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What comes next for Ohio’s teacher pension fund? Prospects of a ‘hostile takeover’ are being probed

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What comes next for Ohio’s teacher pension fund? Prospects of a ‘hostile takeover’ are being probed


COLUMBUS, Ohio (AP) — A battle is under way for the future of Ohio’s $94 billion teacher pension fund, as would-be reformers’ attempts to deliver long-promised benefits to retirees with the help of an aggressive investment firm touting an untested AI-driven trading strategy face intense scrutiny.

The eyes of Wall Street and the half-million members of the State Teachers Retirement System of Ohio are on the state as the drama unfolds. A special meeting has been called for Thursday of a board nearly paralyzed by infighting whose executive director is on long-term leave over misconduct allegations he denies.

Years of tension at the fund came to a head on May 8, when Republican Ohio Gov. Mike DeWine announced that he had come into possession of an anonymous 14-page memo and other documents containing “disturbing allegations” about the STRS board and was handing them over to authorities.

Republican Attorney General Dave Yost launched an investigation the next day into what he called the fund’s “susceptibility to a hostile takeover by private interests.” He followed up with a lawsuit seeking to unseat two reform-minded board members — Wade Steen and Rudy Fichtenbaum — for backing a plan to turn over $65 billion, or roughly 70% of STRS assets, to a fledgling investment firm called QED. The outfit is co-run by two people, one a former deputy Ohio treasurer, out of a condo in suburban Columbus.

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“This isn’t monopoly money; it’s hard-earned income that belongs to teachers,” Yost said in launching his probe. “There is a responsibility to act in their best interests.”

The Ohio Retirement for Teachers Association, a retiree watchdog group, says Steen and Fichtenbaum have been unfairly targeted. The group defends reformers’ push for change as a fight against years of opaque management and greed.

Teachers, who are generally ineligible for Social Security and so rely heavily on the fund in retirement, are particularly upset at the dearth of cost-of-living adjustments and market losses that the fund has seen over the years, even as STRS investment professionals have collected large bonuses. They have called for more transparency into the fund’s investment and pay practices.

“We’ve been calling for an investigation for years,” said Robin Rayfield, the association’s executive director. “So our response to them would be, ‘Where you been?’”

Rayfield said public education in Ohio will be “fully politicized” if DeWine and Yost succeed in shutting down STRS reformers. He described it as the third leg of a stool that also includes approval of a universal school voucher program in last year’s state budget and the transfer of K-12 education oversight from Ohio’s independent state school board into DeWine’s Cabinet. An ongoing lawsuit challenges the latter as unconstitutional.

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“Governor DeWine has done more to ruin public education than all the other governors combined,” he said.

The nearly $6 trillion U.S. public pension sector has increasingly swapped stocks for riskier actively-managed alternative investments, such as hedge funds and private equities, in recent years — a trend that David Draine, the Pew Charitable Trust’s principal researcher on public sector retirement systems, says demands the type of transparency that the Ohio reformers have sought.

“As public pensions are taking on both risky and complicated assets, it’s important that they’re being transparent about those investments: what the returns are on their performance, what they’re paying for them, and what the risks are,” he said.

However, detractors say putting the shadowy QED in charge of STRS investments brings even greater danger.

Aristotle Hutras, former director of the Ohio Retirement Study Council, a legislative oversight committee, believes the governor is rightly trying to protect STRS from reformers’ rosy AI-fueled visions for improving the fund, which he dubs “magical thinking.”

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“STRS has survived a world war, a major depression, a major recession and a worldwide pandemic, and still paid benefits,” said Hutras, a Democrat. “This notion of QED, and essentially steering a contract, in my humble opinion, is the most serious threat to STRS’s solvency in the last 96 years.”

The fund’s then-board chair issued a statement after DeWine’s referral saying that STRS was cooperating, but reassuring beneficiaries that the fund was safe, secure, well-run and in “sound financial position.”

Among claims in the 14-page memo, whose murky origins one board member said should be investigated, is that QED’s Jonathan Tremmel approached STRS in 2020 with assertions that the fund was improperly calculating performance, benchmarks and investment costs. “He also claimed to have AI-based trading strategies that would fix STRS’s ‘problems,’” the memo said.

Leaders rejected Tremmel’s initial pitch because of QED’s lack of professional registrations, clients or track record. His business partner, Seth Metcalf, who served under former Republican Ohio Treasurer Josh Mandel, returned to STRS asking that QED be given a second look.

Around that time, the memo’s authors contend, Steen, Fichtenbaum and two other then-board members began raising almost identical questions about STRS performance to QED’s and started working behind the scenes to get an affiliated company, OhioAI, pension fund business. The metadata on some letters and memos showed they originated with Tremmel or Metcalf.

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The Federal Trade Commission began cautioning businesses around that time to proceed cautiously with automated tools that might have biased or discriminatory impacts. Last year, the commission took its warnings further, putting companies on notice that false or unsubstantiated claims about what AI could do for their clients could lead to enforcement actions.

Neither Metcalf nor Tremmel returned calls seeking comment on their statements to STRS. In his lawsuit, Yost told the court, “The owner of this shell company continues to peddle to STRS a secretive and untested investment scheme while his own condominium is in foreclosure.” The attorney general accuses Steen and Fichtenbaum of ”backdoor ties” to QED.

Steen denies Yost’s claims, including that $65 billion was ever on the table. He argues that reaction to his persistent questioning of STRS’s practices proves that he’s struck a nerve.

“He’s hiding behind litigation that’s defamatory, it’s not true,” Steen said after the board’s May 15 meeting. “I thought there was going to be a fair, impartial investigation. I guess this might be the fastest investigation ever done in Ohio history. But we’re going to defend this vigorously. None of it’s true. It’s all false.”

DeWine called it a “huge red flag” when Aon, a nationally respected consulting firm that had been enlisted to help address management and fiscal performance issues, abruptly exited its contract with the pension fund earlier this month.

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“The unstated implication is that the governance issues at STRS are so concerning that Aon could not continue its contract in good faith,” DeWine said in a statement. A spokesperson for Aon declined comment.

STRS reformers have not backed down. Now in control of a majority of votes on STRS’s 11-member board, they pushed ahead during the board’s May meeting to oust rival leadership and elect Fichtenbaum, an emeritus Wright State University economics professor, as board chair.

Many of the retired teachers in attendance applauded after the coup. Nearby was a poster with a different STRS acronym: “Stealing Teachers’ Retirement Savings.”

“It’s needed to happen for years,” said Lee Ann Baughman, 82, who taught elementary school in suburban Columbus for 32 years. “It’s been hard for these retirees. A lot of them have a part-time job, and they’re old, and it’s been very hurtful not to get what they were promised.”



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Unique migration: Mole salamanders are back in Northeast Ohio

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Unique migration: Mole salamanders are back in Northeast Ohio


It is the season for salamanders!

Nicholas Gaye, a naturalist with Lake Metroparks, said Northeast Ohio is home to about 15 species of salamander, each with their own habitat. But one of these species, the mole salamander, has a habitat unlike the others.

“Most of their time they’re spending is actually underneath the ground,” Gaye said.

Mole salamanders emerge once a year during the transition from winter to spring. This yearly migration was the delight of Lake County nature enthusiasts Saturday at the Penitentiary Glen Reservation, where nationalists shared facts about these elusive amphibians, pointing them out and guiding families along the trail.

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Lake Metroparks

During these migrations, the salamanders trek to the surface in search of vernal pools, bodies of water that fill with rain and melted snow but dry in the summer and lack fish, the predators of salamander eggs.

Then, after four to eight weeks of development, the baby salamanders will emerge and spend a year or three in that vernal pool until they can survive on land.

If you missed it, don’t worry, because Gaye said the migration typically lasts for a week or two at the beginning of the season, and he expects further opportunities for viewing depending on the temperature. Mole salamanders require moist conditions to travel, so look for rainy and warm nights.

Additionally, he expects that another species, the marble salamander, will undergo its annual migration in the fall.

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If you plan to join the hunt, however, Gaye asks for caution.

“As humans, we are stewards to our environment,” he said. “And it’s really important that, when we get out there to enjoy these amazing opportunities, that we’re being respectful and caring towards the critters that we’re coming across.”

47265625-Nicole Chaps Wyman.jpg

Nicole Chaps Wyman

Mole Salamander

Salamanders are slow-moving, so Gaye said observers should bring a flashlight to avoid stepping on them. Then, if you intend to touch them, he said to avoid anything on your hands that contains heavy metals, such as scented lotions, sunscreen, bug spray, or other products.

“Salamander skin is semi-permeable, meaning things can get through it easily and, if those heavy metals get through, they can really hurt the salamanders,” Gaye said.

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Wet hands are also encouraged, as is limited exposure to what, at the end of the day, is considered a wild animal.

Lake Metroparks also has a salamander migration email list, which you can sign up for on their website.

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Center for Christian Virtues loving Ohio kids left to fail. Critics wrong. | Opinion

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Center for Christian Virtues loving Ohio kids left to fail. Critics wrong. | Opinion



Is the Christian thing to do to turn a blind eye to this tragedy? Would it be to advocate for more money towards a system that is already flush with cash?

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Aaron Baer is president of the Center for Christian Virtue.

Parents deserve options, competition and constitutional clarity — not fearmongering.

A February Dispatch guest column by teachers’ union gadfly William Phillis criticizing the Center for Christian Virtue is a case study in how teachers’ unions attempt to distract and divert the public’s attention away from the education crisis facing Ohio.

Tracking Phillis’ rants can be difficult. But in his piece, he manages to attack the Center for Christian Virtue for advocating for parental choice, goes on a rambling pseudo-legal argument about the First Amendment, and ends with a complete butchering of Jesus’ words. 

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What his column never does is address the plight of Ohio’s kids in a failing education system created by the teachers’ unions. Because for Phillis and his friends, this discussion is not about the kids it’s about protecting their monopoly and the billions of dollars that flow through their system. 

The numbers don’t add up

This system needs reform from the ground up. And that’s what Center for Christian Virtues’ work is all about. 

At its core, CCV’s education agenda is about expanding opportunity, strengthening parental authority and ensuring more families can access schools that meet their children’s needs.

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Through our advocacy for EdChoice and other scholarship pathways, CCV has helped broaden access to nonpublic education for families who previously had few realistic options. 

Critics like Phillis describe this as “diverting” public funds. The numbers tell a different story.

The combined cash reserves of Ohio’s school districts now exceed $10.5 billion, nearly triple what they were just 12 years ago. Yet three out of five Ohio fourth graders are not proficient in math and two out of three struggle with reading, according to the National Center for Education Statistics’ latest report.

Columbus City Schools tells the same story.

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In fiscal year 2019, the district enrolled 48,927 students, spent $21,336 per pupil, and ended the year with a $229 million cash balance. By 2025, enrollment had dropped nearly 10% to 43,998. Yet per-pupil revenue rose 8% to $23,166, and cash reserves grew 62% to $372 million.

Despite higher funding and larger reserves, academic outcomes remain troubling: Just 25% of Columbus City Schools eighth graders are proficient in reading, and only 23% are proficient in math.

Simply pouring more money into underperforming public schools and into the political priorities of teachers’ unions has not produced the academic gains families were promised.

We must stop blindly throwing money away

That’s why the Center for Christian Virtues advocates for expanding educational options and fostering healthy competition among schools. This isn’t abolishing the public schools, this is challenging the public schools to meet the needs of families today, instead of just blindly throwing money after the problem. 

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Phillis also falsely raises alarms about the separation of church and state. But the constitutional framework governing school choice is well established.

The U.S. Supreme Court made clear in Zelman v. Simmons-Harris that Ohio’s school voucher program is constitutional and that scholarship programs driven by private parental choice do not violate the First Amendment.

More broadly, Center for Christian Virtues’ education advocacy extends beyond vouchers. Through the Ohio Christian Education Network, we help communities launch new schools where demand is strong and equip educators with operational support to serve families seeking alternatives.

We also protect the religious liberty of Christian schools while expanding access to Gospel-centered education for Ohio families who choose it.

Yet what Phillis gets most wrong is his use of scripture to try to silence Center for Christian Virtues and our Ohio Christian Education Network. 

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We cannot stay silent

Jesus commands his followers to “love our neighbors as ourselves,” and to care for the “least of these.”

So, as Christians, when we see a generation of American children suffering at the hands of an education establishment that is getting more money than ever and producing worse results, we cannot stay silent. 

Research from neuroscientist Jared Cooney Horvath revealed that Generation Z is the first generation in American history to perform worse academically than the previous generation.

Is the Christian thing to do to turn a blind eye to this tragedy? Would it be to advocate for more money towards a system that is already flush with cash? 

No. As Christians, we serve a God who cares for the “orphan, the widow, the stranger.” He loves those forgotten about by society. And there are few more overlooked today than the kids in our schools who are being starved of the educational opportunity our state has promised to provide them. 

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Phillis seems upset that Center for Christian Virtues is growing and having success helping families find better schools. While he continues to call us names and criticize our work, we’ll stay focused on helping kids.

It’s what Jesus would have us do. 

Aaron Baer is president of the Center for Christian Virtue.



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Ohio State University’s president resigns after reporting ‘inappropriate relationship’

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Ohio State University’s president resigns after reporting ‘inappropriate relationship’


COLUMBUS, Ohio — Ohio State President Walter “Ted” Carter Jr. resigned on Monday after disclosing “an inappropriate relationship” with a woman seeking public resources for her private business.

Carter, 66, said in a statement that he had resigned voluntarily after informing the university’s board of trustees of his error. He did not elaborate on the nature of the relationship and said he was leaving with his wife, Lynda.

“For personal reasons, I have made the difficult decision to resign from my role as president of The Ohio State University,” he said. “I disclosed to the board of trustees that I made a mistake in allowing inappropriate access to Ohio State leadership.”

SEE ALSO: Sherrone Moore update: Fired Michigan football coach reaches plea deal to resolve home invasion case

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Ohio State is the nation’s sixth-largest university, with more than 60,000 students, over 600,000 living alumni and a highly ranked football team and medical center. Carter oversaw a fiscal year 2026 budget totaling $11.5 billion in revenues and $10.9 billion in expenditures.

The university brought Carter on board in 2023 from the University of Nebraska system. He is also a former superintendent of the U.S. Naval Academy and holds the national record for carrier-arrested landings with over 2,000 mishap-free touchdowns.

He filled a vacancy at Ohio State left by the mid-contract resignation of President Kristina Johnson, which went largely unexplained. The engineer and former undersecretary of the U.S. Department of Energy had been chancellor of New York’s public university system before she joined the Buckeyes as president in 2020.

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