Lynn Hoover, the outgoing executive director of the $94 billion State Teachers Retirement System of Ohio (STRS), is retiring after 31 years, leaving the fund in strong fiscal condition despite recent controversies.

Hoover's retirement is set for December 1, 2024, and she has overseen STRS's operations, which serve over 500,000 members, including teachers and retirees.

Aaron Hood, recently appointed as interim director and CFO, faces the challenge of filling critical leadership roles, including a new chief investment officer by March.

Tensions within STRS have escalated, particularly following cuts to cost-of-living adjustments that angered retirees and led to dissatisfaction among members.

An anonymous whistleblower memo alleging serious misconduct within STRS prompted an investigation by Ohio Governor Mike DeWine and Attorney General Dave Yost.

Yost's investigation raises concerns about STRS's vulnerability to private takeover and has led to lawsuits against reform-minded board members.

STRS is advocating for increased employer contributions, which have stagnated for 40 years, to ensure financial sustainability.

The retirement system is closely monitoring Ohio's new universal voucher system, as it may impact public education and the sustainability of the pension system.

Hoover emphasized the professionalism and commitment of STRS staff to member security, despite the ongoing controversies surrounding the fund.

The ongoing investigation and internal tensions highlight the challenges STRS faces as it navigates leadership transitions and member dissatisfaction.

Under Hoover's leadership, STRS has consistently ranked in the top 10% of peer funds nationally for investment returns across various time frames.

Despite these challenges, STRS has disbursed over $4 billion in benefits to teachers and retirees in the past three and a half years, attributed to effective investment strategies.