Financial and Strategic Analysis to the Department of Defense (DoD) Investment Board

摘要

TASK: The Chairman, Defense Business Board (DBB) formed a Task Group, at the behest of the Undersecretary of Defense (Comptroller), to review the Defense Finance and Accounting Service (DFAS) Military Retirement Fund (MRF) and the Medicare-Eligible Retiree Health Care Fund (MERHCF) with an approximate combined value of $500 billion. The Task Group was asked to provide recommendations to the Department on the Funds' Investment Board's current and proposed investment strategies. A copy of the official Terms of Reference (TOR) outlining the scope and deliverables for the Task Group can be found at Appendix A. The Task Group was chaired by William Phillips. Other Task Group members included: Owsley Brown, Bonnie Cohen, and Robert Stein. The Task Group Executive Secretary was Captain Michael Bohn, USN. PROCESS: The Task Group conducted interviews and elicited comments from all levels of DFAS Management, representatives of the DoD Office of the Actuary, and industry treasury securities investment professionals, related to the management of the two funds. Additionally, the Task Group reviewed public laws, Department of the Treasury Operating Circular 'Responsibilities Relating to Government Investment Accounts and Investment in Government Account Series (GAS) Treasury Securities', the draft January 2010 Investment Policy Statement from DFAS Trust Fund Accounting Division for the Department of Defense Investment Board, and the last three meeting minutes of the most recent investment board meetings. The Task Group presented their findings and recommendations to the full Board on April 22, 2010 (see Appendix B).