Ohio’s Teacher Resignation Systems Committee Management Shift

A trio of educators in Ohio is advocating for a change in the law that would transfer the oversight of the Teacher Resignation Systems Committee from educators to politically appointed individuals.

This move was initiated by the Ohio Education Association, the Ohio State Federation of Teachers, and the Ohio State University Professors Association, who filed their case on Tuesday in the Franklin County Common Pleas Court.

The board currently consists of 11 members: seven are elected by teachers and retirees, while four are appointed by state officials. However, recent legislative changes have introduced four new appointees and phased out the previously elected members as part of the budget enacted in June.

By 2028, the board will have a total of eight appointed members and only three elected representatives.

Republican lawmakers argue that these alterations are vital for stabilizing the fund, especially after a series of controversies and leadership challenges.

Rep. Adam Bird, a Republican from Clermont County, stated, “We’re following the law that was passed. This change is necessary for stable governance, ensuring the pensions of teachers and retirees are protected.”

In response, the lawsuit claims that the changes unfairly target the STRS and are unconstitutional.

“The lawsuit aims to restore fairness and preserve the voice teachers have in managing their retirement,” shared Grenetta Klaus, a teacher from Cincinnati public schools.

Insights into the Board’s Disputes

In 2024, Ohio’s Attorney General Dave Yost sought to remove two STRS board members, Wade Steen and Rudy Fictenbaum, citing their attempts to hand over significant portions of the pension fund to QED Technologies, a company lacking a history in public pension management.

Yost accused the two of advocating for QED to manage a majority of STRS’ $91 billion portfolio, an allegation that Steen and Fictenbaum denied.

“We’re going to strictly adhere to this,” Steen remarked in 2024.

Both individuals were appointed amidst efforts to reorganize the board. Notably, from 2017 to 2022, there was no increase in the cost of living adjustments provided by STRS, prompting protests, lawsuits, and advocacy for reform on the board.

Rep. Bird emphasized that “chaos will not strengthen the fund,” assuring retired and current teachers that their promises remain intact.

On the other hand, David Quarke, a retired teacher and former union leader, expressed skepticism about the timeline, stating, “This process isn’t quick or straightforward.”

He noted that the board recently approved a modest increase in cost of living adjustments, yet cut the service years required for full retirement benefits.

Impending Legal Conflicts

The lawsuit outlines three primary arguments from unions asserting that the board’s changes are unconstitutional.

• Equal Protection: Among Ohio’s five public pension plans, STRS uniquely has a minority of elected members.
• Single Subject Rule: The state constitution stipulates that bills must address only one subject. The unions argue that the board changes shouldn’t have been included in the budget negotiations, as STRS does not rely on state funding.
• Three Consideration Rules: The constitution mandates that all bills be reviewed in three days in each chamber. The unions claim that the changes were attached at the tail end of budget discussions and lacked the necessary hearings.

“This is a blatant overreach by policymakers, not solely targeting teachers,” commented Kevin Kane, a retired educator and plaintiff. “By taking control of our pension fund, lawmakers are implicitly threatening other public pensions across Ohio.”

Ohio lawmakers wield extensive power over the five public pension plans, allowing them to set investment rules, adjust future profits, and modify the governance structure of the pension board, which Bird believes will align with the courts backing the law.

While the union doesn’t contest the authority lawmakers have, their case hinges on whether the adjustments to the board were implemented appropriately.