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:
|
Current value (4/29): |
$14.2 billion |
|
End of March value: |
$14.2 billion |
|
End of February value: |
$14.2 billion |
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.
Motions: At its April 2014 meeting, the OP&F Board of Trustees voted on the following motions:
- 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