COLUMBUS, Ohio — There is a widening rift in the Ohio State Teachers Retirement System (STRS) pension fund. STRS will hold public board meetings Tuesday and Wednesday. Eleven investment staff positions remain unfilled amid turbulence with the agency’s leadership.
Lawmakers in Columbus are deeply troubled by growing dysfunction within STRS, a nearly $100 billion system, as allegations of corruption and mismanagement swirl. Critics say the board’s actions, including decisions that effectively strip voting power from elected members, have destabilized the fund at a critical time.
Reports show that STRS is now paying more than $700,000 for its acting head—more than double the salary paid to the previous two leaders.
The turmoil at STRS is not new. A series of board resignations, internal clashes, and staff departures have marked a turbulent period for the fund. In May 2024, Attorney General Dave Yost took legal action, filing a lawsuit to remove two board members, Wade Steen and Chair Rudy Fichtenbaum. Yost alleges that the duo engaged in a “contract steering scheme” designed to benefit an investment firm known as QED.
At the heart of the controversy lies a debate over STRS’s investment strategy. Reform-minded board members are advocating for a switch from actively managed funds to a more passive index fund strategy. They argue that index funds, which track market performance at lower costs, could better secure the financial future of retirees. Meanwhile, proponents of the current active management model insist that it has delivered higher returns than the state’s other pension systems, as confirmed by a recent report from the Ohio Retirement Study Council.
Beyond the boardroom debates and legal battles, the implications of STRS’s internal chaos are being felt by over 150,000 retired Ohio teachers. Pensioners are anxious about their financial stability.
