Ohio Police & Fire Pension Fund MINUTES Board of Trustees 140 East Town Street, Columbus, Ohio October 25, 2017

Transcription

1 Call to Order: The meeting was called to order at 1:00 p.m. Chairman asked for a moment of silence for our members who have passed in the last month. In attendance: Trustees Present: Deighton, Desmond, Maloney Stifler, Montgomery, Charles Moore, Patton, Wainscott and Trustees Absent: Mr. Heller AGENDA ITEM 1: Excuse Mr. Heller Mr. Desmond moved, and Mr. Charles Moore seconded a motion, to excuse Mr. Heller from the October 2016 Board meeting. The motion passed with the roll call vote as follows: AGENDA ITEM 2: Approval of the September 2017 Board Minutes Mr. Desmond moved, and Mr. Patton seconded a motion that the approves the September 2017 Board minutes. The motion passed with the roll call vote as follows: AGENDA ITEM 3: Executive Director s Report Talking Points for the Executive Director10/25/2017 PORTFOLIO UPDATE As of yesterday: $15.3 billion End of September value: $15.4 billion End of August value: $15.3 billion NOVEMBER MEETING DATES A reminder that our meetings next month will be Nov

2 AGENDA ITEM 4: INVESTMENT COMMITTEE/BOARD TALKING POINTS: Mr. Heller read the Investment Committee/Board talking points: Mr. Luke commented on the September month-end portfolio value, significant cash movements and year-to-date investment performance. Townsend commented on the 2 nd Quarter. Real Estate Performance for periods ended June 30, Staff commented on the Semi-Annual Proxy Voting Report for the period ended June 30, Motions Approved: The Board approved Wilshire s recommendation to adopt the investment structure targets outlined in Policy III as it pertains to the Non-US Equity Investment Structure Review. The Board approved the manager ratings for OP&F s Real Estate Managers as recommended by the Townsend Group. The Board 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). The Board approved Staff s recommendation to commit up to $50 million to Tennenbaum Direct Lending Fund VIII. The Board approved Staff s recommendation to expand Wilshire Associates current investment consulting services to include Private Credit consulting. AGENDA ITEM 5 DISABILITY COMMITTEE TALKING POINTS AND MOTIONS: Mr. Desmond read the Disability Committee talking points and motions: Staff presented an updated list of disability benefit recipients who have not submitted an Annual Earnings Statement as of October 23, Benefits for the six recipients will be suspended if forms are not received by Dec. 8, Staff presented the 15 Year Summary of IDH Results, which illustrates the trends for the various grant types throughout the last 15 years. Motions approved: The Committee recommended approval for the two (2) Death Benefit Fund cases. The Committee recommended approval for nine (9) initial determination hearings and three (3) initial determination hearings were denied.

3 Initial Determination Hearings Mr. Desmond moved and Mr. Desmond seconded a motion that the Board approves the Committee recommendations for the initial determination of disability for the twelve (12) members as identified in the initial determination hearings list presented to the Board on. The motion passed with the roll call vote as follows: No Reconsideration Hearings for October No Appeal Hearings for October Death Benefit Fund Hearings Mr. Desmond moved and Ms. Maloney Stifler seconded a motion, that the Board makes a determination for those requesting death fund benefits. The motion passed with the roll call vote as follows: Reporting Waivers Mr. Desmond moved and Ms. Maloney Stifler 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: AGENDA ITEM 6 HEALTH CARE COMMITTEE/BOARD TALKING POINTS: Mr. Deighton read the Health Care Committee/Board talking points: Mr. Deighton explained that the has decided to postpone vendor selection of the private health care exchange model until November. Ms. Harville presented a memorandum detailing the AARP Medicare Supplement Rate and subsidy information for The Committee/Board voted in September to absorb the rate increase by increasing the amount of the subsidy provided to retirees. Additionally, on Tuesday, the Board reviewed the 2018 Operating Budget

4 Motions Approved: The Committee/Board approved a motion to accept the assumptions and actuarial methods presented by Conduent in the 5-Year Experience Study and discussed on August 23, September 27 and October 24. The Committee/Board approved a motion to accept the report and recommendations of the 5-Year DROP cost neutrality analysis, discussed on October 24. AGENDA ITEM 7 BENEFITS COMMITTEE TALKING POINTS AND MOTION: Mr. Patton read the Benefit Committee talking points and motion: Ms. Harville presented the DROP Experience Report for the 3 rd Quarter Ms. Harville presented a memorandum illustrating the current benchmark process. There was robust conversation about the current benchmark law, process and adverse effects on some members. Staff will conduct additional research and provide results to the Committee at a later date for further discussion. Motions approved: The Committee voted unanimously to refer three Administrative Rules as outlined in staff s memorandum dated October 24, 2017 to the full Board for approval. Administrative Rules BC Mr. Patton moved and Mr. Deighton seconded that the Board approves the Administrative Rules outlined in staff s memorandum dated October 24, 2017, and authorizes the required filing of the Rules with the proper agencies. The motion passed with the roll call vote as follows: AGENDA ITEM 8 ADMINISTRATION AUDIT COMMITTEE TALKING POINTS AND MOTIONS: Mr. Wainscott read the Administration Audit Committee talking points and motion: Items discussed: Ms. Sparks reported on the following items: o The Internal Audit activities for the period ending 9/30/17; o Preparation for the 2017 Ohio Ethics Commission Financial Disclosure Statement. The Committee reviewed the 2018 Board Meetings and Events Calendar. Mr. Graham highlighted the 2017 OP&F Communication Plan that will be summited to ORSC.

5 Motions Approved: The August 22, 2017 Administration/Audit Committee Minutes; The Board Governance Policy Manual; and The 2017 OP&F Communication Plan. Board Governance Policy Manual AAC Mr. Wainscott moved and Mr. Patton seconded a motion that the Board adopts the governance manual effective October 24, The motion passed with the roll call vote as follows: OP&F Communications Plan AAC Mr. Wainscott moved and Ms. Maloney Stifler seconded a motion that the approves the 2017 OP&F Communications Plan for submission to the Ohio Retirement study Council in the form presented on October 24, The motion passed with the roll call vote as follows: AGENDA ITEM 9: Other Business Mr. Patton recognized and thanked staff for their great work during open enrollment meetings. Mr. Patton offered condolences to Donna Albrecht for her loss. AGENDA ITEM 10: Address Audience None.

6 AGENDA ITEM 11: Adjournment Chair Moore announced that the retirees have a meeting immediately following today s Board meeting adjournment. The next board meeting will be Wednesday, November 15, 2017 around 1:00 p.m. The meeting adjourned at 1:14 p.m. John J. Gallagher Jr. Executive Director Board materials provided: 1. Disability Committee Materials. 2. Benefit Committee Materials. 3. Administration/Audit Committee Materials 4. Governmental Affairs & Policy Committee Materials. 5. Health Care Committee/Board Materials. 6. General Counsel Materials. 7. Investment Committee/Board Materials 8. FYI Section: Pending and Pre-Approved Trustee Travel Report. 9. Chart of Motion Practice: FYI. 10. Administration Appendix Materials. 11. Investment Appendix Materials. 12. Member Service Appendix Materials. 13. Executive Director Report Dated 10/25/ Disability Motions: Initial Determination Hearings; No Reconsiderations; No Appeal Hearings; Death Benefit Fund Hearings; Death Benefit Fund Reconsideration Hearings and Reporting Waivers. 15. Benefit Motion: Administrative Rules. 16. Administration/Audit Committee Motions: Board Governance Policy Manual and OP&F Communications Plan. Handouts: Chairman Agenda, Executive Director Talking Points, Disability Committee, Benefit Committee, Administration/Audit Committee, Health Care Committee/Board, GAPC Committee and Investment Committee/Board Talking Points. Valuation Update for 09/30/17.