March 2014 Monthly Board Report

DESMOND APPOINTED TO BOARD
Daniel Desmond, a Toledo firefighter and paramedic with more than 25 years of service, was appointed to the OP&F Board of Trustees on March 6. Desmond fills the active fire representative position vacated when Lawrence G. Petrick, Jr. resigned from the Board after retiring from active fire service. Desmond will serve until the spring of 2015, when he will be eligible to run for a full four-year term on the Board of Trustees..

Desmond has been with the Toledo Fire and Rescue Department since 1989 and previously served with the Sylvania Township Fire Department. He is also the vice president of the Toledo Firefighters Local 92. During his career Desmond has been awarded the Life Saving Achievement Award and decorated for a job-related incident.

TRUSTEE HELLER TO SERVE ON INVESTMENT ADVISORY BOARD
David Heller, the Governor’s representative to the OP&F Board of Trustees, has been asked to serve on the Alternative Investments Forum (AIF) Advisory Board. AIF is an independent economic think tank focused on institutional investment policy. Its mission is to foster education, communication and information exchange among institutional investors globally to help them achieve their investment objectives. Heller accepted the invitation.

PORTFOLIO UPDATE
OP&F's investment portfolio value:

Board of Trustees Committee Notes
(Motions approved by the Board are listed separately)

• DISABILITY: The Committee/Board reviewed disability cases in addition to the regularly scheduled hearings and appeals. The Committee/Board also discussed a memorandum regarding the reporting of potential disability fraud for two members.
• BENEFITS: The Committee discussed with staff the salary benchmark process. Also discussed was a mailing from AARP concerning members aging-in to Medicare as they approach age 65. The Committee requested that UnitedHealthcare provide copies to OP&F of mass mailings to members. Requested for the April meeting was information detailing what causes a member to lose health care coverage and that the next Deferred Retirement Option Plan (DROP) Experience Report show 10 years of data regarding the average time members remain in DROP.
• INVESTMENT: In addition to the monthly portfolio update, the Committee/Board received information on the Semi-Annual Proxy Voting Report. Several 4th quarter reports were also presented to the Board for informational purposes: Compliance Review, Net of Fees Performance Report, Timberland Report, and the Private Markets Report. The annual Manager Meetings Report was also included.

• Approved the updates to the Investment Policy and Guidelines as discussed on March 26, 2014. Motion passed by unanimous vote (Investment Committee).
• Approved Townsend’s recommendation to invest up to $50 million into Greystar Equity Partners VIII. Motion passed 6-1 with one abstention (Investment Committee).
• Approved staff’s recommendation to invest up to $100 million into MC Credit Fund I. Motion passed7-1 (Investment Committee).
• Approved manager ratings for AQR, Grosvenor, Russell Implementation Services and Neuberger Berman as recommended by staff. Motion passed by unanimous vote (Investment Committee).
• Approved the revisions to the Proxy Voting Policy as recommended by OP&F’s proxy voting advisor. Motion passed by unanimous vote (Investment Committee).
• Approved a revised OP&F Securities Litigation Policy as discussed with General Counsel. Motion passed by unanimous vote (Investment Committee).
• Approved the Committee recommendations for the initial determination of disability for the nine members as identified in the initial determination hearings list presented to the Board on March 26, 2014. Motion passed by unanimous vote for all but member number 1, which passed 6-1 (Disability Committee).
• Approved the determination for reconsiderations for the members identified. Motion passed by unanimous vote (Disability Committee).
• Approved the recommendations for the appeal hearings for the six members identified in the appeals list presented to the Board on March 26, 2014. Motion passed by unanimous vote for all but member number 5, which passed 5-2 (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 March 26, 2014. Motion passed by unanimous vote (Disability Committee).
• Approved the recommendations for Death Fund benefits for the members identified. Motion passed unanimously (Disability Committee).
• Approved the recommendation that the two disability benefit recipients outlined in staff’s memorandum dated March 25, 2014 be required to undergo medical evaluations for the reasons outlined in that memorandum. Motion passed unanimously (Disability Committee).
• Approved the travel recommendations as discussed during the Administration/Audit Committee meeting on March 25, 2014. Motion passed 6-0 with one abstention (Benefit Committee).
  

Next Board of Trustees Meetings: April 29-30, 2014