ORTA's June 2023 Newsletter: An STRS Update From Robin Rayfield

From ORTA Newsletter

June 2023

Greetings ORTA Faithful!

STRS Update

A quick update on STRS matters. The STRS board will meet on June 15 in Columbus. Topics that will consume the discussion this month include evaluations of firms interested in serving as investment consultants to STRS, the Performance Based Incentive Policy (Bonus payment policy), and a report from the investment team at STRS. No doubt, the bonus discussion will be contentious as several board members are not satisfied with the current state of affairs at STRS.

The current board, with 6 members firmly standing behind the STRS management team are likely to support the management team’s proposal to continue the bonus program in its current fashion. If you remember from a previous newsletter, the board did vote to increase the pool of money available for bonus payments by 30%.

Pension Defense Fund

Recently, ORTA’s Executive Committee voted to create a Pension Defense Fund. This fund would collect and hold for disbursement financial resources for activities that would advance ORTA mission to protect pensions of STRS members. The genesis behind forming this fund was Governor DeWine’s illegal effort to remove Wade Steen from his position as a trustee of STRS. As most people know Mr. Steen is at the foundation of the attempts to reform STRS.

Our efforts have been successful in the 30 days since we began collecting donations. As of June 13, 2023, the Pension Defense Fund had collected approximately $19,000. I have received questions about how ORTA will decide what to use these funds for. The answer to these questions about the expenditure of these funds is somewhat simple. The funds will be used to ‘advance ORTA’s mission of protecting the pensions of STRS members. ORTA does not have funding available to take on advocacy projects that are beyond our typical advocacy of providing information to our members about STRS. For example, STRS’s removal of Wade Steen from the STRS board based on an email from Governor DeWine is viewed as a threat to our pension. STRS members, active and retired, have no better friend, no stronger ally, than Wade Steen. Wade Steen has been at the foundation of reforming STRS. Because Mr. Steen asks questions of the STRS management, the Governor and STRS board have attempted to remove him from his seat. This is clearly a threat to our pension. Therefore, the ORTA Executive Committee chose to assist Mr. Steen with his legal challenge to remain for the remainder of his term. ORTA’s goal is to raise $100,000 for the Pension Defense Fund. Today the threat to our pension is the attempted removal of Wade Steen. Tomorrow the threat will be something else, perhaps something we have never even considered.

A rubric has been developed to use for evaluating any proposed expenditures from the Legal Defense Fund. A few simple questions will guide the Executive Committee to determine if an expenditure is appropriate:                                                                       

Does the request for resources fall in line with ORTA’s mission?

ORTA’S mission is to monitor, advocate for, and protect the pensions and benefits of its members. The Association promotes service & friendship across all 88 counties in Ohio. We encourage individuals to improve the economic changes and major issues relevant to their retirement. Explain the connection.

Does the request fit within ORTA’s available resource pool?

How much assistance is needed and what is the amount requested?

What are the potential conflicts of interest for ORTA’s membership?