HomeMy WebLinkAbout2025_02-20_Retirement Board Agenda_Meeting No_297 WASHINGTON COUNTY
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RETIREMENT BOARD MEETING NO 297 February 20, 2025
1. Opening of Meeting
2. Approval of Minutes No. 296 dated November 7, 2024
3. Public Comment
4. Treasurer's Report:
a. Bank Reconciliations-October 2024-December 2024
5. Requisitions:
a. Requisitions-October 2024- December 2024
6. Old Business
7. New Business
a. Ratification of MOU email dated December 20, 2024, Tyler Pape's
request to purchase part time service to vest for retirement.
b. Request for approval of disability pension for Tracy West. Ms.West
has been approved to receive Social Security disability pension dated
July 2024.
c. Note for the record, Christopher Bioni to purchase prior service time,
11/28/16 through 6/11/21 in the amount of 21,700.10.
d. Lee Martin presentation from Marquette Associates.
8. Adjournment
Retirement Board Minute No. 296 Washington,Pa.
November 7, 2025
The quarterly meeting of the Washington County Retirement Board was held in Public
Meeting Room G-16, Crossroads Center, 95 W. Beau St.,Washington,PA,with the following
members being present: Commissioners Electra Janis and Larry Maggi;Treasurer Tom Flickinger;
Controller Heather Sheader and Deputy Controller Brittany Mosco. Also present were: Solicitor
Gary Sweat; Chief of Staff Daryl Price; Chief Clerk Cynthia Griffin and Administrative Assistant
Debbie Corson; Director of Finance Adam Petris;Executive Secretaries Casey Grealish and Randi
Marodi;Marquette Associates representatives Lee Martin,Ph.D. and Brad Hampton.
Ms.Janis, chairing the meeting in the absence of Mr. Sherman, called the meeting to order at
approximately 2:30 p.m. on Thursday, November 7, 2024.
APPROVAL OF MINUTES
Ms.Janis requested a motion to approve meeting Minute No. 295, dated August 15, 2024.
The motion was moved by Mr. Maggi and seconded by Ms. Sheader approving the above-
mentioned minutes,as written.
Roll call vote taken:
Ms. Sheader—Yes;Mr. Flickinger—Yes;Mr. Maggi—Yes;Ms.Janis—Yes
Motion passed unanimously.
PUBLIC COMMENT
None.
TREASURER'S REPORT
Mr. Flickinger made a motion to accept the presented reconciliations of August 2024 to
September 2024 and Mr. Maggi seconded it.
Roll call vote taken:
Ms. Sheader—Yes;Mr. Flickinger—Yes;Mr. Maggi—Yes;Ms.Janis—Yes
Motion passed unanimously.
PUBLIC COMMENT
None.
RETIREMENT ALLOWANCE REPORT
Bank Balance as of August 1, 2024 $195,760.85
Deposits to Checking Account $5,289.96
Transfers In -0-
ACH Credit $289,665.62
Other Credits $2,107,456.27
Less: Cancelled Checks ($239,526.35)
Less: Other Debits -0-
Less:ACH Debits ($1,016,344.20)
Bank Balance as of August 31, 2024 $199,522.40
Transfers to Mutual Funds ($10,149.65)
Less: Outstanding Checks ($164,581.06)
Less: Retirement Check Run ($24,791.69)
Reconciled Balance as of August 31, 2024 -0-
Bank Balance as of September 1, 2024 $199,522.40
Deposits to Checking Account -0-
Transfers In -0-
ACH Credit $289,278.76
Other Credits $943,276.21
Less: Cancelled Checks ($291,707.13)
Less: Other Debits -0-
Less:ACH Debits ($1,012,047.82)
Funds Transfers Out -0-
Bank Balance as of September 30, 2024 $128,322.42
Transfers to Mutual Funds -0-
Less: Outstanding Checks ($102,741.05)
Less: Retirement Check Run ($25,581.37)
Reconciled Balance as of September 30, 2024 -0-
REQUISITIONS
Ms. Sheader made a motion to approve the requisitions for the months of August 2024
through September 2024. Motion was seconded by Mr. Maggi.
Roll call vote taken:
Ms. Sheader—Yes;Mr. Flickinger—Yes;Mr. Maggi—Yes;Ms.Janis—Yes
Motion passed unanimously.
DISTRIBUTIONS
AUGUST 2024
Check Payee Amount
3482 J'Taya Pirl $1,279.24
3483 Antonio Vallejo $4,780.93
3484 William Bryner $2,366.36
3485 Sebastian Lauver $3,303.24
3487 Richard Herilla $10,103.96
3488 Stephanie Kober $896.83
3489 Gordon Edwards $867.51
3490 Sydney Williams $14,923.81
3491 Kristian Lee $7,367.56
3492 Joelle McWreath $8,819.20
3493 Melissa Aberegg $55,843.39
3494 Nicholas Ivaska $203.09
3495 Abrianna Scenna $1,989.11
3496 Karlie Ighnat $12,091.67
3497 Donna Muggar $43,758.14
3498 Washington County Cash Disbursement Account $47,516.99
Transfer: PNC Bank $99,054.57
Transfer: Washington Co. Retirement Acct. $93%084.77
Total September 2024 Distributions $1,254,250.37
SEPTEMBER 2024
Check Payee Amount
3499 Sharon Leadbitter $20.18
3500 Gilbert Leadbitter $20.18
3501 Angelia Geho $17,415.74
3502 Ian Evans $2,294.80
3503 William Brandt $6,117.62
3504 Isabella Curran $546.27
3505 Bailee Seaman $3,722.85
3506 Jared Jenkins $73,650.35
3507 Capital Bank&Trust as trustee of IRA of Betsy Chrzastek Squires $17,191.39
3508 Washington County Regular Payroll Escrow Account $23,994.26
3509 Washington County Cash Disbursement Account $57,628.67
Transfer: PNC Bank $91,160.64
Transfer: Washington Co. Retirement Acct. $944,081.98
Total September 2024 Distributions $1,237,844.93
OLD BUSINESS
None.
NEW BUSINESS
Ms. Sheader presented a cost-of-living adjustment for the retirees to the board stating it was
required to be reviewed once every three years. Ms. Sheatler stated that if the board were to move
forward with the increase, the amount needed would be approximately$4 million and the increase
would take effect January 1, 2025. Ms. Sheader advised that the last approved increase was made
prior to 2002.
Discussion followed. No motion was made to approve a cost-of-living increase.
Ms. Sheatler presented to the board a 3 percent fee increase of$89/per month for the
services of contractors Korn Ferry. The increase would be effective January 1,2025.
Ms.Janis made a motion to approve the fee increase of$89/per month for Korn Ferry
effective January 1, 2025. Motion was seconded by Mr. Maggi. No discussion followed.
Roll call vote taken:
Ms. Sheatler—Yes;Mr. Flickinger—Yes;Mr. Maggi—Yes;Ms.Janis—Yes
Motion passed unanimously.
Ms. Sheatler moved to present the board with the 2024 Charitable Contribution distribution
from Marquette Associates. She asked the board if they wanted to choose one recipient of$1,000, as
a group, or if each board member would like to choose their own$200 recipient.
Mr. Maggi made a motion to have each board member individually choose their own
recipient for the 2024 Charitable Contribution distribution.
Discussion followed;Lee Martin from Marquette Associates advised that his company
matches the contribution, and that he personally matches, as well. The board agreed they had done
individual matching in the past.
Roll call vote taken:
Ms. Sheader—Yes;Mr. Flickinger—Yes;Mr. Maggi—Yes;Ms.Janis—Yes
Motion passed unanimously.
PORTFOLIO PRESENTATION
Lee Martin&Brad Hampton—Marquette Associates
Brad Hampton began by presenting an update on the U.S economy. Mr. Hampton stated
that the update he had was dated back to September 30, 2024,but with recent election results there
had been some enthusiasm in the markets. Mr. Hampton noted that the county had another strong
performance in the third quarter with a 6.2 percent return from the US equity markets.
In July and August 2024,big tech companies started to take a step back and there was a
broadening out in the markets where small caps did well along with bank stocks, on the expectation
of rate cuts. Mr. Hampton pointed out that it quickly reversed in September 2024,when there was a
rate cut of 50 basis points and the large cap tech stocks made a significant comeback. Mr. Hampton
added that the US dollar strengthened quite a bit since the election, along with a big jump in the
stock market.This was due to early election decisions and expectations that lowered regulation and
tax cuts would be a tailwind for equities in the short term.
Mr. Hampton continued saying there was also a spike in interest rates for the third quarter.
The Fed did meet and cut interest rates by another 25 basis points,which did influence borrowing
costs.The longer dated treasury yields, 10, 20 and 30 years are started to climb,in part because of
anticipated tax cuts with the new administration,which could lead to higher rates in the long term.
The incoming administration would influence tariffs, as well. Mr. Hampton explained that higher
inflation may come back with the new administration,which could cause higher interest rates. This,
he said, could have an effect on real estate prices, as well. He added that what was working post-
election were equities,growth stocks and US small cap stocks. Mr. Hampton added that tariffs could
be good for US small cap companies as 90 percent of their revenue would be within the US. Small
caps stocks had a 6 percent jump after election results were in. Mr. Hampton concluded his portion
of the presentation by stating that there were a lot of moving parts moving toward the end of the
year, but things look good post-election.
Lee Martin presented the Retirement Fund's Portfolio 2024 third quarter overview. As of
September 30, 2024, the fund was valued at approximately$224.8 million with a second quarter net
gain of 4.7 percent ($10.3 million gain). He said the positive attribution for the quarter was from
small and mid-cap equity,low volatility equity, and infrastructure. The negative attributions for the
quarter were from emerging markets equity, defensive equity and the use of a public benchmark for
private equity.
Mr. Martin added that the fund gained$33.1 million over the last three years with a gross
return of 5.9 percent. He stated that the county was in the top 18 percent of the InvestMetrics US
DB plan universe. He noted that they were seeing overall low investment management fees of 0.42
percent compared to the national average for defined benefit plans.
Mr. Martin moved on to review the Asset Allocation Report,highlighting that real estate is
currently at 1.0 percent below target within the portfolio, significantly lower than the average of
other funds,which could help minimize negative real estate issues in the near future. Looking
forward to 2025,Marquette Associates will consider allocating back to real estate, as expected
transaction activity increases.
Mr. Martin touched on cash flows,pointing out that the Clarion Lion Properties Fund,TA
Realty Core Property Fund,Hancock Timberland, and Farmland Fund brought in approximately
$458,000 during the quarter,which are all assets used to help pay benefits.
Mr. Martin continued with a look at the asset allocations. Mr. Martin advised that Marquette
Associates recommends turning back on the real estate dividend reinvestment at some point in 2025
so the allocation can grow back to its IPS target of 5 percent. Mr. Martin suggested the county turn
off the dividend reinvestment on private credit, as it had done so well it had become over allocated.
The county could use the dividends from private credit to pay benefits moving forward.
Mr. Martin wrapped up the presentation with a look at the OPEB Fund's Portfolio overview
as of the 2024 third quarter. As of September 30, 2024, the Fund was valued at approximately$28.6
million with a third quarter net gain of$1.6 million. He also stated the positive attributions for the
quarter were from small and mid-cap equity,value and small cap equity, and infrastructure. The
negative attributions for the quarter were from growth equity, defensive equity, and short-term
credit as rates declined.
Mr. Martin added that the fund gained$4.7 million over the last three years with a gross
return of 6.5 percent. He stated the county was in the top 7 percent of all DB plans over that period.
Currently, he noted, the county is seeing very low investment management fees of 0.34 percent.
Mr. Martin presented the board with an addendum to the OPEB Fund to change the current
real estate allocations from 10 percent to 7 percent, adding 1 percent allocation to domestic equities
and adding 2 percent allocations to fixed income,while changing the fixed income benchmark from
Bloomberg US intermediate government/credit bond index to Bloomberg US aggregate bond index.
Mr. Maggi made a motion to approve the addendum to the OPEB Fund. Motion was
seconded by Mr. Flickinger. No discussion followed.
Roll call vote taken:
Ms. Sheatler—Yes;Mr. Flickinger—Yes;Mr. Maggi—Yes;Ms.Janis—Yes
Motion passed unanimously.
There being no further business,Ms.Janis declared the meeting adjourned at
approximately 3:15 p.m.
THE FOREGOING MINUTES SUBMITTED FOR APPROVAL:
2025
ATTEST:
CONTROLLER