January 2016 Monthly Board Report

OP&F SELECTS CONSULTANT TO ASSIST WITH HEALTH CARE ISSUES

Gabriel Roeder Smith & Company (GRS) has been selected as OP&F’s first health care consultant. GRS emerged as one of five finalists who were interviewed following the release of a request for proposal last year. The first task for GRS is to gather data and analyze OP&F’s current retiree and employee health care plan design and cost. The firm is expected to provide an educational presentation at the 2016 Board of Trustees Retreat in early March. Additional presentations to the Board are expected as evaluation and analysis continues.

ELECTION MATERIALS AVAILABLE FEBRUARY 1

Petitions and other required forms will be available beginning Monday, Feb. 1 for those eligible to run in the OP&F Board of Trustee elections this spring. Members will elect an active police representative and a retired police representative to the Board. The materials will be available online at op-f.org and also at OP&F headquarters at 140 E. Town Street in downtown Columbus.

Eligible members who intend to run for a position on the Board of Trustees must submit all required forms and information to OP&F no later than 4 p.m. on April 4. Ballots will be mailed in early May and the election results announced on May 29.

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 Disability Committee presented the Disability Experience Report for the 4th quarter 2015. The Committee was also notified that all Annual Earnings Statements for 2014 have been received and payments to any suspended disability benefit recipients have been reinstated.
• HEALTH CARE: The Health Care Committee was notified that Gabriel Roeder Smith & Company has been selected as OP&F’s health care consultant. The firm will attend the March Board of Trustees Retreat. Discussion during the meeting included investigating the impact of allowing members who have lost health care coverage to return to the OP&F plan. Additional discussion included evaluating the benefits of indexing and the impact of Deferred Retirement Option Plan (DROP) participation has on lowering health care costs.
• BENEFITS: The 4th Quarter 2015 DROP Experience Report was presented to the Committee for discussion. Additional discussion among Trustees included the salary benchmark calculation and the effect on those who exceed the benchmark.
• ADMINISTRATION/AUDIT:  The Committee received an update on Business and Technology Solutions Department projects, including Vitech, security-related projects, records retention and website updates. The Committee also received a report on 2016 annual compensation adjustments and 2015 paid leave buy-back programs. OP&F’s Chief Audit Executive presented several reports and projects for the Board’s review and approval.
• INVESTMENT: In addition to the monthly portfolio update, the Board received the Private Markets Review, covering the history, compliance, performance and current state of the program. OP&F’s real estate consultant, Townsend, also presented a performance report for periods ended Sept. 30, 2015.

• At its January 2016 meeting, the OP&F Board of Trustees voted on the following motions:
• Approved Staff’s and TorreyCove’s recommendation to commit up to $50 Million to Vista Equity Partners Fund VI. Motion passed by unanimous vote (Investment Committee).
• Voted to interview Delaware Investments and Dimensional Fund Advisors as finalists for the small-cap equity manager search. 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 Jan. 20, 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 Jan. 20, 2016. Motion passed by unanimous vote (Disability Committee).
• Approved the recommendation for the appeal hearing for the members identified in the appeals hearings list presented to the Board on Jan. 20, 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).
• 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. 20, 2016. Motion passed by unanimous vote (Disability Committee).
• Approved the 2015 Annual Mandatory Disability Experience Report by Employer, in the form presented to the Board on Jan. 20, 2016, 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 (Health Care Committee).
• Approved the Administrative Rules as amended in staff’s memorandum dated Jan. 19, 2016, and authorizes the required filing of the Rules with the proper agencies. Motion passed by unanimous vote (Administration Audit Committee).
• Approved the Internal Auditor Charter in the form submitted to the Board of Trustees on Jan. 19, 2016. Motion passed by unanimous vote (Administration/Audit Committee).
• Approved the calendar year 2016 Annual Audit Plan in the form submitted to the Board of Trustees on Jan. 19, 2016. Motion passed by unanimous vote (Administration/Audit Committee).
• Approved the Internal Audit Operating Procedures Manual in the form submitted to the Board of Trustees on Jan. 19, 2016. Motion passed by unanimous vote (Administration/Audit Committee).
• Approved Mr. David Heller’s travel expenses for attending the Alternative Investments Forum, in New York, Jan. 11-12, 2016. Motion passed by unanimous vote (Administration/Audit Committee).
  

Next Board of Trustees Meetings: Feb. 23-24, 2016

Board of Trustees Retreat: March 3-4, 2016