Blade Editorial: Pension power play wrong

Teachers voting on their own board are far more trustworthy than the Columbus cabal that routinely puts lobbyists and campaign contributors on important boards, including the pensions ...

THE BLADE EDITORIAL BOARD May 2, 2025

The General Assembly’s plan for elected members of the State Teachers Retirement System board appears to be, “If you can’t beat them, eliminate them.” The Ohio House Pension Committee has begun the process to change the composition of the STRS board with the goal of eliminating elected active and retired teachers from control of the fund.

It’s an undemocratic power play and totally unfair to teachers if they are the only pension singled out for legislation to restructure the board.

STRS, like all of Ohio’s public pensions, has three “investment experts,” on the board, who are appointed by the governor, treasurer, and legislature. The State Superintendent of Schools, appointed by the governor, is an ex-officio member, so Gov. Mike DeWine controls two board seats. The other seven members of the STRS board are elected by active and retired teachers.

The Ohio Retirement for Teachers Association has successfully organized pension board voters — active and retired teachers paying into STRS — around an agenda of full transparency of investment expenses and reliance on low-cost index funds. The ORTA-backed members of the board now constitute a majority, and are increasingly regarded as an obstacle to state elected officials’ control of the $95.3 billion fund.

Republican legislative leaders this week signaled their intent to introduce legislation to eliminate the seven elected teacher representatives to the board so that government officials have total control.

The Blade Editorial Board has been mildly critical of the reform board members elected with the support of ORTA for failing to implement their transparency and low-cost investment pledge. But, they’ve been pressured by dubious legal opinions and “expert” advice claiming the change they seek would violate their fiduciary duty.

The elected STRS board members are the only ones with a personal stake in the health of the pension. Teachers voting on their own board are far more trustworthy than the Columbus cabal that routinely puts lobbyists and campaign contributors on important boards, including the pensions, that are intended to be run by prudent and unbeholden members.

Pension governance is soon to be a big tax fight and hot political issue. STRS, the Ohio Police & Fire Pension Fund, and the Ohio Public Employee Retirement System are all seeking an increase in pension contributions totaling more than $1 billion from taxpayers.

ORTA’s goals of full transparency and reliance on index funds are a good program to restore growth to the fund and eliminate excessive payments to fund managers. The broad stock market index is up slightly more than 100 percent over the last five years, which if enjoyed by the Ohio pensions would be sufficient to pay their benefits without a taxpayer bailout.

State lawmakers should demand that the ORTA agenda be imposed on all Ohio pensions rather than banish the teachers from control of the STRS retirement fund.

Read this editorial online at https://www.toledoblade.com/opinion/editorials/2025/05/03/editorial-pension-power-play-wrong/stories/20250503012

ORTA’s Pension Defense Fund is assisting both Wade Steen and Dr. Rudy Fichtenbaum with the attacks by Governor DeWine and Attorney General Yost. As you might imagine, the cost to defend a person from attack by the two most powerful people in the state is tremendous. Click here to make a donation to the Pension Defense Fund.