June 2015 Monthly Board Report
OP&F AGAIN RECEIVES CLEAN FINANCIAL AUDIT
An independent
audit firm has reviewed OP&F’s most recent financial statements and confirmed
that they accurately represent the financial positions of the system for the
fiscal years ending on Dec. 31, 2014 and 2013. The opinion also confirms that
OP&F’s financial reports are in accordance with generally accepted accounting
principles including new rules requiring a net pension liability and new
disclosures to be included within the financial statements. The independent
audit opinion from McGladrey is included in OP&F’s Comprehensive Annual
Financial Report, which is available online at op-f.org.
DESMOND TAKES
OVER AS OP&F BOARD CHAIR
Daniel Desmond (active fire, Toledo) became
chair of the OP&F Board of Trustees at its June meeting and will serve in that
capacity through May 2016. Desmond ran unopposed in the spring 2015 elections
and is beginning his first full four-year term as a trustee. Desmond has been
with the Toledo Fire and Rescue Department since 1989 and previously served with
the Sylvania Township Fire Department.
PORTFOLIO UPDATE
OP&F's investment portfolio value:
|
Current value (06/23): |
$14.7 billion |
|
End of May value: |
$14.8 billion |
|
End of April value: |
$14.9 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 was informed of the Annual
Earnings Statement mailing that occurred in June and received the Disability
Committee Schedule for 2015-16.
- HEALTH CARE: The Board received the Health Care
Committee schedule for 2015-16 and reviewed a tentative strategy timeline
for health care planning for the next four years. The Committee also
reviewed the Ohio Retirement Study Council Health Care Report for 2014.
UnitedHealthcare representatives provided updates to the Board on
prescription drug list changes, pharmacy data relating to OP&F’s plan
performance, and the Annual Change Period seminar schedule. The Board also
received a presentation from UnitedHealthcare and AARP on its health care
exchange options.
- BENEFITS: The schedule for the Benefits Committee was
reviewed for 2015-16 and the schedule, dates and locations for the
pre-retirement seminars were announced to the Committee.
- INVESTMENT: In addition to the monthly portfolio
update, the Committee/Board received several reports covering the first
quarter of 2015: the Real Estate Performance Review, the Manager Compliance
Review and the Private Markets and Timberland Reports. The Investment
Committee calendar for 2015-16 was also presented.
Motions: At its June 2015 meeting, the OP&F Board of Trustees voted on the following motions:
- Approved Townsend’s recommendation to adopt the Mid-Year Update to the
2015 Real Estate Investment Plan. Motion passed by unanimous vote
(Investment Committee).
- Approved Townsend’s recommendation to make no changes to OP&F’s
Strategic Real Estate Portfolio at this time. Motion passed by unanimous
vote (Investment Committee).
- Adopted the U.S. Equity structure described as “Portfolio C” on Page 9
of Wilshire Associates’ U.S. Equity Structure Analysis presentation dated
June 24, 2015. Motion passed by unanimous vote (Investment Committee).
- Approved Wilshire’s and Investment Staff’s recommendation to terminate
Columbia Threadneedle Investments, AQR Capital Management and Investcorp
Investment Advisers in keeping with the adoption of a new U.S. Equity
portfolio structure. Motion passed by unanimous vote (Investment Committee).
- Approved the manager rating for AQR, as presented by staff. Motion
passed by unanimous vote (Investment Committee).
- Approved staff’s and TorreyCove’s recommendation to commit $40 million
to RRJ Capital Master Fund III. Motion passed by unanimous vote (Investment
Committee).
- The Board approved a revision to the Investment Committee Charter, which
outlines the Committee’s purpose and responsibilities. Motion passed by
unanimous vote (Investment Committee).
- Approved the Committee recommendations for the initial determination of
disability for the 10 members as identified in the initial determination
hearings list presented to the Board on June 24, 2015. Motion passed by
unanimous vote (Disability Committee).
- Approved the Committee recommendation for reconsideration for the
members identified. Motion passed by unanimous vote (Disability Committee).
- Approved the recommendation for the appeal hearing for the member
identified in the appeals list presented to the Board on June 24, 2015.
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 June 24, 2015. Motion
passed by unanimous vote (Disability Committee).
- Approved the Disability Committee Charter as presented at the June 23,
2015 Disability Committee Meeting. Motion passed by unanimous vote
(Disability Committee).
- Approved the Finance Committee Charter as presented at the June 23, 2015
Finance Committee Meeting. Motion passed by unanimous vote (Finance
Committee).
- Approved the Health Care Committee Charter as presented at the June 23,
2015 Health Care Committee Meeting. Motion passed by unanimous vote (Health
Care Committee).
- Approved the Ohio Retirement Study Council Health Care Report for 2014
in the form presented on June 23, 2015. Motion passed by unanimous vote
(Health Care Committee).
- Approved Option 2 of the 2016 Health Care Rates as presented by Buck
Consultants on June 23, 2015. Motion passed by a vote for five for and one
abstention (Health Care Committee).
- Approved the Benefits Committee Charter as presented at the June 23,
2015 Benefits Committee Meeting. Motion passed by unanimous vote (Benefits
Committee).
Next Board of Trustees Meetings: August 25-26, 2015