October 2014 Monthly Board Report
ACTUARIAL VALUATION SHOWS CONTINUED IMPROVEMENT IN PENSION FUNDING
OP&F’s most recent annual actuarial valuation indicates that pension reform and
additional changes put in place by the Board of Trustees is working as intended
to strengthen long term funding. The funding ratio for OP&F improved from 64.2
percent in last year’s study to 66.7 percent as of Jan. 1, 2014. The funding
period is now 33 years, just barely outside the state’s 30-year requirement. The
funding period improved 14 years from the 2013 valuation (47 years). The
valuation study was presented by OP&F’s independent actuary, Buck Associates, at
the Oct. 29 Board meeting and included assets and liabilities through Jan. 1,
2014.
WEST CHESTER’S MOORE APPOINTED TO VACANT TRUSTEE POSITION
Jeffrey Moore, a West Chester Township firefighter and paramedic since 2000, was
appointed to the Ohio Police & Fire Pension Fund Board of Trustees on Oct. 28.
Moore fills the active fire representative position vacated when David Witner
resigned from the Board after retiring from active fire service. Moore will
serve until the spring of 2015, when he will be eligible to run for a full
four-year term on the Board of Trustees.
In addition to his full time
position with the West Chester Township Fire Department, Moore has served as
president of the West Chester Professional Fire Fighters Local 3518 of the
International Association of Fire Fighters since 2004, and previously served as
its secretary and treasurer. He has served as a member of the West Chester
Township Health Care Committee since 2006.
PORTFOLIO UPDATE
OP&F's investment portfolio value:
|
Current value (10/28): |
$14.3 billion |
|
End of September value: |
$14.4 billion |
|
End of August value: |
$14.7 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 discussed the 3rd quarter 2014 Disability Experience Report
and also the status of Annual Earnings Statements..
- BENEFITS: The Benefits Committee received the 3rd
quarter 2014 Deferred Retirement Option Plan Experience Report during its
meeting.
- INVESTMENT: In addition to the monthly portfolio
update, the Committee/Board heard presentations from direct lending and
private markets managers.
Motions: At its October 2014 meeting, the OP&F Board of Trustees voted on the following motions:
- Approved the Nominating Committee recommendation to appoint Jeffrey H.
Moore, a full-time firefighter with the West Chester Township Fire
Department, to fill the vacant Active Firefighter position on the Board
(Full Board).
- Approved staff and Wilshire’s recommendation to commit up to $75 million
to KKR Lending Partners II. Motion passed by unanimous vote (Investment
Committee).
- Approved staff and Wilshire’s recommendation to commit up to $75 million
to GSO European Senior Debt Fund. Motion passed by unanimous vote
(Investment Committee).
- Approved staff and Torrey Cove’s recommendation to commit up to $40
million to Francisco Partners IV. Motion passed by unanimous vote
(Investment Committee).
- Approved staff and Torrey Cove’s recommendation to commit $40 million to
Black Diamond Capital Management Opportunity Fund IV. Motion passed by
unanimous vote (Investment Committee).
- Approved the manager ratings for OP&F’s real estate managers as
recommended by Townsend. Motion passed by unanimous vote (Investment
Committee).
- Approved staff’s recommended manager ratings for OP&F’s international
small-cap managers and the PIMCO fixed income mandate. Motion passed by
unanimous vote (Investment Committee).
- Approved the Committee recommendations for the initial determination of
disability for the seven members as identified in the initial determination
hearings list presented to the Board on Oct. 29, 2014. Motion passed by a
vote of 7-0 with one abstention for six of the seven members. The
determination for member #3 passed 4-3 with one abstention (Disability
Committee).
- Approved the recommendations for the appeal hearings for the five
members identified in the appeals list presented to the Board on Oct. 29,
2014. Motion passed by a vote of 7-0 with one abstention (Disability
Committee).
- Approved the recommendations for Death Fund benefits for the members
identified. Motion passed by a vote of 7-0 with one abstention (Disability
Committee).
- Approved the determination for Death Benefit Fund and Death Benefit Fund
reconsideration hearings for the members identified. Motion passed by a vote
of 7-0 with one abstention (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 Oct. 29, 2014. Motion
passed by a vote of 7-0 with one abstention (Disability Committee).
- Approved the 2015 Medicate Part B reimbursement at the 2014 level of
$104.90. Motion passed by unanimous vote (Benefits Committee).
- Approved trustee travel recommendations as presented on Aug. 26, 2014.
Motion passed by unanimous vote (Full Board).
- Approved the submission of OP&F’s Actuarial Pension Valuation and the
Health Care Valuation (GASB 43) as of Jan. 1, 2014 to the Ohio Retirement
Study Council as presented by Buck Consultants. Motion passed by unanimous
vote (Full Board).
- Approved the movement of the 2015 department and capital budgets to the
November Finance Committee as presented to the Board on Oct. 29, 2015.
Motion passed by unanimous vote (Full Board).
Next Board of Trustees Meetings: Nov. 18-19, 2014