Dan MacDonald to STRS board: Will the proposed budget address the needs of retirees or STRS staff? Let us not forget the salary study and pay increases received across the spectrum with the Board voting to enhance in some areas where no raises were recommended.

From Dan MacDonald

February 20, 2026

WILL BUDGET ADDRESS ACTIVES/RETIREES NEEDS?

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.  Happy belated Valentine’s Day.

A Cleveland political reporter, Morgan Trau, reported that our current STRS Board Chair plus the former Governor DeWine’s appointed Board member, will not face criminal charges related to alleged ethics violation after the state referred the case to the Columbus City’s Attorney’s Office. Through a records request, the city’s attorney office decided not to press charges saying there is not enough evidence to prove that the men knowingly broke the law by accepting money from the Ohio Retirement for Teachers Association (ORTA) legal defense fund. Congrats, chair. [Clap]

Why is this important?  Well, Attorney General Yost has accused them of corruption, and in my estimation, is trying to bankrupt them. Let’s also not forget that an initially anonymous whistleblower document claimed that QED and ORTA worked together in elections, a document emanating from STRS. I have another document emanating from STRS, not anonymous, titled STRS Ohio Retirement Benefits, 58 pages long. This was given to me by STRS Benefit staff when plotting my retirement and recently rediscovered while doing estate planning. Page 1 states, Quote “Let your workbook series help you plan now for an active, happy and secure [my emphasis] retirement later.” Unquote. Page 38 states, Quote “A cost of living increase, up to 3%, is automatically granted each year. The increase is based on the preceding calendar year’s Consumer Price Index and the number of points in the benefit recipient’s cost of living account. A benefit recipient establishes a reserve account the first year on which the increase in the proceeding calendar year’s CPI is more than 3 %.  Points above 3% are put into the reserve to be used in future years.” Unquote.

My point?  The 2026-27-year budget will soon be presented. Will the proposed budget address the needs of retirees or STRS staff? Let us not forget the salary study and pay increases received across the spectrum with the Board voting to enhance in some areas where no raises were recommended.

As always, the needs of actives and retirees clamor to be addressed, the reason for STRS’s existence.

Dan MacDonald's report on the February 2026 STRS board meeting

BULLETIN: FICHTENBAUM REMOVED

On February 19, 2026, Franklin County Judge Karen Held Phipps issued a ruling in a case that found Wade Steen and Dr. Rudy Fichtenbaum violated their fiduciary duty and are prohibited from serving as STRS Ohio board members.

Link: https://www.ohioattorneygeneral.gov/Files/Briefing-Room/News-Releases/2026-2-19_Ruling.aspx 

Report on STRS board meeting February 17-18, 2026

ASSUMPTIONS REMAIN THE SAME

STRS February’s Committee meetings commenced on Tuesday, February 17th with the Investment Committee followed by the Human Resource Committee. I was attending the 279-R General Membership meeting in CLE and by the time I arrived at STRS, the meetings had concluded.

Reviewing the handout, December’s return was a positive 0.6%, making the net total return for the fiscal year a positive 7.5%. January’s preliminary fund return was a positive 1.5%, making the net total return for the fiscal year a positive 9.1%. Total investment assets ended January at approximately $107.0 billion, higher by $6.4 billion in FY 2026. [Reminders: The 2026 fiscal year began July 1, 2025, ends June 30, 2026.  The Rate of Return STRS currently seeks per calendar year is a minimum of 7.0%] The Investment Committee also had quarterly reports by outside consultants Meketa and Callan plus reviewed and adopted the Investment Committee Charter. The committee did an initial review of the Defined Contribution Plan Statement of Investment Objectives and Policy. The Human Resource Committee also met, and I was told, they elected a chair, Michelle Flanigan, then adjourned.

The Board meeting was called to order on February 18, 2026, and December and January minutes were approved. The Finance Department then had outside consultant Cheiron review economic assumptions [Think Discount Rate/Rate of Return, Inflation forecasting, Salary Scale which includes benefits, and Payroll growth which comes from actives and school districts] and discussed "guard rails” for the Sustainable Benefit Plan. Scenarios were presented using past STRS returns to illustrate high returns followed by low returns, low returns followed by high returns, straight 7% returns for ten years, and a couple others.

As stated, Cheiron ran 1997 to 2006 in high returns then suddenly low.  Cheiron simulated lower returns than high using return data from 2000-2009. Against each scenario, Cheiron showed what happened to the fund if there were no benefit changes, if maximum benefit changes were made each year and two mixes in-between. A very thoughtful discussion occurred.  [In decent economic growth, we tend to forget about the tech and real estate bubbles, COVID, and other happenstances that cause the market to plunge and the fund to plummet. Although the exact mix will probably never happen again, using STRS’s own data returns over ten years was enlightening.]

At the end of FY 2025, we were 80.3% funded, with 11.8 years to fully funded as long as assumptions are met and no benefit changes, no additional liabilities. [Think 34 years to teaching retirement or no COLA for 12 years or no STRS salary raises for 12 years. Not going to happen. I suggest to all to look at the video of this portion of the meeting by going to strsoh.org and under the top banner “About” go to Board meetings or review the materials under the Finance Committee Report under February’s Board meetings.]

Public Participation followed with ten speakers, all retirees.  [Two were fantastic.  Again, consider reviewing this part of the meeting by going to strsoh.org and find February’s meeting under “About.”]

Chair Fichtenbaum honored STRS Communication Director Dan Minnich on his retirement and also Darold Johnson, Legislative and Political Director for OFT on his upcoming retirement.

After lunch, outside consultant, Global Governance Advisors, shared results from a Board survey and had a brief discussion of the Strategic Plan, which was moved and passed.

Executive Director Toole presented his Executive Director report, followed by Routine Matters and then Old/New Business. The meeting adjourned at 3:40 p.m.

An all-day Financial Day will be part of the next Board meeting. It will be on Tuesday, March17. The 18th and 19th are also being held for the Board meeting and Board committees.

Dean Dennis to STRS board 02/18/2026: If a public pension system evades the rules, it breaks the equivalency that underlies its very legitimacy as a pension system.

 

Trina Prufer's comments to STRS board 02/18/2026: "Believing the Moon is Made of Green Cheese"

 

Robin Rayfield to STRS board 02/18/2026: Goals for ORTA that are closely related to STRS board and decisions they make

 

Cathy Steinhauser to STRS board 02/18/2026 Five suggestions for change for the new executive director

 

Robin Beebe's speech to STRS 02/18/2026 (listen for the crickets!)

      My name is Robin Beebe. Retired Master's Degree teacher of mainly 4th Graders, 2nd Graders, Kindergarteners, a smattering of other elementary grades and eight summers of Migrant Education. 35 years. Fremont City Schools and Perrysburg Schools. Retired coming up on 17 years. Denied my full 3% COLA's. Denied approximately $120,000 and counting.

     I had to step away from attending STRS Board meetings and delivering my 3 minutes of Public Comments to help take care of our newborn grandson and his 4 year old Big Brother, two FUTURE PUBLIC SCHOOL STUDENTS.

     It is important to try to be back in person, as much as I possibly can, to witness what goes on at good old STRS.                              S.....is for SNIFFED (woof, woof)

                                         T.....is for TIMED ("1 minute")

                                         R.....is for RESTRICTED (from most areas of the cavernous Taj)                                                                               S.....is for SCANNED (like at airport security)

                                                    or should that be S.....is for SCAMMED?????

   

     Well, I know you have heard "crickets" from me lately. But, likewise, I have heard "crickets" on many serious matters at STRS. Hence, my talk today is titled "CRICKETS : PART 1"

     The latest STRS "Sustainability Plan" calls for a "maybe 1% COLA for the next 20 years". YIKES! GOOD GOLLY, MISS MOLLY!!! Why is there no meaningful "robust discussion" (to use a favorite term of this board) on how to honor your obligation and restore our denied 3% COLA's??

                                                              Just.....[crickets]

     I sense that this may be an "OUT WIT", "OUT PLAY", "OUT LAST" Survivor game to STRS, hoping we retirees all die off eventually, and nothing will need to be restored. 

                                                              Then, sadly, it truly will just be.....[crickets]

     Why is there no "robust discussion" about the huge losses of our Real Estate holdings and high salaries paid?

                                                               Instead....[crickets]

     Why is there no "robust discussion" to seriously study selling the gigundous TAJ or at least renting out office and garage parking spaces?

                                                               Here come the.....[crickets]

     Why has there been no motion made to restore real power to the Board by rescinding the 2021 ORSC Resolution(Section 3307.04) which gave the Executive Director power to override the STRS Board's decisions???

                                                                Just hearing.....[crickets]

     At a minimum, why has there not been an apology issued by our STRS attorneys/legal counsel for writing the infamous "Anonymous Letter"??? Or perhaps, is a vote of No Confidence still in order??? Which is it???

                                                                Hmmmmm.....[crickets]

     On the Private Equity front, during one slide presentation, it was proclaimed how CLOSE the "alts" came to ALMOST beating the Russell Index. But then I read in the small print, "net the fees and expenses"! And methinks, therein lies the rub. "Net the fees and expenses", I suspect the actual profits are far, far, far less than indicated. With Private Equity, those "fees and expenses" NEVER have to be disclosed, do they????? The "fees and expenses" are secretive, aren't they???? As my teacher-friend stands up and asks at EVERY meeting, "WHAT ARE THE FEES?"

                                                                 And so, we get.....[crickets]

     3 Minutes is clearly not enough for all the crickets to chirp. So, stay tuned for "CRICKETS: PART 2"

                                                                         [crickets.................]

Bob Buerkle's speech to STRS board 02/18/2026: Comparing COLAs from STRS and Social Security

New welcome sign at STRS, greeting the teachers who enter the building to attend a board meeting, just before they encounter the body scanner and bomb-sniffing dog(s)

 

Suzanne Laird to STRS board 02.18.2026: I would hope you would all like to be on the right side of history, preserving democracy at least in this room, for the teachers of Ohio.

Suzanne Laird's speech to STRS board

February 18, 2026

Good Morning, Members of MY Board:

You may start your timer now.

I am sure you have been watching the demise of democracy across our nation this past year with as much alarm as I, but what I find most interesting are the parallels to our situation here at STRS. Am I exaggerating? Consider the following:

The suppression tactics employed to silence voters are no different than the silencing of our teacher representatives on this Board. Free and fair elections are a hallmark of democracy, as opposed to political appointments.

Trumped up charges leveled against our representatives by ethically-bankrupt attorneys are no different than a corrupt Department of Justice in Washington (Thank goodness we have a city attorney who is not afraid to deliver a just ruling.). The rule of law applies to all, even those who hide behind anonymity.

What allows democracy to die in darkness here at STRS? Appointees who condone the manipulation of the make-up of our Board, packing it for political advantage, undermining fair representation. Sound familiar? It’s called gerrymandering.

An employer with no conscience whose pockets are deep: the rich get richer with raises and PBIs, while the retired sink into certain poverty. Sound familiar? Trickle-down economics at its most perverse.

We, who run the gauntlet of dogs and scanners and the demand for our IDs each month here, recognize the intimidation tactics of Minneapolis with sickening familiarity. We are interrogated by armed men, restricted to certain areas, metaphorically zip-tied to three minutes of free speech, with “warnings.” Am I exaggerating? Prove me wrong.

I would hope you would all like to be on the right side of history, preserving democracy at least in this room, for the teachers of Ohio. An appointee who chooses not to speak up on our behalf to the Governor, ORSC, and legislators is no better than the sycophants surrounding a dictator.

We demand to be represented fairly, with fiduciary responsibility, so that all educators in Ohio can enjoy a secure future.