Robin's admonition to certain STRS Board members: 'Lead, Follow, or Get the hell out of the way'

From Robin Rayfield

Comments to STRS Board

May 18, 2023

My name is Robin Rayfield. I am the Executive Director of ORTA. I speak on behalf of myself representing tens of thousands of STRS members, active and retired.

The results of the spring election for STRS trustee point to a continued lack of confidence in the current direction of our pension system from our members. This is the 5th seat in a row that has been decided in favor of change at STRS. When coupled with the recent failed vote of confidence in the current management at STRS most people would be convinced that changes are long overdue.

Prior to governor DeWine’s last second, illegal action to overturn the will of the membership the table was set for sweeping changes at STRS. None the less as the legality of DeWine’s move to protect his political cronies, is litigated, the people have spoken. By a nearly 3-1 majority, the members of STRS have spoken… again. Just like they did in 2022.

To the remaining members that are standing in the way of reform, please stand aside. Stop drinking the STRS management’s Kool aid and allow the reformers a chance to lead. It was under your watch, or lack of oversight that the mess we are in has taken place. You are directly to blame for the current situation. You could, this very day, take action to begin correcting this contentious, dysfunctional pension system. Four steps are necessary:

1. Increase transparency – stop accepting the phony transparency awards you receive from the people you pay. Open the books on the alternatives portfolio. Allow the members to know what fees we pay; how much is invested and what the ‘real value’ of our illiquid assets are. Better yet transition out of alternative investments altogether.

2. Move to a passive investment strategy. Don’t lose to the market for yet another decade while actives are paying in more than their pension is worth and retires fall further and further behind without their promised COLA increases.

3. Eliminate the PBI/bonus system that rewards investment staff for losing money.

4. Eliminate any benefit expenditures that do not benefit the members. Eliminate the daycare center, cafeteria, and fitness center.

It should be very clear by now that the reforms at STRS are necessary and are going to happen. As a successful wrestling coach, I lived by the motto ‘Lead, Follow, or Get the hell out of the way’. We have leaders that will lead the reforms necessary, we have followers as evidenced by the last five elections. Its time that the members on this board that want to hold on to the old ways need to Get the hell out of the way.