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:

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