Laura's at it again. We sure look like the "bad guys" today, don't we? Nothing new.

Lobbying group paid $114K in legal bills for STRS Ohio board members, records show

By Laura A. Bischoff

Columbus Dispatch

September 25, 2024 

A lobbying group that advocates for teachers' retirement benefits reported giving $114,819 in gifts to two State Teachers Retirement System Ohio board members in the form of paying their legal fees since 2023.

The Ohio Retirement for Teachers Association on Monday submitted updated lobbying forms, stating that STRS Ohio Board Chairman Rudy Fichtenbaum received $27,451 in 2024 and STRS Ohio Board member Wade Steen received $53,204 in legal support this year and another $34,164 in 2023. The updated forms were submitted to the Joint Legislative Ethics Committee, which oversees lobbyists.

The payments could conflict with state ethics laws.

The Ohio Ethics Commission has said that public officials can't accept contributions to pay for their legal defense from any "prohibited" sources - those that have interests before the public agency. Ethics Commission Director Paul Nick said whether ORTA is a prohibited source would have to be determined via an investigation. "And not something I can publicly comment on," he said.

ORTA members routinely speak at board meetings, pressing for reforms such as restoring the annual cost of living adjustment for retirees.

Steen was initially appointed to the STRS board by Gov. John Kasich and reappointed by Gov. Mike DeWine but DeWine replaced Steen with another appointee in 2023. Steen fought that in court, eventually returning to the board in April 2024. ORTA paid at least some of his legal bills in that fight.

In May 2024, Ohio Attorney General Dave Yost filed suit against Fichtenbaum and Steen, alleging that the two men violated their fiduciary duties to STRS. Both men deny the allegations.

Because Yost represents the STRS board and is suing two of its members, his office offered to hire outside law firms for Steen and Fichtenbaum. They both rejected the offers, according to Yost's office.

Steen is chief financial officer for Cleveland Metroparks and former Franklin County treasurer. Fichtenbaum is a retired Wright State University economics professor. Steen didn't return a message seeking comment.

Fichtenbaum said he doesn't see any conflict with state ethics laws because ORTA advocates before the pension system but doesn't do any business, such as contracts, with STRS. He got advice from his attorney but did not seek an opinion from the Ohio Ethics Commission, he said.

The teachers' pension fund, which oversees more than $90 billion invested for 500,000 teachers and retirees, has faced turbulent times in recent years. Last week, the board voted unanimously to part ways with STRS executive director Bill Neville after placing him on paid administrative leave nearly a year ago. STRS offered a buyout package worth $1.65 million to Neville.

ORTA Director Robin Rayfield said the attorney representing Steen advised ORTA that there was no conflict with state ethics law for the organization to cover legal fees for pension board members. ORTA did not seek an opinion from the Ohio Ethics Commission, he said.

Public officials are supposed to disclose all gifts worth more than $75. Steen did disclose on his 2023 ethics statement a gift from ORTA but he didn't disclose that it was $34,164 to cover legal fees.

This story was updated to add new information.

Laura Bischoff is a reporter for the USA TODAY Network Ohio Bureau, which serves the Columbus Dispatch, Cincinnati Enquirer, Akron Beacon Journal and 18 other affiliated news organizations across Ohio.