260 STRS employees and $3 million plus -- why do I get the feeling we've been screwed AGAIN?

STRS suit settlement details made official

BY PAUL E. KOSTYU
COPLEY COLUMBUS BUREAU

Canton Repository

Nov. 5, 2005

COLUMBUS - Details of a $3 million agreement in a lawsuit against the state teachers’ pension fund, which was reached in secret Wednesday, became official Friday.

The parties, which included at least 260 employees, filed the agreement in Franklin County Common Pleas Court. Details were similar to those reported Thursday by Copley Ohio Newspapers.

The agreement for the noninvestment employees of the State Teachers Retirement System includes:

-- $1.76 million for bonuses

-- $237,191 in contributions to the employees’ pensions

-- $245,068 in interest

-- $14,139 for lost investment opportunities

-- $638,000 in attorney fees

-- $113,925 for failure to pay claims promptly

The pension fund said in a prepared statement that the agreement was “the responsible business decision at this time.” Punitive damages and the reasonableness of attorneys’ fees still need to be resolved, according to the statement.

Arguments on those issues are due Dec. 5.

The statement said the payments will not have a “financial impact on the pensions of current and future retirees.”

A 2003 investigation by Copley found that bonuses were awarded for tasks, called “stretch goals,” that many considered part of employees’ regular jobs.

The retirement system board suspended and then abolished the bonus program. It also voted not to award the bonuses to noninvestment staff, overriding decisions to do so by the former and current executive directors. It also ignored the advice of its state attorney. The employees then sued.

Reach Copley Columbus Bureau Chief Paul E. Kostyu at (614) 222-8901 or e-mail: paul.kostyu@cantonrep.com