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:

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.

• 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