Auditor of State Mary Taylor�s office presented OP&F with an award for financial reporting following its fiscal year 2006 audit. Lawrence G. Petrick, Jr., Chair of the OP&F Board of Trustees, accepted the award during the Tuesday, April 29 Board meeting.

�The Ohio Police and Fire Pension Fund is truly dedicated to fiscal accountability. I commend Ohio Police and Fire Pension Fund officials for their hard work and encourage them to continue their commitment to efficient financial record keeping,� said Ohio Auditor of State Taylor. Certain criteria must be met to receive the �Making Your Tax Dollars Count� award. Standards include:

The entity must complete and submit a Comprehensive Annual Financial Report (CAFR).
There must be no findings or issues present in the audit report.
There must be no other financial concerns involving the entity.

Fewer than five percent of all Ohio government agencies are eligible for the award.

Ballots in the mail for 2008 trustee elections

Ballots for the 2008 OP&F Board of Trustee Elections were mailed by Monday, May 5. One of the two active police positions on the Board will be elected in May, with eligible members electing either incumbent Edward Montgomery (Columbus police) or Scott Huff (Cleveland police). Although terms for three positions on the Board will expire on June 1, incumbent trustees William Gallagher (retired police, Cleveland) and Lawrence G. Petrick (active fire, Shaker Heights) each ran unopposed.
Ballots for the active police election must be returned to OP&F�s election administrator by 4 p.m., Tuesday, May 20. Results will be announced on May 27. Eligible active members may choose to mail in their completed ballots or use the telephone voting option available this year through OP&F�s election administrator. Complete instructions on telephone voting are included with the ballot.

Consultant confirms cost neutrality of OP&F DROP

An actuarial analysis of OP&F�s Deferred Retirement Option Plan (DROP) has confirmed that the program has not had a negative financial impact on the system and in fact remains cost-neutral. The report examined DROP from its implementation on January 1, 2003 through January 1, 2007. Legislation creating DROP required that a report examining its financial impact be undertaken at least every five years. OP&F�s DROP was created through the adoption of Ohio House Bill 134 in 2002.

May Board meeting dates

Due to the Memorial Day holiday, the May 2008 Board of Trustee meetings will take place on Wednesday, May 28 and Thursday May 29. Committee meetings will be held on Tuesday, May 27.

Board of Trustee Committee Notes: (Actions approved by the Board are listed separately)

In addition to the scheduled disability hearings and reviews, the Disability Committee discussed the purpose of OP&F�s Annual Earnings Statement process and reviewed the 1st Quarter Disability Experience Report.

The OP&F Health Care Committee/Board of Trustees meeting reviewed the outline of a plan presented by UnitedHealthcare designed to resolve existing customer service issues and other concerns. The Committee/Board also discussed with UHC representatives ongoing issues, including updated enrollment numbers. The Committee/Board also listened to a report concerning the double-billing of nine members for health care contributions.

OP&F�s Benefits Committee reviewed salary spiking as an initial step toward protecting OP&F from the impact of exceptional earnings in a member�s final years before retirement.

The OP&F Finance Committee reviewed the 4th Quarter 2007 Budget to Actual Report.

In addition to the monthly portfolio update, the OP&F Investment Committee/Board of Trustees reviewed and discussed its Asset Liability Study and Private Markets Report.

Motions Approved:

At its April 30, 2008 meeting, the OP&F Board of Trustees passed the following motions:

Accepted rating recommendations of staff for Chicago Equity Partners. Bridgewater Associates, Lehman Brothers, Loomis Sayles, JP Morgan Chase Investment Advisors, Western Asset Management, Quadrant Real Estate Advisors and Prima Capital Advisors, as outlined in staff�s memos to the Board dated April 29, 2008 (Investment Committee).

Accepted staff�s recommendations to invest $15 million in Abbott Capital Private Equity Fund VI and $10 million in Riverside Capital Appreciation Fund V, upon the terms outlined in staff�s memo dated April 29, 2008 and such other terms favorable or protective to OP&F, as determined by the Executive Director (Investment Committee).

Accepted the recommendation of staff to adopt the suggested changes, additions and revisions to the Proxy Voting Policy in the form presented to the Board on April 5, 2008, and authorizes Risk Metrics to proceed with voting proxies in accordance with such revised policy, effective April 14, 2008 (Investment Committee).

Approved the awards for the Initial Determination Hearings (IDH) for 17 members identified on the IDH list presented to the Board on April 28, 2008. Disability benefits are denied for member #3 (Disability Committee).

Approved the awards for the Disability Appeal Hearings for the three members identified on the appeals list presented to the Board on April 29, 2008. No change is made in the grant for the members identified as member #3, #4, #6, #8 and #9, and member #7 is postponed for re-examination (Disability Committee).

Approved the awards for the Death Benefit Fund for eligible applicants (Disability Committee).

Waived the mandatory medical evaluations and filing of annual earnings statements for future years for those disability recipients identified in the list presented to the Board on April 28, 2008 (Disability Committee).

Approved the changes to Administrative Rule 742-3-05, Disability Benefits Procedure, in the form presented to the Board on April 29, 2008, authorizes such other technical revisions to the Rule as are deemed necessary and appropriate by OP&F�s General Counsel, and authorizes the required filing of the Rule with the proper agencies (Disability Committee).

Approved five DROP rules outlined in staff�s memo dated April 28, 2008 with no change made for the reason outlined in staff�s memo and authorized the required filing of these rules with the proper agencies (Benefits Committee).

Approved the changes to Administrative Rule 742-5-03, Contributing Service Credit, in the form presented to the Board on April 28, 2008, authorizes such other technical revisions to the Rule as are deemed necessary and appropriate by OP&F�s General Counsel, and authorizes the required filing of the Rule with the proper agencies (Benefits Committee).

Approved the changes to Administrative Rule 742-9-11, Penalties for employer�s failure to file the report of employee deductions in a format approved by OP&F, in the form presented to the Board on April 28, 2008, authorizes such other technical revisions to the Rule as are deemed necessary and appropriate by OP&F�s General Counsel, and authorizes the required filing of the Rule with the proper agencies (Benefits Committee).

Approved the recommendation to implement a salary cap formula to address salary spiking presented in staff�s memo dated April 28, 2008, and authorized staff to draft proposed language for legislative action (Benefits Committee).

Approved the submission of OP&F�s DROP Neutrality Study as of January 1, 2007 to the Ohio Retirement Study Council and standing committees of the Ohio House and Senate in the form presented by Buck Consultants on April 29, 2008 (Full Board).