June 2012 Monthly Board Report

INDEPENDENT FIRM AGAIN GIVES OP&F ANOTHER CLEAN FINANCIAL AUDIT
The firm of Clark Schaefer Hackett has returned its financial audit opinion to OP&F and it contained no issues or concerns of any material nature. This “clean” audit opinion was received in June and presented to the Board at its June 27 meeting. The audit declared that all practices and statements were in order and appropriate for 2011. This audit opinion will also be filed with the Ohio Auditor of State.

MONTGOMERY CHAIRS OP&F BOARD FOR 2012-13
As of the June Board of Trustees meeting, Ed Montgomery (Columbus Police) is serving as the chair of the Board. This is his second time as the chair, having previously held the position in 2010-11. Montgomery just began his second term on the Board, having run unopposed for an active police position this spring. He was originally elected to the Board in 2008. Lawrence G. Petrick, Jr. (Shaker Heights Fire) served as the Board’s chair for the past year and has been a trustee since 2003. He has just commenced his third term as a trustee.

OP&F’s 2011 ANNUAL REPORTS AVAILABLE ONLINE
OP&F’s Comprehensive Annual Financial Report (CAFR) and its popular annual report are each complete and available online at op-f.org. The CAFR is a complete review of all financial statements from the past year, while the popular report reviews OP&F’s accomplishments in all areas and includes a financial review.

PORTFOLIO UPDATE
OP&F’s investment portfolio value:

• DISABILITY: The Committee reviewed disability cases in addition to the regularly scheduled hearings and appeals. The Committee also discussed the survivor benefits of Deferred Retirement Option Plan (DROP) participants.

• BENEFITS: The Committee reviewed materials on DROP withdrawal trends from June 2010 through May 2012. The Committee also discussed the DROP interest rate and also the current process for receiving the Election to enroll in DROP form.

• FINANCE: The Finance Committee reviewed and discussed the 1st Quarter 2012 Budget-to-Actual Report and the 1st Quarter Travel Expense Review. The Committee also reviewed the status of past due employers.

• HEALTH CARE: The Committee/Board reviewed and then discussed several items with representatives from UnitedHealthcare, including Annual Change Period presentation locations and questions remaining from the May Board meetings. The Committee/Board also received an update on the delivery of OP&F’s 2011 Health Care Report to the Ohio Retirement Study Council.

• INVESTMENT:  In addition to the monthly portfolio update, the Committee/Board participated in a presentation from Wilshire Associates on leverage. The Committee/Board also received the 1st Quarter Real Estate Performance Review and the 1st Quarter Net of Fees Performance Report.

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

• Approved the 2012 Real Estate Investment Plan Mid-Year Update, as described in consultant’s memorandum dated June 27, 2012. Motion passed with eight votes For and one abstention (Investment Committee).

• Approved a commitment of $50 million to Brookfield Timberlands Fund V. Motion passed with six votes For, two Against and one abstention (Investment Committee).

• Approved a commitment of $35 million to Advent International GPE VII. Motion passed unanimously (Investment Committee).

• Approved the 2013 dental and vision rates as described in UnitedHealthcare’s memorandum dated June 7, 2012. Motion passed unanimously (Health Care Committee).

• Approved the 2013 Discount Program and poverty level guidelines as described in staff’s memorandum dated June 27, 2012. Motion passed unanimously (Health Care Committee).

• Approved that staff enter into contract negotiations with UnitedHealthcare to extend the current agreement for administering OP&F’s integrated health care program on terms favorable and protective to OP&F as determined by the Executive Director. Motion passed Motion passed with seven votes For, two against (Health Care Committee).

• Approved the Committee recommendations for the initial determination of disability for the 22 members as identified in the initial determination hearings list presented to the Board on June 27, 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 June 27, 2012. Motion passed with one abstention and with three trustees voting Nay for member #4 (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 June 27, 2012. Motion passed unanimously (Disability Committee).

• Approved the Administrative Rules as outlined in staff’s memorandum dated June 26, 2012, and authorizes the required filing of the rules with the proper agencies. Motion passed unanimously (Benefits Committee).

Next Board of Trustees Meetings:July 24-25, 2012