STRS FLASHBACK -- 6 Years Ago -- The heat gets turned up on Herbie!

From John Curry, June 24, 2009

Schuring puts pressure on STRS chief to resign

Canton Repository, June 25, 2003
By PAUL E. KOSTYU
Copley Columbus Bureau chief

COLUMBUS — In the wake of a spending spree at the State Teachers Retirement System, Ohio Sen. Kirk Schuring wants to know who is investing the money of the state’s five retirement systems.

And pressure continues to build on the teacher’s pension fund director, Herbert L. Dyer, to resign. Schuring will hold a press conference today to release the names of at least 25 of the Senate’s 33 lawmakers who have joined him in calling for Dyer to step down.

Rep. Michelle G. Schneider, R-Cincinnati, also is expected to attend. She is leading a similar campaign against Dyer in the House, and says more than 60 of the 99 representatives also think Dyer should go.

Schuring and Schneider are members of the Ohio Retirement Study Council, which has legislative oversight of the state’s public retirement systems. Schuring has asked the Ohio inspector general’s office to investigate the teachers fund’s spending. Schneider has introduced legislation to change the makeup of the board.

Schuring, R-Jackson Township, sent a request for co-sponsors to his Senate colleagues Tuesday. He plans to introduced legislation to require financial disclosures of anyone, including each retirement system board member, with authority to make investment decisions.

“I want to know where they have invested their money,” he said. “I want to know what additional income they receive, where and from whom. I want to know who’s giving them gifts and paying their travel and who’s buying them dinner.”

The teachers pension’s members, lawmakers and others have accused Dyer and the board of going on a spending spree over at least the past three years that used more than $15 million on bonuses, artwork and travel. That was while the system’s investments plummeted by $12.3 billion and health-care contributions by retirees jumped significantly.

Schuring said some activity at the teachers retirement system has been “arrogant, but I don’t know of anything improper.”

Still, he said, a financial disclosure law will be a “better way to track” investments. He wants to make sure employees do not benefit personally from information not shared with members or the public.

The financial statement would have to be filed with the Ohio Ethics Commission.

Senate Minority Leader Greg DiDonato, D-New Philadelphia, announced Tuesday that he is joining Schuring in asking Dyer to step down.

“I have lost all confidence in the ability of ... Dyer to lead STRS,” DiDonato said. The system “needs an executive director ... more concerned with protecting the investments of teachers than securing extravagant bonuses for himself and his employees and purchasing art work for his office.”

Dyer has steadfastly refused to resign.

At last week’s board meeting, he was chastised by the system’s chairwoman for his behavior and comments that the system’s money belongs to the board and not retired teachers.

Later, Dyer was quoted as saying, “I think they need me. I have an understanding of what’s expected” of a leader.

Damon F. Asbury, deputy executive director of administration, said late Monday he was unaware of any plans by Dyer to resign. He said the subject did not come up during meetings Monday.

Adding up some of the expenses

One criticism of the State Teachers Retirement System board is its spending on trips ranging from Boston to Honolulu.

Executive Director Herbert Dyer, who earned $266,810 in 2002 and got a $41,052 bonus, also spent tens of thousands of dollars over three years on travel.

His expenses included:
• $18,403 in 2002, $33,010 in 2001 and $16,590 in 2000.
• $3,767 for a three-day January 2001 board retreat in Cleveland. That does not include what each board member and staffer charged the retirement system for individual expenses. Room costs alone were $601 each.
• $1,090 for dinner with the board and staff after a real estate presentation in central Ohio.
• $543 to attend a January 2001 dinner honoring U.S. Rep. Rob Portman, R-Cincinnati, in Washington, D.C.
• $691 to attend a reception honoring U.S. Sen. George Voinovich, R-Cleveland, in Washington, D.C.
• $1,037 for a March 2002 dinner in Columbus with 15 people including STRS board members.