If the membership is not receiving top tier benefits while paying the highest contribution rate and have a negative normal cost...

...does it make sense to have the highest paid management team and investment staff in the pension world?

Robin Rayfield addressed the STRS Ohio Board during Public Participation on April 17, 2025.

Good morning,

My name is Dr. Robin Rayfield, Executive Director of ORTA and a retired member of STRS.

I watched with great interest the presentation on compensation of STRS employees earlier today. The notion of shared sacrifice was mentioned and the sentiment seemed to be that employee compensation should not be negatively impacted by the discontent of the membership. Having served as a leader in a school district that was financially challenged, I often lamented that our educators were underpaid when compared to more wealthy districts despite being excellent educators. Our district often lost teachers to these wealthy districts. This placed a burden on our administrators to replace these outstanding teachers. We did our best to do so. I recognize that STRS employees may feel like the ‘pension universe’ has passed them by and they might even be thinking about seeking a position that pays better elsewhere. I certainly would never hold a desire to better one’s position against someone that left for a better opportunity.

I also recognize that any discussion about compensation without including the PBI program is irrelevant as the PBI program does exist. Our investment team always receives lavish bonus payments. Over the last few years, the compensation for individual employees at STRS has risen dramatically. I think the fact that very few people leave the employ of STRS to work elsewhere is proof that the compensation at STRS is sufficient. True enough, people may leave one place for another, but I don’t think compensation is the reason people would leave STRS Ohio. Maybe the management team and investment staff are over compensated while the lower paid staff are undervalued. Maybe a look at redistribution of the current compensation pool is in order?

Shared sacrifice is a valid concept at many organizations, it just is not a consideration at STRS. Consider the following:

Retirees receive significantly less than promised
Active contributors work longer, pay more and receive less
STRS is the only pension in the US with a negative normal cost

If the membership is not receiving top tier benefits while paying the highest contribution rate and have a negative normal cost, does it make sense to have the highest paid management team and investment staff in the pension world?

Robin Rayfield Executive Director, ORTA

April 17, 2025

"I hope that all ORTA members can see the value in membership to ORTA. Since 1947 ORTA has been the voice of advocacy for STRS members. With dues that cost $2.50 each month ($30 per year), the value of an ORTA membership exceeds the cost. As has been stated many times, our voice is only as strong as our membership. I urge all ORTA members to encourage your friends and colleagues to join ORTA in the battle to restore STRS benefits." - Robin Rayfield, Executive Director