Ohio Police & Fire Pension Fund MINUTES Board of Trustees 140 East Town Street, Columbus, Ohio February 22, 2017

Transcription

1 Call to Order: The meeting was called to order at 1:13 p.m. Chairman Montgomery asked for a moment of silence for our members who have passed in the last month. In attendance: Trustees Present: Deighton, Desmond, Heller, Maloney Stifler, Moore, Patton, Wainscott and Montgomery Trustees Absent: None AGENDA ITEM 1: Approval of January 2017 Minutes Mr. Wainscott moved, and Mr. Patton seconded a motion that the approves the January 2017 Board minutes. The motion passed with the roll call vote as follows: AGENDA ITEM 2: Executive Director s Report Talking Points for the Executive Director 2/22/2017 PORTFOLIO UPDATE As of 2/21: $14.8 billion End of January value: $14.7 billion End of December value: $14.5 billion BOARD RETREAT ON MARCH 2 A week from tomorrow March 2 the Board will meet to discuss health care, funding and investment topics at its annual spring retreat The retreat will be at the Creekside Conference and Event Center in Gahanna The retreat is scheduled to begin at 9 a.m. and is open to the public AGENDA ITEM 3 INVESTMENT COMMITTEE/BOARD TALKING POINTS: Mr. Heller read the Investment Committee/Board talking points: Mr. Luke commented on the January month-end portfolio value, significant cash movements and monthly investment performance. 1

2 Representatives from ISS presented an overview of their Proxy Policy Formulation Process, gave a review of the 2016 Proxy Season and provided a preview of the 2017 Proxy Season. Wilshire Associates presented the Investment Performance Report for periods ended December 31, Representatives from UBS gave an overview of their outlook for real estate and an update on OP&F s investment in the Trumbull Property Fund. Motions Approved: The Board approved Staff s and TorreyCove s recommendation to commit up to $30,000,000 to the KKR Asia Fund III, L.P. The Board approved several revisions to the Derivatives Policy Statement as recommended by Staff and Wilshire Associates. The Board approved Staff s recommended manager ratings for Causeway, Fidelity ACWI ex-us, and PIMCO. AGENDA ITEM 4 DISABILITY COMMITTEE: Mr. Desmond read the Disability Committee Talking Points and Motions Staff discussed a memorandum regarding the reporting of potential disability fraud for one member. Motions approved: The Committee recommended the Board approve the two (2) death benefit fund cases and the twelve (12) initial determination hearings. One (1) initial determination hearing was denied and one (1) was postponed for re-examination. The Committee recommended that one (1) reconsideration be increased and one (1) reconsideration be postponed for additional information. The Committee voted to recommend that the Board require the disability benefit recipient identified in the staff s memorandum dated February 21, 2017, to undergo medical reexamination for the reasons outlined in that memorandum. Initial Determination Hearings Mr. Desmond moved and Mr. Patton seconded a motion that the Board approves the Committee recommendations for the initial determination of disability for the fourteen (14) members as identified in the initial determination hearings list presented to the Board on. The motion passed with the roll call vote as follows: Reconsideration Hearing Mr. Desmond moved and Mr. Moore seconded a motion that the board makes a determination for the member requesting reconsideration. The motion passed with the roll call vote as follows: 2

3 Appeal Hearings Mr. Desmond moved and Mr. Wainscott seconded a motion that the Board approves the recommendations for the appeal hearings for the five (5) members as identified in the appeals list presented to the Board on. The motion passed with the roll call vote as follows: Nays: None Death Benefit Fund Hearings Mr. Desmond moved and Mr. Wainscott seconded a motion that the board makes a determination for the member requesting a death benefit. The motion passed with the roll call vote as follows: Reporting Waivers Mr. Desmond moved and Mr. Patton seconded a motion that the Board waives 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. The motion passed with the roll call vote as follows: Reporting of Potential Disability Fraud DC Mr. Desmond moved and Mr. Deighton seconded a motion that the Board require the disability benefit recipient in staff s memorandum dated February 21, 2017 to undergo a medical examination, for the reasons outlined in that memorandum. AGENDA ITEM 5 HEALTH CARE COMMITTEE/BOARD: Mr. Deighton read the Health Care Committee/Board Talking Points Ms. Jewell reviewed the fourth quarter 2016 Health Care Stabilization Fund and Net Cost reports with the Committee. Ms. Jewell presented an update on the final Annual Change Period numbers for There was much discussion about the future direction of OP&F s health care plan. Concerns about the Prescription Drug List and the 4 th Tier were also discussed. 3

4 Ms. Harville informed the Committee that UnitedHealthcare will present OP&F s 2016 health care plan performance at the April Committee meeting. Specific Trustee questions regarding the medical and prescription plan should be forwarded to Ms. Harville in advance so UHC can provide a thorough response at the April meeting. Motions approved: The Board voted to pre-approve travel expenses for: Ms. Maloney Stifler to attend the Pension Bridge Annual Conference, April Mr. Patton to attend the Annual Wilshire Consulting Client Conference, April 30-May 2 Mr. Moore to attend IFEBP s CAPPP Health programs 1 and 2, June Mr. Deighton to attend the Annual NCPERS Conference, May AGENDA ITEM 6 FINANCE COMMITTEE: Mr. Moore read the Finance Committee Talking Points and Motion The 4 th Quarter Budget to Actual Report for 2016 was reviewed by Mr. Scott Miller and Mr. Mark Jordan. After discussion, the Finance Department will show original budget amounts approved when compared to actual costs for year on the Operating Budget. The Status of Past Due Employers Report was presented to the Committee with some discussion regarding the City of Norwood and Paint Creek JFD. Ms. Foley discussed the Proposed Changes to Administrative Rule (Mandatory Direct Deposit). Motions Approved: The Committee approved the December 13, 2016 Finance Committee minutes. The Committee approved the Proposed changes to Administrative Rule (Mandatory Direct Deposit). Open Discussion: After Finance Committee adjourned, there was further discussion regarding continual funding for Health Care. Proposed Changes to Administrative Rule FC Mr. Moore moved and Mr. Patton seconded a motion that the Board approves the Administrative Rule outlined in staff s memorandum dated February 21, 2017, and authorizes the required filing of the Rule with the proper agencies. AGENDA ITEM 7: Other Business 4

5 Mr. Deighton asked if the upcoming meeting on February 28 will be an open meeting. Mr. Montgomery replied that the meeting is open to the public. Mr. Deighton wanted to give recognition to Mr. Mark Horton, OAPFF s treasurer and an Elyria Fire retiree, that passed away in a traffic accident on February 12, AGENDA ITEM 8: Address Audience Mr. Mike Leslie, Akron Fire, asked questions about the prescription drug plan. Some members stated that they were not notified of their prescribed medications being up-tiered, specifically diabetes patients. Mr. Gallagher responded that letters were sent to those members who were up-tiered and that alternatives were provided. Mr. Gallagher suggested that members with concerns call our staff here at OP&F. He also suggested that members contact their Federal and State representatives in reference to the rising cost of prescription coverage. Chairman Montgomery announced the resignation of Scott Roulston from the. He is accepting a new position in Chicago. AGENDA ITEM 9: Adjournment Chair Montgomery announced that the retirees will meet immediately following today s Board meeting adjournment. The next board meeting will be held on Wednesday March 29, 2017 around 1:00 p.m. The meeting adjourned at 1:38 p.m. John J. Gallagher Jr. Executive Director Board materials provided: 1. Disability Committee Materials. 2. Health Care Committee/Board Materials. 3. Finance Committee Materials. 4. Investment Committee/Board Materials. 5. General Counsel. 6. FYI Section: Pending and Pre-Approved Trustee Travel Report. 7. Chart of Motion Practice: FYI. 8. Administration Appendix Materials. 5

6 9. Investment Appendix Materials. 10. Member Service Appendix Materials. 11. Executive Director Report Dated 2/22/ Disability Committee Motions: Initial Determination Hearings; Reconsideration Hearings; Appeal Hearings; Death Benefit Fund Hearings; Reporting Waivers and Reporting of Potential Disability Fraud. 13. Finance Committee Motion: Proposed changes to Administrative Rule Handouts: Investment Handout; Investment Monthly Portfolio Valuation Update 01/31/17 and February 2017 Investment Committee/Board, Disability Committee, Health Care Committee/Board and Finance Committee Talking Points. 6