Ohio gov. changes pension fund oversight

Ohio gov. changes pension fund oversight

	Published : Tue, 31 Jul 2007 22:36 By : Agencies Print this Story

COLUMBUS, Ohio (AP) - Gov. Ted Strickland named a new slate of directors Tuesday to oversee the scandal-plagued Ohio Bureau of Workers' Compensation, the largest state-run insurance fund for injured workers in the nation.

The independent, external board of directors was created in the wake of an investment scandal that rocked state politics, leading directly and indirectly to the convictions on ethics violations of Strickland's predecessor Bob Taft and his chief of staff as well as a host of others in an ongoing investigation.

'The establishment of an independent board of directors brings us a step closer to restoring confidence and accountability in the Ohio Bureau of Workers' Compensation,' Strickland said in a statement. 'The new board will ensure greater professional expertise and strengthened fiscal management of BWC funds.'

Strickland selected William Lhota, president and CEO of the Central Ohio Transit Authority, to chair the panel. A former executive of American Electric Power, Lhota has experience as a compliance officer and a master's degree in management from the Massachusetts Institute of Technology.

Rounding out the panel are injured workers, representatives of business and labor, and experts in accounting, investments, economics and law.

Operation of the bureau's investments was a major theme of last year's governor's race. Strickland, a Democrat, pledged he would replace the bureau's Oversight Commission with a more powerful, accountable board.

Among the investments was the $50 million the bureau had former GOP fundraiser Tom Noe invest in rare coins. Noe was later convicted of stealing from the investment, which he managed for the state.

The 11-member panel will be charged with setting a policy direction, approving investment policy and reviewing progress toward goals. It also has hiring and firing power over the bureau administrator. The oversight commission, by contrast, served mostly in an advisory role.

Bureau Administrator Marsha Ryan, appointed by Strickland, said she expects the board to provide the needed professionalism, accountability and expertise to take the bureau forward.

'Obviously, if you look at the resumes of these people, many have worked on boards before and are well aware of what the role entails,' she said. 'I don't think I'll find a one of them who isn't going to understand the importance of getting things done timely and in a professional manner.'