Tom Curtis: Letter to Kevin Boyce

From Tom Curtis, July 22, 2009

The Honorable Kevin Boyce,
Treasurer, State Of Ohio

Dear State Treasurer Boyce,

My name is Thomas Curtis. I am a 1998 OSTRS retiree. I am writing you, as many others have, to request that you appoint Dr. Dennis Leone as your designee on the OSTRS board, effective September 1st, 2009. His current term on the board, as one of two retiree representatives on the board, expires on August 31st, 2009.

The fact that Dr. Leone is not quote, an "investment expert," in my opinion should be overlooked, because in every sense of the word, he has been the ultimate "watchdog" at the OSTRS since May 16th, 2003. That is the date he delivered as historic research position paper ("STRS Organizational Matters and Spending Practices") to the board and management. This position paper was grossly ignored by both, until the media and OSTRS retirees made enough noise to bring about many of the reforms he proposed.

State Treasurer Boyce, your decision is of vital importance to each of the 400,000 plus OSTRS stakeholders. As you maybe aware, the future viability of the OSTRS is at risk today. In my opinion, this is due to the continued business as usual approach of mismanagement and misspending pervasive amongst the OSTRS management and board majority for roughly the past 15 years. This was ushered in and sanctioned by past executive director Herbert Dyer (1992-2004), and the OEA leadership. Business as usual continues to this very day and must be corrected, if the OSTRS is to remain solvent into the future for those following behind us.

If you are not aware of this fact, Executive Director Herbert Dyer and each of the 2003 elected board members were removed from their positions and each was found guilty in a court of law for various forms of misconduct of duty.

To this date, the two teacher unions (OEA/OFT) continue to financially support mostly unqualified candidates from their ranks, to become board members. In my opinion, due to the candidates’ extreme lack of background and knowledge of large business and finance, once elected, though well meaning, they are incapable of understanding the OSTRS fiduciary responsibility they swear they will assume. Thus, the result is that they vote to follow the recommendations of management, which have proven to be financially detrimental to the stakeholders.

Dr. Leone and another prior board member, David Speas, both called for an emergency contingency investment plan after the stock collapse in 2001-02, but no one listened, nor took any action, as requested. Thus, the OSTRS lost another huge amount of our retirement funds (30+ billion) during the past stock market downturn. In my opinion, that constitutes gross mismanagement. Ohio educators deserve what they were promised throughout their careers. Many retirees have lost faith and trust in the OSTRS management and board, because we have seen our benefits eroded away year after year for the past decade. This is not right!

In closing, it is obvious to this retiree that the investment experts that have been placed on the board since SB 133 became law, have not been able to convince the board and management to alter the investment approach and policies Mr. Dyer and our investment staff created years ago.

It is with this understanding that I beg of you to appoint Dr. Dennis Leone to the OSTRS board as your designee, effective September 1st, 2009. In my opinion, there has never been another OSTRS board member that has been more effective in bringing about financial reform, then has Dr. Dennis Leone. Please allow him to continue on the OSTRS board without interruption in tenure.

Thomas Curtis
North Canton, OH