Report on Executive and Policy Actions for June 2008

Board officers elected for 2008-2009 terms

William Deighton (retired, Cleveland Fire) was elected as the Vice Chair of the OP&F Board of Trustees, and Scott Maynor (active, Lyndhurst Fire) was elected Chair Elect during the June 2008 Board meetings. Kathy Harrell (active police, Cincinnati) currently serves the Board Chair, beginning a one-year term in that position. Maynor is scheduled to assume the position of Chair in June 2009.

External financial auditor provides OP&F with “clean” audit  

Annual reports now available online

Both the 2007 Comprehensive Annual Financial Report and the Popular Annual Report are now available online and can be downloaded at the OP&F Web site (www.op-f.org).  

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

·         The Administration/Audit Committee received Information Services report updates on several projects. The Internal Auditor report included an update on a site visit to the offices of OP&F’s real estate investment consultant to review its processes and controls and reported that the consultant has established a good system of high level controls. The Internal Auditor also informed the Committee of the 2008-09 Ethics Training Plan, which will comply with the Governor’s executive order.

·         In addition to the scheduled disability hearings and reviews, the Disability Committee discussed the American Medical Association Guides, 6^th Edition. The Committee also reviewed a letter to be sent to disability benefit recipients regarding new employment positions added to a list of those that could lead to termination of benefits. The meeting also included a discussion of the Death Fund process. The topic will be discussed further at a member agent training session to be held in September.

·         The OP&F Health Care Committee/Board of Trustees reviewed the 2007 Health Care Report, which will be submitted to the Ohio Retirement Study Council by the end of June. UnitedHealthcare (UHC) representatives attended the meeting to address several issues. While several of the issues discussed have been addressed, UHC will provide a list of all open issues and concerns. Open discussion during the meeting included a suggestion to mandate exit physicals as a way to identify potential Workers Compensation claims.

·         OP&F’s Benefits Committee discussed two new Administrative Rules before recommending adoption of the rules to the full Board.

·         In addition to the monthly portfolio update, the OP&F Investment Committee/Board of Trustees discussed the Asset Liability Study, the first quarter real estate performance review and the first quarter Net of Fees Performance Report. The Committee/Board also reviewed and selected finalists to be interviewed for the Market Neutral manager search. Interviews will be scheduled to follow the July 2008 Board meeting.

·         The OP&F Investment Committee/Board of Trustees also held a special meeting on June 9, 2008, to discuss developments and opinions concerning a policy to divest specific holdings in Iran and Sudan.  

Motions Approved:

At its June 25, 2008 meeting, the OP&F Board of Trustees passed the following motions:

·         Accepted the recommendations of staff and Wilshire to adopt the guideline revisions for the high yield managers, as discussed with the Board on June 24, 2008 (Investment Committee).

·         Accepted the rating recommendations of staff for the private market managers as outlined in Investment Staff’s memorandums to the Board dated June 24, 2008 (Investment Committee).

·         Adopted a resolution to be provided to the legislature in order to show the Board of Trustee’s good faith efforts to address divestment concerns (Investment Committee, June 9, 2008)

·         Approved the awards for the Initial Determination Hearings (IDH) for 19 members as identified in the IDH list presented to the Board on June 23, 2008. Member #13 is postponed for re-examination and disability benefits are denied for member #11 (Disability Committee).

·         Approved the awards for the appeal hearings for the two members identified in the disability appeals list presented to the Board on June 24, 2008, made no change in the grant for the members identified as member #1, #2, #3, #6 and #7, and disability benefits are denied for member #5 (Disability Committee).

·         Announced the determinations for the Death Fund Benefit for applicants identified (Disability Committee).

·         Approved the death benefits for Patrick Kearney’s eligible beneficiaries (Disability Committee).

·         Waived the mandatory medical evaluation and filing of annual earnings statements for future years for those members identified in the disability reporting waivers list presented to the Board on June 23, 2008, in accordance with the Policy on Waiver of Earnings Statement and Medical Evaluations (Disability Committee).

·         Adopted Administrative Rule 742-3-29/Mandatory Direct Deposit, in the form attached to staff’s memorandum dated June 23, 2008, authorized such other technical revisions to the Rule as are deemed necessary and appropriate by OP&F’s General Counsel, and authorized the required filing of the Rule with the proper agencies (Benefits Committee).

·         Approved changes to Administrative Rule 742-9-10/Employer Reporting Requirements, as outlined in staff’s memorandum dated June 23, 2008, authorized such other technical revisions to the Rule as are deemed necessary and appropriate by OP&F’s General Counsel, and authorized the required filing of the Rule with the proper agencies (Benefits Committee).

·         Approved the 2007 Health Care Report in the form presented to the Health Care Committee/Board on June 23, 2008, and authorized staff to forward the report to the appropriate public officials in accordance with Section 742.14 of the Ohio Revised Code (Health Care Committee/Board).

Last update: 7/2/2008