Article: $3,432,000 bonus settlement to be paid by YOUR retirement system, STRS Ohio

From ORTA Quarterly, Winter 2006

Pension System Must Pay

STRS Board voted 7-4 on Thursday, December 8, 2005 to accept the terms of final settlement in the class-action lawsuit that has been in litigation since May of 2004. The suit, filed by 260 present and former associates of STRS, sought payment of Performance-Based Incentive Awards for the fiscal year 2002-03.

The total settlement amount is approximately $3,432,000 which includes the earned compensation, OPERS contributions, interest, attorney's fees, prompt pay claims, and lost investment opportunities.

In an official statement from the board, the trustees determined that accepting the terms of the settlement was a prudent and fiscally responsible business decision for the pension fund and in the best interests of the membership. By accepting the terms, they eliminate the possibility of incurring costs of any additional litigation, attorney's fees, and additional punitive damages.

In July of 2003, the board voted to end the program of incentives for non-investment associates.