What is the STRS board hiding from its members?

Why not comply with a lawful order that provides a modicum of transparency for our members and lifts the veil of secrecy that has plagued our pension system for decades?

Robin Rayfield, Executive Director of ORTA, addressed the STRS Ohio Board during Public Participation on August 15.

In 2021 ORTA helped to raise funds to conduct a forensic audit of STRS by former SEC lawyer and whistle blower Edward Siedle. Mr. Siedle sought records that would provide concrete data to complete his forensic audit. Specifically, Mr. Siedle asked for documents related to fees, costs, and expenses related to over 20% of the pension fund in the asset class called ‘alternative investments’. STRS refused to provide the documents Mr. Siedle requested, stating that these documents were private and contained information that was not for public consumption. 

Mr. Siedle was not alone in being prevented from seeing these documents as STRS’ own consultant (CEM) was not privy to these documents and, instead, used industry standards to calculate their figures. At a public meeting of the STRS board Wade Steen asked to see the documents to fulfill his fiduciary duty as a trustee. Mr. Steen was also denied access to the documents. 

Mr. Siedle recently received a magistrate’s decision ordering STRS to provide Mr. Siedle with the documents he requested. Instead of complying with that order, STRS has challenged the magistrate’s order, preventing the transparency STRS members’ demand. What is the STRS board hiding from its members? Did the STRS management team make the decision to challenge the magistrate’s order? Why not comply with a lawful order that provides a modicum of transparency for our members and lifts the veil of secrecy that has plagued our pension system for decades?

I encourage this board to direct the management team at STRS to withdraw the challenge to the magistrate’s ruling and comply with the order, immediately. If gaining the trust of the members of STRS is important, then ordering the management team that is at the heart of the mistrust of STRS by its membership, then the answer is obvious. 

Robin Rayfield, Executive Director, ORTA August 15, 2024