ORTA Newsletter of January 3, 2025

Robin Rayfield, Jan 3, 2025

Message from ORTA's Executive Director, Dr. Robin Rayfield

Greetings ORTA Members! I trust everyone enjoyed a Merry Christmas and will have a great New Year.

The newsletter from ORTA this month will be brief as we are busy preparing our annual ‘hard copy’ newsletter that will come out towards the end of January 2025. There are, however, a few items of note that we wanted to share.

1. You may have seen in the social media posts of a recent vote taken in congress about the WEP (Windfall Elimination Provision) and the GPO (Government Pension Offset) legislation that passed both the US House and Senate and is on the desk of President Biden. This legislation is known as HB 82 and would repeal the WEP and GPO for all public pension recipients in the US. If you are unfamiliar with these two draconian statutes, the GPO prevents widows and widowers from receiving their spouse’s social security payments because they are receiving a public pension. Of course, this measure has made no sense since its inception. In addition, the WEP reduced the amount that a person who worked the required number of quarters by as much as 2/3rds because they received a public pension. Many Ohio public employees, including educators, were penalized from receiving the amount due because of the WEP. As we wait on Biden to sign this bill, we encourage all to voice your support for this legislation. 

2. ORTA concluded its endorsement process in mid-December and has endorsed three candidates for the election of STRS board members this spring. The election will take place in late April through the first week of May 2025.

Endorsed candidates: 

Dr. Rudy Fichtenbaum for the retiree seat. As we all know, Rudy has been a strong supporter of reforms at STRS.

Michael Harkness for one active contributor seat. Michael was appointed to his seat after former board member Steven Foreman retired from education and was no longer able to hold his seat. Michael Harkness has also pledged to fight for transparency from STRS and force reforms at STRS.

Chad Smith is endorsed for the 2nd seat for active members at STRS. Chad was very adamant that change at STRS is essential. All three candidates are committed to change and/or reform at STRS, something ORTA has been advocating for several years. Although the process of reform for an organization that has had no oversight for decades is slow, the changes are progressing.

Holding seven of the 11 seats on the pension board would bring about real change at our pension. As retirees, your support of Dr. Fichtenbaum is essential to continue the battle to restore our promised benefits. As retirees, you are also able to encourage active members that you know to vote for Chad Smith and Michael Harkness.

The front page of ORTA’s website (www.orta.org) has information on these three candidates including each candidate’s petition. Retirees can only sign petitions for a retired seat and active contributors can sign for active member seats only. Please help get petitions signed for all three endorsed candidates.

Once signed, send them to:

ORTA
250 E. Wilson Bridge Rd. Suite 150
Worthington, Ohio 43085.

3. STRS has begun the process known as ‘asset allocation’ for pension investments. This is noteworthy because over 50% of our ability to pay pension benefits comes from what our investments can earn. ORTA has suggested that the investment allocations are far too heavy in 'alternative investments and real estate.’ These allocations are much more expensive and yield lower returns than passive investments in fixed income and broad-based equity indexes. ORTA will remain vocal in its support of reducing the nearly $1 billion paid in fees and expenses to Wall St. and our active management program, providing better returns and lower costs.

4. As we begin 2025, I hope that all ORTA members can see the value in membership to ORTA. Since 1947 ORTA has been the voice of advocacy for STRS members. With dues that cost $2.50 each month ($30 per year), the value of an ORTA membership exceeds the cost. As has been stated many times, our voice is only as strong as our membership. I urge all ORTA members to encourage your friends and colleagues to join ORTA in the battle to restore STRS benefits.

5. Another piece of legislation, Ohio HB 278, passed and was signed by Governor DeWine. This bill allows a retired and rehired educator to run for a retiree seat on the STRS board. As you may be aware, this large group of people has been in limbo as far as STRS is concerned. This group receives benefits from STRS AND makes ongoing contributions but were not able to hold a seat on the STRS board. This statute rectifies this situation.

6. Pension Defense Fund – ORTA has been steadfast in its support of both Wade Steen and Dr. Rudy Fichtenbaum. ORTA stands behind these two reform members as they are under attack by Ohio Attorney General Yost. ORTA’s Pension Defense Fund has paid legal fees to defend both Fichtenbaum and Steen. ORTA welcomes any donation our members can make to protect these two men from the governor and attorney general.

Donations can be made online at www.orta.org.

7. ORTA is offering something new this year, allowing a purchase of an ORTA membership for a friend or relative. These ‘gifted memberships’ are perfect for those hard-to-buy-for people in our lives. Several people have gifted membership to a friend or former colleague this holiday season.

You can find out more about gifting a membership here.

8. Have a wonderful 2025 and look for our mailed newsletter later this winter.

ORTA endorses Fichtenbaum, Harkness, and Smith for STRS Ohio Retirement Board

 ORTA Staff - December 28, 2024

In spring 2025, STRS Ohio will hold an election for two contributing member seats and one retired member seat on the STRS Ohio Retirement Board.

ORTA is endorsing Rudy Fichtenbaum for re-election to the retired seat. Fichtenbaum is currently serving as the Chair of the Board.

ORTA is endorsing Michael Harkness and Chad Smith for the two contributing seats. Harkness, who is currently seated on the Board, replaced Steve Foreman, who resigned from the Board in June.

Nomination Petitions

Fictenbaum, Harkness, and Smith are currently collecting signatures for their nomination petitions. Click on a candidate's name to open their nomination petition:

1. Rudy Fichtenbaum

2. Michael Harkness

3. Chad Smith

Instructions for Nomination Petitions

•  Print the nomination petition(s).

◦  Electronic petitions will not be accepted by STRS Ohio.

•  Collect signatures.

◦  For the retired seat, those eligible to sign the nomination petitions are all retired members, including STRS Ohio retirees who are reemployed in an STRS Ohio-covered position. Persons receiving disability benefits and survivor benefits are not eligible to sign this petition.

◦  For the contributing (active) seats, those eligible to sign the nomination petitions are members presently contributing or those who have contributions on deposit with STRS Ohio. Not eligible to sign this petition are retired teachers or STRS Ohio retirees who are reemployed in an STRS Ohio-covered position, and those who do not have an account with the State Teachers Retirement System of Ohio.

•  Mail the petitions to the candidate or to ORTA.

◦  Send petitions to ORTA at ?250 E. Wilson Bridge Road, Suite 150, Worthington, Ohio 43085.

◦  Please allow enough time for petitions to be received by STRS Ohio by Friday, February 28, 2025, at 4:30 PM.

◦  Petitions sent to ORTA will be delivered by hand to STRS Ohio.

ORTA Position on the Election of STRS Ohio Board Candidates

The mission of ORTA is to monitor, advocate for, and protect the pensions and benefits of its members. The Association shall encourage individuals to improve the social and economic changes and issues relevant to their retirement.

ORTA will endorse STRS Ohio Board candidates who actively advocate for transparency of investments and business practices for the State Teachers Retirement System of Ohio Pension System. Transparency of Investment practices shall not conflict with Ohio Revised Code 3307.15. In particular, Section 3307.15. (e), states, “Any statement of financial position distributed by the board shall include the fair value, as of the statement date, of all investments held by the board under this section.”

ORTA believes that once elected, Board members serving as our fiduciaries should adopt a prudent investor approach and avoid investments where the investment’s fair value cannot be independently determined. ORTA supports Board members and STRS management in exploring investments and investment strategies that might bring additional revenues into the pension plan to restore, maintain, or enhance member benefits. ORTA encourages the Board to predetermine a reasonable dollar allocation while vetting such investments and investment strategies to avoid jeopardizing the fiscal integrity of the pension system.