The Ohio retired teachers’ pension fund is facing turmoil as allegations of corruption, lack of experience in hiring practices, and personal ties to board leaders have come to light. State Teachers Retirement System (STRS) Acting Executive Director Lynn Hoover expressed concerns about the board’s latest hiring process in an exclusive interview. Two board members, Wade Steen and Chair Rudy Fichtenbaum, are accused of participating in a contract steering scheme that could benefit them. The Attorney General filed a lawsuit against them, prompting investigations into their ties to investment firm QED.
The controversy stems from a debate on how STRS should invest money, with “reformers” wanting to switch to index funding. Recent elections have allowed reform-minded members to have a majority on the board. The suspension of cost-of-living adjustments (COLA) for retired teachers is also a point of contention.
The hiring of firms with questionable backgrounds, such as QED and Hackett, has raised concerns about governance and transparency within STRS. The board’s decision to potentially hire Hackett, despite lacking references and facing criticism from one of their principals, has drawn skepticism from staff members.
Furthermore, questions have been raised about payments made to support board members facing legal challenges. The Ohio Retirement for Teachers Association (ORTA) has raised significant funds for board members like Steen and Fichtenbaum, sparking ethics concerns.
Overall, the Ohio retired teachers’ pension fund is embroiled in controversy, with ongoing investigations into corruption, hiring practices, and financial support for board members. The situation highlights the need for transparency, accountability, and proper governance within the pension system.
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