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Home My WebLink AboutCOMM - Meeting Minutes - 202 - 11-20-2003 - RETIREMENT1 1 1 Washington, PA, November 20, 2003 The quarterly meeting of the Washington County Retirement Board was held at approximately 10:55 a.m. Thursday, November 21, 2003, in the Public Meeting Room, with the following members being present: Commissioners John P. Bevec, Diana L. Irey and J. Bracken Burns, Sr.; Treasurer Francis King; and Controller Michael Namie. Also present: Administrator/Chief Clerk Catherine E. Kresh; Director of Finance Roger Metcalfe; Commissioner - Elect Larry Maggi; Secretary, Joyce Thornburg, and Kathy Demarest, Controller's Office. Approval of Minutes Mr. Bevec entertained a motion to approve Minute No. 201 dated August 21, 2003. It was moved by Mrs. Irey and seconded by Mr. King that the above mentioned minutes be approved as written. Roll call vote taken: Mr. Namie - Yes; Mr. King - Yes; Mrs. Irey - Yes; Mr. Burns - Yes; Mr. Bevec - Yes. Motion carried unanimously. Treasurer's Report Mr. Bevec entertained a motion to approve the Treasurer's Report. It was moved by Mr. King and seconded by Mr. Namie that the above mentioned report be approved as submitted. Roll call vote taken: Mr. Namie - Yes; Mr. King - Yes; Mrs. Irey - Yes; Mr. Burns - Yes; Mr. Bevec - Yes. Motion carried unanimously. Retirement Allowance Report Bank Balance as of August 1, 2003 Deposits to Checking Account Transfers from Investment Accounts I Less: Cancelled Checks I Less: Transfers to Investment Accounts i Less: ACH Debits Bank Balance as of August 31, 2003 Less: Deposit in Transit Less: Outstanding Checks Less: Encoding Error Less: Retirement Check Run August 31, 2003 Bank Balance as of August 31, 2003 I Retirement Allowance Report Bank Balance as of September 1, 2003 Deposits to Checking Account I Transfers from Investment Accounts Less: Cancelled Checks Less: Transfers to Investment Accounts Less: ACH Debits j Bank Balance as of September 30, 2003 Less: Outstanding Checks Less: Encoding Error Less: Retirement Check Run September 30, 2003 Bank Balance as of September 30, 2003 $ 90,959.13 771,776.38 418,308.84 (106,171.62) (772,730.03) ( 98,607.04) $ 303,535.66 (2,373.52) (226,975.34) (171.62) (74,015.18) $ 303,535.66 253,879.06 229,618.66 (321,303.31) (243,122.85) (117,138.92) $ 105,468.30 (29,340.28) (88.73) (76,039.29) Requisitions Mr. Namie stated that requisitions for the months of August, September and October Namie and seconded by Mrs. Irey. 3 i Roll call vote taken: Mr. Namie - Yes; Mr. King - Yes; Mrs. Irey - Yes; Mr. Burns - Yes; Mr. Bevec - Yes. t Motion carried unanimously. August 2003 Distributions Check Payee Amount 2551 James R. Rockwell $ 40,681� 65 2552 Fiduciary Trust Co. of New Hampshire 124,693.34 s 2553 Charles R. Anderson 16� .65 2554 Amber Cox 27Q.42 2555 Jeffrey L. Frans 9,08�.11 2556 Steven M. Lusher 21,174.02 2557 David V. Sims 1,130.33 2558 Washington County PA SCDU 7$.00 Arthur Couts 169-54-0923 Transfer PNC Bank 24,440.27 f 2559 Washington Co. Cash Disbursement Account 23,580.68 Transfer Washington Co. Retirement Account 168 620.91 $ 413,94.38 September 2003 Distributions Check Payee Amount x 2560 Estate of Bertie Wilson Sprowls $ 37?j.84 2561 Priscilla M. Cottrill 1,13 ►.55 2562 John W. Green, Jr. 220.41 2563 Michael J. Markley 4,874.55 2564 Capital Bank and Trust Co. as trustee of IRA 870.60 of Paul J. Walsh 05-64210340 E I 2567 Kelly M. Diaz 10,56$.62 2565 PA SCDU Arthur Couts 169-54-0923 74.00 Transfer PNC Bank 10,70.67 2566 Washington Co. Cash Disbursement Account 44,78$.88 Transfer Washington Co. Retirement Account 169 20.16 $24 October 2003 Distributions Check Payee Amount ; 2567 Loretta A. Franklin $ 4,194.28 2568 Deborah S. Glunt 5,000.07 2569 Geraldine A. Hancher 690.79 2570 Jacqueline R. Harris 9,51#.87 2571 David D. Miele 3,47.17 2572 Carla S. Sanpietro 830.57 2573 David M. Zofchak 19,77$.87 2574 Estate of Florence Jane Hoholak 80.61 2575 PA SCDU Arthur Couts 169-54-0923 7$.00 Transfer PNC Bank 17,196.81 2576 Washington Co. Cash Disbursement Account 19,706.03 Transfer Washington Co. Retirement Account 167,860.58 $ 248.416.65 1 1 1 R 1 None New Business To Be Noted For The Record: Robert N. Ketzell has an agreement to purchase service credit dated 01/30/95 to 11/19/96 in the amount of $2,053.53. Disability Pension Requests A disability pension request has been approved for Elizabeth L. Cummins. Ms. Cummins has been approved by the Social Security Administration and also has been approved for County disability pension by MOU. This request was moved by Mr. Namie and seconded by Mrs. Irey. Roll call vote taken: Mr. Namie - Yes; Mr. King - Yes; Mrs. Irey - Yes; Mr. Burns - Yes; Mr. Bevec - Yes. Motion carried unanimously. 2002 Retirement Fund Audit As reported by Mr. Namie, the Washington County Retirement Fund received another clean audit with no comments or findings. Adoption of Proposed 2004 Retirement Budget Mr. Bevec entertained a motion to adopt the proposed 2004 retirement budget of $3,530,228.00. This request was moved by Mrs. Irey and seconded by Mr. King. Roll call vote taken: Mr. Namie - Yes; Mr. King - Yes; Mrs. Irey - Yes; Mr. Burns - Yes; Mr. Bevec - Yes. Motion carried unanimously. 2004 Estimated Retirement Contribution To be noted for the record, the 2004 estimated retirement contribution is approximately $2,000,000.00. Of this amount, $1.2 million will come from the County's general fund. Investment Managers Presentations Norm Allen - C. S. McKee Mr. Allen of C.S. McKee stated that there were roughly $138,292.00 in disbursements and a positive change in dollar value of $635,876.00 for an ending September 2003 market value of $33,688,495.00. The current ending value as of today's date is $35,323,000.00. On the fixed income portion, the Lehman aggregate bond index was down 0.15% while C.S. McKee was down 0.89%. In January 2002 we began buying callable agency bonds. These are government issued bonds and triple A rated. The first half of 2003 these bonds outperformed the index. From the middle of June to the end of July these bonds underperformed due to the rise in interest rates of approximately 160 basis points. These bonds are again performing well and we have regained some of the ground that was lost in the third quarter. Year-to-date, we are still seeing an underperformance in fixed income of 3.42% versus 3.78%. For the quarter, value equity was up 3.05% versus the Russell 1000 Value Index of 2.06%. Year-to-date, value equity was up 22% versus 13.87% for the index (an out -performance of 8.13%.) Yanni Partners — Frank Domeisen The equity market was driven by the growth segment of the market with the year-to-date up 14.7%. Growth was ahead of value, not just in the large cap segment as represented by the S&P but also in the small cap segment as represented by the Russell 2000. The overall benchmark in small cap was up 29%. Growth stocks were up 32%. We are looking at a recovery mode and increased investor confidence. In October, we saw the S&P up 5.7%, breaking all kinds of records in terms of recovery. This increase was driven by telecommunications services and information technology. International was up 8.1 % for the quarter and year-to-date is up 18.8%. The aggregate index is down 0.1 % for the quarter on the fixed income side. There was a significant rise in yields and interest rates during July and August which resulted in the quarter I being down. When interest rates rise, bond prices fall. As interest rates rise and bond prices fall, the issuing agencies buy back these bonds while they are cheap. Year-to-date, the bond market is up 3.8% with 40% of that coming from the Triple B credit. Total performance for the quarter is up 2000, the three-year period is lagging. Ark outperformed in the top 25% of large cap growth. i The total large cap component is in the top quartile on a year-to-date basis. Evergreen (from Aprill, 2003) has a short history. Emerald is paying attention to earnings. When they buy stock, the outperform. Over the past 3 years, international (Invesco) has been outperforming 8 out of 14`= managers. Out of the last three (3) calendar years, through the end of 2002, it's been in the top quartile. BlackRock is off slightly versus the benchmark for the quarter because of corporate underweighting and mortgage allocation but the total portfolio for the quarter still ranks in the tip quartile. Emerald continues to have a very strong October being up 12%. Their benchmark vas up 8.6%. Ark was up 6%, outperforming their benchmark. Invesco was up 5%, matching the f index. Invesco has been involved in being requested by the SEC to provide additional information regarding mutual funds. This has nothing to do with any wrongdoings, but only to supply additional information to the New York attorney's office. This is typical for a mutual funds company. BlackRock and Invesco are also being asked to supply additional information. The meeting was adjourned at 12:00. THE FOLLOWING MINUTES SUBMITTED FOR APPROVAL: A�✓y,�y o1� 2004 1