Battle over board seat for Ohio teachers' pension could define a limit to the governor's power

COLUMBUS, Ohio (WCMH) -- A power struggle in the State Teachers Retirement System had a full audience in Ohio's Tenth District Court of Appeals Tuesday, as retired educators lined the room while an ousted board member fought for his chair back.

The battle over Wade Steen's seat on the State Teachers Retirement System board could have an added side-effect of defining Gov. Mike DeWine's constitutional authority. After the governor appointed Steen to the board, he removed him from the position in May 2023. With no clear answer on why he was ousted, Steen quickly sued in the district court for usurpation of office.

The district court's magistrate judge already issued an opinion that Steen should be reinstated to the board, and said DeWine lacked the authority to make such a move. However, the governor's office was quick to note that the magistrate's recommendation was not a final decision in the case, and needed approval from the district court's panel of judges.

During the Tuesday battle in court, Steen focused on the teachers affected by the board's decisions.

"They do the hard work. They sacrifice for our kids and this has never been about me," Steen told NBC4. "It's been about their pension fund. And I was removed without reason, without cause, and so we are just trying to correct that error."

Retired teachers have previously accused DeWine of trying to protect the investment staff on the board with Steen's removal. As the group has denied cost of living increases in the retirees' pensions for years, the managers of the $90 billion fund received $10 million in performance bonuses. In the same year, the team reported investment losses of over $5 billion.

Steen's attorney, Norman Abood, recognized the potential effects on DeWine's power.

"This is a due process state," Abood said. "We are not here to discuss why the governor did what he did, the question is 'does he have the power to do it?'"

The attorney for Brian Parera, who now holds Steen's seat on the board, said nothing in the law protects the governor's original appointee. Rather, it only protects his pick for a replacement.

One of the judges in the case called that argument absurd.

"That subsequent appointee, based on the language of the statute, says that subsequent appointee shall hold the seat for the remainder of the term. That's what the statute says," said Judge David J. Leland. "So the original appointee can have the governor looking over his shoulder but the subsequent appointee cannot. That's what you are arguing."

Retired teachers in attendance clapped in agreement, and accused DeWine of trying to block reform.

"We know that there is something fishy going on and we want to save our retirement," a teacher told NBC4. "And I want to save it for the young teachers who are active out there who did what we did. I'm going to do this and put in the time, but by golly I hope I get a retirement out of it."

The governor's office declined to comment on Tuesday's proceedings, but has said in the past that the law in this case is on the governor's side.