Robin Rayfield reports on the June 2021 STRS Board meeting and more
From ORTA June-July Newsletter
June 30, 2021
Robin Rayfield's report
The STRS board met on June 17, 2021. The meeting was long lasting over 8 hours. Although there was significant discussion in such a lengthy meeting, a few major issues or topic were of greatest interest to me.
• The STRS board agreed to lower the discount rate (this is the assumed rate of return STRS uses to calculate investment income) from 7.45% to 7%. This may not seem like a significant change, but this change is quite significant. Lowering the discount rate by 45 basis points adds tremendous liabilities to our pension system. In other words, our COLA is much further away than it was because of this change.
• Another interesting topic of discussion at the meeting was really an absence of discussion. Board member Wade Steen asked the board to add the topic of ORTA’s Forensic Audit to the agenda. Yoel Mayerfeld agreed that the Forensic Audit should be discussed but the STRS board voted 9-2 against having a discussion of the Forensic Audit. Trustees offered one primary rationale for not discussing the audit such as ‘we have only had 10 days to review the document’ or ‘I need more time to understand this document’.
• Mr. Steen also suggested several changes to STRS policy that were ‘shot down’ by STRS Board members. One policy change suggested that seemed to anger the STRS board is that the word TRANSPARENCY should be included. STRS board members voted to NOT include the word TRANSPARENCY in their policy. For an organization that often touts itself as being transparent in all matters, I am surprised that there was such hostility to inclusion of the word transparency in their policies. As a side note, Mr. Siedle’s attorney has filed two separate legal challenges to STRS’s lack of transparency. Mr. Siedle has asked that STRS provide information on where STRS money is invested, how much is invested, what the fees and costs are with those investments, and what the current value of those investments are. STRS will not provide the information requested.
• Mr. Stein has resigned from his position as STRS trustee. This is especially, troubling as he was just reelected to a trustee position beginning in September 2021. STRS did not indicate what will be done with this position, however, it seems appropriate that an election for the seat be held.
Forensic Audit
The Forensic Audit is complete! You can read it at www.orta.org ORTA will also post additional information about the audit on the front page of the ORTA website. Several key documents related to the Forensic Audit are linked in this newsletter. Please make sure you are using the pdf version of the newsletter and click on the links to learn more about how STRS is managing our retirement.
• STRS Response to Edward Siedle’s Report• Siedle’s response to STRS Criticism of Forensic Audit• STRS Trustee Wade Steen’s Letter Regarding STRS• STRS Trustee-Elect Rudy Fichtenbaum’s Letter
• The Forensic Audit titled The High Cost of Secrecy• Forensic Audit Findings
Dr. Robin Rayfield,
ORTA Executive Director
As you might expect, there are many ‘moving parts’ to the forensic audit and what we have learned through this process. One thing is clear, STRS is not transparent and has never been transparent. The culture at STRS seems to be that the less known about the organization the better off everyone is. ORTA is meeting with elected officials in Ohio attempting to let our representatives and senators know that there are many issues at STRS that require legislative intervention. As retirees, your assistance in asking your elected officials to take a close look at what STRS is doing will strengthen our message. We have some momentum, lets remain vigilant with our efforts to force change at STRS.Robin Rayfield reports on the June 2021 STRS Board meeting and more
Dr. Robin Rayfield is Executive Director of the Ohio Retired Teachers Association.
posted by Kathie Bracy at 4:50 PM
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