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HomeMy WebLinkAboutCOMM - Meeting Minutes - 267 - 2-15-2018 - RETIREMENT25 MINUTE BOOK RETIREMENT BOARD WASHINGTON COUNTY, PENNSYLANIA ]MR I IMITFn F1607Q9g1 n Minute No. 267 Washington County Retirement Board February 15, 2018 The quarterly meeting of the Washington County Retirement Board was held at approximately 10:22 a.m. on February 15, 2018, in the Public Meeting Room with the following members being present: Commissioners Larry Maggi, Diana Irey Vaughan and Harlan G. Shober, Jr., Controller Michael Namie and Treasurer Francis King. Also present: Chief Clerk Cindy Griffin, Secretary Paula Jansante, Solicitor Lynn DeHaven, Director of Administration Scott Fergus, Director of Finance Joshua Hatfield, Barbara Miller representing the Observer Reporter, Bruce Sakalik representing WJPA, concerned citizen Frank Byrd, and Lee Martin, PhD. Representing Marquette Associates. Approval of Minutes Mr. Maggi entertained a motion to approve Minute No. 266 dated November 16, 2017. The motion was moved by Mr. Namie 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 November and December 2017. It was moved by Mr. King and seconded by Mr. Namie 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 November 1, 2017 $ 374,821.03 Add: ACH Credit 1,019,460.13 Add: Other Credits 1,188,820.09 Less: Cancelled Checks (770,933.17) Less: ACH Debits (858,734.46) Bank Balance as of November 30, 2017 $ 953,433.62 Less: Outstanding Checks (924,237.88) Less: Retirement Check Run (29,195.74) Reconciled Balance as of November 30, 2017 $ 2 Bank Balance as of December 1, 2017 $ 953,433.62 Add: Transfers In 1,801,063.13 we, MINUTE BOOK RETIREMENT BOARD WASHINGTON COUNTY, PENNSYLANIA IMR,L AITFn F1Rn7Q9QI n Add: ACH Credit 481,997.33 Add: Other Credits 2,164,283.26 Less: Cancelled Checks (2,585,462.84) Less: ACH Debits (1,638,892.47) Less: Funds Transfers Out (801,063.13) Bank Balance as of December 31, 2017 $ 375,358.90 Less: Transfers to Bank (96.66) Less: Outstanding Checks (345,257.42) Less: Retirement Check Run (30,004.82) Reconciled Balance as of December 31, 2017 $ -0- Requisitions Mr. Namie stated that requisitions for the months of November 2017, December 2017, and January 2018 totaled $4,989,799.12. It was moved by Mr. Namie and seconded by Mr. Shober 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 November 2017 Check Payee Amount 1482 Lauri Alt $ 4,611.47 1483 Bryanna Johnson 4,029.30 1484 MATC as trustee of IRA of Jamie McGowan 6,808.72 1485 Ron Seggie 1,413.64 1486 Elizabeth Shaw 5,967.41 1487 Mark A. Simpson 15,833.60 1488 NFS as trustee of IRA of Dawn M. Vandergraft 37,454.19 1489 Kate Watton 8,150.32 1490 Kim Waychoff 27,865.00 1491 Clarissa M. Weaver 1,465.54 1492 Christina Wehner 20,073.82 1493 Teresa Ann Williams 8,447.62 1494 Amber L. Wilson 18,869.19 1495 Capital Bank & Trust as trustee of IRA of Connie L. Wise 4,677.61 1496 Capital Bank & Trust as trustee of IRA of Tracy Rossa 10,332.28 1497 Holly Samples 6,290.59 1498 Brian Scalzi 4,396.44 1499 Citizens Bank FBO Brittany M. Sexton 3,389.83 1500 Clyde W. Shaw 7,463.67 n 1 27 MINUTE BOOK RETIREMENT BOARD WASHINGTON COUNTY, PENNSYLANIA IMR I IMITFn FiR(17 M n 1501 Mary Shuba 809.36 1502 William Sloneker 1,344.71 1503 Slovene National Benefit Society as trustee of IRA of Rhonda L. Snyder 41,003.65 1504 Heidi Speicher 3,739.63 1505 Amy Taneyhill 16,127.39 1506 Michele Taylor 11,500.67 1507 Faith Thompson 566.78 1508 Northwest Bank as trustee of IRA of Brandi Thomson 26,338.37 1509 Shyyanne Tyler 1,630.11 1510 PNC Bank as trustee of IRA of Robin Gorby 9,801.43 1511 Donna Pierce 8,126.53 1512 Jared Prince 5,425.52 1513 Baillie Nelson 654.25 1514 Alexis Oslowski 21,021.37 1515 Randa Pantalo 7,861.36 1516 Rebecca L. Paradise 812.08 1517 Sandy Paul 935.66 1518 Irma Rawle 495.17 1519 1520 Angie Reed April Restanio 7,179.34 4,046.57 1521 PNC Investments LLC as trustee of IRA of Jesse D. Rice 13,196.94 1522 Tammie Rice 6,778.05 1523 Ray P. Riggleman 441.70 1524 Morgan Spino 1,945.12 1525 Valerie Vance 2,256.80 1526 Nadine Winters 18,453.53 1527 Teresa Hela 734.35 1528 Ryan Lenhart 811.78 1529 Trust Co. of America as trustee of IRA of Mollee J. Loveland 30,139.71 1530 Shane Mahoney 1,707.25 1531 Jared Martin 2,992.23 1532 Danielle Matesic 9,826.11 1533 Hannah McConnell 2,698.08 1534 Kristen McCracken 5,498.23 1535 Tiffany R. McGary 2,851.83 1536 Felicia McKinney 18,540.57 1537 Debra McTeague 5,866.53 1538 Rebecca N. Merriner 12,759.98 1539 Debbie Messick 16,575.29 1540 NSS Life Ins. Co. as trustee of IRA of Bryan P. Miller 12,812.39 28 MINUTE BOOK RETIREMENT BOARD WASHINGTON COUNTY, PENNSYLANIA IAAR I IMITFn Fi Rn7Q9Q1 n 1541 Kelley S. Milligan 16,433.12 1542 Ashton Molinaro 744.06 1543 Katy Molla 1,543.66 1544 Jason Mossburg 2,467.20 1545 Melissa Mruk 4,387.47 1546 Megan Myers 9,380.02 1547 Fidelity Investments FBO Elizabeth Ward 31,037.18 1548 PNC Bank as trustee of IRA of Patricia M. Booza 18,685.37 1549 Devonnit Brown 11,712.03 1550 Jessica L. Brown 10,077.45 1551 Natalie Bryant 9,909.07 1552 Pamfilo J. Bryant 3,075.31 1553 Giargina Bush 23,515.08 1554 Desiree Cardillo 3,567.07 1555 Stacey Chappel 2,517.71 1556 Joseph E. Dague 17,083.90 1557 Mary Cheek 9,845.60 1558 Leanna M. Rivera Darden 18,503.38 1559 Alicia Laube 11,570.20 1560 Carrie Brewer 355.48 1561 Saundra Bowser 3,415.64 1562 Dawn M. Barney 1,727.29 1563 Margaret E. DeMoss 551.36 1564 Pershing LLC as trustee of IRA of Jodi DePaoli 3,461.39 1565 Haverly Detrick 5,635.13 1566 Capital Bank & Trust as trustee of IRA of Sylvia Dreistadt 8,369.40 1567 Alexis Dunn 3,569.91 1568 NFS as trustee of IRA of Rosella Ealy 42,539.87 1569 LPL Financial as trustee of IRA of Linda Gardner 14,749.37 1570 Tina Garner 7,164.09 1571 Matthew J. Gastner 11,879.94 1572 CFS Bank as trustee of IRA of Karlea Grayson 4,803.35 1573 MATC as trustee of IRA of Ruthann Headley 22,442.44 1574 Marissa Hefner 16,438.32 1575 Shirley Holsey 4,117.49 1576 Destine Javosky 1,574.24 1577 Amanda Kovach 2,711.89 1578 Trustee of Trans America FBO Kathy Jennings 5,003.09 1579 Nikki Johnson 15,963.31 1580 Anita Kadlecek 7,335.13 1 1 29 MINUTE BOOK RETIREMENT BOARD WASHINGTON COUNTY, PENNSYLANIA IMR I IMITFn F1Rn7A9ALn 1581 Pershing LLC as trustee of IRA of Daniel J. Clements 40,730.16 1582 Lani Adamson 8,377.92 1583 Bethany Addis 2,361.53 1584 Kathy A. Aller 8,029.18 1585 Huntington National Bank as trustee of IRA of Krystal E. Ames 7,082.73 1586 Rebecca Lynn Andree 14,314.79 1587 Sarah Anthony 7,622.71 1588 Kathy Ardeno 5,755.28 1589 Key Bank as trustee of IRA of Janette Barni 8,889.87 1590 Amanda Behanna 5,919.83 1591 Jennifer Berisko 8,945.61 1592 Concetta Deluca 9,980.62 1593 Donovan Ealy 2,298.14 1594 Chrome FCU as trustee of IRA of Aubrie Lemasters 5,134.86 1595 Prakash Katwaroo 10,287.98 1596 Brenda Kemp 3,698.21 1597 Angela King 4,229.56 1598 Richard King 5,173.11 1599 1600 Melissa L. Korzinski Fidelity as trustee of IRA of Jessica D. Le 4,204.08 13,791.54 1601 Chelsey Leckie 6,984.12 1602 Angela Marie LeJohn 13,683.86 1603 Arvie Little 7,315.01 1604 Courtney Miner 2,095.80 1605 Linda Zevola 9,420.68 1606 Sheryl Knapper 16,153.94 1607 Brandi L. Dawkins 10,239.98 1608 First Federal S&L Association of Greene Co. as trustee of IRA of 7,286.42 Melissa Gorby 1609 Corey Kirkwood 4,034.05 1610 Staci Macik 12,851.51 1611 Cindy Sue McCartney 9,526.48 1612 David McClelland 14,601.99 1613 Tracy Powell 15,844.76 1614 Jacob Ely 3,680.77 1615 Washington County Cash Disbursement Account 78,918.47 1616 Washington County Regular Payroll Escrow Account 15,337.64 Transfer PNC Bank 243,439.12 Transfer Washington County Retirement Account 633,478.09 Total November 2017 Distributions $ 2.205.430.07 30 MINUTE BOOK RETIREMENT BOARD WASHINGTON COUNTY, PENNSYLANIA [MR I IMITFn F1An7Q9Q1 n December 2017 Check Payee Amount 1617 PNC as trustee of IRA of Teresa Shuman $ 66,192.85 1618 Nicole Suchy 24,429.51 1619 Twyla Chambers 23,605.70 1620 Kandi Dewalt 30,977.81 1621 Yvonne Fuller 23,733.24 1622 Patricia Gamble 13,564.47 1623 RBC as trustee of IRA of Amy A. Hamilton 54,216.70 1624 Shirley Harmon 40,519.99 1625 Phyllis Hooper 30,901.59 1626 Denise Johnson 44,690.54 1627 Suzanne E. Kelly 52,121.99 1628 NFS as trustee of IRA of Danielle J. Long 84,463.56 1629 Janie Miller 38,589.06 1630 Cynthia J. Orndorff 17,874.73 1631 Randa Patterson 27,542.99 1632 Huntington as trustee of IRA of Joyce R. Paul 25,414.65 1633 Mabel Renz 27,463.75 1634 Charlotte Mesic 11,874.76 1635 Margaret Mazon 39,006.04 1636 Apryle Martin 34,386.25 1637 Charles Schwab FBO Tara Little 62,502.60 1638 Tara Little 1,605.98 1639 Washington County Regular Payroll Escrow Account 2,144.26 1640 Washington County Cash Disbursement Account 20,625.00 Transfer PNC Bank 123,330.25 Transfer Washington County Retirement Account 57,232.12 1642 Spencer Allen 2,411.24 1643 Alicia Durbin 1,761.08 1644 Angeline A. East 8,794.87 1645 Elizabeth Latkowski 3,693.47 1646 VALIC FBO Jacob Lehman 5,780.50 1647 William McDonough 12,691.16 1648 Vanguard Fiduciary Trust Co. as trustee of IRA of Elizabeth Kinsella 7,343.39 1649 Patrick Sisul 12,368.68 1650 Sydney Stephenson 4,243.65 1651 Pershing LLC FBO Zelda Pirt 48,875.82 1652 Washington County Regular Payroll Escrow Account 17,067.84 1 u 31 MINUTE BOOK RETIREMENT BOARD WASHINGTON COUNTY, PENNSYLANIA IMR I IMITFII F1A07Q9QI n 1653 Washington County Regular Payroll Escrow Account 2,576.89 1654 Washington County Cash Disbursement Account 2,451.72 Transfer PNC Bank 60,115.33 Transfer Washington County Retirement Account 676,031.43 Total December 2017 Distributions $ 1.845.217.46 January 2018 Check Payee Amount 1655 Alice L. Hadrych $ 227.78 1656 Jeffrey P. Puhnaty 210.96 1657 Fidelity Investments as trustee of IRA of Paul E. Yater III 75,000.95 1658 Paul E. Yater IIl 254.28 1659 Jeffrey Calcote 1,679.49 1660 Shannon Mahoney 16,216.59 1661 Vanguard Fiduciary Trust Co. as trustee of IRA of Christopher Sherwood 19,924.65 1662 Vanguard Fiduciary Trust Co. as trustee of IRA of Melissa Kay Leisure 8,399.27 1663 Daniel Miller 380.36 1664 Charles Schwab as trustee of IRA of Thomas P. Russell 1,733.61 1665 TIAA FBO Judith A. Hale Reed 3,965.97 1666 Washington County Regular Payroll Escrow Account 21,165.35 1667 Washington County Cash Disbursement Account 57,151.11 Transfer PNC Bank 47,449.08 Transfer Washington County Retirement Account 685,392.14 Total January 2018 Distributions $ 939.151.59 Old Business None. New Business Mr. Maggi entertained a motion for the ratification of a MOU dated January 4, 2018, for the approval of a request by Francesco Secreti to purchase per diem service time dated from January 1, 1987 to May 13, 1988, in the amount of $1,336.01. Mr. Secreti retired on January 11, 2018. 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 the 2018 Washington County Retirement Fund Budget. The motion to approve was made by Mr. King and seconded by Mrs. Vaughan. No discussion followed. Roll call vote taken: 32 MINUTE BOOK RETIREMENT BOARD IMR I IMITFII F1607Q9QI n WASHINGTON COUNTY, PENNSYLANIA 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 purchase of Employee Benefit Statements from Korn Ferry Hay Group at a cost of $1.85 per statement for a total approximate cost of $1,561.40. The cost per statement remains unchanged from 2017. The 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. Presentation Marquette Associates — Lee Martin, Ph.D. Mr. Martin began with a brief overview of the domestic market environment, stating that GDP slowed slightly in the 41h quarter of 2017. GDP is expected at 2.7% for 2018. Businesses are continuing to invest, technology is strong, output gap is positive, and unemployment is low. Globally, economic sentiment in Europe continues to improve, and Japan and the Asian markets are beginning to grow. The 4th quarter of 2017 was strong with equities leading the way. U.S. markets were up 21 % for the year; emerging markets were up 37%. High yield bonds came in higher than core bonds. The big story of 2017 was that growth stocks outperformed value by 16%, mostly driven by big tech. Even though the County's portfolio has a value tilt, performance still at benchmark for the year. The County's portfolio ended the year at $167 million, a gain of about $6 million for the quarter and right on benchmark with a 3.8% return. For the year, the portfolio returned 15% with a gain of $22 million and more than double the assumed rate of return. Over 5 years, the portfolio has gained just over $70 million, a return of close to 10% per year. The County's portfolio ranks in the top quartile of all public funds. With the sale of the Health Center, there will be less employee contributions into the fund, and with the lower liability to the fund resulting from the sale, there will be less County contributions as well. As benefits continue to be paid, a negative cash flow may result which, in turn, will need to be monitored. For the year, Twin Capital lagged by about 2%, just about as expected; Emerald lagged by 1% in an environment where they should have outperformed; and Wellington lagged a little more than expected even considering they are a small cap, defensive -type manager. New Perspective was up almost 30%, about 5% above index, and Dodge & Cox, Acadian, J.P. Morgan, and MFS were also above index for the year. On the fixed income side, C.S. McKee was right at benchmark and Federated was slightly above. Looking ahead, Mr. Martin stated that if the Board wanted to lower the assumed rate of return, then a restructuring of the small cap space might be in order. One option might be to replace both small cap managers with a high quality smid manager. Another option might be to keep Wellington but trim their assets, terminate Emerald, and hire a high quality smid manager. Mr. Martin recommended three smid cap managers for the Board to consider: Atlanta Capital, Earnest Partners, and GW & K. After Mr. 33 MINUTE BOOK RETIREMENT BOARD WASHINGTON COUNTY, PENNSYLANIA IMR LIMITED E1316649LD Martin provided a brief summary of each firm's characteristics and performance, the Board decided to bring all three in at a future date for interviews. The current asset allocation of the County's portfolio is 40% domestic equity, 21% international equity, 31% fixed income, 5% private real estate, and 3% timberland and farmland. Over 80% of the risk in the portfolio is due to equities. Mr. Martin presented the Board with an option to mitigate this risk: investment in infrastructure. Infrastructure investments have long asset lives, provide stable and predictable asset flows which are not correlated to other asset classes, hedge against inflation, provide further diversification of the portfolio, and have low volatility. Returns between private and public infrastructure are about the same, but the volatility on the private side is less. If the Board decided to invest in infrastructure, Mr. Martin recommended no more than a 5% investment with funding to come from the GTAA manager, MFS. Mr. Martin gave the Board some educational material to look over and suggested delaying their decision until a later date. The Board discussed further lowering the assumed rate of return. After a lengthy discussion, Mr. Shober made a motion to lower the assumed rate of return to 6.75%. The motion was 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. Martin completed his presentation with a brief summary of the OPEB portfolio, stating that the fund gained 16% and ranked in the top quartile. Mr. Maggi adjourned the meeting at 11:51 a.m. THE FOREGOING MINUTES SUBMITTED FOR APPROVAL: May / i 2018 ATTEST: C 1