By Andrew Welsh-Huggins
The Associated Press

COLUMBUS - After watching her medical costs soar while the state agency that oversees her pension spent millions on bonuses for workers and art, retired Dayton teacher Janet Shadowens was glad to see that the agency's executive director is stepping down.

"There had to be a change there," Shadowens said on Tuesday, hours after the State Teachers Retirement System board voted 5-3 to accept a deal with Executive Director Herb Dyer that calls for him to step down two years early.

In exchange, he'll receive $550,000 in salary, benefits and accrued vacation and sick leave.

Board Chairwoman Deborah Scott said confidence in the system had eroded.

"What we hope to accomplish is that this system will move forward and continue to be a system members can respect, have confidence in and be proud of," she said.

Dyer came under fire for spending millions on bonuses, artwork and travel as assets plunged.

More than 100 legislators had called for Dyer to step down.

In a short written statement, Dyer said it was an honor to serve Ohio teachers.

"It's a huge step in the right direction," said Sen. Kirk Schuring, a Canton Republican. "Now the board can be about the business of restoring the confidence that members once had in their system."

The $47 billion system protects 400,000 active and retired teachers.

Interim Director Damon Asbury said he plans to review staff and board travel policies and develop tougher guidelines for spending and for compensating employees.