Pregnancy test: Either you are or you aren't

John Curry to Larry Lewellen, September 1, 2009
Subject: Re: Fiduciary?

Larry,

In answer to your question, "who would be responsible and accountable for the success of this system?" My answer is:

...any person who:

(1) Exercises any discretionary authority or control with respect to the management of the system, or with respect to the management or disposition of its assets;
(2) Renders investment advice for a fee, direct or indirect, with respect to money or property of the system;
(3) Has any discretionary authority or responsibility in the administration of the system.

Being a "fiduciary" for STRS is like taking a pregnancy test ........either you are or you are not.

You are not. Neither is the OEA's Bill Leibensperger.

Neither HPA nor their officers have any legal liability for the decisions made by the "legal" fiduciaries of STRS. That is the major difference....the legal responsibility.

John

From Larry Lewellen, August 31, 2009
Subject: RE: Fiduciary?

John,

Thank you for asking. My statement may or may not meet a strict legal test.

My response is based upon the fact that the HPA consists of the collection of employers, employee organizations, and retiree associations. The employers pay all of the employer costs and have a continued responsibility for the welfare of employees on into retirement. Employee organizations bargain for all bargainable conditions, including retirement benefits, and represent the vast majority of the employees who pay the employee costs. The retiree associations have a strong responsibility for representation of retirees.

If not the STRS Board and leaders, and the HPA, who would be responsible and accountable for the success of this system?

Larry

From John Curry, August 31, 2009
Subject: Fiduciary?

Mr. Lewellen,

In your recent presentation to the STRS Board at the August meeting you said, and I quote, "We want access to affordable healthcare, and that needs to be defined...and the decision making should be in the hands of the system's fiduciaries which are the STRS leadership and the Healthcare and Pension Advocates." These words can be heard in the STRS furnished recording (CD #1) of the August 2009 STRS Board meeting.

My question is as follows:

Since when has the HPA become a "fiduciary" for the State Teachers Retirement System of Ohio?

The Ohio Revised Code defines "fiduciaries" as the term applies to STRS. Here is what the ORC says:

3307.01 (K) 1, 2, & 3

(K) “Fiduciary” means a person who does any of the following:

(1) Exercises any discretionary authority or control with respect to the management of the system, or with respect to the management or disposition of its assets;
(2) Renders investment advice for a fee, direct or indirect, with respect to money or property of the system;
(3) Has any discretionary authority or responsibility in the administration of the system.

Would you please tell me how HPA qualifies as a fiduciary of STRS under these definitions?

Thank you,
John Curry
An STRS benefits recipient