Wade Steen to Rita Walters, Robert McFee and Carol Correthers: I will not tolerate interference from the staff, nor from the Board Chair or others.

July 14, 2021 

From Wade Steen

To Rita Walters, Board Chair 

Robert McFee, Vice Chair

Carol Correthers, Vice Chair-Elect

This letter responds to your letter dated June 22, 2021, a copy of which is enclosed along with the requested analyses.

I wrote to Board Chair Rita Walters nine months ago, on October 14, 2020, regarding the staff obstructing my ability to fulfill my fiduciary duty. Ms. Walters has yet to acknowledge my email and, as far as I am aware, Ms. Walters never investigated my concerns. A copy of the email is enclosed.

I, along with fellow Board investment expert Yoel Mayerfeld, expressed concerns during the August 2020 Retirement Board meeting regarding the investment performance and benchmarks used in calculating staff bonuses and were told by staff the actual performance was not the benchmark used for bonuses. After the bonuses were approved, Yoel followed up with staff regarding the alternative investments benchmark and was informed the benchmark was in fact, the actual performance. Perhaps most troubling, "actual performance" was not the alternative investments benchmark in the Statement of Investment Objectives and Policy (SIOP) at the time bonuses were approved.

Regarding the solution I referenced, please call a special meeting so that I and Board-Elect Dr. Rudy Fichtenbaum may lead a discussion on how STRS Ohio can utilize its balance sheet along with technology to significantly reduce its Wall Street costs and allow for the restoration of the cost-of-living adjustment; reduction of current employee contributions from 14% to possibly 4%, which would result in a 10% pay raise for Ohio's teachers; and lowering the retirement age.

I am compelled to request that Attorney General Dave Yost appoint transparency counsel for me as an STRS Ohio Retirement Board member so that I may arrive at my own conclusion about what the facts are and what they mean, in an effort to exercise my fiduciary duty as the Governor's appointee to the State Teachers Retirement Board. I will not tolerate interference from the staff, nor from the Board Chair or others. I trust this letter provides you the clarification you sought.

Sincerely,

Wade Steen, CPA

Member - Retirement Board

Cc:    Mr. William J. Neville, STRS Ohio Executive Director

         The Honorable Dave Yost, Ohio Attorney General

         The State Teachers Retirement Board