COLUMBUS, Ohio (WCMH) — A progressive member who was removed from overseeing Ohio’s teacher retirement system has been reinstated to the board after taking his former pension board and the governor to court.
Investment expert Wade Steen was reinstated to the State Teachers Retirement Board on Tuesday after the Tenth District Court of Appeals ruled he was improperly ousted by Gov. Mike DeWine. The court held, “reasonable minds can only conclude the governor lacked the statutory, Constitutional, or inherent authority to remove relator [Steen] from his position.”
“I am excited to serve the remainder of my term just as I have my first seven years – by doing all I can to ensure our pension fund is solvent, transparent and accountable,” said Steen in a statement. “To the teachers who supported and encouraged me during this ordeal – and all those who contributed to the ORTA Pension Defense fund – I sincerely thank you.”
Steen had filed the suit naming the other members of the board and DeWine as defendants in June of last year. The complaint by Steen’s attorney accused them of one charge of usurpation of office, and disputes claims that he wasn’t regularly attending board meetings, resulting in the governor removing him from the board.
“The docket movement today was a recommendation, not a final order,” said a spokesperson for the governor’s office. “We are reviewing the recommendation. We believe the courts will ultimately agree the Governor acted within the law.”
The governor had steeped in to remove Steen after Pat Davidson, a reform-minded teacher, was elected to the board in a landslide vote, tipping the balance of power 6-5 to progressive reformers. Steen was replaced by G. Brent Bishop, marking the second time DeWine had appointed Bishop to a high-level education position after he was named to the University of Toledo board of trustees in 2021.
“There are 30,000-plus of us,” retired teacher Pam Million previously told NBC4, who is one of tens of thousands of retired and active teachers who choose candidates demanding change. “We are all voters and we care about our retirement system and we care to receive the benefits that we were told we were going to receive. This action is a direct slap in our face.”
Steen was vocal in calling for changes to STRS after the system controversially paid out $10 million in investment staff bonuses in a fiscal year ending in June 2022. In the same period, its pension fund for teachers lost over $5 billion. More recently in April of 2023, STRS proposed setting aside another $11.1 million for performance-based bonuses for the staff in 2024 — a 30.6% increase from the prior year’s incentives.
“I do know that I’ve asked a lot of questions about benchmarks, about performance, about our investments and alternatives,” Steen previously told NBC4. “Our investments in hedge funds, the amount of fees we pay, the performance we get, have all raised questions.”
In a previous statement, DeWine insisted he agrees with teachers who voiced anger over STRS investments and the need for cost-of-living adjustments and has also questioned staff bonuses and raises. The governor said he removed Steen because he missed three meetings and partially attended three other meetings, with DeWine saying members cannot be a voice for teachers if they miss meetings.
The lawsuit said DeWine overstepped his authority as governor, and Steen was denied due process. He has previously denied the idea that his attendance would be an issue with the board.
“If you look at my attendance over the seven years, it’s as good, if not better than, others,” Steen countered. “Have I missed a couple of meetings in the last six months? Yes, I have. I’m not going to deny that. Have I had to attend some remotely? Yes, I have, as have other board members.”
The Ohio Retired Teachers Association had started legal fund to help Steen fight his ouster, and in a statement to its members, said, “The attempt to manipulate the composition of the board hours before a contested board seat was announced reinforces broken trust in the pension system.”
“With today’s court ruling reinstating Wade Steen, there is now a majority of reform-minded members on the STRS board,” said the association in a statement. “Mr. Steen joins five other board members who each won election on the platform of reform, accountability and transparency. There is an overwhelming mandate for change. And change is what teachers expect.”