Guess who gets the pie? Denny will explain below.

By Denny Jordan

June 16, 2023

In a dream I just had…..

At the close of a meal at a large gathering, the people in charge (the Board) realize that they don’t have enough pie for dessert.

They address the group, and say “There is a problem. We don’t have enough pie. We have to make a decision.”

They say "excuse me" and go into executive session.

They return and say, “We could all take smaller pieces and everyone could have a little. But this small group of people over here (the investment staff) are really important to us."

"Because they are so important, they each get their piece of pie. We are also going to give them your pie. And we would like some of you to go to the store and buy 30% more pie, and give that to them as well. We think that is fair.”

I think something similar to this may have just happened.

Like I said, I don’t understand finances. I understand pie a little bit. ?????

Actives get to pay in more (14% instead of 10%). They also get to work longer (35 years instead of 30).

Retirees get to learn how to live without an annual COLA, and how to deal with inflation on a fixed income.

The investment staff gets a bunch of pie (six figure salaries, with six figure incentives, and what the heck, let’s increase that by 30%…….)

Please tell me I’m wrong.

Edward Siedle: Wall Street Cockroaches Infest State Pensions, Thrive In the Darkness

When transparency is denied at state pensions, you should presume someone has something to hide.

In pension matters, there is never any justification for keeping secrets from taxpayers and pensioners whose retirement savings are at risk. After all, it’s your money.

Less transparency in pensions results in less accountability and greater looting. Therefore, to protect your retirement, you should do everything in your power to promote transparency at your pension, paying particular attention to the most secretive investments, such as private equity, private credit, hedge, venture and real estate funds.

EDWARD SIEDLE

JUN 16, 2023

Wall Street cockroaches infesting state and local pensions prosper—thrive—in darkness. While “sunshine is the best disinfectant,” public pensions are shadier than ever today.

Transparency in government has long been acknowledged in America as essential to a healthy democracy. On the federal level, the Freedom of Information Act opens up the workings of government to public scrutiny, giving citizens information they need to evaluate and criticize government decision-making.

Share Pension Warriors by Edward Siedle

All 50 states also have public records laws which allow members of the public to obtain documents and other public records from state and local government bodies. State public records laws are built upon the United States’ historical position that the records of government are “the people’s records.”

Transparency is also critical to the prudent management of trillions of dollars invested in America’s state and local government pensions. Indeed, the single most fundamental defining characteristic of our nation’s public pensions is transparency. Of all pensions globally, our public pensions—securing the retirement security of nearly 15 million state and local government workers, funded by workers and taxpayers—are required under our public records laws to be the most transparent.

The single most fundamental defining characteristic of our nation’s public pensions is transparency. Our public pensions—securing the retirement security of nearly 15 million state and local government workers, funded by workers and taxpayers—are required under our public records laws to be the most transparent.

Public pensions primarily invest government workers’ retirement savings in securities and funds which are regulated on the federal and state level. Our nation’s securities laws require that securities issuers and fund advisers register with regulators, disclose financial and other significant information to all investors, including public pensions, as well as prohibit deceit, misrepresentations, and other fraud. The statutorily mandated disclosure information is commonly provided in the form of prospectuses, offering memoranda, annual reports, performance reviews and other documents.

Absent full disclosure by investment firms to pension boards and investment staffs, these individuals cannot fulfill their fiduciary duty to diligently safeguard pension assets. Full disclosure of investment information by the pension to the public is necessary for the stakeholders to understand the investment program, as well as evaluate whether pension fiduciaries are prudently performing their duties.

Thus, in public pension matters, we are concerned with two levels of transparency:

First, under the securities laws, issuers and investment advisers must fully disclose material information to pension boards and investment staffs regarding pension investments. Second, under state public records laws, all of the workings of the pension must be open to full public scrutiny, including, but not limited to, investments.

In public pension matters, we are concerned with two levels of transparency:

First, under the securities laws, issuers and investment advisers must fully disclose material information to pension boards and investment staffs regarding pension investments.

Second, under state public records laws, all of the workings of the pension must be open to full public scrutiny, including, but not limited to, investments.

Alarmingly, my forensic investigations over the past two decades have revealed that public pensions in states such as California, Florida, Tennessee, Rhode Island, North Carolina, and Ohio have long abandoned transparency, choosing instead to collaborate with Wall Street firms to eviscerate state public records laws and avoid accountability to stakeholders. Predictably, billions that could have been used to pay government workers retirement benefits have been squandered over time as transparency has ceased to be a priority.

Wall Street cockroaches prosper—thrive—in the darkness. Despite global support for greater transparency, public pensions are actually becoming less transparent. Ironically, there is less transparency regarding public funds today in the Information Age, despite computers and the internet.

Less transparency in pensions results in less accountability and greater looting. Therefore, to protect your retirement, you should do everything in your power to promote transparency at your pension, paying particular attention to the most secretive investments, such as private equity, private credit, hedge, venture and real estate funds.

Wherever transparency is denied, you should presume that someone has something to hide.

 Wherever transparency is denied, you should presume that someone has something to hide.

Read the rest of the article here. 

https://pensionwarriorsdwardsiedle.substack.com/p/wall-street-cockroaches-infest-state 

Well, this is to be expected, considering who the incumbents are who are desperately trying to keep the status quo at STRS for pretty suspect reasons. Batten down the hatches as it will get worse before it gets better. They want war, so we'll give it to them.

From Tom Curtis

June 17, 2023

Update: 6.17.23

Thursday's STRS Board meeting was another slap in the face for reform-minded members. The now 7 status quo Board members obviously continue to rule all votes. The 6% staff raises and $11 million in bonuses were approved and will go into effect as of July 1st, 2023.

The 4 reform Board members' attempts to bring about change were simply out-voted or the chair tabled their motions. The Board continues to make it very clear that reform is not desired, so the corruption continues, business as usual.

The ultimate slap in the face came from the election for a new co-chairperson starting with the September Board meeting. Rudy Fichtenbaum and chair Carol Correthers (OEA-supported) were nominated for the position. Carol Correthers was elected as the co-chair for the next year by a vote of 7-4. This clearly shows all STRS members that reform is not desired, despite the fact that only reform candidates have been elected in the past 3 elections. Next April, you will again have a chance to elect another reform candidate. The fight for reform continues.

Denny Jordan to STRS Board: Remember that the decisions made on this side of that wall have hurt numerous people on that side of the wall.

By Denny Jordan

June 15, 2023

Madam Chair, and Board Members.

Thank you for the opportunity to speak.

I am Denny Jordan, retired Science teacher, 20 years, Wooster City Schools. I am also speaking on behalf of my wife Ginger Jordan, retired English and Science teacher, 25 years Triway Local Schools. She could not be here today.

Over my shoulder is The Wall. And beyond that, “Integrity”.

Integrity. Defined as the quality of being honest and having strong moral principles. It is also defined as the state of being whole and undivided.

That wall divides us, and not just physically.

Before me sits a group of people who directly affect my life. But honestly, I don’t sense integrity. The whole and undivided version.

It feels like some here are fighting for us, for our best interests and futures. It sometimes looks like others are looking out for their own interests, or those of STRS employees and staff. Some appear to be here to tip the balance so that the change that is coming can be delayed.

The last few elections show that there is a very strong desire for change. That desire will continue to grow. Nothing I say will prevent you from awarding huge bonuses to staff for doing their jobs, while asking active teachers to pay more and work longer, and retirees to figure out how to fight inflation on their own.

I came today to ask you to always remember that the decisions made on this side of that wall have hurt numerous people on that side of the wall. That can be changed. You can change it. Remember that the money you play in, is the money we pay in.

I want to personally thank those of you who operate with the welfare of the teachers, foremost on your list of priorities.

And I hope in the future, “Integrity” can be found on this side of the wall. (That would make more room for seating.) And that clear glass isn’t what we mean when we say we need transparency.

Reflections. I know you must love this. Lots of money is being spent to convince us how great retirement is. My wife and I realized we are far down the list for our video segment so I’ll give you a short version.

I met a girl in kindergarten. We fell in love and got married. I fell in love almost immediately, but we didn’t get married until much later. There are laws. (Like retirees get an annual 3% COLA used to be a law).

She has always wanted to travel to England. But, we each lost our promised and earned 3% COLA for a decade (that amounts to 6% for 10 years). Our anniversary was Monday, and for the 47th year in a row, I said “sorry not this year. No trip.”. Instead I bought her a half dozen roses (on sale), a pizza, and a handful of dollar scratch off lottery tickets.

However, I am still hopeful. I know I can’t count on you to give us back our COLA.

But we still have a couple of lottery tickets.

Sue Brannan to STRS Board: CUT EXPENSES!

By Sue Brannan

June 15, 2023

Good Morning,

My name is Sue Brannan. I retired with 30 years of service in 1995. The last 25 of these years were with a suburban public school system in NE Ohio.

The financial issues facing the viability of STRS for the next 2 decades, never mind the next 100 years, are overwhelming. There are NO Quick & Easy Solutions. So, when facing financial issues, what does the individual, family, community, school district, or STRS do?

CUT EXPENSES!

We can all appreciate that one or possibly several cuts will only put a band aid on our financial future shortfalls.

One major financial cost, that has been addressed before is the STRS headquarters, affectionately called the “TAJ”!

This STRS building is on 7 acres of desirable downtown property. Does STRS, with 520 employees, require a 7 story building on 7 acres to function? Ask our employed Real Estate experts. What do the jobs, in the various departments require in terms of work space. Survey the employees. Begin by asking how many want to work in downtown Columbus. How many want to commute? Work at home?

Just examining several March 2023 expenses:

Total utilities $75,322 Year-to-date 843,235

Elevators 3,820 13,302

Property tax & Leases 9,056 162,462

Uniforms 3,022 28,391

(These 4 expenses for March = $91,220 but the Year-to-date figure = $1,047,390.)

Over the years, there have been thousands of dollars spent for washing windows, parties on “our” dime, a Brown's Yearbook & the oft mentioned “Integrity” statue. Large and small cost saving measures accumulate over time & could positively impact the future financial stability of STRS. Thank you.

Suzanne Laird to STRS Board: ".....if each of you, one by one, voted “no” on the budget and the bonuses, we would not need fictional heroes"

From Suzanne Laird

June 15, 2023

Good Morning, Members of MY Board: 

Where’s Waldo?

Where’s Wade?

Oh, wait — we are not “allowed” to use real names — another of your foolish rules, so let me refer to him as I did a year ago:

Where’s Atticus Finch?

The most professional, polite, honorable member of this Board was dismissed for purely political reasons last month, and when one of you spoke up, she was repeatedly silenced. Well, when the lawsuit comes before the magistrate, she alone will be able to say, “When they came for him, I spoke up.”

Who will speak for you, when it’s your turn? Will others say, “I was just following orders……… from the Governor.” 

This month, I received my first-ever 3% COLA, largely due to the efforts of Atticus Finch, so I donated that amount directly to his legal fund. After all, I’ve waited 7 years, what’s one more month? 

But who is our Atticus now?

On a Board whose very reason for existence is to protect and provide for the teachers of Ohio, who will stop the pillaging of our pension? Who here has the fortitude to say “no” to frivolous expenses, excessive raises, exorbitant bonuses? 

Who, here, has a conscience?

If each of you chose to follow your own conscience to do what is right, what is just, what is your fiduciary duty, for the active and retired teachers of Ohio, this Board could redeem itself.

And if each of you, one by one, voted “no” on the budget and the bonuses, we would not need fictional heroes.

Karen Loeffler: Some reminders for the STRS Board on what their job is SUPPOSED to be

From Karen Loeffler

June 15, 2023

My name is Karen Loeffler. I retired in July 2012 with 30 years experience as a high school classroom teacher and as a middle school counselor. I have worked in Columbus City Schools, an urban district; Eastland-Fairfield Career and Technical Schools; and in Pickerington Schools, a suburban district. I also spent countless hours as a volunteer in Pickerington, in a variety of capacities. I cannot think of a greater profession than one where you have the ability to connect with and impact the lives of so many: students, colleagues, parents, and community members. I count myself fortunate to have had these experiences.

I am not a financial expert, nor do I pretend to be. There are others with that level of training and expertise, and I rely on them to provide sound advice and information. There are some qualities that I expect from them, however, that apply to all of us in our dealings with others, personal and professional.

First is integrity, the quality of being honest and having strong moral principles. Next is dedication, the quality of being committed to a task or purpose. Finally, and most specific to the STRS Board and staff, is being a fiduciary, someone who is required by law to manage another person’s money and property for their benefit, not yours.

We expect to compensate people for their expertise, but when we see salaries and bonuses in the high six-figures, while members are denied cost of living increases on a regular basis, when we see spending with no real attempt to cut costs, and, to add insult to injury, we are called names like “malcontents” when we raise concerns in an attempt to correct what we perceive as injustice to us, it should be no surprise to anyone sitting on this board that members are angry and frustrated. When people speak out and are ignored, or treated with arrogance and condescension, it should be no surprise when their voices become angrier, louder, more strident.

Until the focus returns to providing a solid retirement benefit, with reasonable terms of employment and contributions, and providing a COLA on a regular basis as we were told we would have, we will continue to speak out about the conditions at STRS. And we will continue to remind you, loudly and often, of what it means to be a fiduciary, because you seem to have lost sight of what that truly means.

Latest update on the Wade Steen lawsuit

From John Curry

June 15, 2023

(Letter dated June 12, 2023)

https://drive.google.com/file/d/1D05SfyoEV-oSByKxWpk6Iig7npPOpRAN/view?fbclid=IwAR15CGz4A3cfUFG9qPr2f7pYZVqVsu54-qB_Hvpv7tWaPAbOS0qlpBOPKBY 

A Special Request to the President of the Ohio Education Association - Scott DiMauro.

From John Curry

June 14, 2023

Dear Scott,

I am requesting that your union please donate a few bucks to the Wade Steen Defense Fund. After all, Wade has been trying to get to the bottom of the excessive fees that your active teachers have been paying to the hedge funds, alternatives and real estate Wall Street thieves but Wade isn't getting a straight answer from Bill Neville.

If your organization donated $9,500 to the "Browns Yearbook" last year (see the U.S. Dept of Labor LM-2 slide below) you could at least part with a few thousand for this good cause, couldn't you? I mean, afterall, it is FOR the your dues-paying teachers and it is for a good cause....THEIR RETIREMENT.

Thank you.

A former 30-year dues-paying, OEA-represented (?) teacher.

A Special Request to the Secretary-Treasurer of the Ohio Education Association - Mark Hill.

From John Curry

June 14, 2023 

Dear Mark, 

I am requesting that your union (?) please donate a few bucks to the Wade Steen Defense Fund. After all, Wade has been trying to get to the bottom of the excessive fees that your active teachers have been paying to the hedge funds, alternatives and real estate Wall Street thieves, but Wade isn't getting a straight answer from Bill Neville. If your organization gave over $22,000 last year (according to the U.S. Dept. of Labor slide below) for artwork framing, your organization could at least part with a few thousand bucks for this good cause, couldn't you? I mean, after all, it is FOR your dues-paying teachers and it is for a good cause....THEIR RETIREMENT. 

Thank you. 

A former 30-year, dues-paying, OEA-represented (?) teacher.

A special request from John Curry to those traveling to STRS tomorrow [6/15/2023] for the STRS board meeting.

June 14, 2023

Please, if you eat lunch in the STRS Cafe, take a pix of your receipt and post it so that we can see if STRS is, as of yet, charging sales tax at the "point of sale" rather than "building in the tax" that they admitted to doing in the past. With this proof, if they aren't charging at the point of sale, I will again (for the 3rd month in a row), file a complaint to the Ohio Department of Taxation. Thank you. Please let me know if you ate in the cafeteria as food carried out should not be taxed (but it has been). 

Thank you.

John

ORTA's June 2023 Newsletter: An STRS Update From Robin Rayfield

From ORTA Newsletter

June 2023

Greetings ORTA Faithful!

STRS Update

A quick update on STRS matters. The STRS board will meet on June 15 in Columbus. Topics that will consume the discussion this month include evaluations of firms interested in serving as investment consultants to STRS, the Performance Based Incentive Policy (Bonus payment policy), and a report from the investment team at STRS. No doubt, the bonus discussion will be contentious as several board members are not satisfied with the current state of affairs at STRS.

The current board, with 6 members firmly standing behind the STRS management team are likely to support the management team’s proposal to continue the bonus program in its current fashion. If you remember from a previous newsletter, the board did vote to increase the pool of money available for bonus payments by 30%.

Pension Defense Fund

Recently, ORTA’s Executive Committee voted to create a Pension Defense Fund. This fund would collect and hold for disbursement financial resources for activities that would advance ORTA mission to protect pensions of STRS members. The genesis behind forming this fund was Governor DeWine’s illegal effort to remove Wade Steen from his position as a trustee of STRS. As most people know Mr. Steen is at the foundation of the attempts to reform STRS.

Our efforts have been successful in the 30 days since we began collecting donations. As of June 13, 2023, the Pension Defense Fund had collected approximately $19,000. I have received questions about how ORTA will decide what to use these funds for. The answer to these questions about the expenditure of these funds is somewhat simple. The funds will be used to ‘advance ORTA’s mission of protecting the pensions of STRS members. ORTA does not have funding available to take on advocacy projects that are beyond our typical advocacy of providing information to our members about STRS. For example, STRS’s removal of Wade Steen from the STRS board based on an email from Governor DeWine is viewed as a threat to our pension. STRS members, active and retired, have no better friend, no stronger ally, than Wade Steen. Wade Steen has been at the foundation of reforming STRS. Because Mr. Steen asks questions of the STRS management, the Governor and STRS board have attempted to remove him from his seat. This is clearly a threat to our pension. Therefore, the ORTA Executive Committee chose to assist Mr. Steen with his legal challenge to remain for the remainder of his term. ORTA’s goal is to raise $100,000 for the Pension Defense Fund. Today the threat to our pension is the attempted removal of Wade Steen. Tomorrow the threat will be something else, perhaps something we have never even considered.

A rubric has been developed to use for evaluating any proposed expenditures from the Legal Defense Fund. A few simple questions will guide the Executive Committee to determine if an expenditure is appropriate:                                                                       

Does the request for resources fall in line with ORTA’s mission?

ORTA’S mission is to monitor, advocate for, and protect the pensions and benefits of its members. The Association promotes service & friendship across all 88 counties in Ohio. We encourage individuals to improve the economic changes and major issues relevant to their retirement. Explain the connection.

Does the request fit within ORTA’s available resource pool?

How much assistance is needed and what is the amount requested?

What are the potential conflicts of interest for ORTA’s membership?

Click here to donate to the Pension Defense Fund and join forces against the governor's attack on our pension system.

Wade Steen's case against the governor and the STRS board now in court

Toledo Blade

EditorialBoard

June 11, 2023

Editorial: Steen vs. DeWine

The long-running battle over investment management of Ohio’s State Teachers Retirement System is now in front of the 10th District Court of Appeals in Columbus. If justice prevails, Gov. Mike DeWine will be reminded that he is not a law unto himself.

At issue is Mr. DeWine’s expulsion of Wade Steen as his appointed investment expert on the STRS Board in the middle of Mr. Steen’s four-year term.

The governor says his action was based on missed meetings by Mr. Steen. In essence Mr. DeWine accuses his appointee of dereliction of duty, legally specified grounds for removal of a pension-board member.

But Mr. DeWine never followed the process for removal that starts with a complaint alleging willful neglect of duty filed in Common Pleas Court. Mr. Steen disputes Mr. DeWine’s charge and has filed suit against the governor and the entire STRS Board, claiming his removal was illegal, and is seeking immediate reinstatement.

Ultimately the court must decide whether a specified four-year term of office with detailed standards on grounds for dismissal and process for dismissal can be reduced to service at the pleasure of the governor.

If anyone deserves a historic judgment of dereliction of duty in regard to STRS and the entire Ohio public pension system it is Mike DeWine. As attorney general Mr. DeWine reached malpractice-level malfeasance in his failure to require legally mandated fiduciary and actuarial audits from all of the state’s pensions. 

Mr. DeWine turned a blind eye to the loss of $32 billion by the five Ohio pension funds last year but seeks the ouster of Mr. Steen, the first and most ardent voice for investment management reform in the entire state pension system.

The most actively engaged beneficiary in all of the public pensions, the Ohio Retirement for Teachers Association, has raised the money through donations from members to pay Mr. Steen’s lawyer, Norman Abood of Toledo.

ORTA says Mr. DeWine has “poured jet fuel onto a raging fire” and claims the governor’s action against Mr. Steen was based on the election of a reform candidate to the STRS Board, creating a majority to enact the reforms Mr. Steen was the first to advocate.

Transparency of investment holdings and reduction of fees is at the top of Mr. Steen’s list. It was a policy recommendation in the Special Audit of STRS by Auditor of State Keith Faber, and Mr. DeWine claims to support those goals. But firing the one board member on any state pension questioning blind investments and conflicted asset valuations directly contradicts mere words.

Ohio has poured tens of billions of pension dollars into assets it can’t specify and value solely on the word of the fund managers it’s given capital. “What’s the problem, we’re making money?” The pathetic first response from Ohio government in the Coingate scandal is still the operative investment strategy. Underperforming, politically connected fund managers still get rich in Ohio.

Read the rest of the article here. 

https://www.toledoblade.com/opinion/editorials/2023/06/11/steen-dewine-strs-board-orta/stories/20230611064