The Ohio State Teachers Retirement System (STRS) is in turmoil as both the acting executive director, Lynn Hoover, and the chief investment officer, Matt Worley, have resigned. This comes after months of controversy and internal fighting within the organization. Hoover had been in the position since November 2023, following the departure of her predecessor amidst allegations of misconduct. Worley had been with STRS for 30 years and resigned just before reaching the 31-year mark, allowing him to collect a pension from the Ohio Public Employees Retirement System.
The resignations were confirmed by STRS following an exclusive interview with a reporter, who had been investigating the ongoing chaos within the organization. Both senior and junior staff members expressed surprise at the news of the resignations, indicating that the situation caught them off guard as well. The controversy within STRS has been ongoing, with allegations of corruption, mishandling of funds, and recent lawsuits filed against board members.
The root of the controversy stems from disagreements on how to invest STRS funds, with some advocating for a switch to index funding while others support actively managed funds. The suspension of cost-of-living adjustments for retired teachers has also been a point of contention. Despite claims that the system is performing well compared to other state pension systems, STRS still faces $20 billion in unfunded liabilities.
The resignations of key officials within STRS have added to the chaos and uncertainty surrounding the organization. With ongoing investigations and allegations of corruption, the future of the pension fund remains uncertain. Members of the pension fund and stakeholders are closely watching to see how the situation unfolds and how it will impact retired teachers in Ohio.
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