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:
|
Current value (11/19): |
$13.8 billion |
|
End of October value: |
$13.8 billion |
|
End of September value: |
$13.5 billion |
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.
Motions:
At its November 2013 meeting, the OP&F Board of Trustees voted on the following motions:
- 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