State opens another investigation into STRS pension fund

COLUMBUS, Ohio (WCMH) – One day before results will be announced in the latest election for the board of the state teacher’s retirement system, yet another investigation was launched into STRS. 

The governor and the attorney general already announced they are looking into governance issues at STRS. Now, Secretary of State Frank Larose said his office is investigating whether candidates for STRS board seats, who are teachers, failed to report campaign donations as required by state law. 

“Someone who's running to serve on that board seeking the votes of their fellow STRS members is required to disclose their campaign fundraising and their campaign spending if they raise and spend over $1,000,” LaRose said. 

LaRose said he launched his investigation because of a tip from a concerned citizen. The governor and attorney general said an anonymous letter warned of a hostile takeover of STRS through board elections, hence their investigations. 

But, no one investigated complaints from retirees about a lack of investment transparency, lavish bonuses for the investment staff and an end to promised cost of living adjustments. They say it's why they've been trying to vote reformers onto the board.

“We've got a governor, and now apparently an attorney general, and secretary of state even saying, oh, sorry, all the things you've been voting for had been wrong and we're not going to let we're not going to let it come to fruition,” said David Pepper, a law professor at the University of Cincinnati. 

NBC4 asked LaRose if he found it odd that all at once, multiple state leaders are looking into STRS when retirees have been begging for an investigation for six years. 

“Well, as you know, the secretary of state's office doesn't have a role in looking into STRS beyond this one narrow thing about if a candidate for the STRS is spending money,” LaRose said.

But, teachers and retirees said the investigations seem like roadblocks. 

The current election is expected to put another reformer on the board. Reformers already hold a majority after a court order was granted to return Wade Steen to his seat. The governor kicked the investment specialist off the board last year.

“Mike Dewine broke the law, not because I'm saying it, or a teacher said it because the court said it,” Pepper said. “So my question is, when someone breaks a law as powerful as the governor, where's that investigation?”

The Ohio Retirement for Teachers Association (ORTA) is backing reform candidates and said there is nothing hostile about it. 

“The democratic process is never hostile,” said Robin Rayfield with ORTA. “I'm sure Mr. Yost was elected to his position. I'm sure the governor was elected to his position. Neither of those were hostile takeovers, electing people in a fair, democratic election is never hostile. That's what makes America great is the fact that we can pick our leaders and the membership of STRS. Both actives, and retirees have picked their leaders, and we're ready to move forward with our selected elected leaders.”

The results of the STRS board election are supposed to be released tomorrow.