Robin Rayfield to STRS Board: How do you intend to get back the money you paid in unearned bonus payments?

Robin Rayfield's speech to STRS Board

October 20, 2022

Good morning. My name is Robin Rayfield. I am a retired STRS member.

I hate to say I told you so, but in this case the comment is fitting. As I had previously stated, a delay in approving the bonuses paid to the investment staff was in order. Your board colleagues also asked that the bonuses not be approved until the audited numbers were available. As predicted, the actual values available so far indicate that the losses are far greater than estimated at the August meeting.

The truth is that the investment staff, STRS consultants, and everyone in the investment world knew that the valuations submitted for the bonus’s payments were too good to be true.

This action is typical and points to the problems with the STRS culture. The staff put their self-interests ahead of the membership. That is why they rushed the bonus payment issue, taking advantage of an accounting gimmick that delays the valuation of these assets. I repeat, the staff and consultants knew that they had not earned the bonuses that were paid. It is as bad as it sounds.

You ignored pleas from the members and your board colleagues to delay the bonus vote until the audited valuations of the alternative investments were available. Shame on the board members that approved these bonuses. You knew better.

Just because the staff asks you to support an issue does not give you a pass on your fiduciary duty. Thanks to board member Wade Steen we all know that ACA does not confirm the accuracy of the inputs, only the arithmetic. Garbage in yields garbage out. Your vote to pay unearned bonuses results in personal liability.

The current leadership at STRS is not looking out for the best interests of the retirement system. Remember, the liability rests with each of you. You need people that you can trust, not what you are receiving at present.

On behalf of the STRS members, I want to know how you intend to get back the money you paid in bonus payments that were unearned. Will the people that received this payment pay it back, will the management pay this money back, or do you intend to pay the money yourselves. That money should go to teachers. The money spent on bonus payments is for benefits, not made-up performance. I don’t care how you get it back, just get it back.

Dr. Robin Rayfield is Executive Director of the Ohio Retired Teachers Association and a strong advocate for teachers, retired and active.