Yost launches investigation into Ohio teacher retirement system | Ohio

(The Center Square) – Ohio Attorney General Dave Yost launched an investigation Thursday into the state’s teachers’ retirement system, saying the move was an attempt to protect teachers’ retirement accounts.

Yost says the measure is consistent with rooting out public corruption and incidents of greed and fraud in public institutions.

“Pension board members are required by law to act in the best interests of the teachers whose money they invest,” Yost said. “I will take all necessary measures to protect teachers from private interests seeking to hijack their retirement accounts. This is not monopoly money; It is the hard-earned income that belongs to teachers. There is a responsibility to act in their best interests.”

According to a news release, Yost’s office received documents containing allegations related to the pension system’s board, allegations he described as troubling. He also said there were concerns the system was vulnerable to a hostile takeover by private interests.

The pension system manages $90 billion in teacher pensions for 500,000 current and retired teachers.

“Recent audits show that STRS Ohio is well managed and that the pension fund is in sound financial condition. The questions raised relate to board leadership. Classroom teachers and retired educators should know that their retirement is safe and protected,” STRS Ohio Member Services Member Kim Donald said in an email to The Center Square. “STRS Ohio will continue to protect the stability and integrity of the organization and will cooperate fully with all agencies in the review of the pension system.”

The Documents sent to the Attorney General’s Office without a signature, say the pension system has been the target of QED Systematic Solutions LLC, a private investment company, for four years. According to the documents, QED is led by former Ohio Deputy Treasurer Seth Metcalf, Jonathan Tremmel and leadership from the Ohio Retired Teachers Association.

The Ohio Lobbying Activity Center lists Metcalf and Tremmel as agents for QED Technologies LLC.

Yost’s investigation comes less than 24 hours after Gov. Mike DeWine called for investigations by the attorney general, the Ohio Ethics Commission and the state auditor.

According to DeWine, the pension system hired national consulting firm Aon to provide advice and management at the recommendation of auditor Keith Faber.

“We recently learned that Aon is terminating its contract with STRS,” DeWine said. “This is a major red flag that calls into question the functioning and oversight of STRS. The unstated conclusion is that the governance issues at STRS are so concerning that Aon could not proceed with its contract in good faith. STRS may now no longer be compliant” with portions of the audit recommendations due to Aon’s termination of the contract.

Last year, DeWine fired pension system board member Wade Steen, who was reinstated to the board by court order last month. The board also voted in November to put CEO Bill Neville on paid leave after he was accused of misconduct in an anonymous letter.