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Home My WebLink AboutCOMM - Meeting Minutes - 256 - 8-13-2015 - RETIREMENT359 Sold By IMR Limited Form 825 E00102204 Minute No. 256 Washington County Retirement Board Washington, PA August 13, 2015 The quarterly meeting of the Washington County Retirement Board was held at approximately 10:55 a.m. on Thursday, August 13, 2015 in the Public Meeting Room with the following members being present: Commissioners Larry Maggi, Harlan Shober, and Diana Vaughan, Controller Michael Namie, and Treasurer Francis L. King. Also present: Chief Clerk Mary Helicke, Secretary Paula Jansante, Solicitor Lynn DeHaven, Director of Finance Roger Metcalfe, Director of Administration Scott Fergus, concerned citizen Frank Byrd, Barbara Miller representing the Observer -Reporter, Lee Martin, Ph.D. representing Peirce Park, and David Reichert representing Hay Group. Approval of Minutes Mr. Maggi entertained a motion to approve Minute No. 255 dated May 21, 2015. The motion was moved by Mrs. Vaughan and seconded by Mr. Shober that the above mentioned minutes be approved as written. 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. Public Comment None. Treasurer's Report Mr. King stated that for May, June, and July 2015 the bank balance was reconciled to zero. It was moved by Mr. King and seconded by Mrs. Vaughan that the report 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. Retirement Allowance Report Bank Balance as of May 1, 2015 $ 123,977.38 Add: ACH Credit 718,590.64 Less: Cancelled Checks (189,483.75) Less: Other Debits (21,706.28) Less: ACH Debits (532,955.36) Bank Balance as of May 31, 2015 $ 98,422.63 Less: Outstanding Checks (89,377.00) Less: Retirement Check Run (28,200.27) Add: Payroll Deposit Error 19,154.64 Reconciled Balance as of May 31, 2015 $ i 3710 U Bank Balance as of June 1, 2015 f{{ iY $ 98,422.63 Add: Deposits to Checking Account 20,045.65 Fa Add: ACH Credit 851,943.48 <r Less: Cancelled Checks (205,676.47) Less: Other Debits (170,850.38) Less: ACH Debits (543,425.87) Bank Balance as of June 30, 2015 $ 50,459.04 Less: Outstanding Checks (46,173.60) Less: Retirement Check Run (23,440.08) Add: Payroll Deposit Error 19,154.64 Reconciled Balance as of June 30, 2015 t $0- Bank Balance as of July 1, 2015 x $ 50,459.04 Add: Deposits to Checking Account 1,887.46 Add: ACH Credit 944,744.99 g Less: Cancelled Checks (102,358.20)' Less: Other Debits (328,578.44) Less: ACH Debits 3 (520,392.54) Bank Balance as of July 31, 2015 it $ 45,762.31 u Less: Transfers into Payroll Account (869.50) Less: Outstanding Checks (35,145.64) Less: Retirement Check Run (28,901.81) t Add: Payroll Deposit Error 19,154.64 '= Reconciled Balance as of July 31, 2015 I $ -0- Requisitions Mr. Namie stated that requisitions for the months 14 of May, June, and July 2015 totaled $2,013,083.32. It was moved by Mr. Namie and seconded by Mr. King that the requisitions be approved. f1 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 Mav 2015 Check Payee Amount 1026 Deborah Schumacher $ 17.55 1027 Richard Warcholak 17.55 1028 LPL Financial as trustee of IRA of Beth E. Johnson 69,972.60 36i Sold By IMR Limited Form 825 600? 02204 1029 Heather Jakub 3,260.99 1030 Robert Lisovich 132.80 1031 FMTC Fidelity Investments as trustee of IRA of Constance Ringer 5,349.37 1032 Marriles Saut 9,477.19 1033 Kenneth Zites 26.18 1034 Washington County Regular Payroll Escrow Account 9,738.71 1035 Washington County Cash Disbursement Account 59,236.05 Transfer PNC Bank 37,084.37 Transfer Washington County Retirement Account 501,922.28 Total May 2015 Distributions S 696.235.64 June 2015 Check Payee Amount 1037 Carmeline L. Moody $ 107.35 1038 Pamela Lee Kruger 17.54 1039 Patricia Harrison 17.54 1040 Ashlee N. Bossi 2,855.03 1041 PNC Bank as trustee of IRA of Elisa Hinderliter 2,613.59 1042 Samantha Holmes 994.87 1043 Tracy Long 857.25 1044 1045 Manuel Pete Lorenzo Kelly A. McGowan 62,636.40 20,314.68 1046 Debra L. Richey 14,011.99 1047 Washington County Regular Payroll Escrow Account 9,477.58 1036 Washington County Cash Disbursement Account 23,060.57 Transfer PNC Bank 60,512.80 Transfer Washington County Retirement Account 503,661.56 Total June 2015 Distributions S 701.138.75 Julv 2015 Check Payee Amount 1048 Debra A. Vayansky $ 142.44 1049 Vanguard Fid. Trust Co. as trustee of IRA of Tracy Benjamin Long 1,072.26 1050 Franklin Templeton Inv. as trustee of IRA of Nicole Dietrich 4,244.19 1051 PNC Bank as trustee of IRA of Michelle Greenwalt 7,274.06 1052 Nadirah Joseph 2,638.56 1053 Cody Stonesifer 281.32 1054 Clay Johnson 2,747.84 1055 Keith Watson 6,097.50 1056 Natasha Mikush 414.00 1057 Joseph Gilbert 1,966.88 3,162 1058 Kyle Appleby E 1059 Washington County Regular Payroll Escrow Account 1060 Washington County Cash Disbursement Account Transfer PNC Bank Transfer Washington County Retirement Account Total July 2015 Distributions Old Business None. 2,127.96 10,121.26 28,818.25 39,243.12 ?3 508,519.29 S 615.708.93 New Business Mr. Maggi noted for the record the 2014 Audit of the Washington County Employees' Retirement System and Trust. Mr. Namie added that the audit was completed by Maher-Duessel for the year ending December 31, 2014 and that there were no comments or findings. Mr. Maggi entertained a motion for the approval of a request from Merry Hairier to purchase unpaid leave of absence service time for the period June 11, 2012 to August 5, 2012 in the amount of $719.04. The motion to approve was made by Mr. Shober 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. Maggi — yes. Motion passed unanimously. Mr. Maggi entertained a motion for the approval of a disability pension request from Gayle DeWolf effective September 1, 2015. Ms. DeWolf has also been approved to receive a Social Security disability pension. The motion to approve was 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. Maggi — yes. Motion passed unanimously. Mr. Maggi entertained a motion for the approval of the Washington County Employees' Retirement System and Trust Pension Plan Determination Application Letter as required by the Internal Revenue Service. The motion to approve was made by Mr. Namie 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. 1 1 363 Sold By [MR Limited Form 825 E00102204 Mr. Maggi entertained a motion for the formal adoption and approval of the Washington County Employees' Retirement System and Trust Funding Policy. The motion to approve was made by Mr. Namie and seconded by Mr. King. 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. Presentations Peirce Park — Lee Martin, Ph.D. Mr. Martin began with a market overview, stating that the U.S. economy rebounded slightly in the second quarter, with GDP increasing 2.3% but still behind expectations of 2.6%. For the remainder of the year, economists are expecting about 3% growth in the U.S. The unemployment rate is down to 5.3%, the lowest since the credit crisis. For the first time in years, wage growth is beginning to occur. Over the past five years, the County's portfolio has increased by $60 million in investment gains, averaging about 11.5% a year. Looking at current returns, C.S. McKee is about 1% ahead for the year and about 70 basis points ahead for the quarter, Twin Capital had an off quarter, down about 2%, and Emerald, Wellington, New Perspective, and Dodge & Cox all had positive performance for the quarter. REITS have done well until about 6 months ago when rates went up, but have rebounded since rates have ticked down a bit. The GTAA has made about 2.5% above index each year since inception and is up considerably so far in the current quarter. Dave Reichert — Hav Group Mr. Reichert began his presentation with the 2015 Valuation Report, stating that it was another good year for the Retirement Fund. The annual required contribution was just c)ver $4.3 million, up over the last few years but only due to the fact that the County lowered its expected rate of return. As of January 1, 2015, the market value of assets was $143 million with an actuarial value of $134 million. Actuarial liabilities were $155 million, leaving about $20 million unfunded. The funded percentage on an actuarial basis was about 87%. The current salary assumption is 3.5%, which has worked well, but is something that may have to be looked at if inflation becomes a factor and salaries begin to increase at a higher rate as a result. Peirce Park — Lee Martin, Ph.D. Mr. Martin addressed the Board concerning OPEB (Other Post -Employment Benefits.) Of the 16 counties that have this liability, Washington County is one of only three that is funding it. In the four years since inception, the County's return is about 8.7% a year, a total gain of $1.7 million. Since switching to active management, it has gained 40 basis points since the beginning of 2015. On the domestic equity side, it is becoming much harder for active managers to beat the indices. As a result, the OPEB domestic equity portfolio is mostly indexed and has only a few protective managers (managers that provide downside protection.) Peirce Park looks to add value on the global equity side by choosing the best global managers for the portfolio. On the fixed income side, there are some intermediate and long-term Treasuries but more active management in the short - intermediate space. Again, diversification is the key, and the OPEB portfolio is well diversified. The meeting was adjourned at 12:05 p.m. THE FOLLOWING MINUTES SUBMITTED FOR APPROVAL: `e^? 2015 ATTEST. Ll 1