Ohio: Board approves investment strategy for state insurance fund

The Ohio Bureau of Workers' Compensation's board of directors approved a new investment strategy for the State Insurance Fund.

The new plan calls for an implementation strategy for diversifying both fixed and equity investments within the State Insurance Fund. The vote follows the board's approval of a comprehensive update to the fund's investment policy statement, which stipulates that the State Insurance Fund investment portfolio will be comprised of 70 percent bonds and 30 percent equities.

"Sound, safe investments are paramount to maintaining a strong state fund," said Marsha Ryan, administrator of the bureau. "By diversifying these investments, we will reduce our portfolio risk, be less susceptible to market volatility, and anticipate enhanced returns in the future."

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The plan calls for the issuance of a Master Passive Index Manager Request for Proposal to select a passive investment manager to execute the investment strategy. The proposal is expected to be posted by July with finalists identified later this year.

"The stability of BWC's investment portfolio is crucial, especially in difficult economic times," Ryan said. "The comprehensive review of the bureau's investment policy statement has provided us with great insight into investment management that will ensure assets support liabilities, resulting in a sound workers' compensation system."

Board OKs lower rate. The board also approved a slight premium rate decrease for Ohio state agencies, universities, and university hospitals. An actuarial analysis recommended the change to the Public Employer State Agencies rate. The new rate will go into effect on July 1 for state agencies and in October for state universities and university hospitals.

The average rates among public employer state agencies vary and will be individually calculated.

June 25, 2009

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