COLUMBUS, Ohio – An investigation has been launched by Ohio Attorney General Dave Yost regarding potential breaches of fiduciary duty by the state teacher’s pension board. Concerns have been raised about possible susceptibility to a hostile takeover by private interests, prompting Yost to consider actions that may result in the removal of board members.
The State Teachers Retirement System, with assets totaling $94 billion, has faced turmoil for years. Recent developments saw a court ruling in favor of Wade Steen, a board member reinstated after being ousted by Governor Mike DeWine. The board’s management decisions, particularly the lack of cost-of-living raises for retirees between 2017 and 2022, have led to discontent among pension recipients.
Allegations of influence by leaders of a new company without pension investment experience have raised further concerns. One of the company’s leaders, Seth Metcalf, a former deputy treasurer of Ohio, is at the center of these allegations. The company purportedly suggested deploying artificial intelligence investment strategies, seeking substantial assets from the pension fund.
As the investigation unfolds, the battle over the direction of the pension plan intensifies. A group of former retirees, critical of the board’s actions, have supported Steen in his efforts to restore the cost-of-living raise. With reformers now comprising the majority of the board, the future of the pension plan remains uncertain amidst ongoing conflicts and investigations.