Tom Curtis: Letter to Governor Strickland

The Honorable Ted Strickland, Governor of Ohio
State Capitol
77 South High Street
Columbus, OH 43215-6117
January 4, 2009
Dear Governor Strickland,
My name is Thomas Curtis. I am a 62-year-old retired technology teacher and a beneficiary of the State Teachers Retirement System of Ohio. Born and raised in Stark County, I taught there for nearly all my teaching career.
I'm sure you find it very disheartening to make the many budget cuts you have been forced to make during your tenure as Governor thus far, and especially to realize you may need to make many more in the coming year.
As you well know, the loss of accountability by those who run many of our major financial institutions and other organizations has been devastating to our economy, yet few are being held accountable for their wrongdoings.
In my opinion, the management of STRS is no exception. At a time when the STRS had lost $30 billion (in the past year), they still awarded a whopping $6 million to their investment staff. Ten of the STRS bonus employees are receiving more than $200,000 above their salaries this year, which start at a base of $149,565.
Governor, my reason for writing you is to request that you personally write to STRS executive director, Mr. Michael Nehf, and request that he seriously look at the many avenues he has at substantially reducing the cost of operation of the STRS. Recently, he stated there is no need for staff reduction, elimination of the outrageous bonuses, a pay freeze or any other recommendations made by the stakeholders and one enlightened STRS board member, Dr. Dennis Leone. This is just plain wrong!
If there is to be a viable retirement system for future retirees, budget reductions and a revision of current spending policies must occur NOW. The STRS management staff that has allowed for these unreasonably high operational costs should instead be making drastic cuts in expenses, as thousands of STRS retirees are being forced to do.
Thank you for your consideration. I do hope you will personally support this request, as I feel I speak for many STRS retirees.
Thomas Curtis
STRS retiree and stakeholder
North Canton, OH
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From: Governor Reply
To: Thomas Curtis
Sent: Wednesday, January 07, 2009 9:58 AM
Dear Mr. Curtis:
Thank you for your correspondence regarding State Teachers Retirement System. The Governor has asked that I respond on his behalf. Unfortunately, the concerns you expressed have to do with an issue that is outside the jurisdiction of the Governor’s Office. Each of the pension systems in Ohio, STRS, Public Employees Retirement System (OPERS), School Employees Retirement System (SERS), the Police and Fire Pension Fund (OP&F), and the State Highway Patrol Retirement System are governed by independent boards or trustees who are responsible for the management of their respective system. If you are unable to resolve your concern with your system’s board you may wish to consider the following two options to find resolution to your concern:
Ohio Retirement Study Council (ORSC)
88 East Broad Street, Suite 1175 Columbus, OH 43215
(614) 228-1346
The ORSC was created in 1968 and is one of the oldest public oversight councils in the country. The Council may “request that the auditor of state perform or contract for the performance of a financial or special audit of a state retirement system.” Ohio Revised Code Section 171.03
Office of the Attorney General
30 East Broad Street, 17th Floor Columbus, OH 43215
(614) 466-4320
“If a member of a state retirement board breaches the member’s fiduciary duty to the retirement system, the attorney general may maintain a civil action against the board member for harm resulting from that breach.” Ohio Revised Code Section 109.98
Again, thank you for contacting Governor Strickland’s Office.
Sincerely,
Wade A. Rakes II
Director of Public Liaison