January 2017 Monthly Board Report
JANUARY MARKS OP&F’S 50TH ANNIVERSARY
From a small office on Broad Street on Jan. 13, 1967, 19 checks were mailed to
retired police officers and firefighters who previously had received their
benefits from the city where they had been employed. This was the beginning of
the Ohio Police & Fire Pension Fund.
At that time, the name was the Ohio Police and Fireman’s Pension and Disability
Fund and it faced a daunting task of creating a trusted, comprehensive
retirement system from the remains of hundreds of small municipal funds around
Ohio. In 2017, the OP&F celebrates 50 years of providing secure and reliable
retirement income for Ohio’s public safety officers.
In 1966, Amended House Bill 642 created OP&F, consolidating 425 individual
funds. When operations began on Jan. 1, 1967, assets totaling $75 million were
transferred from these individual funds to OP&F. However, the new pension fund
also inherited $490 million in liabilities. Today OP&F meets all state funding
requirements and its investment portfolio is valued at $14.6 billion.
OP&F PRESENTED FINANCIAL REPORTING AWARD
The Government Finance
Officers Association has again presented OP&F with the Certificate of
Achievement in Financial Reporting for the 2016 Comprehensive Annual Financial
Report. OP&F has received the award in 24 of the past 25 years.
BOARD
RETREAT SCHEDULED FOR MARCH 2
The spring Board of Trustees Retreat
will be March 2 at Creekside Conference and Event Center in Gahanna. The future
of OP&F’s retiree health care plan will be the primary topic of discussion
during the meeting. Staff and consultants will provide trustees with the most
up-to-date data concerning the plan. As with all Board meetings, the retreat is
open to the public.
PORTFOLIO UPDATE
OP&F's investment portfolio value:
|
Current value (1/24/17): |
$14.6 billion |
|
End of December value: |
$14.4 billion |
|
End of November value: |
$14.3 billion |
Board of Trustees Committee Notes
(Motions approved by the Board are listed separately)
- DISABILITY: In addition to the regularly scheduled
hearings, the Committee reviewed the 4th quarter Disability Experience
Report for 2016 and also the 2016 Annual Disability Experience Report by
Employer.
- BENEFITS: The Committee discussed the 4th Quarter
Deferred Retirement Option Plan Experience Report and heard a recap of an
administrative rule to be approved.
- HEALTH CARE: The Committee received information on
member concerns being received since the beginning of the new health care
plan year on Jan. 1 and requested quarterly data on the number of member
inquiries. The Committee had significant discussion on the future direction
of the OP&F retiree health care plan.
- ADMINISTRATION/AUDIT: The Committee received an update
on projects from the Business and Technology Solutions Department and also
the Internal Audit Status Report. The Committee also received a list of
board education opportunities for the coming year.
- GOVERNMENT
AFFAIRS/POLICY: The initial meeting of this new committee included
information on what the new Ohio General Assembly will be working on in the
coming months and the approval of a committee schedule for 2017.
-
INVESTMENT: In addition to the monthly portfolio update, the Board
received the 3rd Quarter Real Estate Performance Review and the framework
for the Real Assets Investment Policy. The Board also discussed the Private
Markets Review, which covered the history, policy compliance, performance
and current state of OP&F’s Private Markets program.
Motions:
At its
January 2017 meeting, the OP&F Board of Trustees voted on the following motions:
- Approved staff and TorreyCove’s recommendation to commit up to $24
million to Marlin Equity V and up to $6 million to Marlin Heritage II.
Motion passed by unanimous vote (Investment Committee).
- Approved the 2017
Private Markets Investment Plan as presented by staff, Torrey Cove and
Wilshire, which targets aggregate capital commitments of $175 million to the
private markets asset class through Jan. 31, 2018. Motion passed by
unanimous vote (Investment Committee).
- Approved the investment manager
guidelines for the Prudential Levered Core Bond mandate as recommended by
staff and Wilshire. 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. 25, 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 Jan. 25, 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 Jan. 25, 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 Jan. 25, 2017. Motion passed by unanimous vote
(Disability Committee).
- Approved the 2016 Employer Disability Experience
Report in the form presented to the Board on Jan. 25, 2017. Motion passed by
unanimous vote (Disability Committee).
- Approved the Administrative Rule
outlined in staff’s memorandum dated Jan. 24, 2017, and authorized the
required filing of the rule with the proper agencies. Motion passed by
unanimous vote (Benefits Committee).
- Approved the 2017 Annual Audit Plan
in the form submitted to the Board on Jan. 24, 2017. Motion passed by
unanimous vote (Administration/Audit Committee).
- Approved the 2016 Annual
Audit Report in the form submitted to the Board on Jan. 24, 2017. Motion
passed by unanimous vote (Administration/Audit Committee).
- Approved the
Government Affairs and Policy Committee Charter as amended in the
Administration/Audit Committee on Jan. 24, 2017. Motion passed by unanimous
vote (Administration/Audit Committee).
NEXT BOARD OF TRUSTEES MEETINGS: Feb 21-22, 2017