The URL can be used to link to this page

Home My WebLink AboutCOMM - Meeting Minutes - 250 - 2-20-2014 - RETIREMENT323 Sold By IMR Limited Form 825 E00102204 Minute No. 250 Washington County Retirement Board Washington, PA February 20, 2014 The quarterly meeting of the Washington County Retirement Board was held at approximately 10:27 a.m. on Thursday, February 20, 2014 in the Public Meeting Room N , 'ith the following members being present: Commissioners Larry Maggi, Harlan hober, and Diana Vaughan, Controller Michael Namie, and Treasurer Francis L. King. 14so present: Chief Clerk Mary Helicke, Secretary Joyce Thornburg, Director of E ,.dministration Scott Fergus, Director of Finance Roger Metcalfe, Chief Deputy Sheriff unes Dalessandro, concerned citizen Frank Byrd, Barbara Miller representing the Observer -Reporter, Lee Martin representing Peirce Park, and Gene Natali, Jr. presenting C.S. McKee. ,pproval of Minutes Mr. Maggi entertained a motion to approve Minute No. 249 dated I tovember 21, 2013. The motion was moved by Mrs. Vaughan and seconded by Mr. I Jamie that the above mentioned minutes be approved as written. No discussion followed. boll call vote taken: Mr. Namie — yes; Mr. King — yes; Mr. Shober — yes; Mrs. Vaughan — yes; Mr. l 4aggi — yes. Motion passed unanimously. Public Comment None. ' Freasurer's Report Mr. King stated that for November 2013, December 2013, and January 2014, he bank balance was reconciled to zero. It was moved by Mr. King and seconded by ✓Ir. Shober that the report be approved. No discussion followed. koll call vote taken: Mr. Namie — yes; Mr. King - yes; Mr. Shober — yes; Mrs. Vaughan — yes; Mr. I,vlaggi — yes. Motion passed unanimously. 1etirement Allowance Report Bank Balance as of November 1, 2013 $ 267,275.72 Add: Deposits to Checking Account 2,668.53 Add: ACH Credits 814,986.89 Less: Cancelled Checks (300,464.11) Less: ACH Debits (442,845,78) Less: Other Debits (217,271.36) Bank Balance as of November 30, 2013 $ 124,349.89 Less: Transfers to Investment (250.90) 3124 Less: Outstanding Checks (108,751.01) Less: Retirement Check Run (15,367.98) Bank Errors 20.00 Reconciled Balance as of November 30, 2013 $ Q Bank Balance as of December 1, 2013 $ 124,349.89 Add: ACH Credit 928,109.98 Less: Cancelled Checks (141,110.57) Less: ACH Debits (451,653.37) Less: Other Debits (370,196.08) Bank Balance as of December 31, 2013 $ 89,499.85 Add: Transfer to Investment 20.00 Less: Outstanding Checks (77,271.80) Less: Retirement Check Run (12.248.05) Reconciled Balance as of December 31, 2013 $ Bank Balance as of January 1, 2014 $ 89,499.85 Add: ACH Credit 383,938.91 Add: Other Credit 250,967.99 Less: Cancelled Checks (212,998.28) Less: ACH Debits (451,982.97) Bank Balance as of January 31, 2014 $ 59,425.50 Add: Deposit in Transit 1,182.74 Less: Outstanding Checks (39 601 47) I Less: Retirement Check Run (21,006.77) Reconciled Balance as of January 31, 2014 $ Reauisitions Mr. Namie stated that requisitions for the months of November 2013, Decembe# 2013, and January 2014 totaled $1,794,367.60. It was moved by Mr. Namie and seconded by Mrs. Vaughan that the requisitions be approved. i� No discussion followed. 9 d Roll call vote taken:. Mr. Namie — yes; Mr. King — yes; Mr. Shober — yes; Mrs. Vaughan — yes; Mr. Ma gg� — yes. es. Motion passed unanimously. 3 i Distributions November 2013 Check Payee Amount 802 Breanne R.Buttermore $ 81.18 e` 803 Victor J. Gasbarrini 34.55 1 1 C Sold By IMR Limited Form 825 E00102204 325 1 F- L 804 805 806 807 808 809 810 811 812 813 814 815 816 817 818 819 Transfer Transfer Check 820 821 822 823 824 825 826 827 828 829 830 831 832 833 Transfer Transfer Carla A. Adams 34.55 Dante Gasbarrini 34.55 Dawn Preteroti 34.54 Joseph Myron Williams 49.84 Jennifer Auman 1,226.87 Debra Beltzner 200.26 Consol Energy INC FBO Andrew Guley 21,929.80 Justin Hadix 3,815.07 Daniel L. Hutchko 1,377.58 Joann Kelley 26,589.01 Jessica K. McKean 3,783.83 Vanguard as trustee of IRA of Beverly J. Ross 30,000.00 Beverly J. Ross 14,695.96 Marcia Truesdell 371.20 Washington Co. Regular Payroll Escrow Account 7,298.85 Washington Co. Cash Disbursement Account 46,571.95 PNC Bank 35,489.55 Washington County Retirement Account 406,514.02 Total November 2013 Distributions S 600.133.16 December 2013 Payee Amount Washington Co. Cash Disbursement Account $ 28,073.38 Lois Rock 74.23 Robert Caldwell 6,079.93 Thomas Giles 2,676,42 Jamie Ham 6,018.09 James Hughes Jr. 1,748.12 Jared Martin 7,676.05 Rachel Miller 5,614.09 Heather Smith 5,293.30 Kathleen Welding 4,506.60 Morgan Stanley as trustee of IRA of Renee 586.13 Zimmer Veronica Furmanek 16,967,96 Washington Co. Regular Payroll Escrow Account 7,118,62 Washington Co. Regular Payroll Escrow Account 257.40 PNC Bank 40,667.74 Washington County Retirement Account 424,806.74 Total December 2013 Distributions S 558.164.8Q i 3126 3 January 2014 Check Payee Amount 834 Estate of Sophia Caruso $ 137.72 835 Constance E. Kinnick 101.61 836 Janice Carr-Yanich 4,121.77 837 Debra Donaldson 46,428.69 838 CB&T Cust FBO Elaine M. Flanagan IRA 22,143.09 839 Heather Harris 347.09 840 Megan Marsteller 738.95 841 Northwestern Mutual as trustee of IRA Natalie 12,854.02 E. Wargo 842 Washington Co. Cash Disbursement Account 70,916.98 843 Washington Co. Regular Payroll Escrow Account 7,367.97 Transfer PNC Bank 39,857.59 Transfer Washington County Retirement Account 431,054.16 Total January 2014 Distributions $636.069.64 Old Business None. New Business Mr. Maggi noted for the record an agreement with David K. McMasters to purchase service credit dated February 28, 1994 to April 4, 1994 in the amount of $113.39. Mr. Maggi entertained a motion for the approval of a request from David K. McMasters to buy back unpaid leave of absence time dated March 28, 2008 to April 28, 2008 and June 6, 2008 to September 9, 2008, in the amount of $1,721.87. Th, motion to approve was made by Mr. Namie and seconded by Mrs. Vaughan. 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. Mr. Maggi entertained a motion for the ratification of an MOU dated Decemb+ 18, 2013 for the approval of the Interim Amendments to the Washington County Employees' Retirement System and Trust. These amendments are additions of minor technical provisions as required by the IRS and have no impact of the administration c funding of the retirement system. The motion to approve was made by Mrs. Vaughan and seconded by Mr. Shober. 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. u� 327 Sold By [MR Limited Form 825 E00102204 Mr. Maggi entertained a motion for the approval of the purchase of Employee enefit Statements from the Hay Group at a cost of $1.85 per statement for a total Approximate cost of $2,142.30. The cost per statement remains unchanged from 2013 Fhe motion was made by Mrs. Vaughan and seconded by Mr. Namie. No discussion followed. RZoll call vote taken: Mr. Namie — yes; Mr. King — yes; Mr. Shober — yes; Mrs. Vaughan — yes; Mr. vlaggi — yes. Motion passed unanimously. Mr. Maggi entertained a motion for the approval of the adoption of the 2014 Zetirement Fund budget. It should be noted that the Retirement Fund budget was approved by the Commissioners as a part of the 2014 Washington County budget at a rior Commissioners' meeting. The motion to approve was made by Mrs. Vaughan grid seconded by Mr. Namie. No discussion followed. Zoll call vote taken: Mr. Namie — yes; Mr. King — yes; Mr. Shober - yes; Mrs. Vaughan — yes; Mr. gaggi — yes. Motion passed unanimously. Presentations S. McKee Gene Natali, Jr. Mr. Natali began his presentation by looking at the one-year returns. Equity returns were positive, while fixed income was negative for the first time. On the equity ,ide, the one-year was 31% vs. a benchmark of 32%. On the fixed income side, C.S. VlcKee's plan is to keep the portfolio extremely liquid and high quality so that if the narket should change and stocks not perform as expected, a correction with fixed ncome would be easier to achieve. Going forward, C.S. McKee will continue to look :o adding to the portfolio by selecting companies to own that have high earnings, not ust companies that have "artificial" dividends that resulted from the Fed's previous njections of cash into the market. When adding value to a portfolio, sometimes what ;you don't own is just as important as what you do own. Peirce Park — Lee Martin Mr. Martin began with an economic overview, stating that through the end of September 2013, GDP grew above 4% for the first time in a long while. GDP did drop ,lightly by the end of 2013 and currently stands at about 3.1%. Currently, the U.S. Jollar has weakened against a lot of currencies. However, exports continue to grow xhich helps to balance the trade deficit. Unemployment has fallen to a current 6.6%, ,ontinuing its downward trend since the recession in 2009. However, this number is -louded due to the number of baby boomers leaving the workforce. The number of participants in the workforce has also dropped. When factoring this into account, the memployment rate has actually remained flat. 312 u9 ii Looking at indices for 2013, U.S. equities were up almost 3 3 % while emerging;; market equities were down about 2.6%, mostly due to the slowing Chinese economy. Anything that was inflation sensitive, such as TIPS, was down in 2013. In fixed income, the aggregate bond was down 2% last year and the intermediate government E credit was also negative. For the 4 h quarter of 2013, the portfolio was up 5.9% gaining $7.5 million. Fo�j s the year, the portfolio gained just over $22 million, a return of about 20%, and the 5 highest of Peirce Park's pension fund clients. The portfolio ended the year with a value E of $134.6 million. The County's fund is in the top quartile in all time frames and in th z top decile for the 5 and 7-year. Looking ahead, Peirce Park would like the Board to consider other diversifying asset classes, such as timber, private real estate, and other_ private investments. Turning to individual manager performances, both C.S. McKee and Twin ¢' Capital were slightly behind their benchmarks for the year. Emerald had a very strong 4 j year, up about 14% over index and in the 3rd percentile. Wellington, American Funds, and Dodge & Cox all outperformed, with Dodge & Cox ending the year in the top decile and ranked as the second top performing international manager in the 5 years =3 R since inception with the County. American Funds has captured almost all of the up market and only about 92 or 93 of the down market, beating the policy index in all but 'q three quarters since inception in 2009. Mr. Martin finished by stating that all of the County's active managers and GTAA have outperformed the index and have done a good job for the County. The meeting was adjourned at 11:08 a.m. THE FOLLOWING MINUTES SUBMITTED FOR APPROVAL: I- =; "? , 2014 ATTEST: 1