OHIO EDUCATION Rally urges changes for retirement fund

STRS has initiated a hiring freeze and other economy measures.
By JEFF ORTEGA
VINDICATOR CORRESPONDENT
COLUMBUS -- Ousting the former executive director is a good first step in solving alleged problems with the State Teachers Retirement System, but more needs to be done, several active and retired educators say.
"We would like them to stop the spending practices, and we would like some guidelines," said Marianna Lijoi, an educator in Lake County who lives in Kent. "There are none now."
Lijoi was among about 200 active and retired teachers who rallied Friday at the Statehouse and later stormed an STRS board meeting to make their feelings known.
After the ousting of former Executive Director Herbert L. Dyer, the teachers waved placards on the Statehouse lawn that read "It's OUR Money!" and "STRS $$$ We're the fund that spends the BEST."
What sparked outcry
Many of the current and former teachers are upset with the retirement system after Dyer made derogatory comments against those who questioned reductions in health-care coverage for retirees.
Dyer apologized for the remarks but still is leaving the pension system as part of a $550,000 settlement agreement.
Current and former teachers also criticized the pension system and its board after it was learned that STRS gave at least $14 million in bonuses to employees since August 2000 and spent $869,000 on eight pieces of artwork for its renovated office building in downtown Columbus.
Over the same period of time, the value of the pension fund's investment holdings had declined by at least $11 billion.
STRS officials said bonuses have been suspended.
Demonstrators' views
Lijoi, a librarian in the Eastlake City Schools, said change is needed at the retirement system with Dyer's departure.
"We don't want things to collapse. We just want them to change things they're doing," Lijoi said.
"We're here to bring recognition to what this board has done," said Celia Wilson, an active tutor at the Plain Local Schools in Stark County.
Sue Idoine, a behavioral coach at an alternative high school in Stark county, said she was upset with the $550,000 settlement agreement the STRS board approved with Dyer, 64.
"A $550,000 buyout is outrageous," Idoine said. "It doesn't make sense."
Terms of settlement
Under the separation agreement approved by the STRS board, Dyer has stepped down as the $266,810-a-year executive director, but he will receive his current salary and retirement contributions through Feb. 29, 2004, a figure that amounts to $153,392.
The settlement agreement also calls for paying Dyer's accrued vacation of $70,009 and accrued sick leave of $164,327. Dyer will also get a final lump-sum payment of $162,272.
Board officials said it would have cost at least $875,000 to buy out the remainder of Dyer's three-year contract, which runs through June 30, 2005.
Dennis Leone, the superintendent of Chillicothe Schools, called for the fund to make several reforms, including spending cuts, curtailing STRS-funded travel by board members and ending bonuses for non-investment personnel.
"Today, the party's over," Leone said.
Measures being taken
Damon F. Asbury, an STRS deputy executive director who is serving as interim executive director, said STRS will continue a hiring freeze and other measures to trim costs.
Board officials said new guidelines will also be in place to limit travel.
Asbury said he will also ask investment-connected employees at STRS and senior staff members to file financial disclosure statements.
The STRS serves more than 400,000 active and inactive teachers statewide. The fund has assets of about $47.2 billion after peaking at $58.8 billion nearly three years ago.