May 2018 Monthly Board Report

MOORE PASSES GAVEL TO PATTON AS BOARD CHAIR CHANGES

Jeffrey Moore (West Chester Fire) presided over his last Board of Trustees meeting as Chair in May. Although he has another year left on his term as a trustee, his one-year term as chair ended at the May meeting. Moore led the Trustees through 2017-18 during a time that saw approval of a new retiree health care model (which will be effective Jan. 1, 2019) and the approval of a new assumed rate of return for the investment portfolio (moving from 8.25 percent to 8.0 percent).

Timothy Patton (Cleveland Police) will assume the chairman’s position in June and preside for the next year, beginning with the June 19-20 meetings.

BOARD REPORT TO BE EMAIL NEWSLETTER IN 2018

OP&F expects to transition to an email-only delivery of the Board Report newsletter during 2018. To continue to receive the Board Report, forward your email address to: dgraham@op-f.org.

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, the Committee discussed the Report of Potential Disability Fraud along with the facts and resolution of the case.
• FINANCE: The Committee reviewed the first quarter 2018 Budget-to-Actual Report and discussed the status of past due employer contributions. A report was provided to the Committee on operation of 140 E. Town Street (OP&F headquarters). The Finance Committee Charter and 2018-19 schedule were also presented during the meeting.
• HEALTH CARE: The Committee reviewed the Health Care Stabilization Report for the first quarter of 2018 and also discussed a memo regarding the OP&F health care discount program and poverty level guidelines for 2019. A representative from Aon presented information to the Board on the retiree health care transition project and timeline, as well as the Health Reimbursement Account process. The Board allowed questions from retirees in attendance at the meeting and these were answered from the Aon representative, trustees and OP&F staff.
• INVESTMENT: In addition to the monthly portfolio performance update, the Board received the Investment Performance Report from its consultant, Wilshire Associates, for the first quarter of 2018. The Manager Fee Report was also provided to the Board for review.
• GOVERNMENTAL AFFAIRS & POLICY: OP&F’s legislative consultants briefed the Committee on items of interests concerning the Ohio General Assembly and discussed legislation introduced regarding OP&F.
  
  Motions:
  At its May 2018 meeting, the OP&F Board of Trustees voted on the following motions:
• Approved staff’s recommendation for the new Flight Fund structure and granted Staff discretion to approve future changes to the Flight Fund structure as long as it consists of only Grosvenor-managed funds and Grosvenor-approved portfolio funds. Motion passed by unanimous vote (Investment Committee).
• Approved staff’s and TorreyCove’s recommendation to commit up to $30 million to Littlejohn Fund VI, LP. Motion passed by unanimous vote (Investment Committee).
• Approved staff’s and Wilshire’s investment manager rating recommendation for PIMCO’s core fixed income mandate. Motion passed by unanimous vote (Investment Committee).
• Approved staff’s recommendation to include Arrowstreet’s ACWI ex-U.S. Group Trust as an investment option for OP&F’s non-U.S. Equity Investment mandate. Motion passed by unanimous vote (Investment Committee).
• Approved Townsend’s rating recommendations for OP&F’s Real Assets managers. 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 May 23, 2018. Motion passed by unanimous vote,
• with the exception of members identified as #1 and #4, which passed by a vote of 7-1 (Disability Committee).
• Approved the Committee recommendation for reconsideration for the members identified in the reconsideration hearings list presented to the Board on May 23, 2018. 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 May 23, 2018. (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 May 23, 2018. Motion passed by unanimous vote (Disability Committee).
• Approved the revised stipend amounts proposed in the GRS presentation dated April 24, 2018, pending confirmation by OP&F’s actuary. Motion passed by unanimous vote (Health Care Committee).
• Approved final revised stipend amounts for the retiree health care plan. Motion passed by unanimous vote (Health Care Committee).Approved the delayed transition of the non-AARP Medicare population until July 1, 2019. Motion passed by unanimous vote (Health Care Committee).
• Approved the Finance Committee Charter as presented on May 22, 2018. Motion passed by unanimous vote (Finance Committee).
  

  NEXT BOARD OF TRUSTEES MEETINGS JUNE 19-20, 2018

  Posted 5/31/2018