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Home My WebLink AboutCOMM - Meeting Minutes - 248 - 8-15-2013 - RETIREMENTSold By WR 1 1 No. 248 Washington County Retirement Board Washington, PA August 15, 2013 The quarterly meeting of the Washington County Retirement Board was held at )proximately 10:45 a.m. on Thursday, August 15, 2013 in the Public Meeting Room with e following members being present: Commissioners Larry Maggi, Harlan Shober, and iana Vaughan; Controller Michael Namie; and Treasurer Francis L. King. Also present: hief Clerk Mary Helicke; Secretary Joyce Thornburg; Director of Finance Roger [etcalfe; Solicitor Lynn DeHaven; concerned citizens Frank Byrd and John Adams; Lee [artin representing Peirce Park; Gene Natali, Jr. representing C.S. McKee; and Geoff erber and Vince Larence representing Twin Capital Management. Mr. Maggi entertained a motion to approve Minute No. 247 dated May 16, 2013. motion was moved by Mrs. Vaughan and seconded by Mr. Shober that the above minutes be approved as written. No discussion followed. call vote taken: Mr. Namie — yes; Mr. King — yes; Mr. Shober — yes; Mrs. Vaughan — yes; Mr. ;i — yes. Motion passed unanimously. Public Comment Mr. Adams stated that the County should mandate a retirement age of 65 for all nployees and also should not give $50,000 life insurance policies to employees. Mr. amie stated that Mr. Adams's information was incorrect; the County does not provide 50,000 life insurance policies to County employees. 61 Mr. King stated that for April, May, and June 2013, the bank balance was to zero. It was moved by Mr. King and seconded by Mr. Namie that the report approved. No discussion followed, call vote taken: Mr. Namie — yes; Mr. King — yes; Mr. Shober — yes; Mrs. Vaughan — yes; Mr. yes. Motion passed unanimously. s 3 t12 Retirement Allowance Report Bank Balance as of April 1, 2013 $ 77,594.02 Add: Deposits to Checking Account 1,130.56 Add: ACH Credit 242,407.62 Add: Other Credits 325,806.06 Less: Cancelled Checks (126,474.54) Less: Funds Transferred Out (561.65) Less: ACH Debits 429,969.09) Bank Balance as of April 30, 2013 $ 89,932.98 Add: Transfers into Checking Account 1,079.89 Less: Outstanding Checks (79,900.88) Less: Retirement Check Run (I I'l11.99) Reconciled Balance as of April 30, 2013 $ Q Bank Balance as of May 1, 2013 $ 89,932.98 Add: ACH Credit 247,903.39 Add: Other Credits 342,484.73 Less: Cancelled Checks (145,049.54) Less: ACH Debits (439,773.82) Bank Balance as of May 31, 2013 $ 95,497.74 Less: Transfers into Checking Account (0.03) Less: Outstanding Checks (83,717,69) Less: Retirement Check Run (11,840.02) Add: Bank Errors 60.00 Reconciled Balance as of May 31, 2013 $ 2 Bank Balance as of June 1, 2013 $ 95,497.74 Add: Transfers from Investment Account 60.00 Add: ACH Credit 939,639.59 Less: Cancelled Checks (130,691.25) Less: ACH Debits (429,639.09) Less: Other Debits (321,833.28) Bank Balance as of June 30, 2013 $ 153,033.71 Less: Outstanding Checks (138,063.25) Less: Retirement Check Run 14 970.46 Reconciled Balance as of June 30, 2013 S--2 1 IMIR Limited Form 825 E00102204 3113 1 1 1 Requisitions Mr. Namie stated that requisitions for the months of May, June, and July 2013 totaled $1,938,656.24. It was moved by Mr. Namie and seconded by Mrs. Vaughan that the requisitions be approved. No discussion followed. Roll call vote taken: Mr. Namie — yes; Mr. King — yes; Mr. Shober — yes; Mrs. Vaughan — yes; Mr. Maggi — yes. Motion passed unanimously. Distributions May 2013 Check Payee Amount 710 Ryan T. Cramer $ 197.53 711 Erika Henry 640.33 712 Wendy S. Kudaroski 1,499.78 713 Christine Landy 9,192.28 714 Joshua Marshman 749.87 715 Megan E. Menzler 145.50 716 Jacob T. Murin 701.96 717 Darren Newberry 10,312.70 718 Nicholas Rizzo 14,143.28 719 Mario O. Seneca 1,199.37 720 Allegra Simonelli 123.29 721 Jane L. Tedrow 4,331.69 722 Washington County Regular Payroll Escrow 7,283.18 Account 723 Washington County Cash Disbursement Account 28,249.99 724 Mary Anne Jankowiak 55,665.02 Transfer PNC Bank 48,187.81 Transfer Washington County Retirement Account 406,684.65 Total May 2013 Distributions L 589.308.23 June 2013 Check Payee Amount 725 Timothy Redd $ 23,034.95 726 James J. Cullen 162.25 727 Patricia A. DeClair 169.94 728 Daniel F. Gleixner 957.83 729 Jeffrey Lampman 2,143.08 730 Carl E. Miller 1II 2,221.41 731 Rebecca Merriner 732 Tracy L. Vorum 733 TD Ameritrade as trustee of IRA of David Bayard Wolf Rollover IRA 734 Prudential as trustee of IRA of Thomas H. Cooke 735 736 737 Transfer Transfer Check 738 739 740 741 742 743 744 745 746 747 748 749 750 751 Transfer Transfer Old Business None. Sun America Trust Co. as trustee of IRA of Patricia A. Morflak Washington County Regular Payroll Account Washington County Cash Disbursement Account PNC Bank Washington County Retirement Account Total June 2013 Distributions July 2013 Payee Brandy L. Byrd Betty L. Lewis Darla L. Mikulicz Nicholas K. Powell Capital Bank & Trust as trustee of IRA of Justin T. Papciak Alicia Weller Hollie Zavallo Roxanne M. Zoretich Patricia A. Morflak Kim Redd -O'Brien John Preston Pizzi Karen Wescott Washington County Regular Payroll Escrow Account Washington County Cash Disbursement Account PNC Bank Washington County Retirement Account Total July 2013 Distributions 11,595.30 5,379.15 5,336.32 60,545.12 22,965.36 7,091.62 32,545.88 36,926.94 406.731.19 Mul: MU11 Amount $ 4,965.26 3,055.88 2,319.04 1,404.85 9,483.30 20,001.32 1,007.33 875.28 4,325.34 23,034.96 67,814.20 36,469.70 7,623.39 67,475.23 66,343.06 415,343.53 $731,541.67 F C 022�4 61191 1 1 1 Mr. Maggi entertained a motion for the ratification of an MOU dated July 19, 2013 the approval of a disability pension request from Suzanne Morgan. Ms. Morgan was roved to receive a Social Security disability pension effective April 2013. Her County ibility pension became effective August 1, 2013. The motion to ratify was made by . Vaughan and seconded by Mr. Shober. No discussion followed. 11 call vote taken: Mr. Namie — yes; Mr. King — yes; Mr. Shober — yes; Mrs. Vaughan — yes; Mr. — yes. Motion passed unanimously. Mr. Maggi entertained a motion for the ratification of an MOU dated June 20, 2013 the adoption of the Washington County Employees' Retirement System and Trust, as -nded and restated effective January 1, 2011. The motion to ratify was made by Mrs. aughan and seconded by Mr. Shober. No discussion followed. call vote taken: Mr. Namie — yes; Mr. King — yes; Mr. Shober — yes; Mrs. Vaughan — yes; Mr. gi — yes. Motion passed unanimously. Mr. Maggi entertained a motion for the approval of an addendum between ashington County and Peirce Park Group to lower fees from 0.03% (3 basis points) per ar to 0.02% (2 basis points) retroactive to December 1, 2012. The motion to approve made by Mrs. Vaughan and seconded by Mr. Namie. No discussion followed. (Roll call vote taken: Mr. Namie — yes; Mr. King — yes; Mr. Shober — yes; Mrs. Vaughan — yes; Mr. IMaggi — yes. Motion passed unanimously. e Presentations I Twin Capital Management — Geoffrey GerberNince Larence Mr. Larence took a moment to thank the Board before turning the presentation over Ito Mr. Gerber to discuss market conditions, performance, and future outlook. Mr. Gerber I began by discussing past performance with the Board stating that since inception, Twin I Capital has achieved a 15.9% return for Washington County, beating the market by 1.4% P before fees, 1.2% after fees. For the current year to date, performance is at 20.7% with the I market at about 20.0%. That being said, Mr. Gerber does not believe that the market trend 31 6 will continue upward for the remainder of the year. In addition to a downward market, he believes that volatility will increase. In response, Twin Capital will be positioned defensively. C.S. McKee — Gene Natali, Jr. Mr. Natali began by stating that to give some perspective into the market, C.S. McKee feels that stocks are fairly valued but are likely to go to overvalued. With negative returns from the fixed income market, investors will turn to stocks. This begs the question, with negative returns, why stay in fixed income? Even with negative returns, currently at 2%, keeping high quality fixed income in a portfolio provides diversification. When stocks begin to falter, which they inevitably will, fixed income will provide correction and smooth out returns. Peirce Park — Lee Martin Mr. Martin began with a market overview, stating that the U.S. had a strong start to the year through April. Consumer confidence is up and consumer spending is improving, particularly in home and auto sales. However, the money being spent is from personal savings and not from income or labor growth. For future growth, the U.S. needs income growth. In equities, both the U.S. and international markets were up for the year-to- date, 13.7% and 3.0% respectively. Emerging markets were down close to 10%. In fixed income, the yield curve continues to steepen with longer term bonds more negatively affected than shorter and intermediate term bonds. Long government bonds were down 5.6% with short bonds down 0.2%. Treasury Inflation -Protected Securities (TIPS) were down 7.1%, the worst quarterly return in 16 years. Turning to the performance review, the total fund was up 1.2% for the quarter, 70 basis points above the policy index, gaining $1.5 million. For the year- to-date, the fund was up 7.7%, 60 basis points above the policy index, gaining over $8.7 million and ending with a balance of $125 million. Washington County ranks in the top 10% of all public plans for the quarter, year-to-date, 1-year, and 3-year. Mr. Martin noted that the manager selections made by the Board have all been positive and have all added to the plan. The meeting was adjourned at 11:50 a.m. THE FOLLOWING MINUTES SUBMITTED FOR APPROVAL: / > .2013 ATTEST:',""�'�' H 1 1