In a recent move by Governor Mike DeWine, former Governor Bob Taft’s top aide, Jon Allison, has been appointed to lead the State Teachers Retirement System (STRS) in Ohio. Allison, a Columbus-based attorney, will replace the controversial leader Wade Steen, amid a time of transition for the pension fund.
The decision to appoint Allison comes after a series of resignations within the STRS, including both the acting head and the Chief Investment Officer. The system has been plagued by fighting, board resignations, allegations of public corruption, and mishandling of funds.
Allison’s background includes serving as Taft’s chief of staff, working in state government, and holding positions in various companies such as Root Inc. and CareSource. He has experience in legal matters, compliance, government affairs, and healthcare programs.
As he steps into the role at STRS, Allison faces an uphill battle in navigating the ongoing debate between “reformers” who advocate for index funding and “status quo” members who prefer active management of funds. With the majority of the board now comprised of reform-minded individuals, Allison is expected to bring a different perspective to the organization.
The appointment of Allison follows the removal of Steen by DeWine due to concerns over his advocacy for a specific investment firm and allegations of contract steering. Attorney General Dave Yost also filed a lawsuit to remove Steen and Chair Rudy Fichtenbaum for their alleged involvement in a contract steering scheme benefiting the investment firm QED.
For questions or comments about the STRS, individuals are encouraged to contact Morgan Trau at WEWS. As Allison takes on his new role, he will need to address the challenges faced by the pension fund and work towards restoring trust and stability within the organization.
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