Monthly Board Report

Funding status improves according to independent actuarial report

OP&F’s actuarial consultant presented the annual actuarial valuation at the Oct. 27 Board of Trustees meeting and results showed continued improvement to the system’s long-term funding. The funding period is now down to 25 years, an improvement from 28 years in last year’s report. The funding period estimates the amount of time it will take to pay off all unfunded liabilities. Ohio has a 30 year funding rule that retirement systems must remain below. The funding ratio increased to 71.2 percent from 69.7 percent (representing the system’s assets to its liabilities). All data in the valuation presented is from Jan. 1, 2021. Despite the improvements to long-term funding, lower capital market returns have been predicted, which OP&F must consider when looking to adjust actuarial assumptions.

Additionally, it was reported at the Board meeting that the OP&F investment portfolio reached an all-time high value at $19.03 billion as of Oct. 26, 2021. Estimated investment returns so far in 2021 are approximately 13.3 percent, above the 8.0 target return for the portfolio.

As a part of the valuation study, Cavanaugh Macdonald also studied the solvency of the OP&F Health Care Stabilization Fund. As of Jan. 1, 2021, OP&F’s health care reserves are expected to last until December 2037.

PORTFOLIO UPDATE

OP&F’s investment portfolio value:

  • Current value (10/26/21): $19.0 billion
  • End of September value: $18.6 billion
  • End of August value: $18.9 billion

Board of Trustees Committee Notes

(Motions voted on by the Board are listed separately)

  • DISABILITY: The Committee conducted its scheduled initial determination and appeal hearings.
  • FINANCE: The Finance Committee reviewed the 2022 Total Plan Assets Budget. OP&F’s actuary, Cavanaugh Macdonald presented the Jan. 1, 2021 Actuarial Valuation to the Board (see above).
  • INVESTMENT: Staff discussed the month-end portfolio values, significant cash movements and investment performance. OP&F consultant, Townsend, presented the Real Estate and Real Assets Performance Reviews for periods ended June 30, 2021.

Motions:

At its October 2021 meeting, the OP&F Board of Trustees approved the following motions:

  • Approved Townsend’s recommended ratings for OP&F’s real estate investment managers. Motion passed by unanimous vote (Investment Committee).
  • Approved staff’s and Aksia/TorreyCove’s recommendation to commit up to $10 million to GTCR Strategic Growth Fund I, L.P. Motion passed by unanimous vote (Investment Committee).
  • Approved staff’s and Wilshire’s recommended rating for Dimensional Fund Advisors. Motion passed by unanimous vote (Investment Committee).
  • Approved the 2022 Annual budget in the form submitted to the Board of Trustees on Oct. 27, 2021. Motion passed by unanimous vote (Full Board).
  • Approved the following from the Disability Committee:
    • The recommendations for five Initial Determination Hearings and two were denied.
    • The recommendations for the four Death Benefit Fund cases.
    • The recommendations for the five Appeal Hearings.
    • Waivers for mandatory medical evaluations and future filing of annual earnings statements for the members listed.

NEXT BOARD OF TRUSTEES MEETINGS: Nov. 30-Dec. 1, 2021

Posted 11/2/2021

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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