August 2017 Monthly Board Report
PRE-RETIREMENT SEMINARS BEGIN IN SEPTEMBER
OP&F’s annual Pre-Retirement Seminar series will begin Sept. 12 in Toledo. OP&F
will host six seminars around Ohio to assist members who are approaching
retirement eligibility or considering enrolling in the Deferred Retirement
Option Plan (DROP). 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 received an invitation with additional seminar information.
WAINSCOTT RESUMES SPOT AS VICE CHAIR ON BOARD; PATTON CHAIR-ELECT
John Wainscott (retired, Cincinnati Police) was elected vice chair on the OP&F
Board of Trustees at the group’s August meeting, which concluded Aug. 23.
Wainscott is currently serving his second term as a trustee after election in
June 2012. Timothy Patton (Cleveland Police) was named Chair Elect at the
meeting and will assume the role as Chair of the Board of Trustees next June.
PORTFOLIO UPDATE
OP&F's investment portfolio value:
|
Current value (8/22/17): |
$15.0 billion |
|
End of July value: |
$15.3 billion |
|
End of June value: |
$15.1 billion |
Board of Trustees Committee Notes
(Motions approved by the Board are listed separately)
- DISABILITY: In addition to the regularly scheduled
hearings and appeals, the Committee reviewed the Disability Exam
Satisfaction Survey results with the Disability Evaluation Panel. The
Committee also received the Disability Experience Report for the second
quarter of 2017.
- HEALTH CARE: The Committee received a presentation from
OP&F’s health care consultants reviewing the advantages and disadvantages of
the open and closed health care exchange models. The Committee learned that
the search for a firm to assist OP&F in its health care plan transition
continues and six vendors have made presentations to OP&F staff. Preferred
vendors will present to the Board of Trustees in September. OP&F’s actuaries
certified that the OP&F prescription drug benefits are equal or better than
those provided by Medicare Part D. This certification qualifies OP&F for a
federally funded reimbursement for a portion of Medicare-eligible
prescription claims.
- BENEFITS: The Committee received the Deferred
Retirement Option Plan Experience Report for the second quarter of 2017 and
reviewed new reports designed to track progress of various tasks within the
Member Services Department. A Committee member requested information on how
many off-duty disability benefits had less than 15 years of service at the
time of retirement.
-
INVESTMENT: In addition to the monthly portfolio performance
update, the Committee received the First Quarter Real Estate Performance
Review, the Second Quarter Investment Performance Review and discussion took
place on the 2016 Private Investments Audit Report.
-
ADMINISTRATION/AUDIT: The Committee received the Business and
Technology Solutions Department update and reviewed the 2017-18
Administration/Audit Committee agenda schedule, the Internal Audit Status
Report, the Internal Audit Operating Procedures Manual and the Internal
Audit Crosswalk project.
-
FINANCE: The Committee received the Second Quarter 2017
Budget-to-Actual Report and reviewed the status of past due employers during
the meeting. Also discussed was the Second Quarter 2017 Travel Expense
Review.
Motions:
At its
August 2017 meeting, the OP&F Board of Trustees voted on the following motions:
- Approved Townsend’s recommendation to increase to $160 million OP&F’s
commitment to the IFM Global Infrastructure Fund. Motion passed by unanimous
vote (Investment Committee).
- Approved the 2017 Real Estate Investment
Plan Mid-Year Update, decreasing the lower bound of the target range for the
Tactical Portfolio. Motion passed by unanimous vote (Investment Committee).
-
Approved Townsend’s 2017 Strategic Portfolio Rebalancing recommendation to
redeem $50 million from UBS Trumbull Property Fund. Motion passed by
unanimous vote (Investment Committee).
- Approved Staff’s investment
manager rating recommendations for Macquarie Investment Management, Fidelity
Management’s ACWI ex-U.S. mandate, Harvest Capital Advisors, Salient
Partners, Tortoise Capital Advisors and MacKay Shields Opportunistic High
Yield mandate. Motion passed by unanimous vote (Investment Committee).
-
Adopted the Total Fund Policy Benchmark Implementation Plan recommended by
Wilshire. Motion passed by unanimous vote (Investment Committee).
-
Approved Wilshire’s recommended benchmark for the U.S. Inflation-Linked
Bonds allocation. Motion passed by unanimous vote (Investment Committee).
-
Approved staff and Wilshire’s recommended revisions to the Investment
Manager Guidelines for the Bridgewater Inflation Linked Portfolio. Motion
passed by unanimous vote (Investment Committee).
- Approved staff
recommended Private Markets Investment Manager ratings (Investment
Committee).Approved staff and TorreyCove’s Private Markets recommendation to
commit up to $25 million to Primus Capital Fund VIII. Motion passed by
unanimous vote (Investment Committee).
- Approved staff and TorreyCove’s
Private Market recommendation to commit up to $40 million to GTCR XII, LP.
Motion passed by unanimous vote (Investment Committee).
- Approved the
election of Mr. Wainscott to serve as Vice Chair of the Board of Trustees.
Motion passed by unanimous vote (Full Board).
- 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. 23, 2017. 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. 23, 2017. 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. 23, 2017. 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).
-
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. 23, 2017. Motion
passed by unanimous vote (Disability Committee).
- Approved the
Administration/Audit Committee Charter as presented at the Aug. 23, 2017
Administration/Audit Committee Meeting. Motion passed by unanimous vote
(Administration/Audit Committee).
- Approved the Internal Audit Charter as
presented at the Aug. 23, 2017 Administration/Audit Committee Meeting.
Motion passed by unanimous vote (Administration/Audit Committee).
-
Approved the Benefit Committee Charter as presented at the Aug. 23, 2017
Benefits Committee Meeting. Motion passed by unanimous vote (Benefits
Committee).
- Approved the Administrative Rules as outlined in staff’s
memorandum dated Aug. 23, 2017 and authorized the required filing of the
rules with the proper agencies. Motion passed by unanimous vote (Benefits
Committee).
- After discussion with staff and OP&F’s health care consultant
the Board voted to approve a motion for staff to pursue a health care
solution for retiree members, which includes the simultaneous transition of
Medicare and non-Medicare members. This will assist the RFP Committee in
conducting further diligence on the appropriate solution. Motion passed by
unanimous vote (Health Care Committee).
NEXT BOARD OF TRUSTEES MEETINGS: Sept. 26-27 , 2017