FLASHBACK -- 3 years ago -- The day Deb, Eugene, Jack & other STRS travelers won't forget!

"In the wake of media reports last year about questionable spending on travel by pension board members, the legislation prevents the re-election or appointment of anyone who spent an average of $10,000 annually from 2000 through 2002 on board-paid travel.

"At the State Teachers Retirement System, that means board member Deborah Scott will be prevented from running for re-election. It also means current board chairman Eugene Norris, who was defeated recently in his re-election bid, cannot be appointed to a seat being vacated by Jack Chapman when he retires this summer."

Ohio House approves pension reform bill

Canton Repository, May 26, 2004
By PAUL E. KOSTYU
Copley Columbus Bureau chief

COLUMBUS — After last-minute maneuvering, a reworked pension reform bill passed the Ohio House on Tuesday. It will go to the Senate today for its concurrence.

A revised Senate Bill 133 finalized behind closed doors Monday reached the House floor late Tuesday.

Some Republicans joined Democrats in an unsuccessful attempt to defeat the bill because they wanted to keep active members of each system in the majority on the respective boards.

Among other changes, the legislation adds three investment appointees to each board — one by the state treasurer, one by the governor and joint appointee by the president of the Senate and speaker of the House.

The reform bill comes on the heels of a report from the Ohio Ethics Commission that alleged criminal wrongdoing at the Ohio Police & Fire Pension Fund. That report has been sent to the Franklin County prosecutor.

The ethics commission is continuing its investigation of the State Teachers Retirement System. That report is expected within the next couple of months.

The long-stalled reform measure picked up speed within the last couple of weeks after Gov. Bob Taft brought stakeholders together to work out their differences. The Legislature also wanted to get something done before adjourning this week for the summer and the campaign season leading to the November election.

Senate President Doug White, R-Manchester, said the Senate will concur in the House changes today, which will send the bill to the governor for his expected signature.

The newest version of the bill, sponsored by Sen. Lynn R. Wachtmann, R-Napoleon, changes the makeup of all five of the state’s public pension system boards. The state auditor and attorney general have been removed from the boards.

Also, an additional retiree will be added to the boards of four systems. The police and fire fund already has two retirees.

An earlier Buy Ohio provision requiring a certain percentage of business go to state-based brokers and investment managers was watered down. Now, each board will have to set an annual goal for using Ohio companies and file a report about their use with the Ohio Retirement Study Council.

In the wake of media reports last year about questionable spending on travel by pension board members, the legislation prevents the re-election or appointment of anyone who spent an average of $10,000 annually from 2000 through 2002 on board-paid travel.

At the State Teachers Retirement System, that means board member Deborah Scott will be prevented from running for re-election. It also means current board chairman Eugene Norris, who was defeated recently in his re-election bid, cannot be appointed to a seat being vacated by Jack Chapman when he retires this summer.

The bill also requires people who promote themselves or companies to the pension systems to register as lobbyists.

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

Senate Bill 133: Reforms Ohio’s five public pension systems to improve oversight. Passed the House Banking, Pension and Securities Committee 13-8; passed the Ohio House, 57-42.