Monthly Board Report

October 2017 Monthly Board Report

ANNUAL VALUATION SHOWS LONG-TERM FUNDING REMAINS IN COMPLIANCE

The annual actuarial valuation presented to the OP&F Board of Trustees in October indicated a funding period of 28 years, which is within the State of Ohio requirement of 30 years. The report included data through Jan. 1, 2017. The funding period of 28 years is an improvement from last year’s valuation, when it was 29 years. The report also indicated that the system has a funding ratio of 69.8 percent. The funding period represents the number of years it should take for a pension fund to pay down all of its unfunded liabilities.

BOARD APPROVES RECOMMENDED CHANGE IN ASSUMED INVESTMENT RETURN

The OP&F Board of Trustees approved changing the system’s assumed investment rate of return, lowering it to 8.0 percent from 8.25 percent. OP&F’s independent actuaries recommended the change as part of a regularly scheduled five-year review of assumptions. The actuarial valuation presented at the Board’s October meeting used the new 8.0 assumed rate of return, which showed that OP&F remained in compliance with state funding requirements with a funding period of 28 years. OP&F’s annualized investment returns for the five-year period ending December 2016 were 10.09 percent, while annualized returns for the 30-year period ending December 2016 was 8.67 percent.

EMAILS NEEDED FOR BOARD REPORT IN 2018

OP&F expects to transition to an email-only delivery of the Board Report newsletter in 2018. In preparation for this change, please contact OP&F with the email address to use for receiving the newsletter. Send the information to dgraham@op-f.org.

PORTFOLIO UPDATE
OP&F's investment portfolio value:

  Current value (10/24/17): $15.3 billion
  End of September value: $15.4 billion
  End of August value: $15.3 billion

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

  • DISABILITY: In addition to the regularly scheduled hearings and appeals, the Committee reviewed an updated list of disability benefit recipients who have not submitted an Annual Earnings Statement as of Oct. 23. Staff presented a summary of Initial Determination Hearing results illustrating the trends in the past 15 years for the various grant types.
  • HEALTH CARE: The Committee announced that the Board had decided to postpone the selection of a vendor to assist with the transition to a health care exchange model until the November meeting. The Committee also reviewed information regarding the supplemental Medicare plan rates and subsidy for 2018.
  • BENEFITS: The Committee received the Deferred Retirement Option Plan Experience Report for the 3rd quarter of 2017 and discussed the salary benchmarking process currently being used and the number of members it affects. During the meeting, the Board reviewed the 2018 operating budget for OP&F.
  • ADMINISTRATION/AUDIT: The Committee discussed Internal Audit activities through Sept. 30 and the Ohio Ethics Commission Financial Disclosure Statement. The Committee also discussed the 2018 Board meeting and events calendar.
  • INVESTMENT: In addition to the monthly portfolio performance update, OP&F’s real estate consultant commented on the 2nd quarter 2017 real estate performance and staff discussed the Semi-Annual Proxy Voting Report for the period ending June 30.

    Motions:
    At its October 2017 meeting, the OP&F Board of Trustees voted on the following motions:
  • Approved Wilshire’s recommendation to adopt the investment structure targets outlined in Policy III as it pertains to the Non-U.S. Equity Investment Structure Review. Motion passed by unanimous vote (Investment Committee).
  • Approved the manager ratings for OP&F’s Real Estate Managers as recommended by the Townsend Group. Motion passed by unanimous vote (Investment Committee).
  • Approved the investment manager rating recommendations for Dimensional Fund Advisors, Franklin Templeton Investments, Fidelity Institutional Asset Management (ACWI ex-U.S. Small-Cap) and Bridgewater Associates (U.S. Inflation Linked Bonds). Motion passed by unanimous vote (Investment Committee).
  • Approved Staff’s recommendation to commit up to $50 million to Tennenbaum Direct Lending Fund VIII. Motion passed by unanimous vote (Investment Committee).
  • Approved Staff’s recommendation to expand Wilshire Associates current investment consulting services to include Private Credit consulting. Motion passed by unanimous vote (Investment Committee).
  • Approved the Committee recommendations for the initial determination of disability for the members as identified in the initial determination hearings list presented to the Board on Oct. 25, 2017. Motion passed by unanimous vote. (Disability Committee).
  • Approved the Committee recommendation for Death Fund benefits 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 Oct. 25, 2017. Motion passed by unanimous vote (Disability Committee).
  • Approved a motion to accept the assumptions and actuarial methods presented by Conduent in the Five-Year Experience Study and discussed on Aug. 23, Sept. 27 and Oct. 24. Motion passed by vote of 8-1 (Full Board).
  • Approved a motion to accept the report and recommendations of the 5-Year DROP cost neutrality analysis, discussed on October 24. Motion passed by unanimous vote (Full Board).
  • Approved the Administrative Rules outlined in staff’s memorandum dated October 24, 2017, and authorized the required filing of the Rules with the proper agencies. Motion passed by unanimous vote (Full Board).
  • Adopted the governance manual effective October 24, 2017. Motion passed by unanimous vote (Administration/Audit Committee).
  • Approved the 2017 OP&F Communications Plan for submission to the Ohio Retirement study Council in the form presented on October 24, 2017. Motion passed by unanimous vote (Administration/Audit Committee).

NEXT BOARD OF TRUSTEES MEETINGS: Nov. 14-15, 2017

Previous Reports

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

The 2019 Board Trustee elections have concluded. Please check the Board of Trustee Elections page in early 2020 for news on the next Trustees elections.

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