Highlights
Ohio Lawmakers Propose Removing Board Members From Teachers’ Pension Fund Amid Controversy
Source: https://www.wcpo.com/
Ohio lawmakers are proposing to remove elected members from the board of the State Teachers Retirement System (STRS) amid allegations of public corruption involving board leaders. This move aligns with efforts by the governor and attorney general to prevent reform-minded educators from gaining control of the retired teachers’ pension fund.
Key Highlight:
- The STRS board is experiencing turmoil, with a debate between “reformers” who want to switch to index funding and “status quo” supporters who prefer actively managed funds.
- The Ohio Retirement Study Council (ORSC) met to discuss STRS finances, focusing on intergenerational equity and COLA issues. Reformers have recently gained a supermajority on the STRS board, aiming to implement new policies, including restoring cost-of-living adjustments (COLA) for retirees.
- Ohio Attorney General Dave Yost filed a lawsuit to remove two board members, alleging their involvement in a contract steering scheme benefiting a private investment group.
- ORSC’s senior research associate, Jeffery Bernard, presented data supporting STRS’ current system, noting $20 billion in unfunded liabilities and concerns about recent benefit enhancements.
- State Rep. Phil Plummer proposed solutions, including:
– Merging Ohio’s five public pension funds into one to reduce overhead costs
– Restructuring the STRS board to include more investment experts
– Increasing oversight to prevent potential corruption - These proposals face opposition from some retired teachers who want to maintain educator input in pension management. Lawmakers are considering drafting reform legislation to address these issues and protect pensioners’ money.
- The situation remains complex, with ongoing debates about the best way to manage the pension fund and ensure its long-term stability while meeting retirees’ needs.
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