STRS director steps down

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STRS director steps down

By ANDREW WELSH-HUGGINS, Chillicothe Gazette

August 6, 2003

COLUMBUS -- Board members of the state pension fund for teachers voted on Tuesday to break the contract of its executive director two years early following criticism of his spending practices and attitude toward system members.

The State Teachers Retirement System board voted 5-3 to accept a negotiated settlement with Herb Dyer that calls for Dyer to step down in exchange for $550,000 in salary, benefits and accrued vacation and sick leave.

Board chairwoman Deborah Scott said the action was needed because confidence in the system had eroded.

"What we hope to accomplish is that this system will move forward and continue to be a system members can respect, have confidence in and be proud of," she said.

Board members representing the state auditor, attorney general and state school board voted against the agreement, citing the amount of money Dyer would receive.

Auditor Betty Montgomery, who called last month for Dyer to resign, was uncomfortable with the amount of money Dyer will receive under the agreement.

"She didn't feel that the compensation agreement was in the best interest of the system and its members," said spokesman Eric Hardgrove.

Dyer has come under fire for spending millions of dollars on bonuses, artwork and travel at the same time that assets plunged. He also acknowledged making insensitive comments to retirees.

In a short written statement, Dyer said it was an honor to serve Ohio teachers as executive director. A message was left with his Cleveland attorney.

More than 100 legislators have called for Dyer to step down.

"It's a huge step in the right direction," said Sen. Kirk Schuring, a Canton Republican. "Now the board can be about the business of restoring the confidence that members once had in their system.

"At the same time, I have some real concerns about the amount of the severance package."

The $47 billion dollar retirement system protects 400,000 active and retired teachers.

Interim director Damon Asbury said he plans to review staff and board travel policies and develop tougher guidelines for spending and for compensating employees.

"We must make sure that the actions we take reflect the needs and values of our members," he said.

Under the agreement, Dyer will receive $153,392 in salary and benefits through February 2004. He will also receive $70,009 for accrued vacation and $164,327 for accrued sick leave. He will also receive a lump-sum payment of $162,272 in February 2004.

Scott said the board could have been forced to pay almost $900,000 to Dyer without the settlement approved Tuesday. That figure was how much Dyer would have made through the end of his contract in June 2005, Scott said.

Janet Shadowens, a retired Dayton city school teacher, said Tuesday she agreed with the board's decision. She said she was very concerned about the board's spending practices as well as recent large increases in her medical costs, which have more than doubled.

"I always felt when I retired that STRS was a very good organization. Now I feel betrayed by them," said Shadowens, 56, who retired in June 1999 after 30 years as an English and reading teacher.

Dyer "needs to go," she said. "There had to be a change there."