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:
|
Current value (8/30/16): |
$14.3 billion |
|
End of July value: |
$14.3 billion |
|
End of June value: |
$14.0 billion |
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