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Home My WebLink AboutCOMM - Meeting Minutes - 229 - 5-21-2009 - RETIREMENT1 11 Sold By IMR Limited Form 825 E417350 217 Minute No. 229 Washington County Retirement Board Washington, PA May 21, 2009 The quarterly meeting of the Washington County Retirement Board was held at approximately 11:17 a.m. on Thursday, May 21, 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; Andy Balogh and Geoff Gerber representing Twin Capital Management; Gene Natali, Jr. representing C.S. McKee; and Lee Martin representing Peirce Park. Approval of Minutes Mr. Maggi entertained a motion to approve Minute No. 228 dated February 12, 2009. The motion was moved by Ms. Irey and seconded by Mr. Burns 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 January, February, and March 2009, the bank balance was reconciled to zero. It was moved by Mr. King and seconded by Mr. Burns 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 January 1, 2009 $ 95,345.17 Add: Deposits to Checking Account 228,494.55 Add: Transfers from Investment Accounts 291,376.18 Less: Cancelled Checks (184,955,24) Less: ACH Debits (209,130.04) Bank Balance as of January 1, 2009 $ 221,130.62 Less: Transfers to Investment (7,928.44) Less: Outstanding Checks (124,357.60) Less: Retirement Check Run January 31, 2009 88 844.58 Reconciled Balance as of January 31, 2009 $ Q Bank Balance as of February 1, 2009 $ 221,130.62 Add: Deposits to Checking Account 220,022.49 Add: Transfers from Investment Accounts 136,687.70 218 Less: Cancelled Checks Less: ACH Debits (206,586.50) Bank Balance as of February 28, 2009 $ 157,467.11 Less: Transfers to Investment (32,184.39) Less: Outstanding Checks (36,872.59) Less: Retirement Check Run February 28, 2009 88 410.13 Reconciled Balance as of February 28, 2009 $ -�- Bank Balance as of March 1, 2009 $ 157,467.11 Add: Deposits to Checking Account 281,218.52 Add: Transfers from Investment Account 69,952.45 Less: Cancelled Checks (164,373,50) Less: ACH Debits (204,865.05) Bank Balance as of March 31, 2009 $ 139,399.53 Add: Transfers to Investment (7,484.95) Less: Outstanding Checks (69,250.50) Less: Retirement Check Run March 31, 2009 (62,664.08) Reconciled Balance as of March 31, 2009 $ 2 Requisitions Mr. Namie stated that requisitions for the months of February, March, and April 2009 totaled $1,117,834.84. It was moved by Mr. Namie and seconded by Ms. Irey that the requisitions be approved No discussion followed. Roll call vote taken: Mr. Namie — yes; Mr. King — yes; Ms. Irey — yes; Mr. Burns — yes; Mr. Maggi — yes. February 2009 Check Payee Amount 65 Paulette Benard $ 17,465.21 66 Helen Morrow -Brown 390.10 67 Elisabeth Kaveney 2,529.98'. 68 Terrie O'Hara 149156.00' 69 Samuel Watson 112.22 70 Washington County Cash Disbursement Account 6,636.91 71 Washington County Regular Payroll Escrow Account 2,207.13 Transfer PNC Bank 21,405.09 Transfer Washington County Retirement Account 284,214.20 Total February 2009 Distributions S 349,116.90 March 2009 Check Payee Amount 73 Estate of John K. Abraham $ 102.45' 74 Estate of Richard P. Brady 217.90 75 PNC Investments as trustee of IRA of Denise S. Booker 37,096.98' 76 Melissa Flowers 244.45 2119 Sold By IMR Limited Form 825 E001 78 Washington County Cash Disbursement Account 15,517.(2 79 Washington County Regular Payroll Escrow Account 2,224.(8 Transfer PNC Bank 16,201.(7 Transfer Washington County Retirement Account 284,877. 0 Total March 2009 Distributions 386,685.16 April 2009 Check Payee Amoll n 80 Estate of Norma J. Auld $ 70.74 81 Brian W. Dunker 252.4.1 82 Parkvale Bank as trustee of IRA of Ryan M. Fall 12,362J 4 83 Barbara Roberts 526J 9 84 Ginny L. Rader 664,16 85 Washington County Regular Payroll Escrow Account 2,169. 86 Washington County Cash Disbursement Account 66,480, Transfer PNC Bank 9,540. Transfer Washington County Retirement Account 289,964. Total April 2009 Distributions S 382_ Q.M Old Business None. New Business Mr. Maggi called for a motion to approve a request by Donald Jones to purchase unpaid Worker's Comp time dated September 6, 1995 through January 1, 1996, January 30, 1997 through March 3, 1997, June 24, 1997 through January 26, 1998, August 8, 1998 through August 10, 1998, and March 3, 2005 through August 21, 2005 in the amount of $4,304.77. Mr. Jones would like to repurchase this amount through payroll deduction at $30.00 per pay. The motion was made by Mr. Burns and seconded by Mr. King. No discussion followed. Roll call vote taken: Mr. Namie — yes; Mr. King — yes; Ms. Irey — yes; Mr. Burns — yes; Mr. Maggi — yes. Mr. Maggi noted the following for the record: Barry P. Ealy agreement to purchase service credit dated June 15, 1971 through December 31, 1971 in the amount of $378.70. Mr. Ealy was inadvertently omitted from participating in the pension plan for this time period. Presentations Twin Capital Management — Andy Balogh, Geoff Gerber Mr. Balogh began with a brief overview of Twin Capital stating that they are a large cap equity manager with an enhanced index strategy. He then turned the presentation over to Mr. Gerber to talk about performance. Mr. Gerber stated that their performance in 2008 was below median which can be attributable in part to their strategy of staying true to the benchmark in sector selection and risk. Also adding to the underperformance was the County's investment restrictions, particularly the 5% initialization restriction on Exxon Mobil and the restriction on tobacco holdings. These two restrictions were responsible for about 30% of the underperformance. As for the current quarter -to -date, the County's portfolio has rebounded with 1 2 ,12 0 Ms. Irey questioned Mr. Gerber as to whether or not the plan would have performed better if the County did not have a tobacco restriction. Mr. Gerber replied that the tobacco restriction cost the County about 20 basis points for the period. The Board asked Lee Martin of Peirce Park to compile some information concerning the possible effects of relaxing the tobacco restriction and to bring the results of this research to the next meeting. C.S. McKee — Gene Natali, Jr. Mr. Natali gave a brief performance overview stating that the market value of the County's portfolio as managed by C.S. McKee began the quarter at $43,945,000 and ended the quarter at $42,070,000. On the equity side, the S&P began the quarter with the worst start in history. The fixed income index was also negative at the beginning of the quarter. With the market turnaround, however, the County's plan is currently a positive 6% on the equity side and just under a positive 4% on the fixed income side. Mr. Martin asked Mr. Natali to comment on why their fixed income performance is 2 1/2 % above the benchmark, stating that it can be an issue for fixed income to be that far ahead of the benchmark. Mr. Natali responded that they have achieved this by staying within the investment policy statement but with a maximum overweight in corporate bonds. Peirce Park — Lee Martin For the quarter ended March 31 ", the County beat the policy index with performance being down 8% compared to 8.7%. The County is also above the index for the one, three, and 5 year periods. Evergreen did a good job on the small cap value side as did C.S. McKee on the equity and fixed income sides. Performance was down for Artio, Twin Capital, and Emerald. Since the end of the quarter, the plan is up 12%, just a little under benchmark. For the year to date, the plan is up about 3%. International is starting to rebound faster than domestic, and real estate's performance is finally in the black. Mr. Namie gave an update on the County's contract with Federated Investors, stating that both sides have agreed to wording and contract changes and are now at the point to sign the contract. Solicitor Lynn DeHaven wanted the Board to know that Peirce Park's legal department worked well with him on the Federated contract, resulting in a revised general agreement that will be available for other counties to use. The meeting was adjourned at 11:16 p.m. THE FOLLOWING MINUTES SUBMITTED FOR APPROVAL: 2009 ATTEST: 1 1