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:
|
Current value (1/19/16): |
$13.0 billion |
|
End of December value: |
$13.8 billion |
|
End of November value: |
$14.0 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 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.
Motions: At its January 2016 meeting, the OP&F Board of Trustees voted on the following motions:
- 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