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Home My WebLink AboutCOMM - Meeting Minutes - 260 - 5-19-2016 - RETIREMENTSold By IMR Limited Form 825 E00102204 Minute No. 260 Washington County Retirement Board Washington, PA May 19, 2016 The quarterly meeting of the Washington County Retirement Board was held at approximately 10:47 a.m. on Thursday, May 19, 2016 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: Secretary Paula Jansante, Solicitor Lynn DeHaven, Director of Finance Roger Metcalfe, concerned citizen Frank Byrd, Barbara Miller representing the Observer - Reporter, Lee Martin, Ph.D. representing Peirce Park, and Gene Natali, Jr. representing C.S. McKee. Approval of Minutes Mr. Maggi entertained a motion to approve Minute No. 259 dated February 18, 2016. The motion was moved by Mrs. Vaughan 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; Mr. Shober — yes; Mrs. Vaughan — yes; Mr. Maggi - yes. Motion passed unanimously. Public Comment None. Treasurer's Report Mr. King stated that the Retirement Allowance Account was reconciled to zero for the months of February and March 2016. 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 February 1, 2016 $ 86,618.22 Add: ACH Credit 408,688.00 Add: Other Credits 387,372.09 Less: Cancelled Checks (103,658.20) 3 8 2 Less: ACH Debits (557,811.26) Bank Balance as of February 29, 2016 $ 221,208.85 Add: Transfers to Bank 591.64 Less: Outstanding Checks (191,024.35) Less: Retirement Check Run (30,776.14) Reconciled Balance as of February 29, 2016 $ Q Bank Balance as of March 1, 2016 $ 221,208.85 Add: Deposits to Checking Account 1,310.13 Add: Transfers In 308,324.79 Add: ACH Credit 400,390.83 Add: Other Credits 300,000.00 Less: Cancelled Checks (261,563.24) Less: Other Debits (1,310.13) Less: ACH Debits (598,766.70) Bank Balance as of March 31, 2016 $ 369,594.53 Add: Transfers to Bank 591.64 Less: Outstanding Checks (319,937.12) Less: Retirement Check Run (50,249.05) Reconciled Balance as of March 31, 2016 $ 4 Requisitions Mr. Namie stated that requisitions for the months of February, March, and April 2016 totaled $2,715,578.11. It was moved by Mr. Namie and seconded by Mr. King 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 February 2016 Check Payee 1154 Union Building & Loan Savings Bank as trustee of IRA of Whitney Glo Groscost 1155 Kacey Simpson 1156 Prudential FBO William J. Hoak 1157 PNC Bank as trustee of IRA of Samantha Conway Amount $ 980.23 4,990.55 1,097.72 11,916.08 1 E Sold By 1MR Limited Farr-, 825 E00102204 1158 Sunwest Trust FBO Anne Shekletski 3,662.49 1159 Gail King 9,417.49 1160 Jocelyn Glace 184.38 1161 Laura Spatz 4,011.82 1162 FIICO FBO Lanee Williams 4,542.73 1163 Lanee Williams 8,800.00 1164 Slovenian Savings & Loan as trustee of IRA of 85,178.11 Henry M. Billingsley 1165 PNC Bank as trustee of IRA of Rosemary P. Larkin 53,998.28 1166 Washington County Cash Disbursement Account 7,904.22 1167 Washington County Payroll Escrow Account 13,805.08 1168 Washington County Regular Payroll Escrow Account 951.00 PA SCDU 1169 Washington County Regular Payroll Escrow Account 6.39 1170 Washington County Regular Payroll Escrow Account 93.61 Transfer PNC Bank 44,998.00 Transfer Washington County Retirement Account 539,521.91 Total February 2016 Distributions $ 796.060.09 March 2016 Check Payee Amount 1171 Mark Caffrey $ 122.92 1172 Larry Ceisler 13.90 1173 Regina Ceisler Shapiro 13.90 1174 James Dewey 74.61 1175 Jeffrey R. Dewey 74.60 1176 Patricia Graytok 295.24 1177 Robert A. Huber 112.12 1178 Joyce L. Schultz 112.12 1179 Virginia Caramana 13,476.89 1180 K M Capital as trustee of IRA of Jeraldine F. Drupp 65,394.41 1181 Anthony Giannetti 2,935.98 1182 Linda Giannopoulos 499.66 1183 Christine Grazier 137,771.95 1184 PRUCO Life Ins Co as trustee of IRA of Mary E. 47,540.30 Helicke 1185 Tonia Henderson -Sullivan 3,751.93 1186 1187 Catherine M. Hennig Patrick Jones 6,430.20 244.42 1188 Michelle Miller 1,357.92 1189 Adam Nozum 626.69 1190 Abbey Rugula 1,779.78 1191 Alyssa Sauter 4,496.33 s t 3 18 4 1192 Capital Bank & Trust as trustee of IRA of Joseph 19,671.73 Tomescsko 1193 Zachary Webb 497.33 1194 Washington County Regular Payroll Escrow Account 13,880.56 1195 Washington County Regular Payroll Escrow Account 951.00 1196 Washington County Cash Disbursement Account 41,989.36 Transfer PNC Bank 84,142.27 Transfer Washington County Retirement Account 557,787.47 Total March 2016 Distributions $ 1.006.045.59 April 2016 1197 Frances B. Olshock $ 537.27 1198 Milton W. Templeton Jr. 66.64 1199 Beth L. Rokisky 66.64 1200 David Templeton 66.64 1201 Alice Whitfield 28.61 1202 Bank of America NA as trustee of IRA of Rashell A. 100,000.00 Wilson 1203 Rashell A. Wilson 52,039.08 1204 Shakira Aitken 19,385.35 1205 John W. Corby II 9,925.34 1206 Michael Duff 271.79 1207 Brittany Finelli 3,344.75 1208 Elizabeth Gatta 1,083.91 1209 Shawn Inghram 1,055.22 1210 First Niagra as trustee of IRA of Gale King 11,772.49 1211 Billie Jo Krynak 332.32 1212 American Funds as trustee of IRA of Dustin Leonard 9,988.85 1213 Joyce Malson 11,583.20 1214 James Musgrave 1,432.41 1215 Vantagepoint Transfer c/o M & T Bank as trustee of 6,617.40 IRA of Joseph M. Reinke 1216 Washington County Regular Payroll Escrow Account 13,926.26 1217 Washington County Regular Payroll Escrow Account 951.00 1218 Washington County Cash Disbursement Account 63,957.26 Transfer PNC Bank 61,847.14 Transfer Washington County Retirement Account 543,192.86 Total April 2016 Distributions $ 913.472.43 1 d Sold By IMR Limited Form 825 E00102204 Old Business None. New Business Mr. Maggi entertained a motion for the approval of a request from William Forgie to purchase part-time service credit dated from April 14, 2005 to December 5, 2010 in the amount of $8,183.74. 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. Mr. Maggi entertained a motion for the approval of a request from Cheryl Garrett to purchase per diem service credit dated from June 30, 1997 to July 18, 1998 in the amount of $1,414.44. 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. Mr. Maggi entertained a motion for the approval of a request from Duaine Sullenberger to purchase unpaid leave of absence credit dated from October 20, 2014 to February 8, 2015 in the amount of $1,384,94. 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 a request from Merry Hainer to purchase unpaid leave of absence time dated from February 24, 2015 to June 30, 2015 in the amount of $1,811.33. 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. 318 6 Motion passed unanimously. Mr. Maggi entertained a motion for the approval of a request from Lynda 3 McDade to purchase unpaid leave of absence time dated from January 13, 1998 to March 22, 1998 and December 7, 2012 to January 6, 2013 in the amount of $951.81. b 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. Presentations C.S. McKee — Gene Natali, Jr. Mr. Natali gave a very brief presentation stating that performance on the fixed income side was positive, but performance on the equity side remained, unfortunately, unchanged. In light of the uncertainty in the current market environment, he would not hazard a guess as to when it would improve or what would bring about an improvement. Peirce Park — Lee Martin, Ph.D. Mr. Martin began his presentation with an overview of the market environment. GDP decelerated for the fourth quarter in a row, primarily due to weakened consumer p spending, particularly in the automotive sector, and a slowdown in business investment i and exports. Worldwide, 28% of short-term rates are negative, making it even more difficult for U.S. companies to export. Growth in China has leveled, but growth in E i India has increased to the point that from an investment perspective, India has become the new China. At the end of the lst quarter, U.S. equities were up 1%, international equities were down 3%, and emerging markets were up 5.7%. For the trailing year, i commodities were down almost 20%, but in the lst quarter, energy was positive for the first time in 2 years. ` Moving on to performance, the pension fund gained $1.7 million for the quarter, up 1.3% and about on benchmark. For the one year, however, the fund is down $1.8 million, a negative return of 1.3% and slightly behind benchmark. Over a market cycle of 7 years, the fund has made $83 million, a return of 12.1% and right on benchmark. Compared to other public funds, Washington County is in the top 8%. i Highlighting the individual managers, C.S. McKee Large Cap Value was down over 2% for the quarter and down 40 basis points in April, Twin Capital was up 4.6% E for the quarter, Emerald was down 4.7% for the quarter but in line with benchmark, and Wellington was in the top decile for the quarter and up 5.5% for the year. Both American Funds and Dodge & Cox were down for the quarter but have rebounded E L 1 387 Sold By IMR Limited Form 825 E0010220^- since. MFS Global was in the top seventh percentile for the quarter and number one for the one, three, and five years. On the fixed income side, both C.S. McKee and Federated are right on benchmark. At this time, Mr. Shober excused himself due to aprior commitment. Mr. Martin presented the Board with three portfolio allocation options. After the Board reviewed the three options, Mr. Namie made a motion to approve Version 3. The motion was seconded by Mrs. Vaughan. No discussion followed. Roll call vote taken: Mr. Namie - yes; Mr. King - yes; Mrs. Vaughan - yes; Mr. Maggi - yes. Motion passed unanimously. The Version 3 allocation is as follows: Current Allocation % Version 3 Allocation % C. S. McKee Large Cap Value 9.0 0.0 Vanguard S&P 500 Index ETF 4.0 12.5 TWIN Capital Dividend Select 13.0 10.0 Emerald Advisors Mid Cap Growth 4.0 4.0 Wellington Smid Cap Value 6.0 6.0 American Funds New Perspective 14.0 8.0 Dodge & Cox International 8.0 0.0 MFS Global Total Return 10.0 10.0 C.S. McKee Fixed Income 12.5 12.5 Federated Fixed Income 12.5 12.5 Cash 1.0 1.0 Dodge & Cox Global - 6.0 Acadian Global Managed Volatility - 6.0 Vanguard Total Int'I Stock Index - 5.5 Vanguard REIT Index 1.0 1.0 JP Morgan Strategic Property 5.0 5.0 Management Fees (%) 0.48 0.42 At this time, Mr. King excused himself due to a prior commitment. Concluding with OPEB performance, the fund made $126,000 for the quarter, above benchmark. Since inception, the fund has gained $1.6 million, a return of 7.1 % compared to the benchmark of 6.9%. Mr. Martin noted that there have been some concerns regarding Bank of New York, but since Washington County uses this fund 3188 E only as an investment account and has not seen any real issues, he does not feel that any action needs to be taken at this time. Mr. Maggi entertained a motion to adjourn the meeting at 11:33 p.m. The motion was made by Mrs. Vaughan and seconded by Mr. Namie to adjourn. The motion passed unanimously with a call of ayes. THE FOLLOWING MINUTES SUBMITTED FOR APPROVAL: ,o�?�Ie,; ✓ Y 2016 ATTEST. L 1 E