January 2013 Monthly Board Report
OP&F AGAIN RECEIVES AWARD FOR COMPREHENSIVE FINANCIAL REPORTING
The Government Finance Officers Association has informed OP&F that the 2011
edition of its Comprehensive Annual Financial Report (CAFR) has again been
awarded the Certificate of Achievement for Excellence in Financial Reporting.
OP&F has received the recognition in 22 of the past 23 years. The CAFR is a
detailed report and review of OP&F's financial statements and investments for
each fiscal year. The 2012 CAFR will be published in June.
ACTUARIES REVIEW DROP, PROGRAM FOUND TO BE "COST NEUTRAL"
Buck Consultants, OP&F's independent actuary, has reviewed the Deferred
Retirement Option Plan (DROP) and found it to be cost neutral. The Ohio Revised
Code requires OP&F to conduct an actuarial review of DROP to find if the program
is operating as intended and is cost neutral. Cost neutral means that offering
DROP to eligible OP&F members will not be an additional cost to the retirement
system and not have an adverse impact on OP&F's ability to pay pension benefits.
Past DROP reviews in 2008 and prior to the implementation of the program also
found it to be cost neutral. DROP was implemented in 2003 and is designed to
allow members who are eligible for a normal service retirement to continue
working and serving their communities while accruing a lump-sum of money for
retirement.
PORTFOLIO UPDATE
OP&F's investment portfolio value:
|
Current value (1/29): |
$12.9 billion |
|
End of December value: |
$12.6 billion |
|
End of November value: |
$12.4 billion |
Board of Trustees Committee Notes
(Motions approved by the Board are listed separately)
- DISABILITY: The Committee/Board reviewed disability cases
in addition to the regularly scheduled hearings and appeals. The
Committee/Board reviewed the 4th Quarter 2012 Disability Experience Report and
the Annual Mandatory Disability Experience Report by Employer. The
Committee/Board also requested data on off-duty disability benefit recipients
that can be reviewed during the February meetings.
- BENEFITS: The Committee reviewed and discussed the
Deferred Retirement Option Plan (DROP) Quarterly Update presented by staff,
along with additional DROP statistics that were provided.
- ADMINISTRATION/AUDIT: The Committee listened to the
Information Services Update and also received an update on current Internal
Audit projects. The Committee also discussed the Annual Compensation and Paid
Leave Buyback program.
- HEALTH CARE: The Committee/Board discussed fees
associated with the Federal Affordable Care Act for which OP&F will be
responsible.
- INVESTMENT: In addition to the monthly portfolio update,
the Committee/Board heard a presentation on the 3rd Quarter Real Estate
Performance Review and the Private Markets Review.
Motions:
At its January 2013 meeting, the OP&F Board of Trustees voted on the following motions:
- Approved the manager ratings for EARNEST Partners, MacKay Shields,
Mellon Capital and FX Concepts as presented by staff. Motion passed by
unanimous vote (Investment Committee).
- Approved the 2013 Private Markets Investment Plan, which calls for
committing $330 million to the private markets asset class for the period of
Jan. 31, 2013 through Dec. 31, 2013, subject to market conditions. Motion
passed by unanimous vote (Investment Committee).
- Approved the Committee recommendations for the initial determination of
disability for the 28 members as identified in the initial determination
hearings list presented to the Board on Jan. 30, 2013. Motion passed by
unanimous vote, except for four "no" votes for the member identified as #12
and one "no" vote for the member identified as #10. (Disability Committee).
- Approved the determination for reconsiderations for the members
identified. Motion passed by unanimous vote (Disability Committee).
- Approved the recommendations for the appeal hearings for six of the
seven members identified in the appeals list presented to the Board on Jan.
30, 2013. Motion passed by unanimous vote for five members and by a 5-3 vote
for the member identified as #4. The appeal for member #3 was not approved
by a vote of 4-4 (Disability Committee).
- Approved the recommendations for Death Fund benefits for the members
identified. Motion passed unanimously (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 Jan. 30, 2013. Motion
passed by unanimous vote (Disability Committee).
- Approved the 2012 Employer Disability Experience Report, in the form
presented to the Board on Jan. 29, 2013, and authorizes staff to forward the
report to the appropriate public officials, in accordance with Section
742.381 of the Ohio Revised Code. Motion passed by unanimous vote
(Disability Committee).
- Rescinded the Administrative Rule as outlined in staff's memorandum
dated Jan. 29, 2013, and authorizes the required filing with the proper
agencies. Motion passed by unanimous vote (Benefits Committee)..
- Approved the Administration/Audit Committee's travel recommendation as
amended and discussed on January 29, 2013. Motion passed by unanimous vote
(Administration/Audit Committee).
Next Board of Trustees Meetings: February 25-27, 2013.