Monthly Board Report

FUNDING REPORT SHOWS OP&F REMAINS WITHIN STATE STANDARDS

During the October Board of Trustees meeting, OP&F’s actuarial consultant delivered the annual valuation report that included the system’s funding status as of Jan. 1, 2018. The report indicated that the funding period remains the same as last year, 28 years. OP&F continues to be compliant with Ohio’s funding requirement of a funding period of 30 years or less. The report also showed a slight improvement in the funded ratio from 2017, at 69.9 (compared to 69.8 last year).

A larger improvement was seen in the actuarial valuation for retiree health care funding. As of Jan. 1, 2018, OP&F’s health care fund is projected to remain solvent until late 2033. The Jan. 1, 2017 health care valuation projected solvency only until 2025. The improvement can be attributed to the transition to a stipend-based health care model for retirees, which will be implemented in January, replacing the self-insured group health care plan OP&F had for its retirees.

PORTFOLIO UPDATE

OP&F's investment portfolio value:

Board of Trustees Committee Notes
(Motions voted on by the Board are listed separately)

• DISABILITY: In addition to the regularly scheduled hearings and appeals, the Committee reviewed the Status of the Annual Earnings Statements report.
• BENEFITS: The Benefits Committee discussed the 3rd quarter Deferred Retirement Option Plan (DROP) Experience Report.
• GOVERNMENT AFFAIRS AND POLICY: The Committee heard updates and perspectives from its legislative consultant on the upcoming elections.
• INVESTMENT: In addition to the monthly portfolio performance update, the Board received the 2nd Quarter 2018 Real Estate Performance Report and the 2nd Quarter Real Assets Report. The Board also reviewed the Semi-Annual Proxy Voting Report for the period ended June 30, 2018. Also during the Investment Committee, the Board received an overview of the 2019 OP&F Operating Budget.
  

Motions:

At its October 2018 meeting, the OP&F Board of Trustees approved the following motions:

• Approved staff’s and Wilshire’s recommendation to commit up to $50 million to ArrowMark Global Opportunity Fund II. Motion passed by unanimous vote (Investment Committee).
• Approved staff’s and Wilshire’s investment manager rating recommendations for Dimensional Fund Advisors, Franklin Templeton and Bridgewater’s U.S. TIPS mandate. Motion passed by unanimous vote (Investment Committee).
• Approved Townsend’s recommendation to commit up to $125 million to AxInfra U.S. LP Fund. Motion passed by unanimous vote (Investment Committee).
• Approved Townsend’s recommendation to commit up to $50 million to Cortland Partners Growth & Income Fund. Motion passed by unanimous vote (Investment Committee).
• Approved Staff’s recommendation to accept the amended terms of MC Credit Fund I. 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. 24, 2018. 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. 24, 2018. Motion passed by unanimous vote (Disability Committee).
• Approved the Committee recommendation for reconsideration for the members identified in the reconsideration hearings list. 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 recommendation to waive 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. 24, 2018. Motion passed by unanimous vote (Disability Committee).
• Approved the Administrative Rules outlined in staff’s memorandum dated Oct. 23, 2018, and authorizes the required filing of the rules with the proper agencies. Motion passed by unanimous vote (Benefit Committee).
• Approved the Communications Plan for 2018-19. Motion passed by unanimous vote (Full Board).
• The Board voted to select Cavanaugh-Mcdonald as OP&F’s new actuarial consultant. Motion passed by unanimous vote (Full Board).
  
  

  NEXT BOARD OF TRUSTEES MEETINGS NOV. 13-14, 2018

  Posted 11/01/2018