The pension fund oversees $90 billion invested for 500,000 teachers and retirees
The director of the State Teachers Retirement System will remain on paid leave through mid-May and will be given “professional development” in the meantime.
The move, decided after a nearly six hour closed door session, leaves Executive Director Bill Neville in limbo until after the next board election is held in May.
A faction of the 11-member board lacks confidence in Neville. Control of the board may shift after the next election.
In November, the board placed Neville on administrative leave when an anonymous letter purporting to be from pension fund staff accused him of harassing behavior. Ohio Attorney General Dave Yost hired outside counsel to investigate.
Neville hired civil litigator Rex Elliott, who has said the anonymous letter was without merit and was nothing more than an attempt to force his client out of STRS.
“We are deeply disappointed that after 90 days of sitting at home while STRS investigated an anonymous false and defamatory email, the divided STRS board failed to do the right thing by returning Bill Neville to his position as executive director,” Elliott said in a statement.
Elliott said he would comment on the board’s latest decision later today.
STRS board members did not comment on whether investigators determined the source of the anonymous letter or describe the type of development that they think Neville needs.
STRS hired Neville more than 19 years ago, named him chief legal officer in 2018 and appointed him as executive director in 2020. He is paid $318,000 a year and his contract runs through June 2027.
A review of his personnel record, obtained through a public records request, shows he consistently received positive job performance reviews. Absent from the lengthy file are any records alleging misconduct − until the anonymous letter emerged.
The pension fund oversees $90 billion invested for 500,000 teachers and retirees.
Activists have been mounting a board takeover, electing board members who are more sympathetic to their complaints about transparency, senior leadership, staff bonuses, and the suspension of the cost-of-living allowances for retirees.
Last year, Gov. Mike DeWine removed Wade Steen, his appointee, and replaced him with G. Brent Bishop. Last week, Bishop resigned and DeWine appointed former legislative staffer Brian Perera.
Steen filed a lawsuit over being removed, contending the governor lacked the authority to make the switch. DeWine isn’t a party to the lawsuit, but the case raises questions about a governor’s powers.
A magistrate ruled that DeWine lacked the power to remove Steen. That ruling is not final or binding and is expected to be reviewed by a three-judge panel.
Laura Bischoff is a reporter for the USA TODAY Network Ohio Bureau, which serves the Columbus Dispatch, Cincinnati Enquirer, Akron Beacon Journal and 18 other affiliated news organizations across Ohio.