Board Report, April 2023

OP&F clarifies position on ESG bills

Different bills are being debated at the Ohio Statehouse concerning social and governance-related investing – commonly known as ESG. OP&F cannot support legislation that makes our fiduciary duty secondary to any other objective, or that promotes benefits or goals unrelated to the economic interests of our pension plan participants, including shareholder-sponsored proposals focused on ESG issues. An examination of the language in the current version of Ohio’s Senate Bill 6 recognizes our fiduciary duty and OP&F’s investment responsibilities to act “with the sole purpose of maximizing the return on its investments.”

OP&F has shared these principles with the bill sponsors and the committee examining potential legislation. We trust that the legislative process will conclude with a decision that will not harm Ohio’s public retirement systems and the thousands of Ohioans we represent.

Maloney Stifler re-appointed

Karin Maloney Stifler has been re-appointed as the Investment Expert member of the OP&F Board of Trustees representing the Ohio Treasurer of State. This will be her third term on the Board after being originally appointed in 2015.

Two active police officers vie for spot on Board

The election to elect an active police member to the OP&F Board of Trustees will take place in May with ballots being mailed to active police members. Brian Steel from the Columbus Division of Police and Matthew Pfeifer, of the Twinsburg Police Department are the candidates for the position. Ballots were mailed in early May to eligible active police members with the election results announced by May 31. The four year term for the election winner will begin June 5.

While three seats on the OP&F Board of Trustees are eligible for re-election this spring, two incumbent members of the Board were uncontested and will begin new four-year terms in June. Marco Miller (retired, Columbus Fire) will continue to represent retired firefighters and serve his second term on the Board. Stephen Corvi (Columbus Fire) will again be an active fire representative to the Board and also serve a second term.

PORTFOLIO UPDATE

Board of Trustees Committee Notes

(Motions voted on by the Board are listed separately)

DISABILITY: The Committee conducted its scheduled reviews and appeal hearings.

HEALTH CARE: Staff and OP&F health care partner, Alight, presented the 2022 Health Care Play Year in Review. Staff presented the results of its review of the feasibility to allow funds remaining at year’s end in a member’s Health Reimbursement Arrangement to be used for Medicare Part B premiums. Both staff and Alight agreed that this should not be allowed, and after discussion, the Committee agreed. The Committee also received the 4th Quarter 2022 Health Care Stabilization Fund Report.

INVESTMENT: In addition to a review and discussion of the investment portfolio, the Board received the Semi-Annual Proxy Voting Report. Dated Dec. 31, 2022 in addition to approving several motions (outlined below).

Motions:

At its April 2023 meeting, the OP&F Board of Trustees approved the following motions:

• Approved one Death Benefit Fund case.
• Approved nine Initial Determinations of Disability, denied two and sent two for re-examination.
• Confirmed that two Reconsideration cases heard remain the same.
• Approved five appeals.
• Approved the Disability Reporting Waivers list.

NEXT BOARD OF TRUSTEES MEETINGS: May 23-24, 2023