November 2013 Monthly Board Report

OP&F WORKING WITH OTHER OHIO SYSTEMS TO PREPARE FOR NEW ACCOUNTING STANDARDS
Ohio’s five public retirement systems are working together to prepare for new rules adopted by the Government Accounting Standards Board (GASB) that will affect how public employers are required to report pension liabilities. Retirement systems have always disclosed pension liabilities in their financial reports.

Beginning with the fiscal 2014 reporting year, municipalities will also be required to recognize these liabilities in financial statements since they are the employers of those who will receive the pension benefits. The reporting of these liabilities on the employers’ financial statements impacts only the accounting and reporting requirements. It does not shift any funding responsibility to the employer.

These complex new accounting standards are required for 2014 fiscal year-end financial statements. The objective for Ohio’s retirement systems is to educate elected officials, public employers and the media so there is a better understanding of the new requirements.

DECEMBER BOARD MEETING DATES
As in previous years, the OP&F Board of Trustees will hold its monthly meeting earlier than usual in December to avoid conflicts with the holiday season. The meetings will be Tuesday, Dec. 17 and Wednesday, Dec. 18.

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 timeline of the disability benefit process and received an update on the disability fraud hotline, which is a part of the 2014 budget. The Committee/Board received an update on the Annual Earnings Statements and was notified that letters and travel vouchers were mailed to volunteers in the Helping Our Survivors in Transition program.

• BENEFITS: The Committee received the Deferred Retirement Option Plan (DROP) monthly statistics and discussed participation trends in the program.

• INVESTMENT: In addition to the monthly portfolio update, the Committee/Board received a presentation from its general investment consultant, Wilshire Associates, on OP&F’s 3rd quarter investment performance results.
  
  
• HEALTH CARE: The Committee/Board received an update on the Health Care Stabilization Fund and an update from UnitedHealthcare representatives concerning the following topics: Prescription Drug List changes as of Jan. 1, 2014; coverage and costs associated with shingles vaccine coverage; attendance at the Annual Change Period presentations and the 2014 Pharmacy Clinical Programs.
  
  
• FINANCE: The Finance Committee discussed the proposed 2014 Finance Department and Capital Budgets.
  

• Approved the recommended technical revisions to the Real Estate Strategic Plan as presented to the Board on Nov. 20 2013. Motion passed by unanimous vote (Investment Committee).
• Approved Townsend’s recommendation to invest $50 million in the real estate fund, Exeter Industrial Value Fund III. Motion passed by unanimous vote (Investment Committee).
• Approved Investment Staff’s recommendation to invest $50 million in the private markets fund, The Resolute Fund III. Motion passed by unanimous vote (Investment Committee).
• Approved Investment Staff’s recommended manager ratings for Columbia Asset Management and State Street Global Advisors. Motion passed by unanimous vote (Investment Committee).
• Approved Investment Staff’s recommended changes to the investment guidelines for the Bridgewater Global Inflation-Protected Securities portfolio. Motion passed by unanimous vote (Investment Committee).
• Approved the Committee recommendations for the initial determination of disability for the 13 members as identified in the initial determination hearings list presented to the Board on Nov. 20, 2013. Motion passed by unanimous vote (Disability Committee).
• Approved the recommendations for the appeal hearings for the seven members identified in the appeals list presented to the Board on Nov. 20, 2013. Motion passed by unanimous vote (Disability Committee).
• Approved the recommendations for Death Fund benefits for the members identified. Motion passed unanimously (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 Nov. 20, 2013. Motion passed by unanimous vote (Disability Committee).
• Approved the Finance Committee recommendation to move the 2014 Annual Budget to the Board for approval in the form submitted to the Board of Trustees on Nov. 20, 2013. Motion passed by unanimous vote (Finance Committee).
• Approved a motion for Mr. Wainscott to attend the Opal Financial Public Funds Summit in Scottsdale, Arizona on Jan. 7-9. Motion passed by unanimous vote (Health Care Committee).
• Approved the 2014 Medicare Part B reimbursement at the 2014 level of $104.90. Motion passed by unanimous vote (Benefits Committee).
• Approved the changes to the Administrative Rules as outlined in staff’s memorandum dated Nov. 19, 2013, and authorizes the required filing of the rule with the proper agencies. Motion passed by unanimous vote (Benefits Committee).
  
  

Next Board of Trustees Meetings: Dec. 17-18, 2013