Monthly Board Report

Changes proposed for 2020 retiree health care based on member feedback

The OP&F Board of Trustees announced several changes that will be discussed for the retiree health care plan in 2020. The proposed changes are based on the experience of transitioning retirees from the previous self-insured group plan that ended on Dec. 31, 2018 and feedback from members. At this time, these are only proposals that will be discussed.

Proposals for the 2020 plan year include:

• Reviewing the feasibility of allowing pre-Medicare members to shop and enroll in health care plans outside the exchange managed by Aon Retiree Health Solutions. Retirees may be required to sign a waiver claiming responsibility for the choices they make;
• Potentially allowing the health care stipend to be used for member COBRA payments following retirement (primarily for those who are applying for a disability benefit).
  

OP&F will work with its partners and affiliate groups on other health care-related efforts throughout 2019:

• OP&F and Aon will continue to work on expanding PPO markets with carriers;
• Lobbying efforts will continue with the FOP and IAFF for Medicare at 55 for public safety personnel;
• OP&F trustees who represent firefighters will work with the IAFF on potential new solutions not presently in the health care market.

Aon to open Columbus office dedicated to OP&F retirees

It was announced during the Feb. 27 OP&F Board of Trustee meetings that Aon Retiree Health Solutions will be opening an office in Columbus to service OP&F retirees. The office is expected to be located in the same building as OP&F headquarters at 140 East Town Street. Aon hopes to have 6-8 full time associates in its Columbus office that will assist OP&F retirees with their health care insurance questions and enrollments. The Columbus office is expected to be open in 2019.

PORTFOLIO UPDATE

OP&F’s investment portfolio value:
Current value (2/25/19): $15.5 billion
End of January value: $15.3 billion
End of December value: $14.6 billion

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

• GOVERNMENT AFFAIRS AND POLICY: The Committee heard updates on state legislative matters from OP&F’s legislative consultant and a federal legislative report from staff.
• INVESTMENT: In addition to the monthly portfolio performance update, the Board received the Investment Performance Report for the periods ending Dec. 31, 2018.
• FINANCE: The 4th Quarter Budget-to-Actual Report for 2018 was provided to the Committee for discussion along with the Status of Past Due Employers Report.
• HEALTH CARE: Representatives from Aon provided an update on the 2019 Health Care Transition and answered questions from trustees. The 2018 year-end report of the Health Care Stabilization Fund was also presented to the Board. The Committee Chair, William Deighton (Cleveland Fire, retired) announced proposed changes for the 2020 retiree health care plan that the Board will consider.
  

Motions:

At its February 2019 meeting, the OP&F Board of Trustees approved the following motions:

• Approved the investment manager rating recommendations for Causeway, PGIM Levered Core and Loomis Sayles Levered Core. Motion passed by unanimous vote (Investment Committee).
• Approved staff’s and Wilshire’s recommendation to increase from 0.5 percent to 3.0 percent the allowed upper band for OP&F’s Cash allocation. Motion passed by unanimous vote (Investment Committee).
• Approved staff’s recommended revisions to the Proxy Voting Policy. 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 Feb. 27, 2019. Motion passed by unanimous vote with the exception of one abstention on the vote for member #2 (Disability Committee).
• Approved the Committee recommendations for appeal hearings for the members identified in the appeals list presented to the Board on Feb. 27, 2019. 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 to waive 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 Feb. 27, 2019. Motion passed by unanimous vote (Disability Committee).
  
  NEXT BOARD OF TRUSTEES MEETINGS: March 19-20, 2019

Posted 3/8/2019