Report on Executive and Policy Actions for June 2009

June 2009 Monthly Board Report

MAYNOR ASSUMES BOARD CHAIR
The June Board of Trustees meeting served as Scott Maynor’s (Lyndhurst Fire) first as Chair of the Board after serving as Chair Elect for the past year. Maynor was originally elected as an active firefighter member of the Board in 2006. Kathy Harrell (Cincinnati Police) served as the Board’s Chair for the past year and remains an active police member of the Board.

REINHARDT JOINS BOARD AS TREASURER’S APPOINTEE
Jack Reinhardt, Jr., of Powell, the former Chief Executive Officer of the Central Benefits Insurance Company, has been appointed an investment expert member of the OP&F Board of Trustees by Ohio Treasurer of State Kevin Boyce. Reinhardt’s term officially began on May 28 and will expire in 2013. Reinhardt is one of three investment expert members of the OP&F Board. Others include Robert Baker (Cleveland) who was appointed by Governor Ted Strickland, and David Heller (Cleveland) appointed jointly by the Ohio Speaker of the House and Senate President.

GALLAGHER ELECTED VICE CHAIR, MONTGOMERY CHAIR ELECT OF OP&F BOARD
William Gallagher (Cleveland Police, retired) was elected Vice Chair of the OP&F Board of Trustees, while Ed Montgomery (Columbus Police) was elected Chair Elect during the Board’s monthly meetings in June. Montgomery, who was elected in 2008, will assume the position of Board Chair in June 2010. Gallagher has served on the Board since 1999.

OP&F PROVIDED WITH "CLEAN" AUDIT BY EXTERNAL FIRM
Clark, Schaefer, Hackett & Company, OP&F’s external auditing firm, has completed its financial audit for fiscal year 2008 and released a satisfactory audit opinion of the organization. The firm’s official audit opinion is included in the OP&F Comprehensive Annual Financial Report.

JULY BOARD MEETING DATES
The Board of Trustees will convene for meetings July 20-22, which is a week earlier than regularly scheduled meetings.

• DISABILITY: In addition to the scheduled disability hearings and reviews, the Disability Evaluation Panel Medical Advisor provided the Committee with a recap on the training session sponsored by OP&F on June 6 of the AMA Guides, 6th edition. The Committee also recommended that staff implement the Mental Health Chapter of the AMA Guides, 6th edition, by January 1, 2010. Staff will also investigate the feasibility of providing monthly disability case information on either CD or via a secure Web page. The Committee suggested that an alternative appeal process be considered for handling members who fail to submit duty-relatedness documentation in support of their Initial Determination Hearing.

• HEALTH CARE: The Committee/Board of Trustees heard a presentation regarding post-65 medical alternatives. The report contained advantages and disadvantages of several types of programs, including Medicare, Medicare supplement plans, MediGap plans, Medicare health or advantage plans and self-insured plans. The Committee/Board also was provided the 2008 Health Care Annual Review, which included data on expenses, fees, enrollment information and programs that can help reduce health care costs. Representatives from AARP presented a flat-rate premium proposal for the Medicare supplement plan which was discussed but not considered. OP&F’s actuarial consultant presented the 2010 Health Care Costs and Contributions Report. The Committee/Board was also presented with the schedule for the 2010 Annual Change Period meetings.

•  BENEFITS: The Benefits Committee discussed with staff the process for purchasing service credit through payroll deduction and determined that no change is currently needed.

• INVESTMENT: In addition to the monthly portfolio update, the Committee/Board received the 1st Quarter Real Estate Performance Review and the 1st Quarter Net of Fees Performance Report. The Committee/Board also received information and discussed asset allocation alternatives provided by OP&F’s investment consultant.

Motions Approved
At its June 24, 2009 meeting, the OP&F Board of Trustees passed the following motions:

• Accepted the rating recommendations of Townsend for the real estate investment managers as outlined in consultant’s memo to the Board dated June 23, 2009. (Investment Committee).
• Approved the awards for the initial determination of disability for the 21 members as identified in the IDH list presented to the Board on June 22, 2009 (Disability Committee).
• Approved the awards for the appeal hearings for the six members identified in the disability appeals list presented to the Board on June 23, 2009 (Disability Committee).
• Approved the determination for 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 June 22, 2009, in accordance with policy on Waiver of Earnings Statement and Medical Evaluations (Disability Committee).
• Approved the legislative proposals, as outlined in staff’s memorandum dated June 22, 2009, and authorizes staff to work with Darryl Dever to have them introduced in the 128th and 129th General Assembly (Benefits Committee).
• Approved the Health Care Committee’s business travel recommendation as presented and discussed on Tuesday, June 23, 2009 (Health Care Committee).
• Approved the 2008 Health Care Report in the form presented to the form presented to the Health Care Committee/Board on June 22, 2009 and authorizes staff to forward the report to the appropriate public officials in accordance with Section 742.14 of the Ohio Revised Code (Health Care Committee).

Attachments

Last update: 6/30/2009