Dan MacDonald to STRS board: "As always, put actives and retirees first. Restore actives and retirees and stop putting staff enhancements a priority."

Dan MacDonald's speech to STRS board

August 18, 2026

FROSTED GLASS

Mr. Chair and members of the Board, good afternoon. I am Dan MacDonald, an STRS retiree with 38 plus years of service and Executive Director of Local 279R, Northeast Ohio AFT retirees, regularly attending Board meetings since 2014.

Frosted glass is a translucent material created by scattering light through sandblasting, acid, etching, or applying a specialized film. It blurs visibility to provide privacy while still allowing natural light to pass through making it popular for windows, shower doors, and office partitions.

Recently, the Heritage Foundation produced Retirement at Risk: The Political Economy of Public Pension Governance. Their reporters reviewed STRS from 2003 to 2022. The article stated that STRS’s financial numbers fell short of the audited numbers 19 out of the last 20 years.

STRS replied. A report was recently published with misinformation about our investment reporting. Here’s the verified truth: [Whatever the hell Verification means]

The report confuses the total fund and valuation returns. These measurements answer different questions and are calculated in completely different ways. [True]

The authors cite an “audited return” based on their own calculations. That number is not audited and appears in no STRS Ohio audit. [True]

The claim of a multi-billion-dollar discrepancy in reporting is incorrect and is based on the authors’ flawed analysis and unaudited calculations. [Probably True]

STRS Ohio takes the extra step of independent GIPS® verification because accurately calculating investment performance is critical to the State Teachers Retirement Board’s oversight responsibilities.

The STRS reply is all frosted glass. GIPS is not an auditor; they verify. They verify the numbers given. This is stated yearly. Many years ago, the PBI payment date was moved closer to the end of the fiscal year before a finalized accounting of the just closed fiscal year.  Totally close the fiscal year’s book, THEN determine PBI, pay later, not earlier, change the PBI policy. Cancel GIPS, save some money. [Not sure of canceling GIPS anymore because of CPA Ms. Falls comments.]

As always, put actives and retirees first. Restore actives and retirees and stop putting staff enhancements a priority.