Monthly Board Report

Board Report, November 2023

New actuarial study shows OP&F still complies with funding mandate

An independent actuarial firm presented its annual valuation of OP&F at the Board’s Nov. 1 meeting. The findings are as of Jan. 1, 2023 and show that, though not a reporting year, OP&F meets Ohio’s funding requirements for state retirement systems.

According to the study from Cavanaugh MacDonald, the funding period decreased from 28.07 years for the last valuation to 26.71 years. The funding period shows the time it will take to fully pay all pension obligations if assumptions in place are met. Ohio law requires state retirement systems to not exceed 30 years for the funding. The funded ratio increased from 69.7 percent as of Jan. 1, 2022 to 70.0 percent as of Jan. 1, 2023. The funded ratio is designed to show the amount of actuarial assets compared to the actuarial accrued liability. Without passage of House Bill 296 now under consideration, OP&F could exceed the required funding levels in 2025.

PORTFOLIO UPDATE

  • As of 10/30: $16.7 billion
  • End of September: $16.9 billion
  • End of August: $17.3 billion
  • Board of Trustees Committee Notes

    (Motions voted on by the Board are listed separately)

    DISABILITY: The Committee conducted its scheduled reviews and appeal hearings.

    FINANCE: OP&F’s independent actuary, Cavanaugh MacDonald, presented the Jan. 1, 2023 Actuarial Valuation and also the Jan. 1, 2023 Actuarial Solvency Projection of the Health Care Stabilization Fund.

    INVESTMENT: In addition to a review and discussion of the investment portfolio, real estate consultant Townsend discussed the real estate and real assets performances and portfolio reviews for periods ending June 30, 2023.

    ADMINISTRATION/AUDIT: The Committee reviewed the 2024 OP&F Communications Plan, and the Internal Audit Status Report. The Committee reviewed and approved the 2024 Audit Plan and changes to the Board Governance Policy. The Committee also received an update on OP&F’s Push-to-Paperless project aimed at employers who do not submit reports electronically.

    Motions:

    At its November 2023 meeting, the OP&F Board of Trustees approved the following motions:

  • The Board approved Wilshire’s recommendations relating to the Real Assets Benchmark. Motion passed by unanimous vote. (Investment Committee).
  • The Board approved Townsend’s recommendation to make no changes to the Real Estate Investment Policy. Motion passed by unanimous vote. (Investment Committee).
  • The Board approved Townsend’s proposed changes to the Real Assets Investment Policy. Motion passed by unanimous vote. (Investment Committee).
  • The Board approved Townsend’s proposed rating recommendations for OP&F’s real estate managers. Motion passed by unanimous vote. (Investment Committee).
  • The Board approved staff and Wilshire’s recommended rating for Dimensional Fund Advisors. Motion passed by unanimous vote. (Investment Committee).
  • The Board approved staff and Wilshire’s recommendation to adopt the 2024 Private Markets Investment Plan. Motion passed by unanimous vote. (Investment Committee).
  • The Board approved staff and Aksia’s recommendation to adopt the amended Private Markets Investment Policy and Guidelines. Motion passed by unanimous vote. (Investment Committee).
  • The Board approved changes to the Board Governance Policy Manual as presented, with one addition to the Communications Policy. Motion passed by unanimous vote. (Administration/Audit Committee).
  • The Board approved the 2024 Annual Audit Plan. Motion passed by unanimous vote. (Administration/Audit Committee).
  • The Board approved the following from the Disability Committee. Motions passed by unanimous vote:
    • Approved 10 Initial Determinations of Disability.
    • Approved one appeal hearing.
    • Approved the Disability Reporting Waivers list.

    NEXT BOARD OF TRUSTEES MEETINGS: Dec. 5-6, 2023

    Previous Reports

    Monthly Report For June 2024
    - Posted June 27, 2024
    Monthly Report For April 2024
    - Posted May 02, 2024
    Monthly Report For March 2024
    - Posted March 13, 2024
    Monthly Report for January 2024
    - Posted January 31, 2024
    Monthly Report for December 2023
    - Posted January 11, 2024
    Monthly Report for November 2023
    - Posted November 13, 2023
    Monthly Report for September 2023
    - Posted October 06, 2023
    Monthly Report for August 2023
    - Posted September 18, 2023
    Monthly Report for June 2023
    - Posted July 09, 2023
    Monthly Report for May 2023
    - Posted June 01, 2023
    Monthly Report for April 2023
    - Posted May 03, 2023
    Monthly Report for February 2023
    - Posted March 20, 2023
    Monthly Report for January 2023
    - Posted February 01, 2023
    Monthly Report for December 2022
    - Posted December 29, 2022
    Monthly Report for October 2022
    - Posted November 04, 2022
    Monthly Report for September 2022
    - Posted October 07, 2022
    Monthly Report for August 2022
    - Posted September 09, 2022
    Monthly Report for June 2022
    - Posted July 06, 2022
    Monthly Report for May 2022
    - Posted June 02, 2022
    Monthly Report for April 2022
    - Posted May 05, 2022
    Monthly Report for March 2022
    - Posted April 19, 2022
    Monthly Report for February 2022
    - Posted March 15, 2022
    Monthly Report for January 2022
    - Posted February 02, 2022
    Monthly Report for December 2021
    - Posted December 08, 2021
    Monthly Report for October 2021
    - Posted November 02, 2021
    Monthly Report for September 2021
    - Posted October 07, 2021
    Monthly Report for August 2021
    - Posted September 01, 2021
    Monthly Report for June 2021
    - Posted July 12, 2021
    Monthly Report for May 2021
    - Posted June 02, 2021
    Monthly Report for April 2021
    - Posted May 24, 2021
    Monthly Report for March 2021
    - Posted April 08, 2021
    Monthly Report for February 2021
    - Posted March 04, 2021
    Monthly Report for January 2021
    - Posted February 04, 2021



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