As an Ohio retired teacher and stakeholder in the State Teachers Retirement System of Ohio, I have seen first-hand how high-risk alternative investments with high costs, hidden fees, and lack of transparency due to non-disclosure agreements, have deeply impacted the livelihoods of educators. These investments have negatively affected teacher pension funds not just in Ohio, but in other states across the country.
Educators in Ohio contribute a significant portion of their salary to their pension fund, leading the nation with a 14% of contribution rate. Retirees of the State Teachers Retirement System of Ohio have experienced a variable and currently a 0% cost of living adjustment, reflecting how these risky investments are unfairly eroding our hard-earned money and cannot offset inflation. Ohio is a non social security state for educators who rely on their pension.
The U.S. Securities and Exchange Commission needs to step up. Oversight is desperately needed for alternative investments, which include private equity or venture capital, hedge funds, real estate properties, commodities, opportunistic funds, and tangible assets, to ensure a more stable and responsible investment of our funds. Greater transparency would ensure that educators understand where their money is going and how it is being invested.
We must take action now to protect the future of educators and their livelihoods. Financial security in retirement should not be a luxury but a certainty for its devoted educators. Join me in demanding that the U.S. Securities and Exchange Commission provides much-needed oversight for these alternative investments in teacher pension funds.
July 13, 2024