Columbus Disparch: Is there a conspiracy at the state teachers' pension fund? Former board member thinks so

Is there a conspiracy at the state teachers' pension fund? Former board member thinks so

Columbus Dispatch
October 28, 2024
By Laura Bischoff 

A former teachers' pension board member is suing two other former board members, alleging they are part of a "civil conspiracy" that stymied his quest to investigate the retirement system's failings.

It's the latest twist in a long-running drama over who controls the 11-member board for the State Teachers Retirement System of Ohio.

Former board member Wade Steen filed a lawsuit in Franklin County Common Pleas Court last week against Brent Bishop and Brian Perera. Gov. Mike DeWine reappointed Steen as an investment expert in November 2020. But in May 2023, he removed Steen and appointed Bishop. When Bishop resigned, DeWine put Perera on the board.

Steen waged a successful legal fight to return to the board in April 2024 but his term expired in September.

Steen paints himself as an investigator, seeking answers as to why STRS's investment returns fell short and the system couldn't pay out consistent cost of living adjustments for retired teachers.

His removal from the board came in the midst of his investigation and on the cusp of Steen gaining a majority of votes on the board, according to his new lawsuit

In his new lawsuit, Steen alleges that Perera, Bishop, STRS staff, the governor's office and the attorney general's office conspired against him.

Ohio Attorney General Dave Yost filed a lawsuit against Steen and STRS Board Chairman Rudy Fichtenbaum, alleging the two violated their fiduciary responsibility to the pension fund.

The STRS board oversees roughly $95 billion invested on behalf of 500,000 current and former teachers. It is one of five public pension systems in Ohio.

In his lawsuit against Bishop and Perera, Steen wants more than $50,000 for emotional distress, reputation damage, foregone expense reimbursements and attorney fees.

An outside lobbying group covered $114,000 in legal fees for Steen and Fichtenbaum. The payments could conflict with state ethics laws.

The STRS board has faced infighting and turmoil over the past few years. Retirees are angry over the elimination of cost-of-living allowances, a perceived lack of transparency and the payment of bonuses to pension investment staff despite investment losses.

The turmoil contributed to a $1.65 million exit package for former STRS director Bill Neville, a decision to retire by interim director Lynn Hoover and a decision to retire by chief investment officer Matt Worley.

Read this story online here.