November 2015 Monthly Board Report

BOARD OF TRUSTEES APPROVES 2016 OPERATING BUDGET

The 2016 budget process concluded when the Ohio Police & Fire Pension Fund (OP&F) Board of Trustees approved the operating budget for the coming year during its meeting on Nov. 18. The total operating budget of $65.91 million is just 0.8 percent above the 2015 budget. Also approved is the rolling three-year capital improvements budget for the years 2016-18. This budget of $4.6 million includes capital improvements to the offices of OP&F, equipment, computer hardware and software.

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 Disability Committee received a report detailing members who have not submitted an annual earnings statement. The Committee also discussed ideas to improve the process for preparing disability case files.
• HEALTH CARE: The Health Care Committee received an overview of the Health Care Stabilization Fund for the 3rd quarter of 2015. UnitedHealthcare representatives provided information on Annual Change Period participation, changes to the Prescription Drug List as of Jan. 1, 2016 and the move from the current specialty pharmacy to BriovaRx. Also discussed was the topic of rising psychological disability claims among public safety plans which was a topic at the recent National Conference on Public Employee Retirement Systems meetings.
• FINANCE:  The Committee received the 2016 Total Plan Assets Budget for review and discussion.
• INVESTMENT: In addition to the monthly portfolio update, the Board received and discussed the 3rd Quarter Investment Performance Review, presented by Wilshire Associates.

• Approved the Real Estate Strategic Plan as recommended by the Townsend Group. Motion passed by unanimous vote (Investment Committee).
• Approved Investment Staff’s and TorreyCove’s recommendation to invest up to $50 million in Advent International GPE VIII. Motion passed by unanimous vote (Investment Committee).
• Approved Investment Staff’s recommended manager ratings for State Street Global Advisors and Western Asset Short Term. Motion passed by unanimous vote (Investment Committee).
• Approved the travel expenses for three Board members to conduct a due diligence visit to Bridgewater Associates. 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 Nov. 18, 2015. Motion passed by unanimous vote (Disability Committee).
• Approved the recommendation for the appeal hearing for the members identified in the appeals hearings list presented to the Board on Nov. 18, 2015. 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).
• Approved the Committee’s recommendation for dependent disabled child benefits for the member’s requesting these benefits. 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 Sept. 30, 2015. Motion passed by unanimous vote (Disability Committee).
• Approved the 2016 Annual Budget in the form submitted to the Board of Trustees on November 18, 2015. Motion passed by unanimous vote (Full Board).
• Approved the 2015 OP&F Communications Plan for submission to the Ohio Retirement Study Council in the form presented on Nov. 18, 2015. Motion passed by unanimous vote (Full Board).
• Approved a renewal of the administrative services agreement with UnitedHealthcare on terms favorable and protective to OP&F. Motion passed by unanimous vote (Full Board).
  

Next Board of Trustees Meetings: Dec. 15-16, 2015