TOLEDO, Ohio (WTVG) – Ohio’s teacher pension fund and the board that governs it are now the subject of three state investigations.
While the drama unfolds, Ohio’s retired teachers are missing out on money.
The State Teacher’s Retirement System of Ohio (STRS) has been under scrutiny for more than a decade following the reduction and eventual discontinuation of cost of living adjustments for its members.
Teachers who spoke to 13 Action News said that the change has cost them tens of thousands of dollars.
“I spent 30 years at Genoa. Then I was an interim principal,” James Firestone who spent 46 years as an educator said.
His monthly pension payment was supposed to grow by $55 every year indefinitely. Then in 2017, the STRS cut cost of living adjustments.
“We got nothing, and retiring as early as I did, it’s hard,” James Firestone said.
James Firestone estimates that he lost out on $11,000. For his daughter, an educator, they said it is closer to $20,000.
“It might not seem like much to some people, but, you know, if that’s what you’re depending on to pay your bills, yeah,” Angie Firestone, James Firestone’s daughter and a retired educator said.
Last week, Ohio’s governor, attorney general and secretary of state announced investigations into STRS. The investigations were spurred by allegations outlined in an anonymously written 14-page document.
“Many of us have been writing to those three for quite a few years and got back just canned responses, and we signed our letters. And now they are saying this anonymous letter is raising red flags,” Angie Firestone said.
For the Firestones, it is the latest development in a downward spiral. and while the fight continues at the state level, their livelihoods and those of about 500,000 Ohio teachers are hanging in the balance.
the anonymous letter alleges a “Hostile takeover of a public pension system by private interests.”
Ohio Governor Mike DeWine, Secretary of State Frank LaRose and Attorney General Dave Yost released the following statements:
AG MAY 9 STATEMENT
(COLUMBUS, Ohio) — Ohio Attorney General Dave Yost has launched an investigation into concerns about the State Teachers Retirement System’s susceptibility to a hostile takeover by private interests.
“Pension board members are required by law to act in the best interest of the teachers whose money they invest,” Yost said. “I will take whatever action is necessary to protect teachers against private interests attempting to hijack their retirement accounts.”
Yost is actively exploring the applicable fiduciary removal statute (ORC 109.98) to address any potential breaches by members of the STRS board. The investigation is in line with Yost’s commitment to rooting out any public corruption and instances of greed and deceit within public institutions.
“This isn’t monopoly money; it’s hard-earned income that belongs to teachers,” Yost said. “There is a responsibility to act in their best interests.”
The Attorney General’s Office has received documents containing disturbing allegations related to the STRS board. In response, Yost will conduct a thorough and impartial investigation into these matters and will take any necessary actions to uphold the public’s trust and confidence of the public in our state institutions.
GOV MAY 8 STATEMENT
(COLUMBUS, Ohio)—Ohio Governor Mike DeWine issued the following statement today regarding the Ohio State Teachers Retirement System (STRS):
“I have been closely monitoring the ongoing news regarding the Ohio State Teachers Retirement System (STRS). Our state pension systems have an obligation to retirees to ensure their investment portfolios and accounts are stable and financially sound, so that they have the financial resources to serve retirees, both now and in the future.
“I supported the efforts of the Ohio Auditor of State Keith Faber and the Ohio Retirement Study Council to conduct numerous audits to help ensure STRS is providing the best management and oversight of their pension funds. These audits have resulted in several dozen recommendations to “improve fiduciary performance,” including “improvements in STRS’ use of committees,…a ‘revitalization’ of investment and audit committees, and the creation of a board governance committee.” These recommendations resulted in STRS retaining a nationally-renowned consulting firm, Aon, to provide guidance on corporate governance.
“Recently, we learned that Aon is severing its contract with STRS. This is a huge red flag, calling into question how STRS is operating and providing oversight. The unstated implication is that the governance issues at STRS are so concerning that Aon could not continue its contract in good faith. STRS may now be out of compliance with portions of audit recommendations due to Aon ending the…
Read More: State investigations target teacher pension board