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HomeMy WebLinkAboutCOMM - Meeting Minutes - 203 - 2-19-2004 - RETIREMENTN Sold By !MR Limited Form 825 E00102204 Minute No. 203 Washington County Retirement Board Washington, PA, February 19, 2004 e quarterly meeting of the Washington County Retirement Board was held at approximately 1 :36 a.m. Thursday, February 19, 2004, in the Public Meeting Room, with the following embers being present: Commissioners Larry Maggi, J. Bracken Burns, Sr. and Diana L. Irey; easurer Francis King; and Controller Michael Namie. Also present: Director of Administration o Trich; Director of Finance Roger Metcalfe; Chief Clerk Mary Helicke; Secretary Joyce ornburg; Audit Manager Kathy Demarest; Linda Metz, Observer -Reporter and Jim Jefferson, JPA Radio. It was noted for the record that new board member Commissioner Maggi was ministered the Oath of Office. 1; Commissioner Burns entertained a motion for Chairman of the Retirement Board. easurer Francis King nominated Commissioner Burns for Chairman of the Retirement Board. e motion was seconded by Controller Michael Namie. All approved the nomination of J. Bracken Burns, Sr. to serve as Chairman. Chairman Burns entertained a motion for Vice -Chairman of the Retirement Board. dhairman Burns nominated Commissioner Maggi as Vice -Chairman of the Retirement Board. The motion was seconded by Treasurer Francis King. All approved the nomination of Commissioner Larry Maggi to serve as Vice -Chairman. j The positions of Secretary and Treasurer are by virtue of office thus being Controller ichael Namie and Treasurer Francis King, respectively. Chairman Burns entertained a motion to approve Minute No. 202 dated November 21, It was moved by Mrs. Irey and seconded by Mr. King that the minutes be approved as Roll call vote taken: Mr. Namie - Yes; Mr. King - Yes; Mrs. Irey - Yes; Mr. Maggi - Yes; Mr. Burns - Yes. carried unanimously. Chairman Burns entertained a motion to approve the Treasurer's Report. It was moved Mr. King and seconded by Mrs. Irey that the Treasurer's Report be approved as submitted. Roll call vote taken: Mr. Namie - Yes; Mr. King - Yes; Mrs. Irey - Yes; Mr. Maggi - Yes; Mr. Burns - Yes. carried unanimously. Retirement Allowance Report nk Balance as of October 1, 2003 $105,468.30 posits to Checking Account 699,780.46 ansfers from Investment Accounts 240,452.35 ass: Transfers to Investment Accounts 177,001.43 L113ss: ACH Debits $107,329.60 nk Balance as of October 31, 2003 $649,408.47 Less: Deposit in Transit 515,005.66 Le-ss: Encoding Error 88.73 Le,ss: Outstanding Checks 61,350.08 ss: Retirement Check Run October 31, 2003 $72,964.00 Fleconciled Balance as of October 31, 2003 Retirement Allowance Report Bank Balance as of November 1, 2003 $649,408.47 Deposits to Checking Account 257,840.61 Transfers from Investment Accounts 242,007.73 Less: Cancelled Checks 142,327.99 Less: Transfers to Investment Accounts 599,910.85 Less: ACH Debits 117,251.94 Bank Balance as of November 30, 2003 $289,766.03 Less: Deposit in Transit 172,027.04 Less: Encoding Error 88.73 Less: Outstanding Checks 46,410.45 Less: Retirement Check Run November 30, 2003 $71,239.81 Reconciled Balance as of November 30, 2003 $Q Retirement Allowance Report Bank Balance as of December 1, 2003 $289,766.03 Deposits to Checking Account 344,116.85 Transfers from Investment Accounts 244,450.41 Less: Cancelled Checks 144,820.17 Less: Transfers to Investment Accounts 514,863.89 Less: ACH Debits $116,498.99 Bank Balance as of December 31, 2003 $102,150.24 Less: ACH Debits 7,209.97 Less: Outstanding Checks 29,441.47 Less: Retirement Check Run December 31, 2003 $65,498.80 Reconciled Balance as of December 31, 2003 $Q Retirement Allowance Report Bank Balance as of January 1, 2004 $102,150.24 Deposits to Checking Account 304,353.72 Transfers from Investment Accounts 194,441.15 Less: Cancelled Checks 318,989.54 Less: Transfers to Investment Accounts 0.00 Less: ACH Debits $98,775.52 Bank Balance as of January 31, 2004 $183,180.05 Less: Deposit in Transit 93,756.25 Less: Outstanding Checks 10,608.84 Less: ACH Debits 7,209.97 Less: Retirement Check Run January 31, 2004 $71,604.99 Reconciled Balance as of January 31, 2004 $_-Q Requisitions Mr. Namie stated that requisitions for the months of November 2003, December 2003, and January 2004 totaled $680,899.29. Chairman Burns entertained a motion to approve requisitions. It was moved by Mr. Namie and seconded by Mrs. Irey to approve the requisitions as submitted. Roll call vote taken: Mr. Namie - Yes; Mr. King - Yes; Mrs. Irey - Yes; Mr. Maggi - Yes; Mr. Burns - Yes. Motion carried unanimously. November 2003 Distributions Check Payee 2580 Washington Federal Savings Bank As trustee of the Leslie L. Massengill IRA 2581 Estate of Mildred E. Pelan 2582 Melanie K. Carroll 2583 Tammy K. Dixon 2584 Sally Ann Harris 2585 Michael D. Richards Amount $25,113.44 21.50 10.90 4,607.05 192.76 834.85 Fj� 1 L Sold BY IMR Limited Form 825 EG6102204 2586 Tonya Lynn Riggle 542.46 2587 Garrick J. Wagner 3,500.11 2588 Timothy S. Wagner 1,838.86 2589 PA SCDU Arthur Couts 169-54-0923 75.00 ransfer PNC Bank 9,175.48 2579 Washington Co. Cash Disbursement Acct. 25,302.44 ransfer Washington Co. Retirement Acct. 170,792.88 $242,007.73 December 2003 Distributions heck Payee Amount 2590 American General as trustee of IRA of Michelle R. Fleissner $9,037.79 2591 American Funds as trustee of IRA of Shelley D. Carl 8,050.56 2592 Robert L. Kepics 687.44 2593 Stephanie L. Lanoy 867.99 2594 Judith A. Rush 1,383.57 2595 PA SCDU Arthur Couts 169-54-0923 75.00 2596 Danielle L. Patterson 5,340.97 2597 Washington Co. Regular Payroll Escrow Account 258.36 ransfer PNC Bank 8,474.51 2598 Washington Co. Cash Disbursement Acct. 33,088.31 ransfer Washington Co. Retirement Acct. 177,185.91 $244,450.41 January 2004 Distributions Check Payee Amount 2600 Paula K. Kozares $2,242,03 2601 Jackie S. Yohe 757.80 2602 PA SCDU Arthur Couts 169-54-0923 75.00 "ransfer PNC Bank 7,035.97 Washington Co. Cash Disbursement Acct. 14,435.89 "ransfer Washington Co. Retirement Acct. $169,894.46 p $194,441.15 9€ New Business Employee Benefit Statements The purchase of Employee Benefit Statements from the Hay Group will cost $1.75 per { statement for a total approximate cost of $1882.00. Chairman Burns entertained a motion to approve the purchase. The motion was moved by Mr. King and seconded by Mrs. Irey. Roll call vote taken: Mr. Namie — Yes; Mr. King — Yes; Mrs. Irey — Yes: Mr. Maggi — Yes; Mr. Burns — Yes. Motion carried unanimously. Cost of Living Adjustment A letter from The Hay Group was sent to Mr. Namie in November 2003 outlining a cost of living adjustment. The Retirement Board is required by statute to discuss this matter. Mrs. Irey moved that no increase be entertained. The motion was seconded by Mr. King. Roll call vote taken: Mr. Namie - Yes; Mr. King - Yes; Mrs. Irey - Yes; Mr. Maggi - Yes; Mr. Burns - Yes Motion carried unanimously. To Be Noted For The Record: Frank Gaster agreement to purchase service credit dated 11/01/1956 to 09/01/1957 and', 01/01/1960 to 07/23/1964 in the amount of $620.84. Investment Managers Presentations +Norm Allen - C. S. McKee The year was better than anticipated. We were up $2.72 million for the quarter which translates into an 8.1 % gain. The benchmark for the quarter as well as year end was exceeded in both fixed income and value equity. The difference in value equity was significant; 40.43% versus the benchmark of 30.03%. There will be upward pressure on interest rates. As interest rates move up bond proceeds will fall. Small cap stock and international stock are expected to ,. perform a little stronger than our domestic market in 2004 as measured by the S & P 500. The biggest problems going forward will be the federal budget deficit and the national trade deficit. Consumer debt is another problem area, being at an all-time high with bankruptcies happening at a record rate. Yanni Partners - Pat Fisher The 4th quarter saw a continuation of a very strong equity market and a flat return in thee.; bond market. The S&P 500 was up 12.2% for the large cap portion. The theme in the 4th quarter was that capitalization and quality matters. The smaller, lower quality companies outperformed the higher quality stocks. A + stocks were rated around 19 — 21 % for the year and lower quality stocks returned around 46.5%. Yanni Partners - Frank Domeisen The total portfolio was up 8.0% for the quarter which compares to the benchmark of 7.8%. The Target Market Index represents 45% large cap, 9% small cap, 6% international, and 40% fixed income. In that regard, the TMI exceeded the benchmark by 20 basis points for the quarter and was up 21 basis points for the year. It has been eight months since we introduced BlackRock as one of the fixed income managers, Evergreen as a small cap value manager to compliment Emerald, and Ark Asset Management was put into place. Looking at the core +1 balanced universe it is approximately a 60/40 stock bond mix. For the three-year period, there is! an above average return and slightly lower risk. Chairman Burns asked Frank Domeisen to comment on the SEC charges against `s ^i 1 1 1 IMR Limited Form 825 E00102204 1 1 1 vesco. (The SEC announcement is part of the minutes.) Mr. Domeisen stated that Invesco nds Group, Inc. (IFG) in Denver and president and chief executive officer, aymond R. Cunningham have had allegations brought against them for market timing and late ti ading. The fund that Washington County has is Invesco Retirement Trust which is a totally fferent group than IFG. IFG has agreed to a settlement without admitting guilt. This has no wring on our funds. Chairman Burns asked Mr. Domeisen if this is the type of company with which our County wants to deal. Mr. Domeisen stated again that IFG and Invesco Retirement 1. rust are two different companies. Mr. Domeisen went on to say that Yanni Partners has a task force in place to stay updated with the allegations against IFG. Chairman Burns asked about the iii,tegrity of this company and if we as a Board should have public funds invested in a company at is being accused by the SEC of breach of fiduciary responsibility, whether we were .rsonally impacted or not. Mrs. Irey stated that we should not be affiliated with this company. r. King stated that as long as this was not affecting our funds then there is no need to change. r. Maggi was told that we have approximately $3.2 million or 5% of our total portfolio managed f Invesco. Mr. Namie inquired what additional costs Washington County may incur if the Board :cides to replace Invesco. Mr. Domeisen stated if the Board decides to hire another firm, there II be no additional entrance, exit or search fees incurred by the county. Mrs. Irey moved to begin looking for an investment firm to replace Invesco. This motion as seconded by Chairman Burns. Mr. Domeisen suggested the funds be placed in an index nd if the board plans on replacing Invesco. Roll call vote taken: Mr. Namie - Yes; Mr. King - No; Mrs. Irey - Yes; Mr. Maggi - Yes; Mr. Burns - Yes. ian Burns asked Mr. Domeisen if some of our portfolio should be placed in the real estate nent trust market. Mr. Domeisen stated that he can follow up on this and provide each member with detailed information on this topic at the next Retirement Board meeting. The meeting was adjourned at 12:37 p.m. THE FOLLOWING MINUTES SUBMITTED FOR APPROVAL: 2004 ATTEST: SECRETARY