Well, we know for sure HE never worked at STRS!!!

 

One teacher's comment...

May 10, 2025

But the ORSC thinks the problem is the current composition of the elected board! That is total bull??! STRS has been horribly mismanaged for decades and the sole objective has been to fund the political dark money machine, which is why they want total control of our money.

James Carr: Wade and Rudy were not sued for doing anything wrong, they were persecuted for trying to find a solution to the real problem that hundreds of thousands of teachers are dealing with: A corrupt political/corporate complex that uses our funds to to benefit politicians, STRS employees, and Wall Street Money Managers.

From James Carr

May 10, 2025

The politicians are upset with us;  OEA is upset with us;  the STRS administrative hierarchy is upset with us; Wall Street is upset with us.  What did we do to incur their ire?  We had the audacity to simply demand to be given what we were contractually promised.

Wade and Rudy were not sued for doing anything wrong, they were persecuted for trying to find a solution to the real problem that hundreds of thousands of teachers are dealing with:  A corrupt political/corporate complex that uses our funds to to benefit politicians, STRS employees, and Wall Street Money Managers.

This much is absolutely clear, the politicians, the STRS employees, and the Wall Street Money Managers don't want a solution because they don't see our predicament as a problem.  Our pain has always been their gain. Of course they want to take away the voting rights of elected Board members because we are a threat.  They have no interest in helping us but they have a very powerful vested interest in maintaining the status quo.  They care about our money, not us.

Trina Prufer: When the lead attorneys of the system write an anonymous letter to the AG, with the INTENT of removing teacher control of the BOARD, the retirement system reveals it is involved in a Machiavellian power grab. This is now out in the open.

Teachers cannot have faith in a retirement system that is corrupt at its core.

When the lead attorneys of the system write an anonymous letter to the AG, with the INTENT of removing teacher control of the BOARD,  the retirement system reveals it is involved in a Machiavellian power grab. This is now out in the open.

These two attorneys did not act alone. They had to have been supported by the STRS Director, the AG‘s office, and who knows who else. Who planned this? Who knew, and when did they know it? Board members need to know the extent of this treachery, and so do we.

It has now been revealed through a metadata analysis of the 14 page letter, and a surfeit of documentation of supposed wrongdoing, that dates were manipulated to suggest a “ hostile takeover” of STRS by private interests. From the beginning, the scenario presented in the letter was illogical and a stretch of the imagination. We all knew it was false, because the accused board members had ALWAYS acted in the best interests of members. The attorneys knew that too.

None of this intrigue, double-dealing and cloak and dagger theatrics are normal in the governance of a public retirement system. Billions are at stake.  As was stated by Wade Steen’s attorney.. ”follow the money”. No public worker should be investing their life savings in a retirement system this dysfunctional and untrustworthy.

Trina Prufer

May 10, 2025

Lead Attorneys at STRS

 

TeacherSpeak

May 10, 2025

These two attorneys need to be fired immediately. Hiding their identity to write an “anonymous” whistleblower letter, in which they paint a misleading and defamatory picture of two board members, is simply unacceptable. Seems to me the Bar Association should also have something to say about this kind of unethical behavior.

Who Do You Trust: Teachers/Retirees, or the Politicians? Another Potential Attack on Democracy and Representation 

ORTA Staff

May 9, 2025

The “reformers” have won so much, it’s sparked a sea change in the overall board, including a flipping of the board majority itself in a dramatic meeting close to a year ago.

But ever since this side started winning a few years ago, irregular things have happened right around election time (often after the votes are cast and before the results are announced) to thwart the outcome.

For several years, there’s been a spirited debate between two factions of the $90B Ohio teachers pension board, called STRS. On one side are “reformers” who believe the fund should “switch to index funding;” on the other, a faction that wants to stick with a model of “actively managing the funds,” which also comes with higher fees. “Reformers” also want “a cost-of-living adjustment, or COLA. The COLAs were suspended for more than 150,000 retired Ohio teachers for five years starting in 2017. They were reinstated, but there has been a suspension of increases, significant for retirees who need this money and are dealing with inflation.”

I don’t have a dog in the fight, but teachers and retirees do because: 1) their years of hard work and contributions built the pension fund to its $90B+; 2) they rely on the pension for their economic well-being; and 3) they elect seven of the board’s 11 members (the other four are appointees).

And earlier this week, an election was held for the teachers pension board.

And just as has happened for a number of elections in a row, the “reformer” faction won the election decisively.

---

"There are 500,000 teachers in the teachers pension system, so my hope is that's a voice that can rally loudly against the idea of stripping away their democracy of the managing of their own funds, in a pension fund they built. It's a huge pension fund. They built it and the idea that the politicians would stip away their voice in the direction of the fund of their own money is outrageous" 

~ David Pepper

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Read David Pepper's FULL POST online at https://davidpepper.substack.com/p/who-do-you-trust-teachersretirees 

John Curry: Trina Kay Prufer nailed it again! "About that Anonymous Letter..."

"But back to those two STRS attorneys*, who decided to write that anonymous letter, putting in motion the State takeover of the STRS board. Who were they representing, and why was this not a conflict of interest? Who were they working with, and why were THEIR actions NOT a “hostile takeover“?

From Trina Kay Prufer

May 9, 2025

As it turns out, the reason the ORSC is looking at the State taking total control of the STRS governing board is the accusation made by two STRS attorneys, anonymously, that ORTA, Steen and Fichtenbaum were involved in a “hostile takeover” of STRS.

In the first place, a “hostile takeover” cannot occur in a public retirement system because the composition of board members  is determined by law. The term ”hostile takeover” sounds quite ominous, but even in the business world, when it occurs, no one has committed a crime or violated any laws.

In Ohio, the STRS board is composed of 11 members, 7 of which are educators, and 4 are appointed as financial experts by the State. STRS was designed BY the State Legislature so the voting majority are the stakeholders MOST directly affected by STRS policies.

Actives and retirees ALWAYS had the voting majority on the Board. The problem was they had been represented by OEA candidates, who did not advocate for teachers, but instead for the interests of the State in keeping the contribution rate lower than what was needed to pay obligated benefits. As retirees experienced the harsh realities of a defined-benefit without a COLA, and actives had to pay more for less, educators started voting their own interests rejecting OEA candidates in favor of those recommended by ORTA.

What did STRS, OEA, the ORSC, the State Legislature and politicians think would happen when retirees experienced the ravages of inflation and could only see poverty on the horizon?  Did no one do the math? Did they not recognize that a defined-benefit without a COLA is a ticking time bomb devastating teachers’ lives?

But back to those two STRS attorneys, who decided to write that anonymous letter, putting in motion the State takeover of the STRS board. Who were they representing, and why was this not a conflict of interest? Who were they working with, and why were THEIR actions NOT a “hostile takeover“? The ORC is very clear that the majority of STRS board members are to represent the interests of educators, and that is exactly what happened. The QED brouhaha occurred in 2021, and had nothing to do with the board election of 2024.

Did the attorneys act in violation of their own code of professional ethics? Is the ORSC basing its study of retirement system governing boards on unethical practices? These are issues that must be looked at. Teachers have realized that they cannot survive on an STRS defined benefit and the composition of the STRS Board simply reflects this reality."

~     ~     ~     ~     ~

*Note: The two STRS attorneys who were revealed to be the authors of the anonymous memorandum to Governor DeWine are Mark Maxwell, Deputy General Counsel of STRS, and Stacey Wideman, Chief Legal Counsel for STRS. It was confirmed that on April 4, 2025, Mr. Maxwell drafted the document with the input and assistance of Ms. Wideman.

Dan MacDonald: We should all be concerned with a legislative approach to solve STRS’s problems

From Dan MacDonald

May 7, 2025

Here’s hoping everyone read the Toledo Blade Editorial Board May 2, 2025 piece on STRS and state legislators.  Our “Restorers” on the STRS Board ARE working for actives and retirees. [See post below this one.]

Our legislators are upset that the Board is allocating money to restore benefits to actives and retirees.  Outside actuarial consultant Cheiron created the Sustainable Benefit Plan before this Board. Cheiron was present before the Restorers held a majority of the Board seats. The legislature is unhappy with this STRS Board because it has requested a n increase in employer contribution which hasn’t been altered in 40 years. STRS is unhappy with this Board. 

STRS has requested a 9.2% budget increase for 2026 because the staff has lagged average wages in the Midwest, which is hard to believe with yearly 3%’s merit-based raises but outside consultant CBIZ presentation showed the info. 

We should all be concerned with a legislative approach to solve STRS’s problems. The STRS Board is working rationally and inquisitively with its outside consultants. STRS members should not turn to the Statehouse for help.

Toledo Blade Editorial: The General Assembly’s plan for elected members of the State Teachers Retirement System board appears to be, “If you can’t beat them, eliminate them.”

Toledo Blade
Published: May 03, 2025

Editorial: Pension power play wrong

Teachers voting on their own board are far more trustworthy than the Columbus cabal that routinely puts lobbyists and campaign contributors on important boards, including the pensions ...

THE BLADE EDITORIAL BOARD

The General Assembly’s plan for elected members of the State Teachers Retirement System board appears to be, “If you can’t beat them, eliminate them.” The Ohio House Pension Committee has begun the process to change the composition of the STRS board with the goal of eliminating elected active and retired teachers from control of the fund.

It’s an undemocratic power play and totally unfair to teachers if they are the only pension singled out for legislation to restructure the board.

STRS, like all of Ohio’s public pensions, has three “investment experts,” on the board, who are appointed by the governor, treasurer, and legislature. The State Superintendent of Schools, appointed by the governor, is an ex-officio member, so Gov. Mike DeWine controls two board seats. The other seven members of the STRS board are elected by active and retired teachers.

The Ohio Retirement for Teachers Association has successfully organized pension board voters — active and retired teachers paying into STRS — around an agenda of full transparency of investment expenses and reliance on low-cost index funds. The ORTA-backed members of the board now constitute a majority, and are increasingly regarded as an obstacle to state elected officials’ control of the $95.3 billion fund.

Republican legislative leaders this week signaled their intent to introduce legislation to eliminate the seven elected teacher representatives to the board so that government officials have total control.

The Blade Editorial Board has been mildly critical of the reform board members elected with the support of ORTA for failing to implement their transparency and low-cost investment pledge. But, they’ve been pressured by dubious legal opinions and “expert” advice claiming the change they seek would violate their fiduciary duty.

The elected STRS board members are the only ones with a personal stake in the health of the pension. Teachers voting on their own board are far more trustworthy than the Columbus cabal that routinely puts lobbyists and campaign contributors on important boards, including the pensions, that are intended to be run by prudent and unbeholden members.

Pension governance is soon to be a big tax fight and hot political issue. STRS, the Ohio Police & Fire Pension Fund, and the Ohio Public Employee Retirement System are all seeking an increase in pension contributions totaling more than $1 billion from taxpayers.

ORTA’s goals of full transparency and reliance on index funds are a good program to restore growth to the fund and eliminate excessive payments to fund managers. The broad stock market index is up slightly more than 100 percent over the last five years, which if enjoyed by the Ohio pensions would be sufficient to pay their benefits without a taxpayer bailout.

State lawmakers should demand that the ORTA agenda be imposed on all Ohio pensions rather than banish the teachers from control of the STRS retirement fund.

This article may be read here.

Dean Dennis: Is the Ohio Retirement Study Council Properly Informed?

From Dean Dennis

May 6, 2025

The Ohio Legislature has disadvantaged our pension plan when it comes to providing benefits and a proper normal cost compared to other national public pension plans.

On April 30th, Laura Bischoff of the Columbus Dispatch published an article titled, Should Ohio change its teacher pension board? Lawmakers should consider it.

On the same day, News 5 Cleveland reporter, Morgan Trau, published an article titled, Members and teachers’ pension fund board could lose their voting power.
Let’s visit what is driving these sensational headlines. On the surface, you’d think the STRS board is doing something terrible.

•  It doesn’t help that News 5 Cleveland misrepresents the actions of the STRS board. They wrongly reported that the meager 1.5% cost-of-living allowance passed by the STRS for retired teachers for the 2026 fiscal year cost $2 billion when it actually cost $660 million. Legislators and the press, please note that Ohio’s retired teachers have lost over 20% of their purchasing power since 2020.

•  It didn’t help when the Governor illegally unseated his appointee, right after an election. This appeared to many as a deliberate attempt not to accept the membership’s wish to have a board fighting for transparency issues.

•  It didn’t help when an “anonymous letter” from the STRS staff arrived at the governor's office and ended up on the Ohio Attorney General’s desk. This also happened right after the election to the STRS board of a reform-minded candidate.

 In recent developments, the Ohio Attorney General disclosed in an affidavit that the STRS Legal Department drafted the anonymous memorandum, making accusations against two board members. To date, no wrongdoing has been found.

As one can determine, the sensational headlines aren’t driven by our board members but by others resisting change.

This leads back to the question of whether the members of the Ohio Retirement Study Council (ORSC) are being adequately informed.

The ORSC oversees the five pension boards for the members of the Legislature and has consistently championed the returns of the STRS pension plan.

The STRS board approves investments and allocations. The board oversees a pension dramatically underfunded by the Ohio Legislature. The national consultants who were contracted to advise our pension plan all agree that the Ohio Legislature has disadvantaged our pension plan when it comes to providing benefits and a proper normal cost compared to other national public pension plans.

So, how have our board members addressed this dilemma?

STRS Ohio is handicapped with an Employer Contribution Rate among the lowest in the nation and Ohio Revised Code (ORC) language that states that something as basic as a cost-of-living adjustment cannot be granted unless, in the actuary's determination, it doesn’t materially impair the fiscal integrity of the pension.

The Employer Contribution Rate is a legislative issue. The legislative (ORC) language regarding “fiscal integrity” was dumped by the Legislature onto our board members and their actuary to figure out and quantify. Here’s what our board members did:

The press didn’t follow this because it would not make for a sensational headline. But our members of the Legislature need to know this in light of the recent press headlines.

The STRS board extensively consulted with our actuarial firm, Cheiron, and crafted a conservative Sustainable Benefit Plan, a way to restore benefits that were once promised to members but were taken away to balance STRS's books.

The first factor needed was to adopt a rate of return in line with what staff could achieve. This laid the foundation for a three-step process.

1.  The first was to maintain a trajectory to become 100% funded. Currently, we are ten years away, which is very good.

2.  The second was to use a tread water measurement to ensure that benefits paid allowed the board to move towards the 100% funding goal.

3.  The last was a safety net measurement. This variable simulated a severe market downturn to determine how much benefit could be granted, and still allow the pension to recover within 5 years to be on track for its 100% funding goal. No Sustainable Benefit is permitted if the “safety net” measurement can’t be passed.

The STRS board also put into policy that a de minimis benefit of 1% of assets could be granted if the pension plan didn’t fall outside of 20 years in becoming 100% funded.

All of the above is simplified. Many more variables are involved, such as our asset allocations' volatility factor.

Hopefully, our legislators and ORSC members will see this article. I’m guessing that none of the other four pension boards have adopted a plan so carefully thought out and understood by board members.

The ORSC should use this plan as a model.

This is what transparency and reform look like.

By Dean Dennis, Chair
ORTA Executive Council
May 6, 2025

From retired STRS board member Steve Foreman: Are you an Ohio teacher paying into STRS? Do you have friends or family who are? ***SHARE, SHARE, SHARE!!!***

From Steve Foreman

Facebook (MOF), May 5, 2025

Are you an Ohio teacher paying into STRS? Do you have friends or family who are? ***SHARE, SHARE, SHARE!!!***

The Ohio Retirement Study Council (ORSC) is meeting this Thursday (May 8th) —and the agenda is deeply troubling.

A proposal that would strip elected educators, like I was when I was actively teaching, and others who are currently serving as active and retiree "representatives", of their voting power on the #ohiostrs Board. If passed, this change would effectively silence the very reform voices that represent members—the ones they voted for as their "representatives".

Let that sink in for a moment. This would end any meaningful educator representation on decisions affecting teachers' own pension fund. I believe it is a blatant move to halt STRS reform and solidify the status quo.

Meanwhile, educators continue to be denied a cost-of-living adjustment (COLA), even as STRS staff receive bonuses and raises. It’s infuriating to see the people who are supposed to steward your retirement funds prioritize their own compensation while expecting teachers to do more with less—year after year.

And yet, many in our profession remain silent or divided, arguing among ourselves instead of uniting against a system that clearly isn’t working for us.

At what point do we say enough is enough? When will we stand up together and demand the respect and security we’ve earned?

Thanks for taking the time to read this. Please stay informed and involved—our future depends on it.

WE NEED YOU!

https://www.ohiochannel.org/live/ohio-retirement-study-council?fbclid=

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