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Home My WebLink AboutCOMM - Meeting Minutes - 228 - 2-12-2009 - RETIREMENTfl 1 1 is well diversified. The County's plan also has a value tilt, which traditionally does better in a down market. Both factors contribute to the County performance — the markets were down 30%, while the County was only down less than 18%. Overall performance for the quarter was negative. The County was down about 8% in the 3rd quarter, which was slightly worse than benchmark for the policy index. This was mostly attributable to B1ackRock's performance. Mr. Martin stated that it was a good move on the Board's part to terminate B1ackRock in October since their performance has dropped even further since that time. There was good relative performance from Julius Baer, C.S. McKee, and Emerald, poor relative performance from Alliance Bernstein, and a slight underperformance from Twin Capital. In relative terms, Evergreen did well even though they underperformed their benchmark. Compared to other Counties, the Board has done well in managing their liabilities. As a cost saving move, Mr. Martin suggested that the County look at reducing crediting rates to the members' accounts. An adjustment to 4%, the lowest allowed, would save the County about $500,000.00 next year. The meeting was recessed at 11:35 a.m. and reconvened at 1:00 p.m. in the 7d' Floor Conference Room. At this time, the following members were present: Commissioners Larry Maggi, J. Bracken Burns, Sr., and Diana L. Irey; Treasurer Francis King; and Controller Michael Namie. Also present were Director of Administration Scott Fergus and Lee Martin representing Peirce Park. Presentations for Fixed Income Manager were given by the following: Emerald Advisors — John Thompson, Tom Datillo, Al Murphy. Segall, Bryant, & Hamill — James D. Dudura, Richard A. Reisert. PNC Capital — Patrick Naughton, Glenn Groniger, John Tracey. Federated Investors — Jed Robie, John Gentry. All presentation materials are available in the Office of the Controller for inspection. A discussion by the Board followed the presentations. Mr. Maggi entertained a motion to hire Federated Investors as Fixed Income Manager. The motion was moved by Ms. Irey and seconded by Mr. King. Those in favor signified by saying aye. Motion carried unanimously. Mr. Namie made a motion to liquidate the Vanguard Short -Term Index, the Vanguard Intermediate -Term Index, and take the funds necessary to total $10 million from C.S. McKee and fund the new Federated Investors account. The motion was seconded by Ms. Irey. No discussion followed. Those in favor signified by saying aye. Motion carried unanimously. The meeting was adjourned at approximately 4:10 p.m. THE FOLLOWING MINUTES SUBMITTED FOR APPROVAL: 2009 ATTEST:G'v2u� 2112 Minute No. 228 Washington County Retirement Board Washington, PA February 12, 2009 The quarterly meeting of the Washington County Retirement Board was held at approximately 10:40 a.m. on Thursday, February 12, 2009 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; Director of Administration Scott Fergus; Director of Human Resources Chuck Nicholls; Observer -Reporter representative Barbara Miller; concerned citizen John Adams; Gene Natali, Jr. representing C.S. McKee; and Michael Shone representing Peirce Park. Approval of Minutes Mr. Maggi entertained a motion to approve Minute No. 227 dated November 20, 2008. The motion was moved by Ms. Irey and seconded by Mr. Namie that the above mentioned minutes be approved as written. No discussion followed. Roll call vote taken: Mr. Namie — yes; Mr. King — yes; Ms. Irey — yes; Mr. Burns — yes; 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. Treasurer's Report Mr. King stated that for October, November, and December 2008, the bank balance was reconciled to zero. It was moved by Mr. King and seconded by Ms. Irey that the report be approved. No discussion followed. Roll call vote taken: Mr. Namie — yes; Mr. King — yes; Ms. Irey — yes; Mr. Burns — yes; Mr. Maggi — yes. Retirement Allowance Report Bank Balance as of October 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 October 31, 2008 Less: Transfers to Investment Less: Outstanding Checks Less: Retirement Check Run October 31, 2008 $ 322,598.44 311,219.10 591,624.27 (407,338.23) (205,708.37) (197,758.74) $ 414,636.47 (109,324.06) (226,087.82) 79 224.59 1 1 213 1 0 IMR LilOited, Form p25 E417350 U Bank Balance as of November 1, 2008 Add: Deposits to Checking Account Add: Transfers from Investment Accounts Less: Cancelled Checks Less: Transfers to Investment Less: ACH Debits Bank Balance as of November 30, 2008 Less: Transfers to Investment Less: Outstanding Checks Less: Retirement Check Run November 28, 2008 Reconciled Balance as of November 30, 2008 Bank Balance as of December 1, 2008 Add: Deposits to Checking Account Less: Cancelled Checks Less: Transfer to Investment Less: ACH Debits Bank Balance as of December 31, 2008 Add: Transfers to Investment Less: Outstanding Checks Less: Retirement Check Run December 31, 2008 Reconciled Balance as of December 31, 2008 $ 414,636.47 112,236.63 330,196.00 (326,915.66) (221,560.69 (197,603.06) $ 110,989.69 (200.00) (30,641.84) (80,147.85) $ -0- $ 110,989.69 338,403.45 (143,418.05) (14,264.28) (196,365.64) $ 95,345.17 10,513.69 (25,643.33) (80,215.53) $ -0- Requisitions Mr. Namie stated that requisitions for the months of November 2008, December 2008, and January 2009 totaled $1,168,516.80. It was moved by Mr. Namie and seconded by Ms. Irey that the requisitions be approved No discussion followed. call vote taken: Mr. Namie — yes; Mr. King — yes; Ms. Irey — yes; Mr. Burns — yes; Mr. Maggi — yes. November 2008 Check Payee Amount 17 Estate of Helen J. Barantovich $ 582.48 18 Estate of Josephine Milbower 18.08 19 Estate of Helene S. Oberst 136.55 20 Grant M. Cooper 851.33 21 Merill Lynch as trustee of IRA of Mark DeRosa 1,181.10 22 Julia J. DiPasquale 166.64 23 Suzanne Dugan 605.08 24 Deborah Holden 197.77 25 Amber L. Jenkins 655.28 26 Jonathan Miles 1,156.48 214 27iiardi 28 Donna J. Walker r 162ii64 29 Alissa Pirmez 29710 30 David L. Winters II 20,91572 16 Washington County Cash Disbursement Account 19,02225 31 Washington County Regular Payroll Escrow Account 1,5521,00 Transfer PNC Bank 18,759;99 Transfer Washington County Retirement Account 263,776,52 Total November 2008 Distributions $33396 0 December 2008 Check Payee Amount 32 Joyce A. Rodgers $ 10,51369 33 Christina Chavera 79860 34 James Crites 11 922.39 35 Johnathan Dahildahil 217.22 36 Nicanora Dahildahil 217.57 37 Thomas E. Nicholls 42,95 38 Cecilia M. Patriarca 801.98 39 Dionisio Patriarca 785.86 40 Lisa Sutherland 18,845.98 41 Brandon J. Zuraw 655.21 42 Washington County Regular Payroll Escrow Account 1,571.00 43 Washington County Regular Payroll Escrow Account 257.48 44 Washington County Cash Disbursement Account 15,549.66 Transfer PNC Bank 20,972.14 Transfer Washington County Retirement Account 252,187.44 Total December 2008 Distributions $324, 39.17 January 2009 Check Payee Amount 45 Laura B. Borish $ 24,07370 46 Thomas Burchett II 9,454.54 47 Kelly Marie Dailey 2,502.69 48 Janet Mae Farabee 442.0 49 Sondra Gutherie 2,837.$9 50 Deborah J. Hull 1,950.16 51 Tierney Kurowsky 1,403.13 52 Kristin Renee Lakin 195.90 53 Cynthia Morris 6,823.03 54 Leslie L. Mylan 4,637.31 55 Daniel Pasqualucci 5,533.42 56 Tiffanie M. Ritenour 1,336.94 57 Armand John Sangermano 110.37 58 Desire Lee Saunders 5,974.95 0 205 1 [1 Sold By IMR Limited Form 825 E417350 60 Wilmer I. Smith III 193.67 61 Leann Vitteck 529.67' 62 Charleroi Federal Savings Bank as trustee of IRA of Mark L. Kavakich 53,260.19 63 Washington County Regular Payroll Escrow Account 1,885.33 64 Washington County Cash Disbursement Account 66,879.08 Transfer PNC Bank 31,557.14' Transfer Washington County Retirement Account 282,066.96' Total January 2009 Distributions 513,98t.63 )ld Business None. It was moved by Mr. Namie and seconded by Ms. Irey to approve the 2009 Retirement budget totaling $4,852,458.00. This budget was previously approved by the Board of iiunisswners. No discussion followed. 11 call vote taken: Mr. Namie — yes; Mr. King — yes; Ms. Irey — yes; Mr. Burns — yes; Mr. Maggi — yes. It was moved by Mr. Namie and seconded by Ms. Irey to approve a monthly fee increase m $2,946.00 to $3,015.00 for professional actuarial services as provided by the Hay Group, is increase is in accordance with the current contract between Washington County and the Hay No discussion followed. call vote taken: Mr. Namie — yes; Mr. King — yes; Ms. Irey — yes; Mr. Burns — yes; Mr. Maggi — yes. It was moved by Mr. Namie and seconded by Mr. Burns to approve the purchase of loyee Benefit Statements from the Hay Group at a cost of $1.85 per statement. The cost per ment remains unchanged from 2008. No discussion followed. call vote taken: Mr. Namie — yes; Mr. King — yes; Ms. Irey — yes; Mr. Burns — yes; Mr. Maggi — yes. It was moved by Mr. Namie and seconded by Mr. King to hire Scott & Scott as a -ities litigation firm. This hiring would result in no cost to the County. No discussion followed. call vote taken: Mr. Namie — yes; Mr. King — yes; Ms. Irey — yes; Mr. Burns — yes; Mr. Maggi — yes. 216 Presentations C.S. McKee — Gene Natali, Jr. Mr. Natali gave a brief performance overview stating that on the all -cap equity side, the County had a-35.31% return for the year compared to the benchmark of-37.31%. On the fixed income side, the County had a 5.99% return for the year versus 5.08% for the benchmark. For the 2009 year-to-date, both fixed income and all -cap equity are up 200 basis points, mostly due' to the performance of corporate bonds on the fixed income side and an over -weighting in energy and technology on the equity side. Mr. Natali feels that the market could get worse in 2009 before it gets better. Peirce Park — Michael Shone Mr. Shone briefly discussed the status of the County's contract with Federated Investors stating that the contract currently remains unsigned until both sides have agreed to the proposed changes. Until the contract is signed, the money formerly invested with B1ackRock will remain in a Vanguard index fund. For the quarter, there was good relative performance from Artio Global Investors, C.S. McKee equity, and Emerald. All other managers have done fairly well with the exception of Alliance Bernstein, who has had poor relative performance. In international managers, Artio's performance ranks in the top 1 % while Alliance Bernstein ranks in the bottom 1 %o. Mr. Shone recommended waiting one more quarter before making a decision regarding Alliance Bernstein. The County's total fund was down 12.9%, with the average among other public funds being down 11 % - 16%. The meeting was adjourned at 11:40 a.m. THE FOLLOWING MINUTES SUBMITTED FOR APPROVAL: d _,2009 �Z - ATTEST: 1 1