March 2016 Monthly Board Report
TRUSTEE RETREAT PROVIDES TIME FOR IN-DEPTH DISCUSSIONS
OP&F Trustees, staff and consultants gathered March 3-4 for the annual Board of
Trustees’ Retreat and while familiar topics were discussed, attendees focused on
long-term planning to address issues. The future of the OP&F retiree health care
plan, pension funding and investment strategies again were on the agenda.
Educating lawmakers and OP&F members of the issues facing the system were seen
as imperative actions in the coming months. The Board of Trustees Retreat once
again included valuable sessions and allowed for in-depth discussions that are
not possible during the regular monthly meetings.
PORTFOLIO UPDATE
OP&F's investment portfolio value:
|
Current value (3/29/16): |
$13.6 billion |
|
End of February value: |
$13.2 billion |
|
End of January value: |
$13.3 billion |
Board of Trustees Committee Notes
(Motions approved by the Board are listed separately)
- DISABILITY: In addition to the regularly scheduled
hearings and appeals, OP&F staff presented the 2015 HOST (Helping Our
Survivors in Transition) Experience Report, which showed that the program now
has 35 volunteers. The Committee also discussed presumptive disability grants
and how pre-existing conditions may impact disability decisions and overall
costs to OP&F.
- HEALTH CARE: In a presentation from AARP, the Committee
learned of a pilot program introduced in Ohio that provides telephone and
in-home support to high-risk members who are coping with multiple chronic
conditions. Member Services staff also presented information on topics from
the Board Retreat and discussed proposed timelines for potential changes to
the health care plan.
- FINANCE: The Committee was presented the 4th quarter
2015 Budget-to-Actual Report for 2015 and a report on the status of past due
employers. The Committee and staff also discussed the status of the State
Treasurer’s on-line checkbook project.The Treasurer’s office now has OP&F’s
data from 2014 and will receive the 2015 data once the external audit is
complete.
- INVESTMENT: In addition to the monthly portfolio
update, the Board received the Semi-Annual Proxy Voting Report for the
second half of 2015. The Board also received reports on Manager Compliance
for the 4th quarter of 2015 and the Private Markets and Timberland Reports
for the 4th quarter of 2015.
Motions: At its March 2016 meeting, the OP&F Board of Trustees voted on the following motions:
- Approved several revisions to the Investment Policy and Guidelines
statement as recommended by staff. Motion passed by unanimous vote
(Investment Committee).
- Approved several revisions to the Proxy Voting Policy to incorporate
recommendations by ISS, OP&F’s proxy voting advisor. Motion passed by
unanimous vote (Investment Committee).
- Approved Staff’s and Wilshire’s recommendation to invest in Blue
Mountain Credit Alternatives Fund through Flight I, which is managed by
Grosvenor Capital Management. Motion passed by unanimous vote (Investment
Committee).
- Approved Staff’s and TorreyCove’s recommendation to commit up to €31.2
million to Cinven Sixth Fund, L.P. Motion passed by unanimous vote
(Investment Committee).
- Approved Staff’s recommended manager ratings for Grosvenor Capital
Management, Neuberger Berman, and Russell Implementation Services Inc.
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 March 30, 2016. Motion passed by
unanimous vote, with the exception member #2, which passed by a vote of 5-2
(Disability Committee).
- Approved the recommendations for the appeal hearings for the members
identified in the appeals hearings list presented to the Board on March 30,
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 March 30, 2016. Motion
passed by unanimous vote (Disability Committee).
- Approved a motion to waive the one-year requirement for Board travel.
Motion passed by unanimous vote (Full Board).
- Approved trustee travel expenses as presented on March 29, 2016. Motion
passed by unanimous vote (Full Board).
Next Board of Trustees Meetings:
April 26-27, 2016