April 2014 Monthly Board Report

WITNER UNOPPOSED IN TRUSTEE ELECTION; WILL BEGIN NEW TERM IN JUNE
David A. Witner, an active firefighter representative to the OP&F Board of Trustees, was unopposed in this spring’s trustee elections and will begin a new four-year term commencing June 2. Election notices were mailed in February and the filing deadline was April 7. Witner was the only member filing for the election and his petition has been certified. Therefore, no ballots will be mailed for this election.

Witner, a Lieutenant with the Cuyahoga Falls Fire Department, has served as the Chairman of the Board of Trustees since last June and was originally elected to the Board in 2010. He has been with the fire department in Cuyahoga Falls since 1986. He graduated from Ohio State University with a Bachelor of Science in Agriculture in 1982. Witner received his Juris Doctor from the University of Akron in 1994 and was admitted to the Ohio Bar in November of 1994.

PORTFOLIO UPDATE
OP&F's investment portfolio value:

Board of Trustees Committee Notes
(Motions approved by the Board are listed separately)

• DISABILITY: The Committee/Board reviewed disability cases in addition to the regularly scheduled hearings and appeals. The Committee/Board also received the 1st Quarter 2014 Disability Experience Report.
• BENEFITS: The Committee received and discussed the 1st Quarter 2014 Deferred Retirement Option Plan Experience Report. The Committee requested that staff prepare additional data regarding members who are actively working and participating in the plan.
• INVESTMENT: In addition to the monthly portfolio update, the Committee/Board received the 4th Quarter Real Estate Performance Review and also listened to a presentation on the strategic role of real estate in the OP&F investment portfolio.
• ADMINISTRATION/AUDIT: The Committee received a report from OP&F’s Internal Auditor which included the Investment Management Fee Audit Report, ethics disclosure statements and an update on the UnitedHealthcare audit. The Committee also discussed a report from Human Resources on 2013 staffing.
• HEALTH CARE: The Committee/Board received a report from Buck Consultants on the recommended member contribution rates for the health care plan. UnitedHealthcare presented an analysis of the medical and pharmacy appeals over a 12-month period and also presented an overview of health care exchanges. The Committee/Board also discussed eligibility guidelines and enrollment opportunities and proposed exceptions.
• FINANCE: The Committee reviewed the 4th Quarter Budget-to-Actual Report and the 4th quarter 2013 travel expenses. The Committee also reviewed and discussed the status of past due employers.

• Approved the manager ratings for Forest Investment Associates, Hancock Natural Resource Group, Brookfield Timberlands Management and Global Forest Partners as recommended by staff on April 30, 2014. Motion passed by unanimous vote (Investment Committee).
• Approved recommendation from Townsend and Investment Staff to increase OP&F’s investment with Forest Investment Associates from $100 million to $135 million. Motion passed 6-2 (Investment Committee).
  Approved Wilshire’s and Investment Staff’s recommendation to invest in the remaining four PIMCO fixed income strategies that comprise the approach described as Solution IV. Motion passed by unanimous vote (Investment Committee).
• Approved manager ratings for Bridgewater GIPS, Loomis Sayles, JP Morgan, Western Asset and Prima as recommended by staff. Motion passed by unanimous vote, except for JP Morgan, where the vote was 5-0 in favor, with two abstentions (Investment Committee).
• Approved the Committee recommendations for the initial determination of disability for the 13 members as identified in the initial determination hearings list presented to the Board on April 30, 2014. Motion passed by unanimous vote (Disability Committee).
• Approved the recommendations for the appeal hearings for the five of the six members identified in the appeals list presented to the Board on April 30, 2014. Motion passed by a vote of 6-0 with one abstention for four of the members. Motion passed for member number 1 by a vote of 5-2 and for member number 4, by a vote of 3-3 (Disability Committee).
• Waived the mandatory medical evaluation and filing of annual earnings statements for future years for the members identified in the disability reporting waivers list presented to the Board on April 30, 2014. Motion passed by unanimous vote (Disability Committee).
• Approved the recommendations for Death Fund benefits for the members identified. Motion passed unanimously (Disability Committee).
• Approved a motion to increase the 2015 rates for the non-Medicare medical contributions by 3.5 percent. Motion passed 6-2 (Health Care Committee).
• Approved a motion to increase the 2015 rates for the prescription drug contributions by 1.9 percent. Motion passed by unanimous vote (Health Care Committee).
• Approved a motion to send for re-examination the members discussed in executive session, if the re-examination is recommended by Dr. Joel Steinberg. Motion passed by unanimous vote (full Board).
  

Next Board of Trustees Meetings: May 20-21, 2014