April 2012 Monthly Board Report

ESTABROOK ANNOUNCES RETIREMENT EFFECTIVE DEC. 31
William J. Estabrook, Executive Director of the Ohio Police & Fire Pension Fund since 2001, has announced his retirement from a long career in public service effective Dec. 31. Estabrook informed the OP&F Board of Trustees of his decision on April 20, and informed employees on April 23. The Board of Trustees will lead a search for a new executive director. Details about the search are yet to be announced.

Estabrook joined OP&F as Executive Director in May 2001, and has been responsible for the strategic, financial and operational oversight of OP&F, as well as the financial viability for pension and health care benefits for nearly 55,000 active public safety officers, retirees and survivors. He also served as OP&F’s Interim Executive Director for a six-month period in 1997.

While under the leadership of Estabrook, the value of OP&F’s investment portfolio has grown from $8.7 billion to its current value in excess of $12 billion and has been among the best performing public pension portfolios in its peer universe.

PORTFOLIO UPDATE

OP&F’s investment portfolio value:

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

• DISABILITY: The Committee reviewed disability cases in addition to the regularly scheduled hearings and appeals. The Committee also received and discussed OP&F’s 1st Quarter 2012 Disability Experience Report.
• FINANCE: The Finance Committee reviewed and discussed the 4th Quarter 2011 Budget-to-Actual Report and the 4th Quarter 2011 Travel Expense Review. The Committee also discussed the status of past due employers.
• HEALTH CARE: The Committee/Board received an update from UnitedHealthcare on the prescription drug list and the AARP Medicare supplemental insurance plan subsidy.
• BENEFITS: The Benefits Committee received a quarterly report on the Deferred Retirement Option Plan showing new enrollments, average years in the program at termination and new payments made.
• INVESTMENT: In addition to the monthly portfolio update, the Committee/Board heard a report from the Townsend Group detailing the real estate portfolio’s performance for the period ending December 31, 2011. The Committee/Board heard a presentation by representatives from Bridgewater Associates regarding that firm’s view of the economy, as well as their economic and investment outlooks.
• ADMINISTRATION/AUDIT: The Committee received an update from OP&F’s Internal Auditor on several projects, including the Purchasing Audit Report, the Employee Financial Disclosure Statement Report and the status of the Fixed Asset Audit.

Motions Approved
At its April 2012 meeting, the OP&F Board of Trustees passed the following motions:

• Accepted staff’s investment manager rating recommendations for Earnest Partners, LLC, Loomis Sayles, JPMorgan-Chase, Western Asset Management, Bridgewater Associates, LP, Prima, and FX Concepts as outlined in staff’s memos to the Board dated April 25, 2012. Motion passed unanimously (Investment Committee).
• Approved the Committee recommendations for the initial determination of disability for the 13 members as identified in the initial determination hearings list presented to the Board on April 25, 2012. Motion passed unanimously (Disability Committee).
• Approved the determination for reconsiderations for the members identified. Motion passed unanimously (Disability Committee).
• Approved the recommendations for the appeal hearings for the six members as identified in the appeals list presented to the Board on April 25, 2012. Motion passed unanimously (Disability Committee).
• Approved the determination for Death Fund benefits for the members identified. Motion passed unanimously (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 April 25, 2012. Motion passed unanimously (Disability Committee).
• Approved the continuation of benefits for the disability benefit recipient identified in staff’s memorandum dated April 24, 2012, for the reasons outlined in that memorandum. Motion passed 6-1 (Disability Committee).
• Approved the Administrative Rules as outlined in staff’s memorandum dated April 25, 2012 and authorizes the required filing of the Rules with the proper agencies. Motion passed unanimously (Benefits Committee).
• Approved the Benefit Funding Policy as presented to the Board at the April 21, 2012 Board of Trustees annual retreat. Motion passed unanimously (full Board of Trustees).
• Approved the Administration/Audit Committee’s travel recommendations as presented and discussed in the Administration/Audit Committee on April 24, 2012. Motion passed unanimously (Administration Audit Committee).

NEXT BOARD OF TRUSTEES MEETINGS: MAY 29-30, 2012