Monthly Board Report

May 2013 Monthly Board Report

BOARD-APPROVED CHANGE MEANS 30-YEAR FUNDING WITHIN REACH FOR OP&F
At its May meeting, the OP&F Board of Trustees approved a change to its health care funding that is expected to result in the retirement system reaching the desired 30-year funding status. Trustees unanimously approved a reduction in the amount of the employer contributions earmarked for health care from 4.69 percent to 2.85 percent. The additional funds now go toward pension funding. The change maintains an 18 year solvency period for OP&F's retiree health care plan.

Strong investment returns in 2012 and so far in 2013, paired with the landmark pension reform provisions included in Senate Bill 340 last year brought OP&F much closer to the required 30-year funding measurement established by the Ohio General Assembly. The additional funds now going toward pensions is expected to bring OP&F into compliance. Future actuarial studies will determine OP&F's actual funding status. The funding structure in place at the time these studies are conducted will also impact the funding status.

UPCOMING BOARD MEETINGS
While OP&F will conduct its June meetings as scheduled (June 25-26), there will not be a meeting in July. Also, the October Board of Trustee meetings have been changed to Oct. 22 and 23, 2013.

PORTFOLIO UPDATE
OP&F's investment portfolio value:

  Current value (5/28): $13.4 billion
  End of April value: $13.3 billion
  End of March value: $13.1 billion

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 was provided with an update on efforts to recruit a new Disability Evaluation Panel member to replace Dr. Ernest Johnson.
  • BENEFITS: The Committee reviewed Deferred Retirement Option Plan statistics for February, March and April 2013, including a breakdown of participants by years in the plan and dollars accrued. Staff informed the Committee that letters were mailed to members who were eligible to enroll in DROP by July 1. The Committee also discussed deadline dates and the way OP&F communicates these dates to membership. Staff will develop a summary of letters for review by the Committee. Also discussed was the process of granting military service credit and the availability for all elected trustees to attend training programs offered by the National Conference on Public Employee Retirement Systems and also the Wharton School of Business.
  • HEALTH CARE: The Committee/Board reviewed and discussed the most recent Health Care Stabilization Fund report, then received an update from UnitedHealthcare. The UnitedHealthcare update included information on the June 1 transition to OptumRx as the pharmacy benefit manager. UHC also presented a no-change proposal to the 2014 contribution rates for retiree dental and vision coverage. OP&F's actuary, Buck Consultants, proposed the 2014 health care costs and contribution rates for 2014.
  • INVESTMENT: In addition to the monthly portfolio update, the Committee/Board reviewed and discussed the first quarter 2013 Investment Performance Review and the fourth quarter 2012 Real Estate Performance Report. Additionally, OP&F's investment consultant, Wilshire, presented the initial U.S. equity structure review and will return in June with options and recommendations. The Committee/Board also discussed a report released by the American Federation of Teachers.
Motions:
At its March 2013 meeting, the OP&F Board of Trustees voted on the following motions:

  • Approved staff and Wilshire's recommended changes to the Investment Guidelines of PENN Capital and MacKay Shield Active Core to allow a focus on bank loans. Motion passed by unanimous vote (Investment Committee).
  • Approved the investment manager guidelines for OP&F's Master Limited Partnership managers (Harvest Fund Advisors, Salient Partners and Tortoise Capital Advisors). Motion passed by unanimous vote (Investment Committee).
  • Approved the manager ratings for Investcorp and Columbia as presented by staff. Motion passed by unanimous vote (Investment Committee).
  • Approved the Committee recommendations for the initial determination of disability for the 16 members as identified in the initial determination hearings list presented to the Board on May 29, 2013. Motion passed by unanimous vote (Disability Committee).
  • Approved the determination for reconsiderations for the members identified. Motion passed by unanimous vote (Disability Committee).
  • Approved the recommendations for the appeal hearings for the seven members identified in the appeals list presented to the Board on May 29, 2013. Motion passed by unanimous vote (Disability Committee).
  • Approved the recommendations for Death Fund benefits for the members identified. Motion passed unanimously (Disability Committee).
  • Approved the determination for Death Fund reconsiderations for the members identified. Motion passed by unanimous vote (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 May 29, 2013. Motion passed by unanimous vote (Disability Committee).
  • Approved the termination of disability benefits for the member identified in staff's memorandum dated May 28, 2013, for the reasons outlined in that memorandum. Motion passed by unanimous vote (Disability Committee).
  • Approved the 2014 contribution rates for retiree dental and vision coverage as presented by UnitedHealthcare on May 29, 2013. Motion passed eight votes in favor and one abstention (Health Care Committee).
  • Approved the 2014 health care costs and contribution rate increases for retiree non-Medicare medical and prescription drug coverage as recommended in Scenario 1 by Buck Consultants in its presentation on May 29, 2013. Motion passed 6-3 (Health Care Committee).
  • Approved the pharmacy clinical program opportunities as presented by UnitedHealthcare on May 29, 2013. Motion passed by unanimous vote (Health Care Committee).
  • Approved a change to the employer allocation to the Health Care Stabilization Fund to 2.85 percent. Motion passed by unanimous vote (Health Care Committee).
  • Approved two travel motions for Trustee Roulston. Motion passed by unanimous vote (Health Care Committee).

Next Board of Trustees Meetings: June 25-26, 2013

Previous Reports

Monthly Report For August 2020
- Posted September 02, 2020
Monthly Report for June 2020
- Posted June 29, 2020
Monthly Report for February 2020
- Posted March 06, 2020
Monthly Report for January 2020
- Posted February 12, 2020
Monthly Report for December 2019
- Posted December 23, 2019
Monthly Report for October 2019
- Posted October 30, 2019
Monthly Report for September 2019
- Posted October 04, 2019
Monthly Report for August 2019
- Posted September 27, 2019
Monthly Report for June 2019
- Posted July 17, 2019
Monthly Report for May 2019
- Posted June 07, 2019
Monthly Report for April 2019
- Posted May 08, 2019
Monthly Report for March 2019
- Posted March 28, 2019
Monthly Report for February 2019
- Posted March 08, 2019
Monthly Report for January 2019
- Posted February 01, 2019
Monthly Report for December 2018
- Posted December 27, 2018
Monthly Report for November 2018
- Posted November 21, 2018
Monthly Report for October 2018
- Posted November 01, 2018
Monthly Report for September 2018
- Posted October 03, 2018
Monthly Report for August 2018
- Posted August 29, 2018
Monthly Report for June 2018
- Posted June 27, 2018
Monthly Report for May 2018
- Posted May 31, 2018
Monthly Report for April 2018
- Posted May 02, 2018
Monthly Report for March 2018
- Posted April 04, 2018
Monthly Report for February/March 2018
- Posted March 07, 2018
Monthly Report for January 2018
- Posted January 30, 2018
Monthly Report for December 2017
- Posted December 19, 2017
Monthly Report for November 2017
- Posted November 29, 2017
Monthly Report for October 2017
- Posted November 01, 2017
Monthly Report for September 2017
- Posted October 03, 2017
Monthly Report for August 2017
- Posted September 14, 2017
Monthly Report for June 2017
- Posted July 11, 2017
Monthly Report for May 2017
- Posted May 23, 2017
Monthly Report for March 2017
- Posted April 07, 2017
Monthly Report for February 2017
- Posted March 08, 2017
Monthly Report for January 2017
- Posted February 01, 2017
Monthly Report for December 2016
- Posted December 20, 2016
Monthly Report for November 2016
- Posted November 21, 2016
Monthly Report for October 2016
- Posted October 28, 2016
Monthly Report for September 2016
- Posted October 05, 2016
Monthly Report for August 2016
- Posted September 07, 2016
Monthly Report for June 2016
- Posted July 06, 2016
Monthly Report for May 2016
- Posted May 25, 2016
Monthly Report for April 2016
- Posted May 04, 2016
Monthly Report for March 2016
- Posted April 08, 2016
Monthly Report for February 2016
- Posted March 02, 2016
Monthly Report for January 2016
- Posted January 27, 2016
Monthly Report for December 2015
- Posted December 22, 2015
Monthly Report for November 2015
- Posted November 22, 2015
Monthly Report for October 2015
- Posted October 27, 2015
MONTHLY REPORT for September 2015
- Posted October 06, 2015
MONTHLY REPORT for August 2015
- Posted September 01, 2015
MONTHLY REPORT for June 2015
- Posted June 30, 2015
MONTHLY REPORT for May 2015
- Posted May 28, 2015
MONTHLY REPORT for January 2015
- Posted February 04, 2015
MONTHLY REPORT for April 2015
- Posted May 07, 2015
MONTHLY REPORT for March 2015
- Posted April 01, 2015
MONTHLY REPORT for February 2015
- Posted March 03, 2015
MONTHLY REPORT for November 2014
- Posted November 25, 2014
MONTHLY REPORT for October 2014
- Posted November 05, 2014
MONTHLY REPORT for September 2014
- Posted September 23, 2014
MONTHLY REPORT for August 2014
- Posted September 02, 2014
MONTHLY REPORT for June 2014
- Posted July 02, 2014
MONTHLY REPORT for May 2014
- Posted May 28, 2014
MONTHLY REPORT for April 2014
- Posted May 09, 2014
MONTHLY REPORT for March 2014
- Posted April 04, 2014
MONTHLY REPORT for February 2014
- Posted March 05, 2014
MONTHLY REPORT for December 2013
- Posted December 30, 2013
MONTHLY REPORT for November 2013
- Posted December 02, 2013
MONTHLY REPORT for September 2013
- Posted October 02, 2013
MONTHLY REPORT for August 2013
- Posted September 04, 2013
MONTHLY REPORT for April 2013
- Posted May 01, 2013
MONTHLY REPORT for May 2013
- Posted June 10, 2013
MONTHLY REPORT for March 2013
- Posted April 03, 2013
MONTHLY REPORT for February 2013
- Posted March 07, 2013
MONTHLY REPORT for January 2013
- Posted February 06, 2013
MONTHLY REPORT for December 2012
- Posted December 18, 2012
MONTHLY REPORT for November 2012
- Posted November 21, 2012
MONTHLY REPORT for October 2012
- Posted November 05, 2012
MONTHLY REPORT for September 2012
- Posted October 05, 2012
MONTHLY REPORT for July 2012
- Posted August 01, 2012
MONTHLY REPORT for June 2012
- Posted July 03, 2012
MONTHLY REPORT for May 2012
- Posted June 06, 2012
MONTHLY REPORT for April 2012
- Posted May 01, 2012
MONTHLY REPORT for March 2012
- Posted April 04, 2012
MONTHLY REPORT for February 2012
- Posted February 29, 2012
MONTHLY REPORT for January 2012
- Posted February 01, 2012
MONTHLY REPORT for December 2011
- Posted December 20, 2011
MONTHLY REPORT for September 2011
- Posted December 15, 2011
MONTHLY REPORT forOctober 2011
- Posted December 16, 2011
MONTHLY REPORT for November 2011
- Posted December 19, 2011
MONTHLY REPORT for July 2011
- Posted July 01, 2011
MONTHLY REPORT for June 2011
- Posted June 01, 2011
MONTHLY REPORT for May 2011
- Posted May 01, 2011
MONTHLY REPORT for April 2011
- Posted April 01, 2011
MONTHLY REPORT for March 2011
- Posted March 01, 2011
MONTHLY REPORT for February 2011
- Posted February 01, 2011
MONTHLY REPORT for January 2011
- Posted January 01, 2011



Board of Trustee Elections

In 2020, OP&F will hold elections for three positions on the Board of Trustees; a retired police representative, an active police representative and an active fire representative.

Board and Committee Meetings

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Board Members and Committee Assignments

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