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:

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).