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| 2005 STRS Ohio News E-mails |
| Statement From State Teachers Retirement System of Ohio (STRS Ohio) Dec. 8, 2005 Since May 2004, the State Teachers Retirement Board has been engaged in a class-action lawsuit filed by eligible STRS Ohio associates seeking payment of Performance-Based Incentive (PBI) Awards for the 2002–2003 fiscal year. During the process of the litigation, Franklin County Common Pleas Court Judge Guy L. Reece ruled that the pension system had breached a contract with the affected associates and must pay the awards. Based on this ruling and the recommendation of special counsel appointed by the Office of the Attorney General, the Retirement Board voted today to authorize the final settlement of the lawsuit. The vote was 7–4. The Retirement Board has a duty to protect the assets of the pension fund for the benefit of the pension system’s membership. In that spirit, the board determined that accepting the terms of the settlement is a prudent and fiscally responsible business decision for the pension fund and in the best interests of the membership. In doing so, it eliminates the possibility of incurring significant costs of any additional prolonged litigation, including additional attorneys’ fees and possible substantial punitive damages that could total millions of additional dollars. With the Retirement Board’s decision today, the matter is now closed, subject to a fairness hearing conducted by the judge, and further financial loss to the system is avoided. The Dec. 8 action authorized the payment of the affected associates’ contributions to the Ohio Public Employees Retirement System (OPERS) and additional attorneys’ fee and expenses. The total settlement amount, which affects about 260 current and former associates, is approximately $3,432,000. This includes the following:
Non-Investment associates of STRS Ohio have been ineligible for a PBI Program since July 1, 2003, following action by the Retirement Board to end the program.
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