COLUMBUS, Ohio — Educators across Ohio are voicing frustration and anger after Governor Mike DeWine signed legislation into law that significantly changes the makeup of the State Teachers Retirement System (STRS) board , a move many teachers and retirees are calling undemocratic and a direct blow to their representation.
The new law, passed amid controversy and legal action surrounding the board’s leadership, phases out four of the seven seats currently held by elected educators, reducing the number of board members chosen by teachers and retirees from seven to just three.
Under the change, only two seats will be reserved for active educators and just one for retirees. The other four will be gradually replaced by political appointees, chosen by various state leaders including the governor, legislative leaders, and department heads.
Supporters of the law, including House Finance Chair Brian Stewart (R-Ashville), argue it was necessary due to longstanding dysfunction within the board and concerns over its financial oversight.
Tension increased in May after a 14-page whistleblower memo was delivered to Gov. DeWine, alleging a growing public corruption scheme within STRS. Shortly after, Ohio Attorney General Dave Yost filed a civil lawsuit to remove board chair Rudy Fichtenbaum and former member Wade Steen, accusing them of colluding with QED Technologies, a new investment firm led by former Deputy Treasurer Seth Metcalf and JD Tremmel.
The suit claims the two board members attempted to steer a massive investment contract toward QED, which would have granted the company management of up to 70% of STRS assets which were worth an estimated $65 billion at the time. The memo also suggests QED sought to help elect board members sympathetic to the plan.
Still, educators argue that corruption at the top shouldn’t justify removing rank-and-file teachers from the decision-making process.
The provision to restructure the board was proposed by Rep. Adam Bird (R-New Richmond), chair of the Ohio Retirement Study Council, who has been examining STRS operations for months.
Under the new structure:
- The state treasurer will now appoint two board members.
- The Speaker of the House and Senate President will appoint one member each and one jointly.
- The Chancellor of Higher Education, Governor, and Department of Education and Workforce (DEW) will each get one appointee.
While elected educators will be allowed to serve out their current terms, once those expire, the seats will not be refilled by teacher elections.
For many in Ohio’s education community, the law seems to remove their voice from how their own retirement funds are managed.
