It's Groundhog Day Once Again at STRS

By Joe Lupo, Founder of MOF

(Ohio STRS Member Only Forum on Facebook)

October 6, 2022
"Its like Groundhog Day everyday at STRS..."

This phrase refers to the movie "Groundhog Day" about a man reliving the same day over and over...every time he wakes up. And so it is with STRS members and the continued uncovering of information that falls under what can only be called a dark cloud because of the continued cloak of secrecy and deceit by management. The lack of transparency continues to be alive and well on Broad Street and it is our hope that changes soon.

Having said that, our "STRS Whistleblower" has struck again. Once again, I will present the information provided in the form of a question. Based on the past, there more than likely will be no response by STRS management to this question.

QUESTION: Did a former STRS Board member and another unnamed individual file complaints with the Ohio Ethics Commission regarding investment/hiring involving a former investment staff member?

The Ohio Ethics Law (ORC Chapters 102 and 2921) prohibits every public official or employee from participating in any way, in actions and decisions that directly involve their own financial interests or those of their families or business associates. Because it references public officials or employees, it would at first glance appear that anyone else would be excluded from the provisions of the law or the "Ohio Revolving Door Policy."

However, Ohio's largest retirement system in their information on the internet state they are not part of state government. They also claim that the ORSC (Ohio Retirement Study Council) provides legislative oversight of all state public pension systems (ORC Section 171.01) which presents an obvious conflict in the information provided. If you are confused at this point, let me add a couple of additional caveats to the scenario they present. They clearly state they were established in 1935 to provide pension benefits and health care coverage to retired public employees in Ohio. They also specifically cite the ORSC (Ohio Retirement Study Council) providing legislative oversight of all state public pension systems.

The question that quickly should come to mind regarding the above is if they were established by the Ohio Legislature and the ORSC (a failed political body) providing legislative oversight, the reality is the Ohio public retirement systems were created by the Legislature and by definition and ORC are an agency of the State of Ohio. The retirement systems are also made of public employees both active and retired. The Ohio Legislature has and continues to retain legislative authority over all 5 Ohio Public Pension Systems. Why would the ORSC include legislative member representation?

All 5 public pensions systems are controlled by the Ohio Legislature and all have Trustees/Boards (ORC Chapter 3309) and have politically appointed representatives (ORC 3309.05) which outlines the qualifications and requirements of those appointments. The semantics and definitions of the Ohio Ethics Law are not consistent with reality.

It is a fact that the Ohio Legislature is a major player in the mounting problems we as members of STRS are confronted with today. The handing off of their legislative responsibilities and accountability to a crippled council for legislative oversight and pension fund Trustees/Boards (ORS 3309.03) does not remove their responsibility and accountability for what has gone on for over 30 plus years at STRS. What it does do, is make them accomplices along with those that have and are still serving on the STRS Board (both appointed and elected) who have voted us into a financial quandary based on the recommendations of STRS management and staff.

To make matters worse, the Ohio Legislature discriminated against the members of STRS by approving legislation that allowed STRS to ultimately freeze our COLA and keeping the COLA intact for OPERS. They also passed recommended legislation requested by STRS increasing retirement requirements for active STRS members. Legislators have yet to acknowledge that STRS members are being forced to subsidize their retirement system and the only austerity program at STRS rests on the backs of all the members. It is a fact the Ohio Legislature has been silent and has failed to lift a finger to right the wrong that they are a partner in.

In closing, all MOF members should know, and many of you do, that the moderators and I work every day behind the scenes for a cause that we deeply believe in..and that is welfare of every current and future members of STRS. All of our time is volunteered. We appreciate the many contributions by MOF members in posting and commenting on postings. We encourage all MOF members to do the same. You are helping the cause by your participation.

We also know there are times that you become frustrated...we do also because things take so long. We believe that our patience and unwillingness to accept what is at STRS will ultimately work in our favor. Always be reminded that it took 30 plus years of mismanagement and Boards, with the exception of a very few members, to get us at the place we now find ourselves. It has only been 5 plus years that we have been collectively working together to unify active and retired members by providing and sharing information that the vast majority of us would other wise be totally unaware of. We have won some battles, but the winning of the war remains in front of us. 

Once the war is won, MOF will continue to exist as long as there is an STRS. What has happened at STRS can never happen again...not to us and not to those yet to come!