July 2012 Monthly Board Report

PENSION REFORM UPDATE
The Ohio House of Representatives is now considering Senate Bill 340, the pension reform bill that includes recommendations approved by the OP&F Board of Trustees in 2011. On July 11 the Ohio Retirement Study Council received an independent report on each of the Ohio retirement systems' recommendations. This report was presented again when the House began pension reform hearings on July 18. Rep. Schuring said his committee would hold hearings in July and August with the goal of bringing the bill to the House floor for a vote in September.

PRE-RETIREMENT SEMINARS SCHEDULED FOR OP&F MEMBERS
OP&F's annual pre-retirement seminars are scheduled and are designed to answer questions for members who are approaching retirement eligibility of considering enrolling in the Deferred Retirement Option Plan. The first seminar is scheduled for Sept. 10 in Dayton. A total of six seminars are scheduled around the state, ending with an Oct. 1 meeting in Columbus. Members are being notified by newsletter and mailed invitations. They can also register at OP&F's website.

PORTFOLIO UPDATE
OP&F's investment portfolio value:

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

• DISABILITY: The Committee/Board reviewed disability cases in addition to the regularly scheduled hearings and appeals. The Committee/Board also discussed the Disability Experience Report for the 2nd Quarter of 2012, reviewed the DEP physicians and survey results regarding the evaluators used throughout the state, and reviewed a staff memorandum on reducing post-employment eligibility period to file for disability.

• ADMINISTRATION/AUDIT: The Committee/Board reviewed reports from the Deputy Executive Director on OP&F operational internal activities and the Internal Auditor on the Fixed Asset Audit Report, Buck Consultants Site Visit Report, and the Internal Audit Schedule for 2012-13.

• BENEFITS: The Committee/Board reviewed materials on DROP statistics, including a breakdown of DROP participants by years of participation and dollar amounts accrued.

• HEALTH CARE: The Committee/Board reviewed and then discussed several items with representatives from UnitedHealthcare including Maintenance Drug Refill procedures. The Committee/Board also discussed Medicare Part D Attestation. Buck consultants presented an update on the development of 2013 health care costs and contributions.

• INVESTMENT: In addition to the monthly portfolio update, the Committee/Board heard presentations from Wilshire on Master Limited Partnerships, Mellon Capital and FX Concepts on their currency management accounts, a Timber investing refresher by Townsend and received the Manager Contribution Report for the first half of 2012.

Motions
At its July 2012 meeting, the OP&F Board of Trustees voted on the following motions:

• Approved the 2012 Strategic Real Estate Portfolio Rebalancing among five existing funds in OP&F's Strategic Portfolio. Motion passed by unanimous vote (Investment Committee).

• Approved the manager ratings for EARNEST Partners, FX Concepts and Mellon Capital Management as recommended by staff. Motion passed by unanimous vote (Investment Committee).

• Approved the manager ratings for the private markets managers as recommended by staff. Motion passed by unanimous vote (Investment Committee).

• Approved a recommendation to invest $25 million in Brookfield Brazil Timber Fund II, L.P. Motion passed with 5 ayes and 2 nays (Investment Committee).

• Approved the Investment Committee Charter, which outlines the Committee's purpose and responsibilities. Motion passed by unanimous vote (Investment Committee).

• Approved the Committee recommendations for the initial determination of disability for the 15 members as identified in the initial determination hearings list presented to the Board on July 24, 2012. Motion passed by unanimous vote (Disability Committee).

• Approved the 2012-2013 Health Care Committee Charter with no changes. Motion passed by unanimous vote (Health Care Committee).

• Approved the determination for reconsiderations for the 2 members identified. Motion passed by unanimous vote (Disability Committee).

• Approved the Disability Committee Charter. Motion passed by unanimous vote (Disability Committee).

• Approved the Benefits Committee Charter. Motion passed by unanimous vote (Benefits Committee).

Next Board of Trustees Meetings: September 25-26, 2012