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Home My WebLink AboutCOMM - Meeting Minutes - 261 - 8-18-2016 - RETIREMENTSold By IMR Limited Form 825 E00102204 406T] E 0 Minute No. 261 Washington County Retirement Board Washington, PA August 18, 2016 The quarterly meeting of the Washington County Retirement Board was held at approximately 10:55 a.m. on August 18, 2016 in the Public Meeting Room with the following members being present: Commissioners Larry Maggi, Harlan Shober, and Diana Irey Vaughan, Controller Michael Namie, and Treasurer Francis L. King. Also present: Secretary Paula Jansante, Executive Secretary Joy Omdoff, Solicitor Lynn DeHaven, Director of Administration Scott Fergus, Director of Finance Roger Metcalfe, Director of Human Resources Kathleen Bali, Court Administrator Patrick Grimm, concerned citizen Frank Byrd, Barbara Miller representing the Observer - Reporter, Steve Ferris representing the Herald -Standard, Lee Martin, Ph.D. representing Peirce Park, Dave Reichert representing Korn Ferry Hay Group, and David Rice and George Matta representing Fusion Capital. Annroval of Minutes Mr. Maggi entertained a motion to approve Minute No. 260 dated May 19, 2016. The motion was moved by Mr. Namie and seconded by Mrs. Vaughan 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 April, May, June, and July 2016. It was moved by Mr. King and seconded by Mr. Shober 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 Retort Bank Balance as of April 1, 2016 Add: Deposits to Checking Account Add: Transfers In Add: ACH Credit Less: Cancelled Checks Less: ACH Debits $ 369,594.53 19.95 499,182.67 414,861.45 (419,324.24) (587,443.36) f 3 9 Q Bank Balance as of April 30, 2016 $ 276,891.00 Less: Outstanding Checks (238,446.77) Less: Retirement Check Run (38,444.23) Reconciled Balance as of April 30, 2016 $ -0- Bank Balance as of May 1, 2016 $ 276,891.00 Add: Deposits to Checking Account 1,381.12 Add: ACH Credit 1,078,379.78 Less: Cancelled Checks (289,724.59) Less: Other Debits (239,662.99) Less: ACH Debits (586,023.50) Bank Balance as of May 31, 2016 $ 241,240.82 Less: Outstanding Checks (206,705.14) Less: Retirement Check Run (34,535.68) t Reconciled Balance as of May 31, 2016 $ -0- Bank Balance as of June 1, 2016 $ 241,240.82 E Add: Deposits to Checking Account 2,366.25 Add: ACH Credit 743,067.18 Add: Other Credits 764,706.79 Less: Cancelled Checks (1,045,068.34) Less: ACH Debits (586,509.73) Less: Funds Transfers Out (15,620.13) Bank Balance as of June 30, 2016 $ 104,182.84 Less: Outstanding Checks (66,059.51) Less: Retirement Check Run (38,123.33) Reconciled Balance as of June 30, 2016 $ -0- i Bank Balance as of July 1, 2016 $ 104,182.84 i Add: ACH Credit 869,862.42 Less: Cancelled Checks (191,873.11) Less: Other Debits (95,120.17) Less: ACH Debits (582,869.73) 3 Bank Balance as of July 31, 2016 $ 104,182.25 Less: Outstanding Checks (54,232.26) Less: Retirement Check Run (49,949.99) Reconciled Balance as of July 31, 2016 $ -0- Requisitions Mr. Namie stated that requisitions for the months of May, June, and July 2016 totaled $3,124,395.10. E 1 391 Sold By IMR Limited Form 825 E00102204 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 Mav 2016 Check Payee Amount 1219 Washington County Cash Disbursement Account $ 23,680.44 1220 Ashley Clemens 13,035.75 1221 PNC Bank as trustee of IRA of Erin Dixon 2,994.66 1222 John Dobbin 6,324.27 1223 Jessica L. Ingram 5,332.46 1224 Julie Krafcheck 21,571.06 1225 Katrina McBride 3,227.51 1226 Fidelity Management Trust Co. as trustee of IRA of 4,277.06 Erica Mellott 1227 Trust Co. of America as trustee of IRA of Kemberley 693.05 P. Morton 1228 American Equity Life Ins. Co. as trustee of IRA of 109,238.30 John W. Orndoff 1229 Jenna Simmons 4,496.85 1230 Brandon Sterling 576.90 1231 Andrew Taylor 17,404.99 1232 Washington County Regular Payroll Escrow Account 14,001.90 1233 Washington County Regular Payroll Escrow Account 951.00 Transfer PNC Bank 57,861.05 Transfer Washington County Retirement Account 554,233.51 Total May 2016 Distributions $ 839.900.76 June 2016 Check Payee Amount 1234 Debra Braddock $ 146.81 1235 Alex Calvert 900.62 1236 Wade Donahoo 2,751.37 1237 Ethan Gordon 242.75 1238 Tonya Link 2,507.82 1239 Douglas Matthews 4,879.38 1240 Alicia Neal 1,010.04 1241 Julie Pattison 41,149.02 1242 Trisha Van Winkle 1,511.59 392 1243 Washington County Cash Disbursement Account 813,995.55 Transfer Washington County Regular Payroll Escrow Account 15,620.13 Transfer PNC Bank 56,408.48 4 Transfer Washington County Retirement Account 568,945.98 Total June 2016 Distributions $ UI0.069.54 July 2016 i 1244 Megan Coleman $ 5,500.24 1245 Justin Dranzo 4,691.31 1246 Estate of Estella M. Franks 1,422.06 1247 Aimee Hvizdos 1,543.18 1248 Christine Martin 5,157.24 1249 Jason Mossburg 5,324.47 1250 Chrome FBO John T. Mruk 15,000.00 a 1251 Bonnie L. Young 4,454.65 1252 Washington County Regular Payroll Escrow 15,131.84 R Account F 1253 Washington County Cash Disbursement Account 96,500.25 w Transfer PNC Bank 48,598.43 Transfer Washington County Retirement Account 571,101.13 i Total July 2016 Distributions $ 774.424.80 { Old Business None. New Business Mr. Maggi noted for the record an agreement with Tonna Parker to purchase service credit dated from October 3, 1982 to October 12, 1984 in the amount of $2,009.46. Mr. Maggi entertained a motion for the approval of a request from Frank r Allen to purchase unpaid leave of absence time dated from November 16, 2015 to November 20, 2015 in the amount of $157.77. The motion to approve was made by Mrs. Vaughan and seconded by Mr. Shober. i 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 1 393 Sold By IMR Limited Form 825 E00102204 Presentations Dave Reichert — Korn Ferry Hav Group Mr. Reichert began his presentation by stating that although Hay Group was bought by Korn Ferry, Washington County would continue to receive the same dedication and services that it had under Hay Group. For 2016, the County contribution was just over $4.6 million, consistent with expectations and past contributions. Washington County's funded ratio is just over 87%, well within the range of the majority of other county plans. Of positive note is the fact that contributions from the County and employees equals the amounts being paid out from the plan, thereby preserving investment funds. Once the County reports the plan's assets in August or September of this year, Korn Ferry Hay Group can prepare the estimated contribution for 2017. Also, this year is the first year of the new cost of living calculation. This calculation can be prepared after the cost of living index is released at the end of August 2016. Finally, Mr. Reichert addressed the Board regarding Korn Ferry Hay Group's performance of an experience study. This study would report on the validity of the actuarial assumptions made by Korn Ferry. The cost of the study would range from $1,000 to $12,500 and would depend on whether the County wanted the results reported based on the aggregate of all Korn Ferry's county clients or for Washington County individually. This study would also satisfy the County's requirement under GASB to document actuarial assumptions. Peirce Park — Lee Martin, Ph.D. Mr. Martin began with a brief overview of the market environment stating that GDP came in at 1.2%, half of what was originally projected. Growth has been slow, not only in the U.S. but internationally as well. Consumer spending was strong but at the expense of consumer savings. Manufacturing was also slow and companies ran down inventories in response to the Brexit vote. U.S. equities were up 2.8% while international equities were down 1.1%. Emerging market equities, however, are up 6.4% for the year so far. On the fixed income side, high yield bonds have begun to do well as have inflation sensitive assets. For the quarter, the County's fund gained just under $3 million with another $5 million being added in the first 6 weeks of the third quarter. Positive contribution came from the defensive equities in the portfolio, GTAA, REITs, and fixed income. Detractors were C.S. McKee's large cap value, which the County did exit from during the quarter, and Emerald's high growth product. Over 7 years, the fund has gained about $78 million, a yield of 10.4% per year, and in the top 13th percentile of all public funds. Looking ahead, Peirce Park has started the asset/liability study and has been investigating assumption changes and what the different scenarios could mean for the County. Mr. Martin closed his presentation with an overview of OPEB stating that the County gained about $157,000 during the second quarter and about $500,000 so far in the third quarter. Performance is right on benchmark for the quarter and slightly 3194 ahead for the year. Since inception, OPEB has gained $1.7 million and returned 7.1 % per year. Mr. Maggi entertained a motion to adjourn the meeting at 11:45 a.m. The motion was made by Mrs. Vaughan and seconded by Mr. Namie. The motion passed unanimously with a call of ayes. THE FOLLOWING MINUTES SUBMITTED FOR APPROVAL: �'c? �►,lc,� % , 2016 ATTEST: t 1