- State law allows the attorney general to file a civil suit to remove a public pension board member if the member fails to act in the plan’s best economic interest.
- Last week, Yost launched an investigation into whether some directors breached their fiduciary duties.
- Gov. Mike DeWine sent a letter to Yost and other state officials alleging that Ohio STRS is facing a “hostile takeover” by private interests.
Ohio Attorney General Dave Yost filed a lawsuit Tuesday seeking to remove two directors of the state Teachers’ Retirement System, accusing them of violating their fiduciary duty to protect the pension fund.
Yost filed the lawsuit in Franklin County Common Pleas Court just before the 11-member board began its monthly meeting today.
Yost is calling for the firing of governor’s appointees Wade Steen and former Wright State University economics professor Rudy Fichtenbaum.
STRS Ohio oversees approximately $90 billion in investments on behalf of 500,000 teachers and retirees. The system is in historic turmoil as the board leans toward reformers, executive officers are placed on paid leave, and state-run consulting firm Aon chooses to terminate its contract early.
Last week, Yost launched an investigation into whether some directors may have breached their fiduciary duties. State law allows the attorney general to bring a civil suit to remove a public pension board member if he or she fails to act in a manner contrary to the best economic interests of the system.
Gov. Mike DeWine sent a letter to Yost and other state officials alleging that Ohio STRS is facing a “hostile takeover” by private interests. Among the records is a 14-page anonymous memo detailing how several STRS board members have worked with the founders of a start-up financial company called QED and the founders of the Ohio Retired Teachers Association. is also included.
The Retirees Association denounced the memo as an arrogant and shameful effort by STRS employees to protect their jobs. “For years, Ohio STRS has failed teachers while enriching the STRS workforce. This is not a hostile takeover, but a takeover of teachers through fair and free elections.”
This story will be updated.
Laura Bischoff is a reporter for USA TODAY Network’s Ohio bureau, which serves the Columbus Dispatch, Cincinnati Enquirer, Akron Beacon Journal and 18 other affiliated news organizations across Ohio.
