September 2017 Monthly Board Report
RETIREE HEALTH CARE CHANGE PERIOD BEGINS OCT. 1
The 2018 Annual Change Period runs from Oct. 1-31 and allows current
participants in the OP&F health care plans to verify their personal information,
apply for the health care discount, and enroll or waive dental and vision
coverage. UnitedHealthcare sponsors presentations at six locations around the
state to answer questions about the health care options available to members in
2018. The first meeting is in Akron on Oct. 3.
OP&F will continue to sponsor a group health care option for retirees in 2018.
The transition to health care exchanges will be for the 2019 plan year.
PORTFOLIO UPDATE
OP&F's investment portfolio value:
|
Current value (9/26/17): |
$15.3 billion |
|
End of August value: |
$15.3 billion |
|
End of July value: |
$15.3 billion |
Board of Trustees Committee Notes
(Motions approved by the Board are listed separately)
- DISABILITY: In addition to the regularly scheduled
hearings and appeals, the Committee reviewed a list of benefit recipients
who have not submitted an Annual Earnings Statement to date. If not
submitted by Dec. 8, these members may have their benefits suspended. The
Committee also heard a report from staff about the mandatory electronic
direct deposit of benefits, which went into effect of Aug. 1. Currently, 84
members have not signed up for direct deposit with their financial
institution.
- HEALTH CARE: The Committee received presentations from
three firms on plans for assisting OP&F in its health care transition and
their health care exchange models. The Board will seek additional
information and input before discussing again at its October meeting.
- INVESTMENT: In addition to the monthly portfolio
performance update, staff provided the Committee with the 2nd Quarter
Private Markets Report and the 2nd Quarter Real Assets Report for review.
The Committee learned that an approved change to the structure of the high
yield class will result in an expected savings of more than $500,000 in
investment manager fees.
-
GOVERNMENT AFFAIRS AND POLICY: The Committee received a legislative
update from Mr. Hewit and answered questions concerning proposed
legislation.
Motions:
At its
September 2017 meeting, the OP&F Board of Trustees voted on the following motions:
- Approved Wilshire’s recommended asset class rebalancing ranges to be
applied to OP&F’s new long-term asset allocation policy and to the interim
benchmark targets during the implementation period. Motion passed by
unanimous vote (Investment Committee).
- Approved Wilshire’s recommended
High Yield asset class structure. Motion passed by unanimous vote
(Investment Committee).
- Approved Wilshire’s recommended benchmark for
OP&F’s Private Credit asset class. Motion passed by unanimous vote
(Investment Committee).
- Approved Staff’s recommended investment manager
ratings for Bridgewater Global Macro, PENN Capital and MacKay Shields High
Yield Active Core. Motion passed by unanimous vote (Investment Committee).
-
Approved Staff’s recommended investment manager ratings for OP&F direct
lending managers, MC Credit Partners, GSO Capital Partners, KKR Lending
Partners II and Tennenbaum Enhanced Yield 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 Sept 27, 2017.
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 Sept. 27, 2017. 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).
- 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 Sept. 27, 2017. Motion passed by unanimous vote
(Disability Committee).
- Approved that OP&F absorb any increase in AARP
Medicare supplemental rates that may occur for the 2018 plan year. Motion
passed by unanimous vote (Health Care Committee).
- Approved several items
for Mr. Hewit to take to the legislature for consideration. Motion passed by
unanimous vote (Governmental Affairs and Policy Committee).
- Approved a
proposal to extend the maximum Deferred Retirement Option Plan participation
period to 10 years for Mr. Hewit to take to the legislature for
consideration. Motion passed by a vote of 8-1 (Governmental Affairs and
Policy Committee).
- Approved the re-adoption of the OPERS Salary Reduction
Pick-Up Plan. Motion passed by unanimous vote (Personnel Committee).
NEXT BOARD OF TRUSTEES MEETINGS: Oct. 24-25 , 2017