Tom Curtis to Plain Dealer reporter: Please consider doing an investigative report on the mismanagement and misspending at STRS

From: Tom Curtis

June 6, 2021

To: John Caniglia

John Caniglia, Investigative Reporter for the Cleveland Plain Dealer,

My name is Tom Curtis. I have been a STRS benefit recipient since 1998.

I am contacting you in hope that you might consider an investigative report on the mismanagement and misspending at the Ohio State Teachers Retirement System.

As you may know, the promised 3% COLA for retirees was eliminated by the STRS Board in 2013. The change to a 2% COLA was also eliminated in 2017 and we have been stagnant ever since. The Board promised to revisit the COLA issue in a few years, but has not done so to date, citing various reasons for not doing so.

STRS is currently undergoing a forensic audit by famed outside Attorney Ted Siedle. This is being paid for ($75,000) by STRS retiree donations through the Ohio Retired Teacher’s Association (ORTA), headed by Executive Director Dr. Robin Rayfield. ORTA has since had to file a suit against STRS to release investment records that STRS claims they cannot provide because that information is “secret”. STRS actually claims that they do not have the records of certain investments handled by an investment firm they have used for several years. How is it lawful for our fiduciary to claim that certain investments are “secret”?

Some background: In 2003, one of your former investigative reporters (Steve Ohlemacher 6.8.03) covered the reported mismanagement and misspending going on at STRS by the then Superintendent of the Chillicothe School System, Dr. Dennis Leone. Dr. Leone had written a 13 page position paper listing his numerous questionable findings. Leone presented this document to the Board and requested a response to his allegations. At first, due to the arrogance of the then Executive Director Herb Dyer, he and the Board simply ignored the document for a few months.

When Steve Ohlemacher was given a copy of this document, he himself went to STRS and verified all of the allegations Dr. Leone had listed within his document. Steve actually uncovered 4 more issues not found by Leone. Steve’s findings became front page news for the Plain Dealer. In my opinion, the corruption and mismanagement has never ended. Ref: https://kathiebracy.blogspot.com/2008/06/flashback-from-five-years-ago-teacher.html  

In 2004, STRS drastically reduced the promised fully paid health care coverage for benefit recipients and their dependent children. There was no grandfathering for those already retired. That benefit had been in place for many years. To retirees’ detriment, STRS failed to provide a dedicated flow of income to keep the fund financially secure.

The result was that benefit recipients had their subsidy reduced by 25% and all of the subsidy for spousal and dependent children was removed. Retirees still had access to the coverage, but had to shoulder the cost for their family. Retirement without a strong HC program is no retirement at all.

In 2013, the Legislature changed ORC 3307.67 law which had provided for a 3% COLA to nearly all STRS benefit recipients between 1979 and 2012. In turn the Ohio Retirement Study Counsel (ORSC), which is the oversight of all 5 Ohio pension systems, willingly gave the STRS Board the responsibility of determining whether or not to provide STRS retirees with a once promised COLA.

In 2017 the STRS Board decided to eliminate the COLA for all STRS BR’s. The Board would not even consider “grandfathering” those already promised the 3% COLA at retirement, which some of the other 4 pensions system did do.

STRS has for years manipulated the numbers used to determine the unfunded liability of the STRS. Thus, the STRS Executive Staff and Board have claimed that the unfunded liability is not within the State mandated guidelines. Consequently, the Board justified removing various promised benefits retirees were provided at retirement, the greatest of which was our much needed COLA.

Consequently, since 2017 STRS retirees have suffered a huge loss in income and the buying power of our pension check continues to be eroded every year. This is very daunting to us. Retirement without a COLA is no retirement at all. Many retirees have had to go back to work do to the loss of our COLA.

STRS retirees beg of you to please review what information you have on hand from 2003 and beyond concerning the mismanagement and misspending at STRS and consider an investigation of your own.

The results of the forensic audit performed by Attorney Ted Siedle with be available on the ORTA webpage on Tuesday, 6.8.21.

Thank you for your time.

Sincerely,

Tom Curtis