Report on Executive and Policy Actions for February 2010

February 2010 Monthly Board Report

OP&F REACTS TO PEW REPORT ON PENSIONS
The Pew research group recently released a report on the condition of public pensions across the U.S. that has received significant media attention. However OP&F feels the conclusions in the report are misleading and incomplete. Specifically, while the report graded each state on the health of its public pension plans, the data collected from Ohio only included three of the state’s five public retirement systems and did not include information from OP&F. OP&F is also concerned that the most recent data collected for the study was from mid-2008 – before the severe downturn in the investment markets. OP&F outlined its concerns in a letter to the Pew Center on the States.

TRUSTEE ELECTION: ACTIVE FIREFIGHTERS CANDIDATES MUST FILE BY APRIL 5
In May, active firefighter members of OP&F will elect a representative to the Board of Trustees for a four-year term. Active firefighters interested in running in this election must file their nominating petitions and a certificate of eligibility with OP&F. This information must be received at OP&F’s offices no later than 4 p.m. April 5 in order for the information to be verified. In early May ballots will be mailed to those eligible to vote in the election. These ballots must be returned by May 18 and the election results will be announced at the May Board of Trustees meeting.

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

• DISABILITY: In addition to the scheduled disability hearings and reviews, the Committee discussed psychological testing for mental health evaluations, the reporting of potential disability fraud and prohibiting disability awards for those convicted of felonies.
• HEALTH CARE: The Committee/Board of Trustees reviewed and discussed the 4th Quarter 2009 Health Care Stabilization Report. The Committee/Board also discussed pending health care legislation currently in Congress.
• INVESTMENT:  In addition to the monthly portfolio update, the Committee/Board was presented and discussed the 4th Quarter 2009 Performance Review. The Board/Committee also reviewed the Manager Compliance Review, the Private Markets Report, the Semi-Annual Securities Lending Report and the Semi-Annual Manager Contribution Report.

Motions Approved
At its February 2010 meeting, the OP&F Board of Trustees passed the following motions:

• Adopts the long-term asset allocation policy described as “Match Current Expected Return” on Page 7 of Wilshire Associate’s ALV Policies presentation document dated February 24, 2010 (Investment Committee).
• Accepted the rating recommendations of staff for Acadian, OP&F’s investment in AQR GAA Alphaport 500 Fund II, LP, Causeway, INTECH, Pyramis, Thornburg and Western Asset Management’s Enhanced Equity account as outlined in Investment staff’s memos to the Board dated February 24, 2010 (Investment Committee).
• Accepted the high yield manager’s guideline revisions as presented and further modified during discussions with staff and Wilshire Associates on February 24, 2010 (Investment Committee).
• Accepted Investment Staff’s recommendation to adopt the Private Markets Investment Policy in the form presented to the Board on February 24, 2010 (Investment Committee).
• Accepted recommendation by Investment Staff and consultant to commit up to $350 million to the private markets asset class for the period of February 24-December 31, 2010, subject to market conditions (Investment Committee).
• Approved the awards for the initial determination of disability for the 14 members as identified in the Initial Determination Hearings list presented to the Board on February 23, 2010 (Disability Committee).
• Approved the awards for the appeal hearings for the four members identified in the disability appeals list presented to the Board on February 23, 2010 (Disability Committee).
• Approved the determination for Death Fund benefit reconsideration hearings for the members identified (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 February 23, 2010, in accordance with policy on Waiver of Earnings Statement and Medical Evaluations (Disability Committee).
• Terminated the disability benefits for those disability benefit recipients identified in the list presented to the Board on February 24, 2010 (Disability Committee).

Next Board of Trustees Meetings:March 30-31, 2010

Last update: 3/4/2010