STRS Ohio Endorses Governor’s Request

On Friday, April 9, the directors of the five public pension systems in Ohio received a letter from Gov. Bob Taft regarding pension reform legislation. In response, STRS Ohio distributed a news release to media around the state, which stated the following:

The State Teachers Retirement System of Ohio (STRS Ohio) endorses pension reforms that Gov. Bob Taft requested in a letter issued to the executive directors of all five Ohio public pension systems.

STRS Ohio Executive Director Damon Asbury said the items contained in the governor’s letter address governance components included in pension reform legislation that is currently before the Ohio Legislature.

The proposals identified in the letter from Gov. Taft include:

• requiring annual financial disclosure statements for key investment staff;
• adopting an ethics policy in consultation with the Ohio Ethics Commission;
• adopting policies to govern travel and expense reimbursements for board and staff;
• hiring an internal auditor who shall report to the board’s Internal Audit Committee; and
• periodically conducting a performance audit of the system.

Asbury said, “STRS Ohio has endorsed these steps that are designed to strengthen the functioning and monitoring of all the pension systems. STRS Ohio has already voluntarily adopted most of these components, including implementing financial disclosure requirements for key staff members and new travel policies for our board and staff. We look forward to cooperating fully with Gov. Taft’s request.”

Asbury also noted that STRS Ohio has had an internal audit staff since 1983, as well as an Audit Committee. In addition, the system has had an ethics policy in place since 1994 and conducts ethics training for board and staff members.

Asbury said STRS Ohio has embraced the idea of a fiduciary performance audit of the system from the beginning as a way to identify areas where operational efficiencies could be enhanced.

Asbury also thanked the Ohio Legislature for the time and energy its put into pension reform initiatives. “We support these efforts that will help restore the trust and confidence of our members,” Asbury said.

Return to the list of STRS Ohio news e-mails sent in 2004.