Source: https://ohiocapitaljournal.com/
The acting executive director and chief investment officer of the Ohio retired teachers’ pension fund have resigned amid ongoing controversy. Lynn Hoover will leave her position effective December 1, while Matt Worley will resign on March 31. Their resignation letters were submitted to the STRS board, but details were leaked prior to the intended announcement.
STRS confirmed the resignations of Lynn Hoover and Matt Worley amid ongoing turmoil within the organization, including board conflicts, two board resignations, and serious allegations of public corruption and fund mismanagement. Hoover, who had been with STRS for 30 years and served as CFO before becoming acting executive director in November 2023, resigned as investigations into her predecessor, Bill Neville, continue. Neville was recently given $1.65 million to leave the organization. Worley has also been with STRS for 30 years and is stepping down.
Lynn Hoover and Matt Worley resigned from STRS after reaching 31 years of service, allowing them to collect pensions from OPERS. Hoover’s tenure faced significant challenges, including internal conflicts, two board resignations, and allegations of corruption and fund mismanagement. In a recent interview, Hoover emphasized her commitment to ensuring a secure pension, but revealed she felt the pressure from a failed vote of no confidence against her leadership. The ongoing investigations, including a lawsuit filed by Attorney General Dave Yost against board members, contributed to the turmoil. Hoover acknowledged the importance of her role but indicated she was nearing the end of her career. Staff members expressed surprise at her resignation following the interview.
The controversy at STRS centers on a debate over investment strategies: whether to continue with actively managed funds or switch to lower-cost index funds. Reformers advocating for index funding now hold a majority on the board and are pushing for the reinstatement of cost-of-living adjustments (COLA), which had been suspended for over 150,000 retired teachers since 2017.
While STRS staff acknowledge the importance of COLA and report strong performance compared to other state pension systems, the organization faces $20 billion in unfunded liabilities, limiting the ability to fully restore COLA in the immediate future. This situation has fueled calls for the resignations of Hoover and Worley from some pensioners who are dissatisfied with the current management.
Image: https://ohiocapitaljournal.com/