August 2016 Monthly Board Report

PRE-RETIREMENT SEMINARS BEGIN IN SEPTEMBER

OP&F’s annual Pre-Retirement Seminar series will begin Sept. 13 in Toledo. OP&F will host six seminars around Ohio to assist members who are approaching retirement eligibility or are considering enrolling in the Deferred Retirement Option Plan (DROP). The OP&F Pre-Retirement Seminars are conducted to describe pension benefits available to members and their dependents upon retirement. OP&F will present information on DROP and survivor benefits. Each seminar begins at 7 p.m. and lasts approximately two hours. Active members who are eligible for retirement or DROP within the next five years were mailed an invitation with additional seminar information.

PORTFOLIO UPDATE
OP&F's investment portfolio value:

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

• DISABILITY: In addition to the regularly scheduled hearings, the Committee reviewed the Disability Exam Satisfaction Survey for the first half of 2016 with staff and panel physicians. The Committee also received the Disability Experience Report for the 2nd quarter of 2016.
• BENEFITS: The 2016-17 schedule for the Benefits Committee was presented for review. A discussion took place regarding options surrounding a request for early withdrawal of funds from a member’s Deferred Retirement Option Plan account. Staff informed the Committee that current statute does not permit members who are not vested in their DROP funds to withdraw this money and that the requirement is based on Internal Revenue Code restrictions. Additional research was requested, including tax implications.
• HEALTH CARE: Communication material is being developed for the upcoming changes to the 2017 health care plan and the Annual Change Period. OP&F’s health care consultant has developed a project plan to chart progress and work toward long-term goals. The Committee received information that the Medicare Part D Attestation for 2017 has been completed by OP&F’s actuaries and the certification qualifies OP&F for the expected federally funded reimbursements. UnitedHealthcare representatives reported on options available to a limited number of members who reside in a Florida community that has its own health care system and does not accept patients with Medicare or Medicare supplement plans.
• ADMINISTRATION/AUDIT: The Committee reviewed its schedule for 2016-17 and received the Internal Audit Status Report and Audit Plan Schedule updates.
• INVESTMENT: In addition to the monthly portfolio update, the Board received a presentation by representatives from PIMCO. Wilshire, OP&F’s general investment consultant, presented a performance report through the 2nd quarter of 2016. Additionally, staff presented the Board with a draft of an annual consultant satisfaction survey, the Private Markets Audit Report and the Timberland Program Review.

   

  Motions:
  At its August 2016 meeting, the OP&F Board of Trustees voted on the following motions:
• Approved staff’s recommended manager ratings for Fidelity (ACWI ex-U.S.), Harvest Fund Advisors, Salient Capital Advisors, Tortoise Capital Advisors, PIMCO, and MacKay Shields (Opportunistic High Yield). Motion passed by unanimous vote (Investment Committee).
• Approved the revised investment manager guidelines for Delaware Investment Advisors as recommended by Staff and Wilshire. Motion passed by unanimous vote (Investment Committee).
• Approved Staff’s recommended manager ratings for the Private Markets Managers. Motion passed by unanimous vote (Investment Committee).
• Approved the Committee recommendations for the initial determination of disability for the members as identified in the initial determination hearings list presented to the Board on Aug. 31, 2016. Motion passed by unanimous vote. (Disability Committee).
• Approved the Committee recommendation for reconsideration for the members identified in the reconsideration hearings list presented to the Board on Aug. 31, 2016. Motion passed by unanimous vote (Disability Committee).
• Approved the Committee recommendations for appeal hearings for the members identified in the appeals list presented to the Board on Aug. 31, 2016. Motion passed by unanimous vote (Disability Committee).
• Approved the determination for the member identified in the special hearing list presented to the Board on Aug. 31, 2016. Motion passed by unanimous vote (Disability Committee).
• Approved the Committee recommendation for Death Fund benefits for the members identified. Motion passed by unanimous vote (Disability Committee).
• Approved the Committee recommendation for Death Fund benefits reconsideration for the members identified. Motion passed by unanimous vote (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 Aug. 31, 2016. Motion passed by unanimous vote (Disability Committee).
• Approved the motion to pursue a more in-depth analysis of changing the retiree health care premium subsidy to a structure based on years of service credit. Motion passed by unanimous vote (Health Care Committee).
• Approved the Administration/Audit and Benefits Committee Charters as presented to the Board on Aug. 30, 2016. Motion passed by unanimous vote (Administration/Audit Committee).
• Approved the travel recommendations as presented to the Board on Aug. 30, 2016. Motion passed by unanimous vote (Administration/Audit Committee).
• Approved the Board Governance Policy as presented to the Board on Aug. 30, 2016. Motion passed by unanimous vote (Administration/Audit Committee).
  

NEXT BOARD OF TRUSTEES MEETINGS: Sept. 27-28, 2016