at the same time – In today ’ s B eacon J ournal : known as ‘ ‘ doubledipping . ’ ’ the system Up to $397 T hat list was matched with the most readily in coupons available public directory – Ohio school Growing number retiring only to get superintendents – to produce this report. C ycling star Lance A rmstrong , 38, discusses what he’s learned C omingM onday : P ension funds lack public rehired at same job or another district, transparency , are able to lobby lawmakers. as a cancer survivor in today’s collecting pension as well as a paycheck issue of Parade magazine . By Dennis J. Willard B eaconJ ournalC olumbusB ureau For the past decade , L arry M organ has been collecting a pension check from the S tate T eachers R etirement S ystem and a paycheck as superintendent of the Stark C ounty E ducational S ervice C enter . He is paid $ 149 , 688 by the service center an d a $6,00 0 supplemental salary, plus his employer contributes $ 10 , 000 to a tax-de- ferred annuity and he gets life insurance. He also is paid $1 a year as superintendent of the county’s R.G. Drage Career T echnical C enter . W hen he stops working or dies, according to his contract, Morgan Y acht race or his heirs will be paid $ 5 , 000 for each infuriates

ANDREA LEVY/ G ulf folks Calfee P lain D ealer illustration Bitter victims of oil spill feel slighted by BP exec S chool chiefs By Raphael Satter Morgan and Holbrook Mohr year he has run the vocational center since A ssociatedP ress get better deal 1995 . EMPIRE ,LA.: BP chief executive On top of that is his pension check. T onyH ayward took a day off Sat- Tha t’s private ,but the annual amount urday to see his 52 - foot yacht ‘‘Bob’’ could easily be in six figures. compete in a glitzy race off E ng - than teachers M organ , 68, will spend about a fifth of land ’ sshore , a leisure trip thatfur - his career collecting pension checks from ther infuriated residents of the oil - the state retirement fund while receiving stained Gulf C oast . Superintendents obtain advantages instructors full pay as a superintendent, a practice W hile H ayward ’ s pricey ship often called double dipping. Absent the as- whipped around the I sleof Wight don’t to improve financial prospects in retirement surance that he could keep his full - time on a good day for sailing – breezy government job, Morgan said, he probably and about 68 degrees – anger sim- By David Knox raise , bringing his salary to would not have retired on Aug. 1, 2000 , mered on the steamy Gulf C oast , B eaconJ ournal staff writer $11 5,5 1 5. when he was making $ 129 , 969 . where crude has been washing in One out of every four. C alfee could have waited to M organ may be cashing in on the system from the still - gushing spill . Tha t’s the number of superin- start collecting his pension, but more than others, but he is hardly an anom- ‘‘Man, that ain’t right . N one of us tendents drawing state pensions the financial benefits offered by aly in O hio . can even go out fishing, and he’s at who have been rehired to work Ohi o’s S tate T eachers R etire - He is a member in an exclusive club of the yacht races,’’ said Bobby P itre , full time as chief executives of ment System ( STRS ) are almost superintendents who retire and return to 33 , who runs a tattoo shop in the impossible to turn down. their same job or rotate to another school crossroads town of L arose ,La. ‘‘I the state’s more than 600 public district after signing lucrative contracts. school districts. ‘‘I would be crazy if I hadn ’ t more than 400 , 000teachers and wish we could get a day off from An analysis by Ohi o’s eight largest news - the oil, too.’’ S urprised ? have done it,’’ he said. other education workers, both papers found: Tim C alfee is n’t. He’s one of T hatjudgment is hard to dis- retired and employed ,covered • One in four public school leaders in BP spokespeople rushed to de - them . pute . by STRS. They are executives Ohi o’s 614 districts brings home the bacon fend H ayward , who has drawn C alfee , superintendent of Ra- C alfeeand other STRS mem- managing multimillion - dollar twice and one in two educational service venna schools since 2001 ,retired bers with 35 years of service are enterprises employing hundreds center superintendents is doing the same. P leasesee Oil spill ,A8 at age 57 on F riday ,Aug. 1, 2008 . eligible for annual retirement and dwarfing most private busi- • Allowing superintendents to retire ear- T he following M onday , he was benefits equal to nearly 90 per - nesses in their communities. ly halts their contributions into the fund back at his desk as head of the cent of the average of their high- As such ,they have three ad- and pulls millions of dollars out at a time about 3 , 000 - student district in est three years of earnings. vantages – unavailable to teach- when the fund ’ s long - term viability is at P ortage C ounty . But C alfee and the other su- Today’s weather He was rehired with a $2,27 3 perintendents aren’tlike the P leasesee S chool , A11 P leasesee A bout27%, A10 Mostly 84° High sunny 58° Low Forecast, Page B8

D earA bby ...... E2 H oroscope ...... F11 LeBro n heightens drama B ettyL in - F isher . D1 J umble ...... F11 B ooks ...... E3 L ottery ...... B2 B usiness ...... D1 M ovies ...... E8 with late entrance to rally C lassified ...... F1 S heldonO cker ... C9 C ommunity ...... B1 P remier ...... E1 James arrives after closing, but appreciation day is turned back on C rimeW atch ...... B4 S ports ...... C1 By Jason Lloyd C rossword ...... E2 S udoku ...... E4 ONLINE B eaconJ ournal sports writer RUN AT GLORY D eaths ...... B5-7 T ravel ...... E6 NewY ork K nicks make sacrifices in EXTRA T hecrystal trophy had been E ditorial ...... A12 V ideo / TV ...... E2 packed away, the band had stopped effort to land LeBro nJ ames . P ageC1 playing and the fans were slowly See a video filing out of I nfo C ision S tadium on Search the classifieds and a gallery ganizers – by making a surprise ap- S aturday when everyones t o p p e d pearance for the estimated gather - of photos with in amazement. ing of about 4 , 000at ‘‘LeBro nAp- this story at LeBro n J ames had arrived. http://www.ohio.com Ohi o.c o m. preciation Day.’’ He had apparently T hose who remained hoped he wanted to make a dramatic appear- PAUL TOPLE / A kron B eacon J ournal wasn ’ t there to say goodbye. ance as the rally, scheduled to last K evinM etz( left ) and Scott Tiffan are holding out hope and a flag J ames stunned everyone –in- to let LeBro nJ ames know how they feel during S aturday ’ s cluding Akron police and event or- P leasesee J ames ,A6 LeBro n appreciation day at I nfo C isionS tadium .

SUMMA AKRON CITY & ST. THOMAS HOSPITALS One of America’s 50 Best Hospitals. That’s more than healthcare. That’s smartcare. Story 6-20 a10 System AKRE by RSTALLSM Time 18:54:30 Date 6/19/10

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CCYYMK A10 • + Akron Beacon Journal d S unday , J une 20, 2010 www.Ohi o.c o m SPECIAL REPORT: OHIO PENSION FUNDS Changes Ranks of rehired retirees growing... in benefits The number of STRS retirees still working for public schools About 27% in top spot and other institutions in the in the STRS system has climbed steadily in the past decade, from 9,534 in 2000-01 to 15,857 in 2008-09 1968 – a 66 percent increase. In thousands Annual pension benefit improved 20 get pension, paycheck based on years of service. 15,857 Benefit is capped at 80 percent of average pay, although there is 15 a bonus for working at least 45 years to age 70, allowing a 9,534 maximum 85 percent by age 70. 10

5 1970 Automatic inflation adjustment instituted, granting 1.5 percent 2000-01 2002-03 2004-05 2006-07 2008-09 increase in benefits to retirees 2001-02 2003-04 2005-06 2007-08 every year the Consumer Price ...most don't earn much Index exceeds 1.5 percent. A large majority – more than 70 percent – are part-time workers, such as substitute teachers, earning less than $20,000 a 1971 year. They receive pension benefits averaging $42,899. Average pay for calculating pension benefit is changed from five final years to five highest-paid Earnings in lighter face years. Benefits are improved Bold dollar figure is based on years of service. average retirement benefit.

$70,000- $100,000 $99,999 or more $62,072 $80,542 1973 $40,000- Number of years required for $69,999 normal retirement reduced from $52,828 35 to 32 years. Benefits improved: $20,000- L arryM organ ,68, collects a pension from the State Teachers Retirement System and a paycheck as superintendent of the Stark 32 years of service - 64 percent $39,999 C ountyE ducationalS erviceC enter .One in two educational service center superintendents in Ohio is doing the same. of average pay; 35 years of $52,757 Less than service - 70 percent of average $20,000 Continued from Page A1 Retired superintendents much more likely man retired as superintendent pay; 40 years of service - 80 $42,899 at Shaker Heights near C leve - percent of average pay. Maximum SOURCE: State to be still working land . It would seem that a benefit raised to 90 percent of Teachers Retirement System risk . • Superintendents point out large number of educators final average pay, but must work Akron Beacon Journal More than a quarter of that the practice is legal and Ohio's 614 district school 55% would apply for a chance to beyond age 65. Comprehensive that it would be foolhardy not superintendents are Percent reemployed retirees run one the of most prestigious hospitalization, health care and to take advantage of a pension drawing full retirement in public education and envied public school dis- medical insurance authorized for system that permits them to tricts in the state. Number of retirees benefits. So are more retirees. retire and return to work. than half of the 56 F reeman was making earning top dollar • While many superintend - county educational $ 149 , 675 annually when he re- ents claim that this practice is tired with a pension that was service center superinten- 27% skyrockets justified because of a shortage nearly 88.5percent of his in- Superintendents and other of qualified candidates, the dents. In contrast, only come . about 12 percent of the 1974 high-paid employees earning at O hio D epartment of Education S haker H eights rehired least $100,000 make up less says there are thousands of li- total 122,000 retired 12% F reeman without publicizing Final average salary for calculat- than 2 percent of all rehired censed individuals who me e t members of the State the opening or interviewing ing pension benefits to be based Teachers Retirement retirees, but their numbers state standards to run school one other candidate. on three highest-paid years rather System are still working All STRS District school County exploded from 19 in 2000-01 districts . pensioners superintendents educational He received a pay raise on than five. to 299 in 2008-09. In addition • And this is part of a larger in public education. service center his first day back on the job to superintendents to the biggest paychecks, this state issue. About 32 , 000state $15 6,5 4 6, to go along with the Inflation adjustments ranging group also gets the highest and local employees collected SOURCE: Akron Beacon Journal analysis of Ohio Department of Education money from his public pen- from 5 to 33 percent made to pension benefits – an average more than $1 billion in pension and State Teachers Retirement System data. sion . benefits currently paid to people of $80,542 a year. payouts last year on top of Akron Beacon Journal D eals like this led lawmak- who retired between 1951 and their paychecks. Three - fourths ers in 2003 to require school 1971. Rehired retirees earning $100,00 or more of those dollars went to STRS How salaries of full -and part - time basis and as boards to conduct a job search 300 members . adjunct professors at universi- before rehiring recently re- educators compare ties . tired superintendents. C uttingdeals Statewide average salaries, In 2009 , about 1 , 100 S T R S $101,403 Now, a district must post 250 M orethan 150 (about 27 2008-09 school year members received on average the job opening 60 days in ad- 1976 percent ) of the state’s 613 su- $67,0 0 0 in pension pay while vance , hold a public hearing on perintendents are collecting $82,497 making $ 70 , 000 to $100 , 000 in rehiring the superintendent to Service requirement for normal 200 paychecks and pensions at the their post - retirement job at a determine whether there is retirement reduced from 32 to same time. The ratios are high - school district. any opposition in the commu- 30 years regardless of age. er among the heads of the Edu- 150 $54,474 T here is an even moreex- nity and then vote publicly to Benefits improved for retirement cational Service C enters ,the clusive group of 299 STRS re- rehire . after 25 years’ service. former county school districts tirees who earn more than T hese rules have not 100 Percent that were merged in 1995 to $ 100 , 000 annually in their re- stopped a small cadre of super- increase create 56 support centers for tirement while receiving a intendents from continuing to 1,474% local school districts. pension check of more than monopolize the positions. 50 For the past decade, a grow- $ 80 , 000 on average. Their J ennifer S inisgalli , S trongs - 1979 ing number of school chiefs Teachers Principals Superintendents number has grown from just 19 ville school board president, have cut deals to retire, collect Source: Ohio Department of Education in 2000. said her district received 25 or Automatic cost-of-living 2000-01 2002-03 2004-05 2006-07 2008-09 a lucrative public pension and Akron Beacon Journal The O hio newspaper analy- more applications when the adjustment changed from 2 to 2001-02 2003-04 2005-06 2007-08 return to work, often in the sis of double - dipping superin - superintendent ’ s job was open 3 percent per year. SOURCE: State Teachers Retirement System same job. tendents showed that, among in 2009. The district retained Akron Beacon Journal In a single weekend, these $ 140 , 000 annually and came those checked, most make J effery L ampert , who had tak- superintendents increase their back to work in the same job more in salary than they did en the job mid - school year on earnings often by as much as with an agreement to be paid before retiring. They also sign an interim basis in December 80 percent. $30,0 0 0 less a year. contracts with perks that make 2008 . 1980 Her e’show In many communities, A fter a levy passed in No- them consistently among the L ampert had retiredeight vember 2008, the board agreed Annual bonus payment instituted school board members have highest - paid public - sector em- years earlier from N orthRoy- to draw down excess pension superintendents told their residents that hiring in February 2009 to extend Ze- ployees in the state. alton and already was collect - fund profits, equal to a 13th were identified a retiring superintendent saves le i’s contract and residents be- F or example , many districts ing a pension. He worked as an money . lieved he would receive no pay not only give the superintend - adjunct professor at B ald - monthly pension benefit. W hileO hio law prohibits the Int h e Gahanna - J efferson raise . A fter teacher contracts ent a pay raise, but also pay win - W allace C ollege before were settled with minimal S tateT eachersR etirement L ocal S chool D istrict just both sides of the employer/em- returning as a superintendent northeast of C olumbus ,the raises , the board voted 3-2 that ployee contribution to the re- to Brooklyn City schools in S ystem from releasing ‘ ‘ any school board touted the sav- A ugust to raise Z elei ’ s s a l a r y tiree ’ s annuity to STRS. Thi s,in 2005 , then was out of the busi- ings in rehiring S uperintend - 24 percent, or about $32,0 0 0. effect , is a 10 percent pay in- ness again when S trongsville 1989 information identifying, by R esidents packed the board ent Gregg E. Morris because crease on top of the base salary . came calling in late 2008. Maximum benefit raised to 100 name and address, the his health insurance would be meeting to protest the move D istrictsalso often pay the S inisgalli said Strongsville percent of three highest years of amount of a monthly allowance picked up by STRS. that would pay Z elei $ 164 , 077 1.45 percent of salary to Med i- did a full job search with appli- In 2009 , STRS acknowl- by the 2011-12 school year. care as well as a car allowance, cants from G eorgia , F lorida pay from 90 percent. Formula or benefit paid to the edged that paying health care S uddenly , he was the sec- training and travel money, and other states, interviewed changed to improve benefits for individual , ’ ’ a mailing list of for double dippers was too ex- ond - highest paid superintend- overtime for working holidays five or six candidates and ulti- early retirement. pensive and ended the prac- ent in the area and in his and any days not stipulated in mately decided to continue those receiving benefits is tice , so Gahanna once again fourth year of collecting a pen- the contract, plus insurance. with L ampert . sion at age 60. available . paid for M orris ’ health care. Q uality of candidates She said complaints about a T hat list was checked by M orrisleft Gahanna this O hiocriticized weak applicant pool were un- 1996 year to become superintendent W hy do they command founded in her experience. A kronB eaconJ ournalreporter at Clark - S hawnee . He replaces It is difficult to put a price these generous offers? ‘‘I was quite surprised be- Pension benefits revised for all D avidK nox against the names D ebbie F inkes , who was paid tag on the impact of these F orest Y ocum retired in cause I heard the same thing, current retirees to reflect actual $95,1 8 8 a year. Morris signed a deals , but Ohio was criticized 2002 at age 56 from the P icker - that districts would have trou- changes in the cost of living, of Ohi o’s more than 600 three - year contract paying for spending more money on ington City School District be- ble finding qualified candi- which ranged from 0.4 to 27.3 district and county school him $ 110 , 000 annually . administration than classroom fore being hired as superin- dates .We had heard it, but we instruction by a B rook - percent in any given year since L uci G ernot , W ood C ounty tendent at Southwest Licking were thrilled with the re- 1951. superintendents to identify E ducational S ervice C enter su- ings / G reater O hio P olicy east of Columbus at $ 132 , 000 . sponse we had,’’ Sinisgalli said. those who are collecting STRS perintendent south of T oledo , S tudy C enter report released ‘‘The problem facing a G ary B urtless , a senior fel- in February . benefits . retired after 28 years in 2007 school board is the number of low at the Brookings I nstitute , from another school district. The study found O hioranks people available,’’ Yocum said. has studied pension funds for The following reporters T hat provided her withabout 47 thamong states for putting ‘‘The r e are not that many top - 30 years. 1997 $ 56 , 000 a year in pension bene- money into classrooms, but representing Ohi o’s eight quality candidates.’’ He said there is nothing Retirement benefits increased fits . ninth in tax dollars spent on Y ocum and other superin- wrong with a school district for each year of service beyond largest newspapers confirmed S he is paid $ 115 , 000 in her administration . tendents said that there is a rehiring a retired superintend- their retirements and gathered E ducational S ervice C enter job . B rookings also reported limited pool of qualified appli - ent , but there should be a sys- 30 years. G ernotsaid she could have that Ohi o’s share of spending cants trained, experienced and tem in place to reassure the additional information: gotten another job in any num- on administration was 49 per- prepared to assume the de- public that a thorough search A kronB eaconJ ournal ,K atie ber of industries but decided to cent higher than the national manding role of running a was conducted to find the best average . B yard and K nox ; the Blade of stay in education . E ither way , school district. candidate . 2000 she said, she’sentitled to th e STRS has more working re- B ut the Ohio newspaper T here are no statistics to T oledo ,C hristopher D. pension benefit. tirees than any of the five state analysis found that there are explain how many qualified To encourage teachers and other K irkpatrick ;C incinnati ‘‘It’s something I ’ ve pension systems and paid out thousands of licensed Ohioans employees are waiting to as- employees to stay longer, the earned , ’ ’ she said. ‘‘I could $ 741 million in 2009 to 15 , 857 available for the superintend- cend to a superintendent’s jo b, legislature added a large jump in E nquirer , BenF ischer ; have gotten a job doing pretty retirees ,with an average bene- ent jobs. There also are poten- but are held back because a the formula, providing 88.5 C olumbusD ispatch ,R andy much anything.’’ fit of $46,8 0 0. B efore the 2000 tial out - of - state candidates and double dipper is occupying the percent of pay if work to 35 The deals between superin - law change, teachers had to others currently working in L udlow ;D ayton D ailyNew s, office . years. The change also reduced tendents and their school wait 18 months to return to education who could be But the clog factor exists at to 39 years the time needed to LouG rieco ; the Plain Dealer of boards have left some residents public service. The forfeiture groomed . a time when school districts feeling betrayed. period was reduced to two reach the maximum 100 percent C leveland ,P atrick O ’ D onnell ; S cott B lake , an Ohio De- are laying off teachers and In Cuyahoga C ounty , Wil- months , in line with other pub- partment of Education spokes- Ohi o’s unemployment rate benefit. C antonR epository ,M elissa liam Zelei retired in 2005 as su- lic employees. man , said 3 , 305 O hioans are hovers around 11 percent. SOURCES: Ohio Retirement Study credentialed to be superin- Council, Beacon Journal research. G riffyS eeton ; and the perintendent at S outhEu- S incethen , STRS has seen C onsider B atavia S chools ’ Additional information on changes in state clid - L yndhurst at age 56 with an enormous growth in the tendents . Anadditional 1 , 204 departing superintendent, Bar- pension benefits can be found at: V indicatorofYoungstown , 23 years in public service. number of double dippers, as are inactive. http://www.orsc.org/uploadpdf/History_ D ougL ivingston . He was making about teachers return to work on a Ten years ago, Mark Free - P leasesee P ension , A11 Benf_Changes.pdf

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CCYYMK www.Ohi o.c o m A kron B eacon J ournal d S unday , J une 20, 2010 + • A11

SPECIAL REPORT: OHIO PENSION FUNDS School chiefs make an average of six figures Continued from Page A1 F urthermore , W ebb said , the complexity of such tradeoffs in ers and other STRS members – superintendents ’ contracts can that dramatically improve their hide their full price tag. financial prospects in retirement: ‘‘The problem is that the true • Superintendents are much cost of the pension benefits is to more likely to be rehired full some extent hidden from the time while collecting retirement taxpayer , ’ ’ he said. benefits . • As independent contractors, F ringebenefits , such as cars they can negotiate perks and or travel allowances, life insur- fringe benefits worth tens of ance policies and additional an- thousands of dollars. nuities further obscure the bot- • Their salaries – on which re- tom line, Webb said, as well as tirement benefits are based – creating ‘ ‘ opportunities for all average six figures. kinds of corruption.’’ S uperintendents contend C alfee doesn ’ t get fringe ben- their lucrative contracts are efits beyond the pension contri- commensurate with the respon - bution pickup and paid health sibilities of a tough job. coverage . But the father of two But that claim doesn’t answer grown children and three grand - one tough question: Given their children doesn’t criticize super- higher pay and other advantages, intendents who have bargained is it fair that superintendents ’re- for additional perks. tirement benefits are calculated As long as they play by the according to the same formula rules , he said. used for rank - and - file teachers The same goes for staying on and other education workers the job after retirement. who earn so much less? ‘ ‘ R etiring and being rehired is H igherearnings a legal, acceptable practice for The average teacher was paid STRS , ’ ’ he said. ‘‘Tha t’s why a about $ 55 , 500 last year, accord- number of superintendents are ing to state Department of Edu- choosing to do it.’’ cation records. Q uestionremains S uperintendents of urban MIKE CARDEW / A kron B eacon J ournal schools averaged more than But rules can be changed. twice that: $11 8,0 6 6. T he state - TimC alfee , superintendent of Ravenna schools, sits outside the new high school, which will open in A ugust .C alfee retired in 2008, but wide average for all superintend- then was rehired with a $2,27 3 raise , bringing his salary to $ 115 , 515 . ‘‘I would be crazy if I hadn’t have done it,’’ he said. A nd the basic questionof ents was $ 101 , 400 . whether the same formula T hosehigher earnings direct- gest paychecks, this group also statewide trend. a university in C hina . ents such as C alfee . should be used to calculate the ly translate into bigger monthly got the highest pension benefits: ‘‘The y didn ’ t want retired O hio law allows all STRS ‘‘I’m sure if he wanted to benefits of teachers and superin- pension checks. an average of $ 80 , 542 a year. teachers to hold onto their jobs members ‘ ‘ to purchase service leave R avenna , somebody would tendents – despite the disparity For example , when Calfee re- F ueling the upsurge wasa in case there were cutbacks – credit for certain types of past jump at the chance to hire him in their incomes, fringe benefits tired in 2008, he was eligible to 2000 change in Ohio law that people getting laid off,’’ Cal f e e employment and leaves of ab- because of what he has accom- and job opportunities – remains. receive $ 95 , 130 annually , b a s e d spiked the retirement checks by said . sence . ’ ’ plished in his nine years here,’’ T here ’ s certainly precedent on his average earnings of 11.5 percent for those with 35 R avenna hasn ’ t laid off teach - S uperintendents have an add- she said. for doing it differently. Social Se- $ 107 , 492 for the previous three years of service. ers , but Calfee said some jobs – ed benefit available to few teach- N ewhauser credited Calfee curity , the retirement system years , multiplied by the‘ ‘ income The change was designed to fewer than 10 – have been elimi- ers : S chool districts ‘ ‘ pick up’’ – with leading the successful 2006 most Americans pay into, doesn’t replacement factor’’ of 88.5 pe r- encourage teachers to work five nated through attrition. that is, pay for – their 10 percent campaign for a $16.1 million treat all workers the same. cent . years beyond the minimum 30 But unlike teachers, superin- employee contribution to the bond issue for a new high school T hepercentage of income So- To offset inflation, the benefit years because of a feared teacher tendents who retire are still in pension fund, in addition to the an d a 1.5-mi l l additional levy for cial Security replaces varies would be increased by 3 percent shortage . But STRS officials now demand . employer ’ s 14 percent share. permanent improvements. widely , from as much as 60per - the following year and then by say paying a premium to keep For a superintendent making ‘‘We had tried before to build cent for low - income wage earn- that same dollar amount each retirees on the job doesn’t make L iberalstate $ 100 , 000 or more a year, that’s a a new high school,’’ she said. ‘‘He ers to less than 30 percent for subsequent year. sense when many cash - strapped The 2000 change in the law benefit worth more than has done a good job, and we those with big paychecks, accord- T he exact size of C alfee ’ s districts are laying off teachers. made it easier for school districts $10,0 0 0. need to keep him.’’ ing to government figures .T he monthly pension check isn’t to keep superintendents on the R avenna pays the pension P roviding superintendents average is about 40 percent. available because retirees can T eacheropportunities job by eliminating an 18 - month contribution for all 22 adminis- generous pensions also can make Tod a y’s tight school budgets waiting period to return to work S ocial S ecurity – to which opt for a partial lump - sum pay - trators in the district, including economic sense as a form of de- STRS members make no pay - ment , with reducedmonthly mean retired teachers have few- after retiring. principals and assistant princi - ferred income, according to An- er opportunities to keep their ments and receive no benefits – benefits . C alfee had to stay off the job pals .No teachers get that perk. thony W ebb , associate director increasingly has become the sole C alfee declined to explain the jobs . for a single day. T hepickup clause was in- of research at B oston C ollege ’ s R avenna , which has about 190 source of income for retired details of his pension package, O ther states don’t make it so cluded in C alfee ’ s contract when C enter for Retirement R esearch . A mericans . saying , ‘‘My personal finances full - time teachers , is typical of easy . R avenna hired him in 2001. Since But that works only if super- are not public records.’’ districts across the state. ‘‘In some states, you can’t his retirement, the district pays intendents ‘ ‘ pay fo r’’ their better W hilethe government stress- W hile O hio law does make ‘‘A few years ago, I think we work in the system you ’ rere- the contributions to a second retirement benefits by agreeing es that Social Security isn’tin- the records of individual retirees had five who were retired and tired from,’’ Calfee said. ‘‘Some pension fund – a 401 ( k ) - style an- to somewhat smaller salaries. tended to be the only source of confidential , some statisticsare rehired , ’ ’ C alfee said . ‘‘Now states absolutely ban it. nuity – that STRS provides re- ‘‘By accepting lower earnings retirement income, the latest sta- available . we’r e down to three , ’ ’ two coun- ‘‘Ohi o may be the most liberal employed retirees. than they otherwise would have tistics show more than half of all T hey show the vastmajority selors and a music teacher. state in the country for their re- T hat has become the norm, accepted in the absence of those workers don’thave private pen- of re - employed STRS retirees – N ot only are they fewer in tired - rehire programs under according to a survey of 400 dis- pension benefits, nobody loses sions . more than 70 percent – work number , but they ’ re also paid ST R S.’’ tricts in the state ’ s major urban ou t,’’ W ebb said . ‘‘If the taxpayer C alfee recognizes howmuch part time. They make less than much less – about $36,0 0 0, or STRS makes it easier for and neighboring counties by the is getting an absolute wonderfu l better his retirement package is. $20,0 0 0 a year and receive pen- about half of what they earned members to reach the minimum O hio N ews O rganization , a co- superintendent at a rock - bottom H ow would he answer some- sion benefits averaging $42,8 9 9. before retiring. years of service needed to retire operative of the state’s eight salary , then I really don’t care if one who complained, ‘‘I do n’t ‘‘A lot of the people go back ‘‘The y’r e on one - year con - by allowing members to get largest newspapers. he has a big pension.’’ have anything near that good’’? to be substitute teachers , ’ ’ said tracts and they ’ re on the first- credit for years worked outside ‘ ‘ A lmost every superintend- The O hio N ews O rganization L aura E cklar , spokesperson for year of the salary schedule,’’ Cal- the system. They do that by ret- ent has their employee’s share survey found the median salary E ight seconds passed insi- STRS . fee said. roactively paying the full cost of picked up,’’ Calfee said. for retired superintendents was lence . In contrast , superintendents ‘‘We used to rehire them right contributions – both employee R avenna also pays for C alfee ’ s $10 3,0 0 0, compared to $ 110 , 000 ‘‘I do n’t kn o w,’’ he said. ‘‘I’m and other high - paidemployees into their same positions ,same and employer shares – plus ac- health insurance. for nonretired superintendents – blessed to be in a position where pulling down $ 100 , 000 and more responsibility and for the same crued interest for those years. J oanne L. Newhauser , presi- about 6 percent less. But that this retirement and rehire was make up less than 2 percent of all pay .N ow the teachers union C alfee was able to reach 35 dent of the Ravenna Board of finding might only reflect some- available . rehired retirees. But their num- contract limits them to one - year years of service at age 57 by E ducation , said covering his pen- what smaller raises for retirees . ‘‘Tha t’s all I can say.’’ bers exploded in the past decade, contracts at reduced pay.’’ ‘ ‘ buying ’ ’ two years he taught in sion contribution and health care The survey found few superin- from 19 in 2000 - 01to 299 in The R avenna teachers union the South Pacific island nation of is the price school districts must tendents who said they took a D avid K nox can be reached at 330 - 996 - 3532 or 2008 - 09 . In addition to the big - pushed for the changes. It’s a P apua New G uinea and a year at pay to keep quality superintend - pay cut when rehired. dknox @ thebeaconjournal . com .

to - year basis , cannot re - establish How State Teachers too many employees were retir- health - care fu n d,’’ E cklar said . their tenure and must accept the R etirees still on job Retirement System ing after 30 years, placing a fi- E cklar acknowledged that de- Pension equivalent salary of a fifth - year nancial burden upon the system. laying retirement eligibility teacher ,according to the school A kron - C antonarea pensions are As a solution ,STRS in 2000 per- would reduce health costs by treasurer , R andy S eymour ( also superintendents who are suaded lawmakers to provide a shortening the time period before Health-care benefits a double dipper). collecting retirement benefits determined generous 11.5percent bump in M edicare begins to providecov - from the State Teachers Benefits are calculated as a benefits for those working to 35 T his is not unusual. The Ohio R etirementS ystem : erage at age 65, but that’snot enable early retirement newspaper analysis found nu- percentage of the “final average years . good enough. merous examples of double-di p- MEDINA COUNTY salary,” based on the three The plan was flawed because ‘ ‘ U nfortunately , the health- C ontinued from Page A10 ping superintendents presiding M edinaC ountyE ducational highest years of earnings. Full it also opened the door to thou- care fund has only about 11 years over contracts with teachers that S erviceC enter – William K oran . retirement benefits are afforded sands of teachers still retiring of solvency left,’’ she said. bara B radley . W ith school board provided far fewer benefits to employees 55 and older with 25 early .By 2004 ,in its annual re- ‘ ‘ C hanging the retirement age is permission , she PORTAGE COUNTY the classroom instructors. F ield – David B robeck . years service and those with 30 port , STRS warned of trouble, not the solution to the health- engineered a re- In this decade, there have and among the long - termcauses care fund’s solvency . P ension tire - rehire ar- S outheast – Thomas years service regardless of age. been several legislative efforts to H arrison . were rising health costs , early re- fund solvency and health - care rangement as as- address this issue, including a bill 100% tirements occurring at a rate fas- fund solvency are two separate s istant J ames A. Garfield – Charles introduced in 2007 by former K lamer . 88.5% ter than projected and the con- issues that will require different superinten d e n t state Rep. M ichelle S chneider , tinuing trend of members living solutions . ’ ’ in West M uskin - W aterloo – Robert W olf . R - M adeira . S he wanted a six- R avenna – Timothy C alfee . 80% longer . gum schools near month waiting period , effective - STRS wants to eliminate the P ension ’ spurpose Bradley Z anesville in ly banning the practice of a STARK COUNTY 11.5 percent enhancement, which At the same time lawmakers 2004 . weekend retire - rehire in all state J ackson – Cheryl H aschak . 66% means an educator will have to and fund managers are examin - B utin 2005, her boss, then- pension funds. N orthwest – William S tetler . 60% work as many as 39 years to ing plans to ensure the pensions S uperintendent M arvin S tarkC ountyE ducational S tate Rep. B ruce G oodwin , R- reach a similar payout. The plan are financially sound beyond the W ourms , got a new five - year S erviceC enter – Larry M organ . also reduces from 3 percent to 2 next 30 years, the question of the contract after he had ‘ ‘ retired . ’ ’ D efiance , introduced legislation T uslaw – Alan Osler . the same year to require double 40% percent the cost - of - living adjust - purpose of a retirement system is B radley then had to moveto SUMMIT COUNTY ment ( COLA ) – a provision that being asked. B atavia to accomplish her pro- dippers to take a 40 percent pay Percent of final average salary cut before returning to work. C oventry – Russell offers a sense of long - termsecu - C onnie Y ingling , a Mason fessional goal of leading a school C haboudy . rity to retiring early. school board member, voted to system . T he proposal was aimed at superintendents and top govern- H udson – Steven 20% STRS estimates that pushing rehire Superintendent Kevin B radley said it’s the nature of F arnsworth . B right after news spread in the the game to move if one wants to ment administrators. retirement to 35 years and elimi- In both bills, the Le g i s l a t i v e N orton – David D unn . nating the 11.5percent bump will community that he was a candi- be a superintendent, but there N ordoniaH ills – Wayne S ervice C ommission , which pro- 25 27 29 31 33 35 37 39 each remove nearly $1 billion date for a top job at a district near are numerous opportunities each B lankenship . C olumbus . year . vides fiscal and legal analysis to Years of service from the $40 billion in unfunded lawmakers , noted that itsnum - M ogadore – Terry B yers . liabilities . T he COLA reduction Y ingling said she believes a SOURCE: Ohio State Teachers D oublestandards ber crunchers could not deter - WAYNE COUNTY would be huge, cutting another pension ’ s purpose is to provide Retirement System $8 billion . an income for employees after T here seem to be double mine whether double dipping C hippewa – John Higgins . Akron Beacon Journal standards . cost taxpayers money, but they N orwayne – Larry A cker . A ll of these measures are de- they stop working. In 2009 , M assillon C ity concluded that delaying retire- T ri - C ountyE ducational signed to strongly encourage S he said if the employeehas ment reduced STRS liabilities. markets hurt the pension ac- STRS members to pay into the fulfilled the retirement require - S chools in Stark County adopted S erviceC enter – Eugene counts , too . STRS in particular a policy that basically told ad- Tha t’s because STRS mem- L inton . system longer before they begin ments set forth by the fund, then found itself in a long - termsol - to withdraw funds in retirement. they are entitled to the money. ministrators , not countingthe bers who work beyond 35 years vency crisis. double - dipping superintendent , continue to contribute to the B utthat fix understates the ‘‘If the rules allow someone to fund and its solvency. In addition , early retirement A ll five pension planswant gravity of STRS’ trouble. In 2006 qualify for those benefits before that they could come back to state lawmakers to tap taxpayers work after retiring, but at 75 per- On the other hand , superin - is possible because all five state – two years before the market they actually stop working, then tendents who retire at 30 or 35 pension systems provide health for more money by gradually in- crash – STRS called for the 5 per- you can debate the rules, but the cent of their base salary. creasing the contributions by a In the Milford School District years halt their contributions benefits .If this benefit were not cent increase in contributions for original purpose still stands,’’ into the general pension fund available ,retirees would have to combined 5 percent of payroll a different reason :To cover Y ingling said . in Clermont from employees beginning in C ounty , R obert while possibly drawing down wait until age 65 to retire with shortfalls in the health account. F ormer board member J enni - more than $1 million before M edicare . 2011 and employers in 2016. Five L aura E cklar , an STRS spokes- fer Miller was the lone vote F arrell made additional percentage points is $ 136 , 000 this reaching age 65. W hen the statelegislature woman ,said the proposal devel- against hiring Bright as superin- T his runs counter topension created STRS in 1920, health care effectively a 21 percent tax in- oped before the G reatR ecession tendent after he retired. She lost a year after retir - crease for the funds. ing in 2007 when logic , which provides partici- was not part of the package. In would have generated $ 500mil - bid for re - election last year. he was 53 years pants with higher income if they 1973 , STRS and the four other L ong - termsolution lion annually for the health fund. M iller believes the rules old . work longer – as does the Social state pension plans convinced E cklar said STRS hasdropped should be reconsidered for col- F arrell also re- Farrell S ecurity S ystem . state lawmakers that they could STRS , as part of the long- that proposal. The new plan ad- lecting a pension while working. ceives a $6,00 0 afford to offer health care, but it term solution, wants lawmakers dresses only pensions. ‘‘I think that law probably needs annual car allowance and a Job enablers is not a mandated benefit. to require public employees to ‘‘The board recognizes that a to be reconsidered. I think too $20,0 0 0 annuity paid by the dis - T here are two early - retire - B eforethe stock market col- work at least 35 years or to age separate solution will be needed many administrators and teach- trict . ment enablers. lapse in 2008, fund managers 60 and 30 years’ service or face for the health - care fund . Infact , ers are taking advantage.’’ significant benefit cuts. T eachers wishing to return to M any superintendents would were warning that health care this fall, the board will begin a B eacon J ournal C olumbus B ureau C hief D ennis J. work at M ilford do not fare as not retire as young as 52 without could not be continued in its T his comes a decade after strategic planning process to W illard can be reached atdwillard @ well .T hey are hired on ayear - a guaranteed job. current form. Then losses in the STRS and the other funds said evaluate its options for the thebeaconjournal . com or 614 - 224 - 1613 .