A member of the chaotic teachers’ retirement pension fund board in Ohio has resigned amid the ongoing controversy — possibly changing power dynamics within the system.
Steve Foreman, known as a “reformer,” stepped down as of Friday evening, he told me.
This tip came as we obtained a now-archived video meeting proving Ohio Attorney General Dave Yost’s claim that board members were promoting a $65 billion partnership with an investment firm that lacks “legitimacy.”
Recap
The State Teachers Retirement System of Ohio (STRS) board is made up of 11 members. There are five elected contributing teachers and two elected retired teachers. The governor gets to appoint one investment expert. The speaker of the House and the Senate president get to jointly appoint an expert. The treasurer and director of the Department of Education and Workforce both get to designate an expert.
There is a debate on how STRS should invest money — through the current system of actively managed funds versus an index fund. Active funds try to outperform the stock market, have more advisors and typically cost more. Index funds perform with the stock market, are seen as more passive, and typically cost less.