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Home My WebLink AboutCOMM - Meeting Minutes - 225 - 8-14-2008 - RETIREMENTSold By IMR Limited Form 825 E001 199 u n Minute No. 225 Washington County Retirement Board Washington, PA August 14, 2008 The quarterly meeting of the Washington County Retirement Board was held at approximately 11:30 a.m. on Thursday, August 14, 2008 in the Public Meeting Room with the following members being present: Commissioners Larry Maggi, J. Bracken Burns, Sr., and Diana L. Irey; Treasurer Francis King; and Controller Michael Namie. Also present: Director of Finance Roger Metcalfe; Chief Clerk Mary Helicke; Secretary Joyce Thornburg; Audit Manager Kathy Demarest; Solicitor Lynn DeHaven; concerned citizen John Adams; Gene Natali representing C.S. McKee; Geoff Gerber and Andy Balog representing Twin Capital; Ann Larson representing Evergreen; and Lee Martin representing Peirce Park. Approval of Minutes Mr. Maggi entertained a motion to approve Minute No. 224 dated May 15, 2008. i The motion was moved by Mrs. Irey and seconded by Mr. Namie that the above j mentioned minutes be approved as written. No discussion followed. I Roll call vote taken: Mr. Namie — yes; Mr. King — yes; Mrs. Irey — yes; Mr. Burns — not available for I this vote; Mr. Maggi — yes. Public Comment Mr. Adams requested that the Commissioners consider rescinding their annual cost of living raises as this in turn will result in higher pension costs. I Treasurer's Report Mr. King stated that for April, May, June, and July 2008 the bank balance was I reconciled to zero. It was moved by Mr. King and seconded by Mrs. Irey that the report be approved. No discussion followed. I, Roll call vote taken: Mr. Namie — yes; Mr. King — yes; Mrs. Irey — yes; Mr. Burns — yes; Mr. Maggi — 1 yes. Retirement Allowance Report Bank Balance as of April 1, 2008 Add: Deposits to Checking Account Add: Transfers from Investment Accounts Less: Cancelled Checks Less: Transfers to Investment Account Less: ACH Debits Bank Balance as of April 30, 2008 $ 166,669.37 211,855.19 228,470.97 (171,012.79) (106,265.73) (169,044.13) $ 160,672.88 200 Less: Deposits In Transit (38,538.77) Less: Retirement Check Run April 30, 2008 (69,476.56) Reconciled Balance as of April 30, 2008�0- Bank Balance as of May 1, 2008 $ 160,672.88 Add: Deposits to Checking Account 211,323.98 Add: Transfers from Investment Accounts 489,516.17 Less: Cancelled Checks (166,790.52) Less: Transfers to Investment Account (208,406.28) Less: ACH Debits (178,401.65) Bank Balance as of May 31, 2008 $ 307,914.58 Less: Transfers to Investment (50,866.43) Less: Outstanding Checks (180,259.56) Less: Retirement Check Run May 31, 2008 (76,788.59) Reconciled Balance as of May 31, 2008�0- Bank Balance as of June 1, 2008 $ 307,914.58 Add: Deposits to Checking Account 300,899.25 Add: Transfers from Investment Accounts 398,374.14 Less: Cancelled Checks (280,173.37) Less: Transfers to Investment Account (211,740.36) Less: ACH Debits (190,802.10) Bank Balance as of June 30, 2008 $ 324,472.14 Less: Transfers to Investment (152,836.44) Less: Outstanding Checks (94,909.35) Less: Retirement Check Run June 30, 2008 (76,726.35) Reconciled Balance as of June 30, 2008�0- Bank Balance as of July 1, 2008 $ 324,472.14 Add: Deposits to Checking Account 323,987.39 Add: Transfers from Investment Accounts 285,188.44 Add: ACH Credit 52.51 Add: Other Credits 90.69 Less: Cancelled Checks (279,308.05) Less: Transfers to Investment Account (302,857.03) Less: ACH Debits (199,102.75) Bank Balance as of July 31, 2008 $ 152,523.34 Less: Transfers to Investment (155.12) Less: Outstanding Checks (80,371.98) Less: Retirement Check Run July 31, 2008 (71,996.24) Reconciled Balance as of July 31, 2008 >-0- 1 1 1 AEI Sold By IMR Limited Form 825 E00102204 1 Mr. Namie stated that requisitions for the months of May, June, and July 2008 totaled $1,362,682.29. It was moved by Mr. Namie and seconded by Mr. Burns that the requisitions be approved. No discussion followed. Roll call vote taken: Mr. Namie — yes; Mr. King — yes; Mrs. Irey — yes; Mr. Burns — yes; Mr. Maggi — yes. May 2008 Check Payee Amount 3307 Jennie Dopscha $ 49.70 3308 Eileen Dulaney 1,493.32 3309 Randy Garrett 5,256.04 3310 Brandon P. Ging 2,793.89 3311 Wendy R. Groves 75.96 3312 Jeffrey M. LaBella 361.76 3313 Robert Lippencott 14,629.84 3314 Thomas J. McGee 461.10 3315 Adam Nida 356.33 3316 Candy J. Sanney 7,122.76 3317 Amanda R. Velaquez 225.81 3318 Kevin S. Wilkes 2,449.34 3319 Frank J. Zemba 45.40 3320 Jayme A. Zsiros 67.52 3321 Greek Catholic Union of the USA as trustee of IRA of 143,856.80 Helen Rizak Gaskey 3322 Pacific Life Insurance Co. as trustee of IRA of Patricia A. 17,294.97 Jarvis 3323 Washington County Cash Disbursement Account 24,150.32 3324 Washington County Regular Payroll Escrow Account 1,370.00 Transfer PNC Bank 19,754.66 Transfer Washington County Retirement Account 250,618.35 Total May 2008 Distributions $492,433.87 June 2008 Check Payee Amount 3325 Estate of Jean E. Hamel $ 610.93 3326 Estate of Rose M. Cargini 22.17 3327 Charlene M. Frost (Beneficiary of Shirley L. Kelley) 641.42 3328 Mark A. Baldini 63,399.84 3329 Ameriprise Trust Co. as trustee of IRA of Christopher Barton 26,078.16 3330 Alice L. Lohr 2,118.35 3331 Curtis Lee Matthews 1,402.14 3332 Washington County Cash Disbursement Account 15,451.52 2D 2 3333 Washington County Regular Payroll Escrow Account 1,389.00 Transfer PNC Bank 28,153.12 Transfer Washington County Retirement Account 259,107.49 Total June 2008 Distributions $398,374.14 Check 3334 3335 3336 3337 3338 3339 3340 3341 3342 3343 3344 3345 3346 Transfer Transfer Old Business None. July 2008 Payee Jodi L. Allen Lori Barnhart Barry Bebout Adrienne M. Gardner David R. Lambert Alexis Myers Spencer R. Simons State Street Bank and Trust Co. as trustee of IRA of Sheila Stauffer Kimberly Young Carrie Wheeler Linda Youk Washington County Cash Disbursement Account Washington County Regular Payroll Escrow Account PNC Bank Washington County Retirement Account Total July 2008 Distributions Amount $ 5,308.30t 14,677.27 13,588.68 14,904.76 2,604.16 185.19 I 549.80 3,125.25 3 1,801.37 177.44 i 53,328.19 63,282.94 1,444.00 37, 969.04 258.927.89 $ 471,874.28 Jj New Business Mr. Maggi called for a motion to approve a request by Linda Dille to purchase unpaid leave time dated 11/01/1996 to 12/04/1996 in the amount of $183.99. The motion was made by Mrs. Irey and seconded by Mr. Burns. No discussion followed. Roll call vote taken: Mr. Namie — yes; Mr. King — yes; Mrs. Irey — yes; Mr. Burns — yes; Mr. Maggi — yes. Mr. Maggi noted the following for the record: Nancy Bielawski agreement to purchase service credit dated 09/22/1975 to 03/15/1976 in the amount of $170.89. Robert L. Johnson agreement to purchase military time dated 06/29/1967 to 10/17/1969 in the amount of $6,758.62. 1 I n mo Sold By WR Limited Form 825 E00102204 Presentations Evergreen —Ann Larson Ms. Larson spoke briefly about Evergreen's performance, stating that performance is above the benchmark since inception and also for the past year. She attributes this to the portfolio's underweight in financials and overweight in energy. Detractors to performance include a slight overweighting in consumer discretionaries. Evergreen feels that their portfolio allocation will add value in the long term. I C. S. McKee — Gene Natali, Jr. Mr. Natali began his presentation by noting that the move made by the Board switching C.S. McKee from large -cap value to all -cap equity has been very beneficial to the County's portfolio. They feel that this move will continue to be beneficial as they predict growth will continue to outperform value in the future. They also plan to keep on track with an underweight in financials and consumers, and an overweight in energy. On the fixed income side, performance remains very strong. Twin Capital Management —Andy Balog/Geoff Gerber Mr. Balog opened with a brief overview of Twin Capital Management and then turned the floor over to Mr. Gerber to discuss performance. Mr. Gerber, in agreement with Mr. Natali, stated that value, particularly large cap value, is not the place to be right now. However, through the end of the 2nd quarter, Twin Capital was ahead of the benchmark. Mr. Gerber stated that their goal as an enhanced index manager is to add value in small increments while taking on only a small amount of risk. They feel that they are well -positioned to produce steady performance for the County. Peirce Park — Lee Martin Mr. Martin began with a historical look at market performance. Even though growth has performed better than value over the past year, historically, value outperforms growth. With this in mind, the County's portfolio has a 60/40 value tilt. Since pension plans are long-term investments, having a value tilt is much more beneficial. Overall performance for the quarter was negative. Inflation continued to rise and both fixed income and equities were down. The slight bright spot for the quarter was that the dollar gained strength. Mr. Martin stated that the key to weathering this type of market environment is diversification, which the County's portfolio has. BlackRock's underperformance was also discussed. The Board requested that Mr. Martin begin a search of fixed income managers to be presented at the next regularly scheduled Retirement Board meeting. In accordance with the Board's directive, Peirce Park conducted a Real Estate Manager search and presented the following firms for the Board's consideration: Cohen & Steers, DWS Scudder, ING Clarion Real Estate Securities, Urdang, and Vanguard. It was moved by Mr. Burns, and seconded by Mrs. Irey, that the County interview DWS Scudder, Urdang, and Vanguard at a special meeting before the next scheduled }0 No discussion followed. Roll call vote taken: Mr. Namie — yes; Mr. King — yes; Mrs. Irey — yes; Mr. Burns — yes; Mr. Maggi — yes. Mr. Namie also asked the Board to consider hiring a securities litigation firm. Such firms track securities, free of charge, to look for fraud. If any fraud is found, a class-action suit would be filed to recoup any losses. If the suit was successful, the firm would then be paid from any proceeds. The Board directed Mr. Martin to research and present the names of some recommended firms at the next regularly scheduled Retirement Board meeting. The meeting was adjourned at 12:45 p.m. THE FOLLOWING MINUTES SUBMITTED FOR APPROVAL: 2008 ATTEST: l�G u 1 1