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:

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.

• 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