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Home My WebLink AboutCOMM - Meeting Minutes - 277 - 2-20-2020 - RETIREMENT• MINUTE BOOK RETIREMENT BOARD WASHINGTON COUNTY, PENNSYLANIA IMR I IMITFn FlAf)7Q9Q1 n Minute No. 277 February 20, 2020 The quarterly meeting of the Washington County Retirement Board was held at approximately 10:28 a.m. on Thursday, February 20, 2020, in the Public Meeting Room with the following members being present: Commissioners Diana Irey Vaughan, Larry Maggi, and Nick Sherman, Controller Michael Namie, and Treasurer Tom Flickinger. Also present: Chief of Staff John Haynes, Solicitor Jana Phillis Grimm, Chief Clerk Cindy Griffin, Director of Finance Joshua J. Hatfield, Secretary Paula Jansante, District Attorney Gene Vittone, Register of Wills James Roman, and Lee Martin, Ph.D. and Sam Frymier representing Marquette Associates. Approval of Minutes Mrs. Vaughan entertained a motion to approve Minute No. 276 dated December 5, 2019. The motion was moved by Mr. Sherman and seconded by Mr. Namie that the above -mentioned minutes be approved as written. No discussion followed. Roll call vote taken: Mr. Namie — yes; Mr. Flickinger — yes; Mr. Maggi — yes; Mr. Sherman — yes; Mrs. Vaughan — yes. Motion passed unanimously. Public Comment None. Treasurer's Report On behalf of Mr. Flickinger, Mr. Namie stated that for November and December 2019 and January 2020, the bank balance was reconciled to zero. It was moved by Mr. Namie and seconded by Mr. Sherman that the report be approved. No discussion followed. Roll call vote taken: Mr. Namie — yes; Mr. Flickinger — yes; Mr. Maggi — yes; Mr. Sherman — yes; Mrs. Vaughan — based upon the Controller's recommendation and review, yes. Motion passed unanimously. Retirement Allowance Report Bank Balance as of November 1, 2019 $ 162,599.10 Add: ACH Credit 389,381.56 Add: Other Credits 593,362.41 Less: Cancelled Checks (271,246.12) Less: ACH Debits (786,919.63) Bank Balance as of November 30, 2019 $ 87,177.32 Less: Outstanding Checks (63,485.84) Less: Retirement Check Run (23.691.48) Reconciled Balance as of November 30, 2019 $ 2 Bank Balance as of December 1, 2019 $ 87,177.32 Add: Deposits to Checking Account 1,548.70 RETIREMENT BOARD IMR I IMITF-n FIA07Q9QI n MINUTE BOOK WASHINGTON COUNTY, PENNSYLANIA Add: Transfers In Add: ACH Credit Add: Other Credits Less: Cancelled Checks Less: ACH Debits Bank Balance as of December 31, 2019 Less: Wire Transfer Return Less: Outstanding Checks Less: Retirement Check Run Reconciled Balance as of December 31, 2019 Bank Balance as of January 1, 2020 Add: ACH Credit Add: Other Credits Less: Cancelled Checks Less: ACH Debits 40,708.81 439,135.84 347,508.31 (101,952.48) (775,712.82) $ 38,413.68 (703.76) (10,626.40) (27,083.52) $ -0- $ 38,413.68 244,848.31 1,014,527.93 (277,374.56) (851,908.64) Bank Balance as of January 31, 2020 $ 168,506.72 Less: Outstanding Checks (142,027.31) Less: Retirement Check Run (26,479.41) Reconciled Balance as of January 31, 2020 $ Q Requisitions Mr. Namie stated that requisitions for the months of December 2019 and January 2020 totaled $2,088,456.33. It was moved by Mr. Namie and seconded by Mr. Maggi that the requisitions be approved. No discussion followed. Roll call vote taken: Mr. Namie — yes; Mr. Flickinger — yes; Mr. Maggi — yes; Mr. Sherman — yes; Mrs. Vaughan — yes. Motion passed unanimously. Distributions December 2019 Check Payee Amount 1972 Estate of Delores Mascara $ 788.60 1973 CB&T as trustee of IRA of Regina A. Chechuck 269.86 1974 Kellie Grimes 36.36 1975 Daneyia Lewis 829.86 1976 Shawn Moore 1,012.88 1977 Benjamin Saltzman 172.57 1978 Rachel Schweitzer 115.93 1979 Washington County Regular Payroll Escrow Account 23,323.84 1980 Washington County Cash Disbursement Account 3,222.73 0 1 I WN MINUTE BOOK RETIREMENT BOARD WASHINGTON COUNTY, PENNSYLANIA IMR I IMITF:n FiAn7Q9Q1 n Transfer PNC Bank 48,838.18 Transfer Washington County Retirement Account 749,765.52 Total December 2019 Distributions $ 828.376.33 January 2020 Check Payee Amount 1981 Peggy Pellegrini $ 98.45 1982 Alexandria A. Smith 110.19 1983 Josephine Zellie 110.19 1984 Dorothy Marlene Daugherty 134.81 1985 Frank Scandale 18,827.10 1986 Capital Group — American Funds FBO Katherine 15,154.52 Petousis 1987 Joelle McWreath 8,596.99 1988 Janice M. Taper 120,414.21 1989 Sharalyn McDonald 25,495.07 1990 Sandra D. Bedillion 67,363.32 1991 Bobbi McMillan 57,007.69 1992 Washington County Regular Payroll Escrow Account 20,449.52 1993 Washington County Cash Disbursement Account 38,160.67 Transfer PNC Bank 123,563.12 Transfer Washington County Retirement Account 764,594.15 Total January 2020 Distributions $ 1.260.080.00 Old Business None. New Business Mrs. Vaughan noted for the record an agreement with Anthony Andronas to purchase prior service time credit for the period May 20, 1996 to February 13, 1998 in the amount of $1,904.09. Mrs. Vaughan entertained a motion for the approval of a request from Anthony Andronas to purchase part-time service credit for the periods June 29, 2014 to July 7, 2015 in the amount of $493.90. Mr. Andronas's request has been approved as required by the Board of Commissioners. The motion to approve was made by Mr. Sherman and seconded by Mr. Maggi. No discussion followed. Roll call vote taken: Mr. Namie — yes; Mr. Flickinger — yes; Mr. Maggi — yes; Mr. Sherman — yes Mrs. Vaughan — yes. Motion passed unanimously. Mrs. Vaughan entertained a motion for the approval of a request from Kathryn Grant to purchase unpaid leave of absence time for the period January 24, 2011 to May 29, 2011 in the amount of $2,295.96. Ms. Grant's request has been approved as required by the Board of Commissioners. The e RETIREMENT BOARD IMR I IMlTFn Fjan7a?oi n MINUTE BOOK WASHINGTON COUNTY, PENNSYLANIA motion to approve was made by Mr. Sherman and seconded by Mr. Maggi. No discussion followed. Roll call vote taken: Mr. Namie — yes; Mr. Flickinger — yes; Mr. Maggi — yes; Mr. Sherman — yes; Mrs. Vaughan — yes. Motion passed unanimously. Mrs. Vaughan entertained a motion for the approval of a request from Christopher Bioni to purchase part-time service credit for the period November 28, 2016 to October 19, 2017 in the amount of $1,681.03. The motion to approve was made by Mr. Sherman and seconded by Mr. Maggi. No discussion followed. Roll call vote taken: Mr. Namie — yes; Mr. Flickinger — yes; Mr. Maggi — yes; Mr. Sherman — yes; Mrs. Vaughan — yes. Motion passed unanimously. Mrs. Vaughan entertained a motion for the approval of a request from Michelle Moore to purchase unpaid leave of absence time for the periods April 27, 2005 to June 13, 2005 and April 3, 2007 to June 4, 2007 in the amount of $710.11. Ms. Moore's request has been approved as required by the Board of Commissioners. The motion to approve was made by Mr. Sherman and seconded by Mr. Maggi. No discussion followed. Roll call vote taken: Mr. Namie — yes; Mr. Flickinger - yes; Mr. Maggi — yes; Mr. Sherman — yes; Mrs. Vaughan — yes. Motion passed unanimously. Mrs. Vaughan entertained a motion for the approval of a request from James Lipniskis to purchase per diem service credit for the period March 13, 1989 to February 7, 1993 in the amount of $3,864.69. The motion to approve was made by Mr. Sherman and seconded by Mr. Maggi. No discussion followed. Roll call vote taken: Mr. Namie — yes; Mr. Flickinger — yes; Mr. Maggi — yes; Mr. Sherman — yes; Mrs. Vaughan — yes. Motion passed unanimously. Mrs. Vaughan entertained a motion for the approval of a request from Amy Moore to purchase unpaid leave of absence time for the period January 14, 2018 to February 8, 2018 in the amount of $107.76. Ms. Moore's request has been approved as required by the Board of Commissioners. The motion to approve was made by Mr. Sherman and seconded by Mr. Maggi. No discussion followed. Roll call vote taken: Mr. Namie — yes; Mr. Flickinger — yes; Mr. Maggi — yes; Mr. Sherman- yes Mrs. Vaughan — yes. Motion passed unanimously. 87 C 1 E RETIREMENT BOARD IMR LIMITFn F1Rn7g9Q1 n MINUTE BOOK WASHINGTON COUNTY, PENNSYLANIA Mrs. Vaughan entertained a motion for the approval of the 2020 Washington County Retirement Fund budget. The motion to approve was made by Mr. Sherman and seconded by Mr. Maggi. No discussion followed. Roll call vote taken: Mr. Namie — yes; Mr. Flickinger — yes; Mr. Maggi — yes; Mr. Sherman — yes Mrs. Vaughan — yes. Motion passed unanimously. Mrs. Vaughan entertained a motion for the approval of the purchase of Employee Benefit Statements from Korn Ferry at a cost of $1.85 per statement for a total approximate cost of $1,426.35. The cost per statement remains unchanged from 2019. The motion to approve was made by Mr. Sherman and seconded by Mr. Maggi. No discussion followed. Roll call vote taken: Mr. Namie — yes; Mr. Flickinger — yes; Mr. Maggi — yes; Mr. Sherman — yes; Mrs. Vaughan — yes. Motion passed unanimously. Portfolio Presentation — Lee Martin, Ph.D. — Marauette Associates Mr. Martin began with a brief discussion on market environment stating that GDP came in at a sluggish 2.1 % for the third quarter in a row, driven primarily by a slowdown in manufacturing. In this respect, the U.S. is more resilient than the rest of the world due to the U.S. economy being driven more by the service industry than manufacturing. The impact that the coronavirus has had on manufacturing in China is significant. China is such a large part of global GDP and global manufacturing that with factories closing down due to the virus, inventory levels are being affected world-wide. For the 41h quarter, equities led the way. Emerging markets were up 12%, U.S. stocks were up 9%, and developed international stocks were up 8%. U.S. stocks were up 31% for the year, none of which was due to earnings growth. Stock returns in 2019 came from price appreciation increasing asset valuation. At higher valuations, stocks are much more volatile and reactive to negative news. Within the U.S. market last quarter, nearly 1 /3 to 1/2 of market returns were driven by industry groups within technology and healthcare. For the year, five names contributed to 26% of S&P performance — Apple, Microsoft, Amazon, Facebook, and J.P. Morgan. Any portfolio underweight in these five names more than likely lagged for the year. The County's portfolio finished the year just at under $180 million, a gain of $9 million for the quarter with a return of 5.5%, slightly behind the policy index. Real assets and international equities worked well for the quarter; defensive equities, the value tilt of the portfolio, and Treasuries did not. For the year, the portfolio gained over $28 million, a return of almost 19%. Highlighting a few of the individual managers, Twin lagged for the quarter but was close to benchmark for the year, GWK lagged slightly for the quarter but was 4% above benchmark for the year, New Perspective had a great quarter and was up 10.1 % for the year, Acadian was ahead for the quarter and on benchmark for the year, Dodge & Cox was up 10.8% for the quarter and 24% for the year, J.P. Morgan was up 2% for the quarter, infrastructure was up 3% for the quarter and 8% for the year, and on the fixed income side, both C.S. McKee and Federated Investors were on benchmark. RETIREMENT BOARD IMR-LfAITFn F1Rn7Q9QI n MINUTE BOOK WASHINGTON COUNTY, PENNSYLANIA At this time, Mr. Maggi excused himself from the meeting due to a prior commitment. The OPEB fund finished the quarter at $20 million, a gain of just over $1 million with a return of 5.7% for the quarter and 20% for the year. Highlighting a few of the individual managers, Atlanta Capital returned 14% per year since inception, Artisan Global returned 12% per year since inception, Deutsche RREEF returned 1 % over benchmark since inception, Parametric added 10 basis points for the quarter, and in fixed income, Treasuries were negative for the quarter but strong for the year, and outperformance for the quarter came from Federated Investors and Lord Abbett short term strategies. The meeting was adjourned at 11:20 a.m. THE FOREGOING MINUTES SUBMITTED FOR APPROVAL: ir?y L 1 , 2020 ATTEST. 1 I