William Neville, formerly the executive director of the $97.3 billion Ohio State Teachers’ Retirement System, Columbus, officially retires on Dec. 1 by mutual agreement with a $1.65 million buyout according to an end-of-employment agreement obtained by Pensions & Investments.
The buyout totals $1.65 million consisting of lump sum payments, unused sick time and service credit.
The agreement states he and the pension fund have decided it is “in their individual and mutual best interest to fully dispose of any and all issues between them without any admission that Mr. Neville’s rights were violated in any way or that Mr. Neville committed any misconduct or failed to meet any obligation in any way.”
He and the pension fund “agree it is individually and mutually beneficial to amicably transition Mr. Neville’s duties and to fully cooperate in Mr. Neville’s retirement.”
Neville has been on administrative leave since November pending a personnel-related investigation by an outside third party and that local news outlets had said was the result of an anonymous allegation of harassment against STRS employees.
A few days ago, the Ohio STRS board effectively fired Neville. He had been on leave since last November. Lynn Hoover, deputy executive director-finance and chief financial officer, has been serving as acting executive director since November.
Neville became executive director in July 2020 following the retirement of Michael Nehf. Neville has been chief legal officer and originally joined the pension fund in 2004.
In a letter to the STRS board provided by a spokesperson, Neville said: "It has been my privilege to be part of the STRS Ohio team for the last 20 years. I have been continuously inspired by my fellow associates' profound dedication to our members and retiree teachers who have provided invaluable services to the students in this great state.”
In a statement from the pension fund, the board said it “wants to thank Bill for his 20 years of dedicated service to Ohio's teachers and greatly appreciates the extraordinary leadership he provided to STRS and all of its members.”
Board turmoil
The agreement between Neville and the pension fund brings to an end one chapter in a long-running, contentious period for the pension fund that saw a social media-driven movement by retirees angry over reduced or eliminated cost-of-living adjustments eventually lead to a series of board elections.
As a result, a majority of reform-minded trustees control the pension fund’s board.
The 11-member Ohio STRS board consists of seven trustees elected by STRS participants and four trustees appointed by state officials. Of those seven elected trustees, six — all elected since 2021 — are considered to be reformers.
The reformers support restoring a permanent COLA, which would be funded by cost cutting, including a move to passive investing and significant cuts to the STRS investment staff.
Since the reform trustees took over the majority, doing so has proven not to be so simple, because a permanent COLA can only be approved by the pension fund’s actuarial consultant –- currently Cheiron –- if it does not impair the fiscal integrity of the pension fund, according to a 2012 Ohio state pension reform law.
A STRS spokesman did not provide further information on Neville’s role at the pension fund before his departure in just over two months.
Hoover is still listed on its website as acting executive director and chief financial officer.
