Court: Gov. Mike DeWine lacked authority to remove teachers' pension board member

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In the latest turn in the battle to control the state teachers pension board, an appeals court ruled that Gov. Mike DeWine lacked the authority to remove his appointee and substitute another.

The 10th District Court of Appeals decision means that Wade Steen will return to the State Teachers Retirement System of Ohio board. State lawmakers could have explicitly made pension board appointees serve at the governor’s pleasure but they didn’t do so, the court said.

The court can’t change the law’s language “by judicial fiat,” the ruling said.

DeWine removed Steen, who was seen as aligned with reformers, and put G. Brent Bishop on the board as an investment expert. Bishop stepped down and DeWine replaced him with Brian Perera in February.

Steen filed a lawsuit, contesting his removal and arguing that he was appointed to a four-year term. The appeals court agreed in a unanimous ruling.

The 10th District Court of Appeals ruled that Gov. Mike DeWine didn't have the authority to remove his appointee to the State Teachers Retirement System of Ohio.
The 10th District Court of Appeals ruled that Gov. Mike DeWine didn't have the authority to remove his appointee to the State Teachers Retirement System of Ohio.

Steen re-joined the board at its meeting Thursday.

DeWine spokesman Dan Tierney said the governor won't reappoint Steen when his term expires in September.

More: Ohio Gov. DeWine makes a change to teachers pension board - again

He added that while the governor isn't a party to the lawsuit, the DeWine administration thinks the ruling should be appealed to the Ohio Supreme Court. The decision likely will impact disputes over appointments made by the executive, legislative and judicial branches, he said.

The 11-member board is a combination of appointed and elected members. Teachers are currently voting to select a member this spring. The board oversees $90 billion invested on behalf of 500,000 teachers and retirees.

In November, the board put STRS Executive Director Bill Neville on administrative leave while anonymous complaints leveled against him could be investigated. An outside law firm reported in February that the allegations of harassment and retaliation could not be substantiated.

Despite the report, the board opted to keep Neville on leave through mid-May when election results will be known.

Reformers have been mounting a board takeover, electing members who are more sympathetic to their complaints about transparency, senior leadership, staff bonuses and the suspension of cost-of-living adjustments.

This article originally appeared on The Columbus Dispatch: Appeals court rules DeWine lacked authority to change STRS board