A message of importance to all STRS Ohio members, active and retired, from Robin Rayfield, Executive Director of ORTA

From the ORTA December 2023 Newsletter

December 15, 2023

Message from Robin Rayfield, Executive Director

Greetings ORTA Members!

As another year comes to a close with the STRS pension system continuing down its path of denying its members promised benefits and continuing to punish active educators, I remain optimistic that the efforts of ORTA and other groups (STRS Members Only Forum and STRS Watchdogs) are having a positive impact on reforming our pension system. It is easy to become bitter and frustrated that the system has treated its members so poorly for so many years, but we can see change on the horizon.

Looking back to 2017, the STRS board had two lone voices challenging the loss of promised COLAs for retirees, and the increases in contributions and service requirements for actives. One voice was that of Yoel Mayerfeld, appointed by Ohio’s treasurer. As soon as Ohio’s current treasurer (Sprague) was elected Mr. Mayerfeld was replaced by a status quo member weakening the calls for reform. The other voice was Wade Steen, the governor’s appointee. Over the last several years Wade’s voice calling for reform was strengthened by the addition of STRS board members Rudy Fichtenbaum, Jullie Sellers, Liz Jones, Steve Foreman, and Pat Davidson. Things were looking positive for the chance at real reforms to fix the STRS pension system. Then Governor DeWine moved to replace Mr. Steen with a person dedicated to the continued path of mismanagement of our pension system (Bishop). I am at a loss as to why DeWine would take such an action. I can only speculate that, somewhere in this move is the hope by DeWine that this will assist in his plan to destroy public education in Ohio. His actions are having a devastating effect on Ohio’s system of public education. Actions such as Vouchers for All that divert public dollars to private education; the elimination of Ohio’s independent Department of Education; and now his action to destroy our pension system, making teaching in Ohio a less desirable career.

However, with five of eleven STRS board members committed to reforming STRS the members of STRS (both active and retired) have a chance to elect an additional reform candidate this spring. ORTA is committed to assisting any candidate committed to reforming our pension system win this spring’s election.

To that end ORTA will take the following actions:

1. ORTA will assist candidates collect signatures on petitions to have their name on the ballot. 

2. ORTA will interview candidates and ‘endorse’ any candidate that the endorsement committee recommends.

I have been notified by one candidate that she is interested in running for the STRS board seat. Michele Flanigan from northeast Ohio is interested in serving as a STRS trustee. The seat up for election this spring is an ‘active seat’ meaning that retirees are not eligible to vote in this election. Retirees, however, can use their influence with active educators to support candidates. ORTA hopes to conduct its endorsement process by early to mid-January. For now, ORTA is helping candidates collect signatures to have candidate’s names placed on the ballot. You can print a petition and collect signatures using the form included in this newsletter.

[Click here to access the petition]  

We ask that you help Michelle collect the required signatures from your active teacher friends. You can collect the signatures and send them to:

ORTA

250 E. Wilson Bridge Rd.

Suite 140

Worthington, OH. 43085 

From time to time, I am asked questions that are directed at getting to the bottom of what reforms ORTA would support at STRS. Listed below are reforms of STRS ORTA is working for: 

1. Increase transparency – STRS is not transparent. Despite accepting awards from some of their paid consultants or from other corrupt politicians, STRS remains opaque. Some examples of this lack of transparency include: 

   a. Using gross of fees returns when calculating bonus awards for its investment staff

   b. Not sharing information regarding the fees charged or the expenses associated with over 20% of its investment portfolio ($20,000,000,000)

   c. Even in its recent public relations campaign to host town hall meetings STRS carefully screens its list of participants

2. Switch to passive investment strategies - Moving from active management to passive management in its investment strategy. STRS ‘losses to the market’ every year. The Auditor of State confirmed this in his investigation of STRS that was prompted by the grass roots funded forensic audit of STRS. AOS stated that since 2009 STRS investors lost $12 billion to a portfolio that included the same asset classes as STRS but was passively managed. 

Remember, a passive management strategy would not include lavish unearned bonus payments to investors that do worse than passively managed portfolios.

3. Provide a retirement that is commensurate with what people pay - Increase the employer contribution rate paid by employers of Ohio’s teachers. Currently, Ohio has the lowest employer contribution rate of public retirement systems and the second highest individual contribution rate. This means that teachers in Ohio pay the second highest rate in the country, their employers pay the lowest rate in the country, and we get less value than anyone in the country. In fact, STRS is the only public pension in the country whose participants receive less in value than what they are paying in contributions. 

There are other reforms that would strengthen STRS that could be discussed, however with these reforms everyone associated with STRS would be far better off. That is why it is so important to elect reform minded candidates as STRS board members. The current majority of STRS board members are committed to the current status quo of paying more, working longer, and receiving less in benefits than what was promised. 

One final note is an update on the Wade Steen situation. As you already know, Wade Steen served one complete term on the STRS board as an appointee of Governor Kasich and was reappointed by DeWine. 

After the election of May 2023 results were known by STRS and it became clear that the majority of the STRS board were reform minded, DeWine used his power to do what he has always done… hurt teachers and educators. This time he removed a powerful voice advocating for educators in Ohio (Wade Steen) from the pension board and replaced him with a wealthy donor. This move insured that the money flowing from our pension through Wall St. to the politicians in Ohio would continue to flow. A majority reform board would stop the corruption. 

Mr. Steen thinks, and I agree, that his removal by the governor is illegal. We are of the opinion, and the language in the Revised Code is clear, that Mr. Steen does not ‘serve at the pleasure of the governor’. Mr. Steen filed suit that his removal violates the law and has asked to be reseated on the STRS board. 

The defendants have stalled this challenge rather effectively; however, it appears that the legal maneuvers are at an end and the judge will rule. ORTA has assisted Mr. Steen in his legal challenge against DeWine. To date ORTA has collected approximately $45,000 to assist Wade in this battle. Mr. Steen and the ORTA leaders would like to thank everyone that has donated to this worthy cause. As former educators we all know that the deck is stacked against us. We are used to fighting uphill battles. 

This battle is no different. We are battling the most powerful political man in Ohio; whose friends (at least those that are not in jail, yet) have more money than we can imagine. Win or lose, I am proud to be a retired educator!