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Home My WebLink AboutCOMM - Meeting Minutes - 230 - 8-20-2009 - RETIREMENT1 1 1 Minute No. 230 Washington County Retirement Board Washington, PA August 20, 2009 The quarterly meeting of the Washington County Retirement Board was held at approximately 11:00 a.m. Thursday, August 20, 2009, in the Public Meeting Room with the following members being present: Commissioners Larry Maggi and J. Bracken Burns, Sr.; and Controller Michael Namie. Also present: Chief Clerk Mary Helicke; Secretary Joyce Thornburg; Audit Manager Kathy Demarest; Solicitor Lynn DeHaven; Director of Administration Scott Fergus; Secretary JoAnn Metz; Observer -Reporter representative Barbara Miller; concerned citizens John Adams and Carl Maggi; Gene Natali, Jr. representing C.S. McKee; and Michael Shone representing Peirce Park. Absent from the meeting were Commissioner Diana Irey and Treasurer Francis King. Approval of Minutes Mr. Maggi entertained a motion to approve Minute No. 229 dated May 21, 2009. The motion was moved by Mr. Namie 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. Burns — yes; Mr. Maggi — yes. Motion passed unanimously. 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 On behalf of Mr. King, Mr, Namie stated that for April, May, June, and July 2009, the bank balance was reconciled to zero. It was moved by Mr. Namie and seconded by Mr. Burns that the report be approved. No discussion followed. Roll call vote taken: Mr. Namie — yes; Mr. Burns — yes; Mr. Maggi — yes. Motion passed unanimously. Retirement Allowance Report Bank Balance as of April 1, 2009 $ 139,399.53 Add: Deposits to Checking Account 217,368.97 Add: Transfers from Investment Accounts 164,664.21 Less: Cancelled Checks (213,741.01) Less: ACH Debits (201,278.35) Bank Balance as of April 30, 2009 $ 106,413.35 Less: Transfers to Investment (18,832.27) Less: Outstanding Checks (15,263.75) Less: Retirement Check Run April 30, 2009 (72,317.33) Reconciled Balance as of April 30, 2009 $�_)--_ 2 �Z 2 Add: Deposits to Checking Account Add: Transfers from Investment Accounts Add: Other Credits Less: Cancelled Checks Less: Transfer to Investment Less: ACH Debits Bank Balance as of May 31, 2009 Less: Transfers to Investment Less: Outstanding Checks Less: Retirement Check Run May 31, 2009 Reconciled Balance as of May 31, 2009 Bank Balance as of June 1, 2009 3 Add: Deposits to Checking Account IAdd: Transfers from Investment Account Less: Cancelled Checks Less: Transfer to Investment Less: ACH Debits Bank Balance as of June 30, 2009 { Add: Transfers to Investment Less: Outstanding Checks E Less: Retirement Check Run June 30, 2009 Reconciled Balance as of June 30, 2009 Bank Balance as of July 1, 2009 Add: Deposits to Checking Account Add: Transfers from Investment Account Less: Cancelled Checks Less: Transfer to Investment 'Less: ACH Debits Bank Balance as of July 31, 2009 Transfers to Investment Less: Outstanding Checks Less: Retirement Check Run July 31, 2009 Reconciled Balance as of July 31, 2009 331,404.81 238,472.13 0.03 (112,637.40) (128,884.54) (229,849.91) $ 204,918.47 (11,931.88) (122,692.02) 70 294.57 $ 4 $ 204,918.47 307,366.72 207,205.84 (236,297.98) (117,555.95) (219,332.86) $ 146,304.24 (23,962.35) (62,441.15) 59 900.74 $ Q $ 146,304.24 550,276.55 629,304.31 (186,425.15) (559,173.82) 226,787.94) $ 353,498.19 (13,515.33) (268,731.27) 71 251.59 $ Q Requisitions Mr. Namie stated that requisitions for the months of May, June, and July totaled $1,486,145.59. 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. Burns — yes; Mr. Maggi — yes. 1 �l 2213 IMR Limited Form 825 F_00102204 1 1 May 2009 Check Payee Amount 87 Elizabeth Frameli $ 32,818 15 88 Michael D. Perry 907.40 89 Raina Roberts 591.26 90 Steven Soltesz, Jr. 9,574.53 91 Melissa G. Spilak 436. 8 92 Craig Wright 2,115.46 93 Robert L. Schmidt 64,312.35 94 Erie Family Life Ins. Co. as trustee of IRA of Andrea J. Dyson 10,297.27 95 Washington County Regular Payroll Escrow Account 2,236.54 96 Washington County Cash Disbursement Account 3,340.91 Transfer PNC Bank 37,205.21 Transfer Washington County Retirement Account 295,989.)l Total May 2009 Distributions 57 June 2009 Check Payee Amour t 97 Rhonda Hopkins $ 4,807. 7 98 Kimberly Kirksey 5,17637 99 Jacqueline Prosperi 340.97 100 Robert M. Shaposka 13,451. 4 101 Robert W. Stewart 30934 102 Regina Knapper 3,855.11 103 Estate of Helen J. Orcutt 133. 5 104 Citizens Bank as trustee of IRA of James Faure 20,980.189 105 James Faure 12,00010 106 Washington County Regular Payroll Escrow Account 2,326.15 107 Washington County Cash Disbursement Account 17,792. 5 Transfer PNC Bank 19,535. 6 Transfer Washington County Retirement Account 296,308. 1 Total June 2009 Distributions S 397.016.6 July 2009 Check Payee Amount 109 Fragasso Financial Group Inc. as trustee of IRA of Katrina Lee $ 101,581.5 110 Christine 1. Cholak 2,345.7 ill Merrill Lynch as trustee of IRA of Bonnie Conley 2,411.7 112 Janice M. Crouse 44,771.8 113 Karen S. Crouser 429.8 Qzj 115 Teddi Zets 116 Samantha L. Sedok 117 ING USA Annuity & Life Insurance Co. trustee of IRA of Lane VanVoorhis 118 Christina Wilson 119 Washington County Cash Disbursement Account 120 Washington County Regular Payroll Escrow Account Transfer PNC Bank Transfer Washington County Retirement Account Total July 2009 Distributions Old Business None. New Business 13,307.84 2,756.27 75,112.56 2,833.18 54,222.01 2,326.35 26,505.75 300,019.68 Mr. Namie noted for the record that Maher Duessel completed their audit of the Washington County Retirement Fund for the year ended December 31, 2008 and that there were no findings. Mr. Namie moved approval of mandatory direct deposit for all pensioners beginning January 1, 2010. Mr. Namie stated that not only is direct deposit more secure, but would also save the County money as well as bring the County in line with the federal government's direct deposit of Social Security payments. The motion was seconded by Mr. Burns. No discussion followed. Roll call vote taken: Mr. Namie — yes; Mr. Burns — yes; Mr. Maggi — yes. Motion passed unanimously. Presentations C.S. McKee — Gene Natali Jr. Mr. Natali gave a brief performance overview stating that through the end of the second quarter, equities were up 8.2% versus the Russell 3000 benchmark of 4.2% and fixed income was up 4.5% versus the benchmark of 1.6%. As of the year-to-date, equity was up about 16% and fixed income was up 6.7%. Financials, up 33%, were the top performer for the quarter. On the fixed income side, corporate bonds remained the most attractive investment. Treasury Inflation Protected Securities (TIPS), which currently make up approximately 24% of the County's portfolio, also performed very well. TIPS were up 5.3% for the quarter and corporates were up 5.32%. Mr. Natali stated that performance has been very good so far this year, but that inflation would probably become an issue in 2010 or 2011. Mr. Shone stated that, with the market up 40%, the Board's decision to rebalance the 'ounty's portfolio resulted in the County's performance being in the top 8% of all public plans i the United States for the 2nd quarter. Since the end of the 1st quarter, the County's plan is up 14.2 million. As for the individual managers' performances, on the equity side, C.S. McKee is p 16.9% for the year to date compared to their benchmark of 12.8%, Twin Capital is still ing a bit with a year to date performance of 5.6% vs. their benchmark of 6.7%, Emerald is 1 1 1 lagging at 19.7% vs. their benchmark of 26.1 %, while Evergreen's performance has been 2215 Form 825 E00109204 1 1 1 Investors and C.S. McKee have added value to the portfolio as expected. On the international side, Alliance Bernstein performed poorly all of last year as well as lagged for the first half of this year. Their performance is up slightly for the quarter, but Peirce Park is still recommending that they be replaced. In addition to performance concerns, Mr. Shone noted that their CEO has left and over $24 billion has also left the firm, usually a sign that the institutional players have lost confidence in them. Looking at Artio Global, their performance is up 12% for the year vs. their benchmark of 24.5%. While this appears to be a lot of underperformance, Artio's investment strategy is very defensive which results in steady performance without drastic highs or lows. Artio has no other underlying issues, which is why Mr. Shone is recommending staying with them but making a change out of Alliance Bernstein. Peirce Park has narrowed their list of replacements to 3, from which the Board will choose at the next meeting. In other new business, Mr. Maggi entertained a motion to remove the tobacco restriction from the investment policy statement. It was moved by Mr. Namie and seconded by Mr. Maggi that this change be made. At this time, Mr. Burns took the opportunity to address the Board expressing his opposition to this move, quoting numerous statistics on the dangers of cigarette smoking and its cost to society. Mr. Namie responded that, for the record, Washington County is already invested in tobacco, as this restriction cannot be imposed on mutual funds. Removing this restriction would simply be a housekeeping procedure that would allow the investment managers to invest as they see fit. Mr. Maggi agreed, stating that the Board would not be advocating tobacco use, but would in fact be allowing the investment professionals to do their job. Roll call vote taken: Mr. Namie — yes; Mr. Burns — no; Mr. Maggi — yes. Motion passed. The meeting was adjourned at 11:47 a.m. THE FOLLOWING MINUTES SUBMITTED FOR APPROVAL: oe ATTEST:�� J , 2009 ft 2126 �! jj Minute No. 231 Washington County Retirement Board Washington, PA November 19, 2009 The quarterly meeting of the Washington County Retirement Board was held at approximately 10:40 a.m. on Thursday, November 19, 2009 in the Public Meeting Room with the following members being present: Commissioners Larry Maggi, Diana Irey, and J. Bracken Burns, Sr.; Controller Michael Namie; and Treasurer Francis L. King. Also present: Chief Clerk Mary Helicke; Secretary Joyce Thornburg; Director of Finance Roger Metcalfe; Audit Manager Kathy Demarest; Solicitor Lynn DeHaven; Director of Administration Scott Fergus; Observer - Reporter representative Barbara Miller; concerned citizen John Adams; Gene Natali, Jr. representing C.S. McKee; Dave Reichert representing Hay Group; and Lee Martin representing Peirce Park. Approval of Minutes y: Mr. Maggi entertained a motion to approve Minute No. 230 dated August 20, 2009. The motion was moved by Mr. Namie and seconded by Mr. King 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. ' Motion passed unanimously. 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. F 3 Treasurer's Report Mr. King stated that for August, September, and October 2009, the bank balance was ,a reconciled to zero. It was moved by Mr. King and seconded by Ms. Irey that the report be I! approved. No discussion followed. i Roll call vote taken: Mr. Namie — yes; Mr. King — yes; Ms. Irey — yes; Mr. Burns — yes; Mr. Maggi — yes. a Motion passed unanimously. s Retirement Allowance Report 6 Bank Balance as of August 1, 2009 $ 353,498.19 °€ Add: Deposits to Checking Account 544,248.15 s :j Add: Transfers from Investment Accounts 657,899.52 Less: Cancelled Checks (360,726.95) !S Less: Transfer to Investment (450,237.52) Less: ACH Debits (231,697.15) Bank Balance as of August 31 2009 $ 512,984.24 { it s n 1 1 1