Dan MacDonald's report on the May 14-16 STRS long, long board meeting

BEHIND CLOSED DOORS

Dan MacDonald attended the May STRS Board meeting. The meeting was unique in that more time was spent in Executive Session [out of public sight].  

Wednesday the meeting was called to order about 8:30 a.m.  and went into Executive Session (1) for the rest of the day. Thursday the day started with an Executive Session (2) for the Disability Review Panel [This usually takes place on Wednesday and is always an Executive Session.] The Board meeting was called to order a little after 11 a.m. Minutes were approved, and the Board went into Executive Session (3) until noon. 

The Board returned and the Board Governance Committee met with a presentation by outside consultant GGA for all of nine minutes.  GGA told the Board that there were 22 areas that needed to be tackled from a 180 questionnaire that had been administered to Board and senior staff with a 69% response rate [I suppose I’d be happy if 69% of my former students handed in their homework on time, but to me the response should have been in the 90th to 100% percentile.  All Board members should have responded as well as the staff given the questionnaire.]

Public Participation occurred about 12:15 p.m.  Twelve people spoke, all retirees. [No specific names were shared but apparently two STRS staff lawyers were identified in the court filings regarding the 14-page whistleblower letter given to the governor and others about former Board member Steen and current Chair Fichtenbaum. Phrases such as unethical and disbarment were shared by more than one of the speakers.]

Back to Executive Session (4) with a lunch break. The session lasted to 3:06 pm. A presentation was made to honor Fred Williams who was retiring after 44 years of service at STRS. The Investment Committee then met for 45 minutes. April’s return was a positive 0.3% giving the fund return for the FY a positive 4.5% [Remember the Fiscal Year ends June 30 with a goal of a positive 7% to be on track.] Investment assets ended April about $95.8 billion, up since July 1, 2024, by $554 million.

The Statement of Fund Governance and Statement of Investment Objectives and Policy were presented along with the Semiannual Broker Evaluation and Associated Policies and outside consultant Callan remarks. The Chair then altered the agenda and had Routine Matters to approve April expenses and other routine matters. This took 4 minutes and when he called another Executive Session (5) which lasted an hour.

Upon return, the Benefits Department presented initial projected increases to 2026 premiums and the main drivers along with a motion to approve the Health Care Subsidy caused by last month’s vote to allow actives to retire at 32 years of service.

The meeting concluded with the Interim Executive Director's Report and Old Business/New Business and a recess to a continuation of the Board meeting Friday in Executive Session (6). I do not know how long the Executive Session lasted on Friday.  Through Zoom I know it commenced a little after 9 a.m. but I had to leave my home at 10:30 a.m. and the Board was still in Executive Session.  The next Board and committee meetings are slated for June 11, 12, 13, 2025.

[From what I overheard, the Governor and others told the Board not to select a new CEO at this meeting. Supposedly, Christina Elliott, Director of Benefits, removed her name for the position and there are an additional 2 candidates making the final cut. As to the reason for all these Executive Sessions, I haven’t a clue, nor was one given. Watching, some of the Executive Sessions caught even Board members by surprise.

There are 6 reasons for Executive Session: 

(1) To consider the appointment, employment, dismissal, discipline, promotion, demotion or compensation of a public employee or official, or the investigation of charges or complaints against a public employee, official, licensee, or regulated individual, unless the employee, official, licensee, or regulated individual requests a public hearing by division (G)(1) of section 121.22 of the Revised Code.

(2) To consider the purchase of property (both real and personal, tangible or intangible), or to consider the sale of property (either real or personal) by competitive bid if disclosure of the information would give a competitive advantage to the other side by division (G)(2) of section 121.22 of the Revised Code.

(3) Conferences with the public body's attorney concerning pending or imminent court action by division (G)(3) of section 121.22 of the Revised Code. Court action is "pending" if a suit has been commenced; court action is "imminent" if it is on the point of happening or impending.

(4) Preparing for, conducting, or reviewing collective bargaining strategy by division (G)(4) of section 121.22 of the Revised Code.

(5) Matters required to be kept confidential by federal law, federal rules, or state statutes by division (G)(5) of section 121.22 of the Revised Code.

(6) Specialized details of security arrangements where disclosure of the information to be discussed in executive session might reveal information that could be used to commit, or avoid prosecution for, a violation of the law by division (G)(6) of section 121.22 of the Revised Code.

[Obviously, something behind the scenes is happening.  Remember that this is OUR PENSION and we should have more than say in its existence. Please read my Public Participation.  STRS Ohio has functioned fine since 1920, but legislative darkness now lurks.]