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Home My WebLink AboutCOMM - Meeting Minutes - 175 - 4-30-1998 - RETIREMENTF 1 Sold By [MR Limited Forn 82'� c- Minute No. 175 133 Washington County Retirement Board Washington, Pa., April 30, 1998 The monthly meeting of the Washington County Retirement Board was held at approximately 11:35 a.m. on Thursday, April 30, 1998, in the Public Meeting Room, Courthouse Square Office Building, Washington, Pennsylvania, with the following members being present: Commissioners Diana L. Irey, J. Bracken Burns, Sr., and Joseph A. Ford, Sr; Treasurer Francis King and Controller Paul Belcastro. Also being present: Chief Clerk Michelle Miller; Roger Metcalfe, Budget Director; William McGowen, Director of Administration; Joe Smydo, Observer -Reporter, Chris Haines, Herald Standard; Kathy Thomas, Valley Independent; Vince Ponzio, WJPA; Frank Domiesen, Yanni-Bilkey, Norm Allen, CS McKee, and Frank Burnette, RRZ Investment Management. Approval of Minutes Chairman Irey entertained a motion to approve Minute No. 174 dated March 19, 1998. Moved by Mr. Burns, seconded by Mr. Belcastro, that Minute No. 174 dated j March 19, 1998, be approved as written. Roll call vote taken: Mr. Belcastro - Yes; Mr. King - Yes; Mr. Ford - Yes; Mr. Burns - Yes; Mrs. Irey - Yes. Motion carried unanimously. Treasurer's Report RETIREMENT ALLOWANCE REPORT Bank Balance as of March 1 1998 Deposits to Checking Account Transfers from Investment Account Less: Cancelled Checks Less: Transfers to Investment Account $ 391,379.65 $ 122,811.96 $ 255,347.72 $ 326,935.79 $ 133,604.55 134 Bank Balance as of April 1, 1998 Less: Outstanding Checks Less: Retirement Check Run as of 3/31/98 Less: Deposits in Transit Add: Bank Error (Check Printing Fee) Add: Encoding Error Reconciled Balance as of April 30, 1998 $ 308,998.99 $ 172,076.79 $ 77,420.59 $ 59,556.06 $ 54.18 $ .27 $ 0.00 Moved by Mr. King, seconded by Mr. Belcastro, that the Treasurer's Report be approved as submitted. Roll call vote taken: Mr. Belcastro - Yes; Mr. King - Yes; Mr. Ford - Yes; Mr. Burns - Yes; Mrs. Irey - Yes. I Motion carried unanimously. Requisitions Moved by Mr. Belcastro, seconded by Mr. King, that the following requisitions I be approved: Check No. Payee Amount 1824 Estate of Walter J. Marm $ 305.08 1825 Estate of Margaret Mawhinney 10.82 F 1826 Estate of Frances Malinky 49.88 1827 Maude H. Doak 7,372.47 (Bene. Corrine J. McKean) 1828 Kevin McKean 7,372.47 (Bene. Corrine J. McKean) 1829 PFS Shareholder Services, Inc. as 1,990.44 trustee of IRA of Michele Chiodo- Abel 1830 Patricia Berdine 537.55 1831 Ronald R. Bodnar 694.27 1832 Bernard A. Coleman, Sr. 320.39 1833 Crystal M. Hain 10,175.85 1834 Jody A. Johnson 11,558.59 1 P E Sold By IMH Limited Fo 2 _. 1835 Sandra Ann Pirillo 1836 Andrea L. Wright 1837 Lori A. Zura Transfer: PNC Bank Transfer: Washington County Cash Disbursement Transfer: Washington County Retirement Allowance TOTAL TO BE TRANSFERRED 1355 23,577.94 112.19 3,470.38 18,223.42 35,598.44 114,322.75 $235,692.93 Roll call vote taken: Mr. Belcastro - Yes; Mr. King - Yes; Mr. Ford - Yes; Mr. Burns - Yes; Mrs. Irey - Yes. Motion carried unanimously. Old Business Selection of Money Managers Commissioner Irey led the discussion stating that the Retirement Board must make a decision on which firm to use to invest the $1.5 million dollars that remains in the small cap fund. Mr. King made a motion to utilize Emerald Investors to invest the additional $1.5 million in a small cap fund. Mr. Burns seconded the motion. A discussion followed. Roll call vote taken: Mr. Belcastro - No; Mr. King - Yes; Mr. Ford - Yes; Mr. Burns - Yes; Mrs. Irey - Yes. Motion carried. New Business Retirement Fund Audit Mr. Belcastro made a motion to hire the accounting firm of DePretis & Ware to perform an audit of the 1997 Retirement Fund at a cost of $1950.00. Mr. Burns seconded the motion. 136 Roll call vote taken: Mr. Belcastro - Yes; Mr. King - Yes; Mr. Ford - Yes; Mr. Burns - Yes; Mrs. Irey - Yes. Motion carried unanimously. (It was noted that this item was voted on by the Board of Commissioners per min #590, dated 4/30/98.) Discussion on Realized Gains Mr. Belcastro led the discussion by making a motion for each money manager to realize a $1 million dollar gain for 1998. Mr. Burns seconded the motion. Roll call vote taken: Mr. Belcastro - Yes; Mr. King - Yes; Mr. Ford - Yes; Mr. Burns - Yes; Mrs. Irey - Yes. Motion carried unanimously. To be noted for the record - Retirement Repurchase The following active County employee will purchase service credit for the following period of time: Joyce S. Neil service time to be purchased: 2/5/79 to 10/6/84 $4,593.23 lump sum payment on 4/8/98 Change in meeting schedule Mr. Belcastro brought to the Board's attention Purdon's Pennsylvania Statute 16 S 11657, which states that the board shall, from time to time, establish such rules and regulations for meetings of the board and for the administration of the fund, and the various accounts thereof, as may be deemed necessary. Mr. Belcastro made a motion to Change the Retirement Board's practice of meeting monthly to meeting on a quarterly basis and to allow the Secretary of the Retirement Board to pay necessary bills between the quarterly meetings. Mr. Burns seconded the motion with the understanding that meetings could be scheduled more often if needed. Roll call vote taken: Mr. Belcastro - Yes; Mr. King - Yes; Mr. Ford - Yes; Mr. Burns - Yes; Mrs. Irey - E E Yes. 137 Sold By IMR Limited I'm 625 1 1 1 Motion carried unanimously. Mrs. Irey noted that while she is serving as the Chairman of the Retirement Board, she will call special meetings as necessary. Investment Managers 1st Quarter 1998 Portfolio Presentations RRZ Investment Management Frank Burnette gave a brief overview of the market performance during the first quarter or 1998. He advised that the primary strength of the market resulted in funds flowing into large cap stocks. Mr. Burnette further stated that the foreign exchange rate was very favorable for United States manufacturers. He discussed the various components of the County's fund under RRZ's jurisdiction and ended the conversation by stating that this portion met and exceeded the performance bench mark by 30 basis points. CS McKee Norm Allen began his discussion with an analysis of the economic perspective for the first quarter of 1998. He said that the market value of the county's investment portfolio increased from $28,046,585 to $30,763,786. Mr. Allen further stated that the county's fund exceeded the benchmark of 7.10% on the portfolio returns. Accordingly, he told that the county's domestic equity was 18.20%, which exceed the S & P 500 Stock Index of 13.95%. He finished his discussion by stating that the fixed income slightly trailed the LBG/C Bond Index of 1.52% with the County's portion being 1.45%. Investment Consulting 1st Quarter 1998 Pension Plan Review Frank Domiesen discussed the overall performance analysis of CS McKee and RRZ Investment Management through March 31, 1998. He told that CS McKee had returned an equity performance of 18.2% in the first quarter while RRZ returned 14.3%. In the fixed income category, CS McKee was at the 1.6% mark while RRZ was at 1.5% designation. For the total overall fund, CS McKee returned 10.6% and RRZ returned 8.0%, with a combined average of 9.2%, which exceeded the target index of 7.0%. Commissioner Ford led a brief discussion by asking Mr. Domiesen whether or 138 not the current money managers are in compliance with the policies that were previously set forth by the board. Mr. Domiesen suggested that Yanni Bilkey Investment Consulting study the equity allocation and determine if the current policy is still appropriate. The Retirement Board directed Mr. Domiesen to review the current allocation levels and make a recommendation to the board as to whether or not it is necessary to change the current policy. There being no further business, Chairman Irey declared the meeting adjourned at approximately 12:15 p.m. THE FOREGOING MINUTES SUBMITTED FOR APPROVAL: SECRETARY 1