Letter from Tom Curtis to Attorney Terry Mutchler about problems at STRS

Letter from Tom Curtis to Atty. Terry Mutschler

Sent April 7, 2022

Posted June 23, 2022 on Facebook:

Ohio STRS Member Only Forum

Dear Terry Mutchler,

I just read an article in The Lever, Apr 6, 2022, by Matthew Cunningham-Cook, "A Pension Official Blows the Whistle" [https://www.levernews.com/a-pension-official-blows-the-whistle/] which in part stated, "Terry Mutchler, a prominent transparency lawyer who Muth has retained to assist with her lawsuit, said, “It’s a very special case. You have a board member being put into position to have to file suit to obtain records to do her job. We believe this is the first time in the nation where a sitting board member on a public fund has had to take such action.” This is my reason for writing you.

Terry, we have exactly the same scenario occurring at Ohio STRS. The staff and current Board Chair Robert McFee and prior Board Chair Rita Walters have refused to provide investment documents requested by elected retiree Board member Rudy Fichtenbaum and Governor DeWine's appointee to the Board, Wade Steen, CPA. The Board of 11 consists of 5 active teacher seats, 2 retiree seats and 4 appointed seats that are supposed to have investment and finance expertise. How can a Board chair and the majority of the rest of the Board get away with this failure to fulfill their fiduciary responsibility? Steen and Fichtenbaum, two STRS Board members are constantly bullied by a Board that is and has been controlled by the Ohio Education Association (OEA) for 30+ years. The OEA has held all 5 active teacher seats on the Board, with the exception of 2 OFT members for 30+years.

The article mentions OSTRS is currently under investigation by the Ohio Auditor's Office, after a forensic audit was performed by Ted Siedle, a former attorney for the Securities and Exchange Commission (SEC) and pension whistleblower. The $75,000 forensic audit was paid for by donations from STRS retirees, the Ohio Federation of Teachers (OFT) and The Ohio Retired Teachers Association (ORTA). The OEA has held all 5 active teacher seats on the Board for 30+ years, with the exception of 2 OFT members. Retirees wanted a second opinion concerning high risk investments, fees and wild misspending by management and the Board.

This is about as brief as I can be. The corruption at OSTRS is beyond belief. The membership has been suffering financially since pension reforms in 2012, due to mismanagement and misspending at OSTRS.

If you have time to check into this, you will find a corrupt pension system that is likely worse than Pennsylvania's. I am most concerned at this time about the Board's refusal to provide documents to Siedle and two Board members that would be considered whistle blowers, just like Katie Muth. They have the credentials to back up their concerns.

I hope to hear from you.

Sincerely,

Thomas Curtis

OSTRS Retiree and Advocate for Change since 2003