October 2016 Monthly Board Report
REPORT SHOWS OP&F AGAIN MEETS STATE FUNDING REQUIREMENT
OP&F’s actuarial consultants have reported that the recently completed valuation
report shows that the system continues to meet the state’s funding requirement.
The report, which includes data through Jan. 1, 2016, shows a 29 year funding
period. Ohio requires a 30 year funding period. The funding ratio for OP&F
stands at 71.3 percent. The previous year’s valuation report showed OP&F with a
30 year funding period and a funding ratio of 70.8 percent. The report from Buck
Consultants also confirmed that the Deferred Retirement Option Plan (DROP)
continues to work as intended and requires no alterations to keep it
cost-neutral to OP&F.
FALL BOARD RETREAT SCHEDULED FOR NOV. 1
OP&F’s Board of Trustees will meet Tuesday, Nov. 1 for a one-day retreat at the
Blackwell Inn and Conference Center on the campus of Ohio State University. The
meeting will be open to the public and agenda topics include pension and health
care funding, long-term health care challenges facing the organization and the
2017 OP&F budget.
PORTFOLIO UPDATE
OP&F's investment portfolio value:
|
Current value (10/17/16): |
$14.2 billion |
|
End of September value: |
$14.4 billion |
|
End of August value: |
$14.4 billion |
Board of Trustees Committee Notes
(Motions approved by the Board are listed separately)
- DISABILITY: In addition to the regularly scheduled
hearings, the Committee received the Disability Experience Report for the
3rd quarter of 2016. Staff also updated the Committee on the number of
Annual Earnings Statements that are outstanding.
- BENEFITS: The Committee received the Deferred
Retirement Option Plan Experience Report for the 3rd quarter of 2016. The
Committee also discussed the recently concluded Annual Change Period
seminars, noting that attendance was more than 600.
- FINANCE: The Committee reviewed and discussed proposed
2017 department budgets and the 2017-19 Capital Budget during its meeting.
- ADMINISTRATION/AUDIT: The Committee received updates on
ongoing projects involving the Business and Technology Solutions Department
and received the Internal Audit status report.
- INVESTMENT: In addition to the monthly portfolio
update, the Board received the Semi-Annual Securities Lending Report and the
Semi-Annual Proxy Voting Report, both reports covered the first half of
2016.
Motions:
At its October 2016 meeting, the OP&F Board of Trustees voted on the following motions:
- Approved Staff and Wilshire’s recommendation to select Loomis Sayles and
Prudential to manage U.S. Levered Core Bond mandates. Motion passed by
unanimous vote (Investment Committee).
- Approved Townsend’s recommendation
to commit up to $50 million to the Brookfield Premier Fund. Motion passed by
unanimous vote (Investment Committee).
- Approved the manager ratings for
OP&F’s Real Estate Managers as recommended by the Townsend Group. Motion
passed by unanimous vote (Investment Committee).
- Approved Staff’s and
TorreyCove’s recommendation to commit up to $40 million to MBK Fund IV, L.P.
Motion passed by unanimous vote (Investment Committee).
- Approved staff’s
recommended manager ratings for Dimensional Fund Advisors, Franklin
Templeton, Pyramis Global and Bridgewater GIPS. Motion passed by unanimous
vote (Investment Committee).
- Approved staff’s recommendation to change
the policy index for Loomis Sayles and MacKay Shields (Opportunistic) from
the CSFB High Yield Index Developed Countries Only to the Merrill Lynch
Yield Master II Constrained Index. 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 Oct. 19, 2016.
Motion passed by unanimous vote. (Disability Committee).
- Approved the
Committee recommendation for reconsideration for the members identified in
the reconsideration hearings list presented to the Board on Oct. 19, 2016.
Motion passed by unanimous vote (Disability Committee).
- Approved the
Committee recommendations for appeal hearings for the members identified in
the appeals list presented to the Board on Oct. 19 2016. Motion passed by
unanimous vote with the exception of the vote for member #2, which passed by
a vote of 7-0 with one abstention (Disability Committee).
- Approved the
Committee recommendation for Death Fund benefits for the members identified.
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 Oct. 19, 2016. Motion passed by unanimous
vote (Disability Committee).
- Approved the Administrative Rules outlined
in staff’s memorandum dated Oct. 18, 2016 and authorized the required filing
of the rules with the proper agencies. Motion passed by unanimous vote
(Benefits Committee).
- Approved the Administrative Rules outlined in
staff’s memorandum dated Oct. 18, 2016 and authorized the required filing of
the rules with the proper agencies. Motion passed by unanimous vote
(Benefits Committee).
- Approved the 2016 OP&F Communications Plan for
submission to the Ohio Retirement Study Council in the form presented on
Oct. 18, 2016. Motion passed by unanimous vote (Administration/Audit
Committee).
BOARD OF TRUSTEES RETREAT: Nov. 1, 2016
NEXT BOARD OF TRUSTEES MEETINGS: Nov. 15-16, 2016