CLEVELAND’S HUFF NOW CHAIR OF BOARD OF TRUSTEES · PDF fileCLEVELAND’S HUFF NOW CHAIR OF BOARD OF TRUSTEES ... He is a graduate of the University of Akron, ... Member ID card to

The quarterly newsletter for active and retired OP&F members and their survivors | Volume 33, Number 3, Summer 2014

CLEVELAND’S HUFF NOW CHAIR OF BOARD OF TRUSTEESScott Huff has assumed leadership of the OP&F Board of Trustees as chair at the group’s June meeting. Huff served as the Chair Elect for the past year and was elected to the Board of Trustees in 2011.

Huff is a member of the Cleveland Police Department, where he has served since 1997. He is a graduate of the University of Akron, where he earned a B.A. Business Administration. He also has current Series 7 and 65 securities licenses.

David Witner (Cuyahoga Falls fire) served as the Board’s chair for the past year. He remains a trustee, being first elected in 2010 and re-elected this spring to a new four-year term. Witner was elected Chair-Elect for

2014-15, meaning he will be in line to serve as Chair again next June. John Wainscott (retired, Cincinnati Police) will serve as the Board’s Vice Chair for 2014-15.

The annual Pre-Retirement Seminar series has been scheduled and will begin Sept. 22 in Dayton. OP&F will host six seminars around Ohio to assist members who are approaching retirement eligibility or considering enrolling in the Deferred Retirement Option Plan (DROP). A complete list of seminar dates is below.

The OP&F Pre-Retirement Seminars are conducted to describe pension benefits available to members and their

dependents upon retirement. OP&F will present information on DROP and survivor benefits. Each seminar begins at 7 p.m. and lasts approximately two hours.

Active members who are eligible for retirement or DROP within the next five years will be mailed an invitation with additional seminar information. Members may also go online to RSVP to the seminars at op-f.org.

2014 PRE-RETIREMENT SEMINARS SCHEDULED

Board of Trustees Chair, Scott Huff

DAYTON MONDAY / SEPTEMBER 22Presidential Banquet Center4548 Presidential WayKettering, OH 45429

CINCINNATI THURSDAY / SEPTEMBER 25Sharonville Convention Center11355 Chester RoadSharonville, OH 45246

CLEVELAND TUESDAY / SEPTEMBER 30Holiday Inn Independence6001 Rockside RoadIndependence, OH 44131

AKRON/CANTON TUESDAY / SEPTEMBER 23Courtyard by Marriott4375 Metro Circle NWCanton, OH 44720

COLUMBUS MONDAY / SEPTEMBER 29Holiday Inn Downtown Capitol Square175 E. Town StreetColumbus, OH 43215

TOLEDO THURSDAY / OCTOBER 2Radisson @ The University of Toledo3100 Glendale AvenueToledo, OH 43614

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OP&F • 140 East Town Street • Columbus, Ohio 43215 • www.op–f.org

MEMBER’S REPORT | SUMMER 2014OP&F’S quarterly member newsletter

OP&F’s investment portfolio value 2013:End of June value: $14.53 billionEnd of May value: $14.49 billion

Dear Members,

We use the pages of the Member’s Report to inform and educate members about information they need to know. My message this time is a little different. There are some new accounting rules for cities and towns that we think members should be aware of, but not necessarily be concerned with.

The Government Accounting Standards Board – or GASB

– sets accounting and financial reporting rules to which state and local governments and other public entities must adhere. A new rule from GASB says that municipalities must now show a proportionate share of the total pension liabilities in the annual financial reports they produce, even though these liabilities belong to OP&F. While the obligation remains with OP&F, liabilities still must be reported by each city and town in their official documents. OPF will continue to reflect the total unfunded liabilities in our own financial reports. This rule went into effect for fiscal reporting years beginning after June 15.

The pro-rated portion of OP&F’s unfunded liabilities required to appear on a municipality’s financial report will be based on how many members they employ. There are concerns that those who aren’t familiar with the new rule may jump to the wrong conclusion: that the city is responsible for the liabilities. Of course this is not the case. There are even fears that a misunderstanding could lead to a downgrade in the city’s credit rating. Confusing? Yes, it could be. That’s why OP&F and many other public retirement systems objected to the new rule. However, these appeals were dismissed and the rule stands.

It is now our job to educate our employers on what the rule means and how to accurately report pension liabilities on future financial reports. It is also our job to let you know of the change, and more importantly, that it really doesn’t change anything. OP&F will continue to pay down its unfunded liability as it always has. The burden for the unfunded liabilities has not shifted. Your employers will pay their required pension contributions along with the member contributions on your behalf as they always have.

The new rule from GASB is well-meaning and meant to improve transparency of pension funding finances. OP&F will do its part to make sure everything is reported accurately.

Sincerely,

A presentation from OP&F’s general investment consultant, Wilshire Associates, at the May Board of Trustees meeting indicated that returns from 2012 and 2013 were better than previously reported. Returns in 2013 were 16.94 percent, rather than the 16.0 percent previously calculated. For 2012, returns were 15.41 percent, up from the originally reported 14.9 percent. Wilshire explained that their performance system had not fully accounted for the gains associated with S&P 500 futures positions held by one of OP&F’s U.S. equity managers.

The updated returns reflect a more favorable ranking compared to other large investors. OP&F ranks in the top seven percent of the peer universe for the 10-year period ending on Dec. 31, 2013. For the five year period, OP&F is in

the top 12 percent and for the three year period, OP&F is in the top nine percent. For the calendar year 2013, OP&F is in the top third of the peer universe for investment performance. The size of the peer group varies depending on the period, ranging from 583 (10-year) to 1,092 (one-year).

MESSAGE FROM THE EXECUTIVE DIRECTOR

PORTFOLIO UPDATE: CLOSER LOOK AT INVESTMENTS SHOW EVEN HIGHER RETURNS IN 2012, 2013

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Prudence • Integrity • Empathy


Active member contribution rates to OP&F increased from 10.75 percent to 11.5 percent as of July 2 as a part of the scheduled increases put in place by pension reform legislation in 2012.

In July 2013, member contributions increased for the first time since 1988 when rates went from 10 percent to 10.75 percent. The final scheduled increase in member contributions will be in July 2015, when the rate moves to 12.25 percent. These employee contribution increases are part of sweeping pension reform legislation that have reduced OP&F’s unfunded accrued liability by $3.2 billion.

The employer contribution rates remain unchanged. The rate for police employers is 19.5 percent of salary, while the fire employer rate is 24 percent.

MEMBER CONTRIBUTION RATES INCREASED AS OF JULY 2

The OP&F Board approved a 1.9 percent increase in the prescription drug contribution rates, and a 3.5 percent increase for medical coverage contributions for UnitedHealthcare participants effective Jan. 1, 2015. The actual rates will be printed in the Annual Change Period packet information that is sent to retirees and survivors in September.

The 2015 rates for the Medicare supplemental insurance through AARP are not known at this time. These rates must be filed with the Ohio Department of Insurance and have to be approved by each individual state. As in past years, this information will be mailed to eligible members as the rate for each state has been approved.

BOARD APPROVES 2015 RATES FOR UNITEDHEALTHCARE MEDICAL AND PRESCRIPTION DRUG CONTRIBUTIONS

Both the Comprehensive Annual Financial Report (CAFR) and the Popular Annual Report for OP&F’s 2013 fiscal year are online at op-f.org/reports.

The Comprehensive Annual Financial Report offers a detailed look at OP&F’s financial and investment statements as well as member demographics. The popular report is an overview of OP&F’s financial statements and a review of pension fund

activities from the past year. In addition to the 2013 reports, those for past years are available.

FINANCIAL REPORTS FOR 2013 ARE NOW AVAILABLE

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1. SILVERSNEAKERS AT A PARTICIPATING LOCATION

Simply take your SilverSneakers Member ID card to a SilverSneakers participating fitness location. No SilverSneakers card? Bring your health plan ID card with you to tour the location and to see all the amenities you’ll enjoy as a SilverSneakers member. There are more than 11,000 fitness centers, gyms, YMCAs and Curves® to choose from.

2. SILVERSNEAKERS ONLINE

Be part of a secure online community at silversneakers.com\member. This easy-to-use wellness resource gives you access to:• Nutrition, fitness and health

improvement plans and trackers• Health-related articles and recipes• Virtual exercise video

demonstrations• Streaming video of SilverSneakers

classesTo sign up:1. Have your health plan ID card

handy2. Go to silversneakers.com\member3. Select “Click Here” and follow the

instructions on the page

3. SILVERSNEAKERS AT HOME OR ON THE GO

SilverSneakers Steps is a personalized fitness program for members who can’t get to a SilverSneakers Location. Once you enroll in Steps, you may select one of four kits that best fits your lifestyle and fitness level – general fitness, strength, walking or yoga. The steps wellness tools can help you get fit at home or on the go.

SILVERSNEAKERS PROGRAM ENCOURAGES OLDER ADULTS TO BECOME MORE ACTIVE

The SilverSneakers Fitness program is a fun, energizing program that helps older adults take greater con-trol of their health by encouraging physical activity and offering social events. This program is available to retirees and their spouses that are enrolled in the AARP Medicare Supplement plan in certain states.

WHAT DO SILVERSNEAKERS MEMBERS RECEIVE?SilverSneakers members have access to a wide variety of benefits, including: A basic fitness membership at any participating location around the country, with access to all amenities usually included with a basic membership.

• A trained program advisor at each fitness location to introduce you to SilverSneakers, show you around the location and help you get started in SilverSneakers classes.

• SilverSneakers Steps, for members without convenient access to a location. Call 1-888-423-4632 (TTY: 711), Monday through Friday, 8 a.m. to 8 p.m. to find out if your health plan offers SilverSneakers Steps.

• HealthwaysFIT.com to help you track your health progress.

• Health education seminars and other events.

HOW DO I START USING SILVERSNEAKERS?There are three easy ways to enroll. Simply choose one or more of the following options that best suits your lifestyle and begin enjoying your benefit today!

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Am I limited to using just one fitness location?No. You are welcome to use any of the more than 11,000 participating locations nationwide. After you enroll, you will receive a listing of participating loca-tions near you, amenities, addresses and phone numbers. Please visit www.silver-sneakers.com for the most updated list.

Why isn’t there a location near my home?Not every fitness location participates in SilverSneakers. In fact, to partner with SilverSneakers each fitness loca-tion has to go through an extensive interview process to ensure they are able to provide the level of access, guidance and support that we (and our members) expect.

Other questions regarding your SilverSneakers membershipIf you have additional questions regard-ing your SilverSneakers eligibility or membership, contact silversneakers.com or call SilverSneakers Customer Ser-vice at 888-423-4632, Monday through Friday 8 a.m. to 8 p.m. EST.

UnitedHealthcare will once again host presentations this fall for members eligible for the health care plan sponsored by OP&F.

Each location will have a morning and afternoon session for members to listen and ask any questions that they might have. Sessions will be at 10 a.m. and be repeated again at 1 p.m. at each location. Free health screenings will again be provided.

For anyone unable to attend in person, there will also be two teleconference calls. The teleconferences will be Oct. 10,

at 10 a.m. and Oct. 17, at 1 p.m. Information to participate in these calls will be provided in the Annual Change Period packet that will be mailed to all retired members in mid September and also in the fall edition of the Members’ Report.

Locations listed below are tentative, but will be confirmed in both the fall edition of the Member’s Report and also in the Annual Change Period packet.

FALL ANNUAL CHANGE PERIOD SEMINARS ANNOUNCED

SILVERSNEAKERS PROGRAM (CONTINUED)

TOLEDO OCTOBER 6Hilton Garden Inn 6165 Levis Commons Blvd. Perrysburg, OH 43551

CANTON OCTOBER 9Courtyard Canton 4375 Metro Circle NW North Canton, Ohio, 44720

DAYTON OCTOBER 15Hilton Garden Inn Dayton/Beavercreek 3520 Pentagon Park Blvd Dayton, Ohio, 45431

CLEVELAND OCTOBER 7 OR 8Crowne Plaza Hotel South 5300 Rockside Road. Independence, Ohio, 44131(Date to be determined for Cleveland seminar)

CINCINNATI OCTOBER 14Crowne Plaza Cincinnati Blue Ash 5901 Pfeiffer Road Blue Ash, Ohio 45242

COLUMBUS OCTOBER 16DoubleTree by Hilton Hotel Worthington 175 Hutchinson Avenue Columbus, Ohio, 43235

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FREQUENTLY ASKED QUESTIONSIn a continuing effort to educate our members on OP&F’s processes and pro-cedures, the Member’s Report features answers to frequently asked questions received through the Customer Service department.

&Facts Figures

“I am thinking of retiring in the near future. What do I need to do?”

Members nearing retirement should contact OP&F Customer Service at 888-864-8363. You will have the option to sched-ule a pre-retirement interview appointment for you and your spouse to meet with an OP&F representative or you can com-plete the process through the mail.

If you wish to schedule an appointment, please call four to five months prior to your anticipated retirement date as ap-pointments fill up quickly. A retirement packet will be mailed along with a confirmation letter of your appointment date. The packet will contain required paperwork along with driving and parking directions to OP&F. Your retirement paperwork is only valid for six months from the date of the member’s signature on this paperwork. Therefore, if you want to submit your paperwork during the meeting, please do not schedule an appointment more than six months prior to your retirement date.

Please complete as much of the paperwork as you can (name, address, birth dates, Social Security numbers) prior to your appointment. However, please do not sign or date any of the documents. The OP&F representatives are notary publics and can notarize your forms during the meeting. Other documents to bring with you include copies of: birth certificates for you and your dependents, marriage certificate, and all divorce decrees including separation agreements if applicable.

If you prefer to submit the paperwork via mail versus schedul-ing an appointment, please contact OP&F Customer Service and a retirement packet will be mailed. Complete all of the required paperwork and return it to OP&F at 140 E. Town St., Columbus, OH 43215. Again, the paperwork is only valid for six months; therefore, do not submit the completed paperwork to OP&F more than six months prior to your retirement date. Some of the documents require notarization. Please sign and date your forms in the presence of a notary.

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NCPERS FAMILY PROTECTION PLUS INSURANCE DESIGNED FOR PUBLIC SAFETY WORKERS Active members of OP&F have the opportunity to enroll in a voluntary life insurance plan offered through a partner-ship between the National Conference on Public Employee Retirement Systems and the Prudential Insurance Company of America. The plan is designed specifically for public safety employees and provides accidental death and dismemberment insurance for members and life insurance for both members and their eligible dependents.

The plan is affordable because it is a decreasing term life insurance plan. In other words, the plan pays a maximum benefit when members are younger and a gradually decreas-ing benefit amount as they age. The cost is $17 per month and the coverage continues after retirement. Other features of the plan include:

• Guaranteed acceptance: there are no health questions to answer.

• The coverage is 24/7: providing insurance protection on and off the job.

• AD&D insurance is automatically included: Group ac-cidental death and dismemberment insurance provides a benefit for covered injuries and pays an additional death benefit (some exclusions apply).

• Dependents are also covered: Group term life insurance is included to cover spouses and eligible children.

• Convenient direct payment options: Payments can be made by coupons or electronic funds transfer.

Coverage is issued by Prudential, which has offered this group decreasing term life insurance plan since 1969. Nation-ally, there are over 100,000 covered members, retirees, and dependents enrolled in the plan. In 2012, almost $12 million in benefits were paid to beneficiaries. Look for enrollment information in the fall edition of the Member’s Report.

COMMEMORATIVE BRICKS AND PAVERS AVAILABLE IN MEMORIAL PARK

HONOR A LOVED ONE WITH BRICKS, PAVERS AND BENCHES AT OP&F’S MEMORIAL PARKIndividuals, municipalities or organizations are able to honor Ohio’s public safety officers by purchasing inscribed bricks, pavers or benches for the Ohio Police and Fire Memorial Park.

The park, adjacent to OP&F headquarters in Columbus, was dedicated in April 2004 and honors police officers and firefighters who have died in the line of duty. To date, more than 382 bricks and pavers, and eight black granite benches are permanently located in the park, honoring these fallen heroes.

To order a commemorative brick, paver or bench, please complete this form and return it to OP&F. A form is also available the OP&F website at www.op–f.org.

Complete the form below and return it with your payment to:Ohio Police & Fire Pension Fund Finance Department 140 East Town Street Columbus, OH 43215

Make checks payable to: OP&F Memorial Park

All donors will receive confirmation of their order. Please allow 10 to 15 weeks for installation from the date of OP&F’s receipt of your order. A portion of your purchase is tax deductible.

Brick 4 x 8 inches $75 each (additional bricks $50 each)

Paver 12 x 12 inches $500 each

Granite bench, $5,000 each. To reserve a bench, please contact OP&F at 888-864-8363.

Donation made by: ___________________________________

Organization: _______________________________________

Contact name: ______________________________________

Address: ___________________________________________

City, state, ZIP code: __________________________________

Phone number: ______________________________________(All order forms must be accompanied by payment)

Three lines, 13 characters per line; a space counts as one character.

Five lines, 13 characters per line; a space counts as one character.

BENEFIT STATEMENTS AND MORE AVAILABLE ONLINEMembers who want to view or print their monthly benefit statements or their 2013 IRS Form 1099-R may do so online using the Member Self Serve section of the OP&F website. Registration and login information is available on the website at op-f.org.

PRSRT STD US POSTAGE PAID

COLUMBUS, OH PERMIT No. 675

RETURN SERVICE REQUESTED

140 East Town Street Columbus, OH 43215

www.op–f.org

Toll Free: 888–864–8363 General Information: (614) 228–2975 Fax: (614) 628–1777 TTY: (614) 221–3846 E–mail: questions@op–f.org Business Hours: Monday–Friday, 8 a.m.–4:30 p.m. EST

OP&F Board of Trustees Scott Huff, Chair, Cleveland Police William Deighton, Retired, Cleveland Fire Daniel Desmond, Toledo Fire Ed Montgomery, Columbus Division of Police John Wainscott, Retired, Cincinnati Police David A. Witner, Cuyahoga Falls Fire J. David Heller, Investment Member David Owsiany, Investment Member Scott D. Roulston, Investment Member

OP&F Executive Staff John J. Gallagher, Jr. Executive Director J. Keith Byrd, Deputy Executive Director Mary Beth Foley, General Counsel Theodore Hall, Chief Investment Officer Scott Miller, Director of Financial Services Jennifer Harville, Member Services Director Mark Jordan, Internal Auditor


Securing the future for Ohio’s Police and Firefighters

COPYRIGHT © 2014 by Ohio Police & Fire Pension Fund, All Rights Reserved.

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Notify OP&F of any address changesMembers can update their information online from the secure Member Self Serve, or with the Change of Address form available at op–f.org. Members may also email [email protected] with new address and contact information or call Customer Service at 888-864-8363.

Important Dates:Aug. 26-27Board of Trustees meetings

Sept. 1 OP&F offices closed in observance of Labor Day

Sept. 16-17 Board of Trustees meetings

Suspect disability fraud? Call 844-FRAUD HL (844-372-8345)A toll free number is available for members or the general public to report suspected disability benefit fraud. Substantiated allegations may result in the termination of benefits and referral to the proper authorities for prosecution. Receiving a disability benefit from OP&F does not mean an individual is prohibited from other employment; however they are prohibited from working in a police or firefighting position.

Documents

CLEVELAND’S HUFF NOW CHAIR OF BOARD OF TRUSTEES · PDF fileCLEVELAND’S HUFF NOW CHAIR OF BOARD OF TRUSTEES ... He is a graduate of the University of Akron, ... Member ID card to