Dennis Leone's famous Addendum (which was shot down at the December Board meeting) pertaining to the motion to approve settlement of bonus lawsuit

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Addendum - December 8, 2005

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WHEREAS, on this date, a formal motion for STRS Board action has been made and seconded for the approval of a final settlement agreement involving the fiscal year 2003 bonus checks of STRS non-investment employees and additional costs associated with said settlement agreement; and

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WHEREAS ORC 3307.15 stipulates that decisions of the STRS Board are to be "for the exclusive purpose of providing benefits to the participants and defraying reasonable expenses of administering the system"; and

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WHEREAS the May 17, 2002 recommendation by former Executive Director Herb Dyer and subsequent approval by Board members Sidaway, Jack Chapman, Norris, Endry, Billirakis, Gaylord (for Petro), Marshall (for Zelman), and Moore (for Montgomery) of bonus checks for the non-investment staff at STRS for fiscal year 2003 are inconsistent with the spirit of ORC 3307.15; and

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WHEREAS the STRS pension fund should not have to bear the financial burden of the bonuses themselves or the additional costs associated with the settlement agreement entered into on this date, December 8, 2005; and

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WHEREAS STRS Board members and staff can be held personally liable for acts of misconduct pertaining to their statutory fiduciary responsibilities pursuant to ORC 3307.15;

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THEREFORE BE IT RESOLVED that the current STRS Board, prior to executing the proposed final fiscal year 2003 bonus check settlement agreement with the non-investment staff, first seek a legal remedy to cause former STRS Executive Director Dyer and the STRS Board members who (on May 17, 2002) respectively recommended and authorized said bonus checks, assume the costs associated with the bonus checks themselves plus the additional dollar amounts associated with the settlement agreement entered into on this date, December 8, 2005.