CITY OF KNOXVILLE PENSION
BOARD
MINUTES
FEBRUARY 10, 2005
8:15 A.M.
917B E. 5TH
AVENUE
The regular meeting of the City of Knoxville Pension Board was held in the Pension Board Conference Room at 917 E. 5th Avenue at 8:15 a.m. on February 10, 2005.
Present were: Mayor Bill Haslam, Mr. Kent Bates, Mr. Scott Calloway, Mr. Buddy Harrell, Mr. Stephen King, Mr. Christopher Kinney, Ms. Barbara Pelot, Mr. Michael Cherry and Attorney C.C. “Bud” Gilbert.
Also present: Mr. Herman Beeler and Mrs. Debbie Beeler (Mrs. Beeler is an active General Government employee); and John Dreiser, Attorney representing Mrs. Beeler. Tony Farmer, Attorney representing disability applicant, Glenda Fields. Mr. Dan Holmes, Summit Strategies; Ms. Diane Jaffee and Clare A. Polidore, TCW Cowen; William Lissenden and Elizabeth Flanagan, Deutsche Asset Management.
CALL TO ORDER:
Mayor Haslam presided and called the meeting to order at 8:18 a.m.
APPROVAL OF REGULAR MEETING MINUTES FOR
JANUARY 13, 2005
Motion: Mr. Bates made a motion to approve the
January 13, 2005, meeting minutes. Mr. Harrell seconded the motion. The motion carried unanimously by the
members present.
APPROVAL OF REVISED AGENDA: Exhibit 1
The Revised Agenda was approved without objection.
CONTRACTS: None
ADMINISTRATIVE MATTERS:
2nd Quarter 2005 – Pension Board Meeting Dates
The 2nd Quarter 2005 Pension Board Meeting dates were agreed upon as follows:
Thursday, April 14, 2005 – 8:15 a.m.
Thursday, May 12, 2005 – 8:15 a.m.
Thursday, June 9, 2005 – 8:15 a.m.
Ophelia Martin
Mr. Cherry updated the Board on his efforts to obtain the necessary paperwork so the distribution of funds may be made to Ophelia Martin, beneficiary of Mr. Fred Martin.
Rule for determining eligibility
for the Rule of 80 – Exhibit 2
Mr. Cherry reviewed for the Board the proposed Pension Board rule for calculating age and service requirements for the Rule of 80 as applicable to Plan G, which would codify the current practice of the pension office. Mr. Cherry informed the Board the proposed rule had also been reviewed by the pension system’s actuary and attorney.
Mr. King arrived at 8:22
a.m.
Ms. Pelot arrived at 8:23
a.m.
Motion: Mr. King made motion to approve the
Rule for calculating age and service for the Rule of 80 in Plan G as outlined
in Exhibit 2. Mr. Calloway
seconded the motion. The motion
carried unanimously by the members present.
Notice of Attorney fee increase
– Exhibit 3
Mr. Cherry informed the Board that Attorney Gilbert had notified the Board of a fee increase in his hourly rate from $150 to $175 to be effective January 1, 2005. Mr. Gilbert advised the Board that the last fee adjustment was on January 1, 2003. Mr. Gilbert provided a letter of notification to the Board per the agreement with his firm. The Board acknowledged the fee adjustment, effective January 1, 2005 for $175 per hour.
APPEALS:
Prior credited service
reinstatement – Debbie Beeler, General Government – Plan G2 - Exhibit 4
Attorney John Dreiser, associated with the law firm of Tony Farmer, represented Ms. Beeler, as he had at the January 13, 2005, board meeting, in her appeal to the Board to reinstate prior credited service time, and distributed to the Board a letter dated January 21, 2005, from Civil Service Director, Karen Day (exhibit 4). Attorney Dreiser suggested to the Board that Ms. Day’s letter, which indicated a benefits and seniority date of November 7, 1974, strengthened Ms. Beeler’s claim that she was unaware of any lost time for prior service with the Pension office.
Mr. Kinney reviewed for the board members absent at last month’s meeting, Parks & Recreation Deputy Director Joe Walsh’s description of the managerial arrangement of the centers between KCDC and the City during this time period. Mr. Kinney related to the Board Mr. Walsh’s recollection of how informational meetings were held at various locations regarding the 1998 charter change which allowed employees to buy back prior service time. Mr. Kinney suggested to the Board that Ms. Day’s letter was not relevant to this issue since the Civil Service hire date is for other human resource purposes such as longevity. The Pension Office records had already reflected the November 7, 1974 hire date as a full-time employee eligible for pension service. Ms. Pelot explained to the Board why she was in full support of Ms. Beeler’s position. Mr. King raised some questions to Attorney Gilbert regarding the legal significance, if any, in the confusion by Ms. Beeler in understanding her correct service date of hire with the Pension Office. Attorney Gilbert explained and reviewed for the Board the legal issues that should be considered by the members of the Board in making their respective decisions. Mr. King disclosed during the discussion that he might also be in a somewhat similar situation as Ms. Beeler for other unrelated reasons and that he would recuse himself from voting on the matter.
Motion: Ms. Pelot made a motion to reinstate
Ms. Beeler’s prior credited service time.
Mr. Calloway seconded the motion.
The motion failed on a vote of 3-3-1.
Ms. Pelot, Mr. Calloway and Mayor Haslam voted yes. Mr. Bates, Mr. Harrell and Mr. Kinney
voted no. Mr. King abstained.
TCW Cowen Money Manager Review
Diane Jaffee and Clare Polidore of TCW Cowen made a
presentation and distributed a written report.
A copy of the report is on file in the Pension Office.
Mayor Haslam left the meeting at 9:27
a.m. and Mr. Bates presided.
Mr. Bates called a recess at 9:43 a.m.
and called the meeting back to order shortly thereafter.
EXECUTIVE DIRECTOR COMMENTS: None
ATTORNEY COMMENTS:
Pension Charter Amendments
– proposed protection measures – Exhibit 5
Attorney Gilbert informed the Board that he had appeared at an employees’ association meeting at the request of Mr. King and Mr. Harrell. Attorney Gilbert reviewed for the Board the proposed protection measures for future Pension Charter Amendments which he and the Board had been working on for some months. Mr. Kinney had some questions and discussion with Attorney Gilbert regarding some of the language in the rules and suggested a few changes.
Attorney Gilbert agreed to review the suggestions to the proposed protection measures and to send them to City Council’s attorney, Charles Swanson, for additional review and comment prior to final presentation to the Board at the March 10, 2005, Pension Board meeting.
WITHDRAWALS:
The following employees
have filed applications to withdraw employee pension contributions plus 4%
interest and the supplemental retirement account as applicable in Plan G
Option 1.
John Fullerton, General Government, Plan G2 – Vested
Paul Taylor, Police Department, Plan C – Vested
Motion: Mr. Calloway made a motion to approve
these applications for withdrawal of employee contributions. Ms. Pelot seconded the motion. The motion carried unanimously by the
members present.
RETIREMENTS:
APPLICATION FOR INJURY IN LINE OF DUTY: PLAN C - (RED TAB)
CHARTER SECTION 1390.11
Glenda Fields, Police Department – Uniformed No Option
Date of birth, November 10, 1952: 52 years of age
Total credited service: 21 years 1 month
$1,733.11 pension effective February 1, 2005.
Attorney for Ms. Fields, Mr. Tony Farmer, had to leave the meeting previously.
Motion: Ms. Pelot made a motion to approve
this application for a disability in line of duty pension based on Dr. Pool’s
and Chief Owen’s letters. Mr.
King seconded the motion.
Mr. Calloway had a question
regarding why the disability was an in-line of duty disability. After further consideration by the
Board, the above motion was withdrawn by both Ms. Pelot and Mr. King, and the
application was deferred to the March 10, 2005, Pension Board meeting pending
further evidence and documentation of the injury.
APPLICATION FOR RETIREMENT: PLAN A
CHARTER SECTION 1360.12
Ambros Kirk, Jr., Schools Certified Option A-9
100% with reinstatement
Date of birth, June 29, 1941: 63 years of age
Total City credited service: 17 years 6 months
Total County credited service: 17 years 7 months
Total credited service: 35 years 1 month
Last date of employment with City: June 1987
Last date of employment with County: January 2005
Average base earnings for 4 years, $400.00 x 78% = $3.12
Average excess earnings for 4 years, $1,730.70 x 1.58% = $27.35
making a total of $30.47 benefit per year of service. $30.47 x 17.50 =
$533.23. Mr. Kirk chose Option A-9 – 100% with reinstatement to Mary Kirk, spouse.
$533.23 x .7919 =
$422.26 pension effective February 1, 2005.
The City benefit payment is determined using City only salaries and City service time.
The City benefit does not include any County service.
The total amount of the combined City and County benefit is $1,680.56.
Motion: Mr. Calloway made a motion to approve
this application for retirement for the City portion payable under Option A-9. Ms. Pelot seconded the motion. The motion carried unanimously by the
members present.
APPLICATION FOR EARLY RETIREMENT: PLAN A
CHARTER SECTION 1360.17
James R. Bean, Schools Certified Option A-9
100% with reinstatement
Date of birth, January 26, 1950: 55 years of age
Total City credited service: 15 years
Total County credited service: 17 years 7 months
Total credited service: 32 years 7 months
Last date of employment with City: June 1987
Last date of employment with County: January 2005
Average base earnings for 4 years, $400.00 x 75% = $3.00
Average excess earnings for 4 years, $1,203.90 x 1.50% = $18.06
making a total of $21.06 benefit per year of service. $21.06 x 15 =
$315.90 x ER Factor .5245 =
$165.69. Mr. Bean chose Option A-9 – 100% with reinstatement to Debra A. Bean, spouse. $165.69 x .8512 =
$141.04 pension effective February 1, 2005.
The City benefit payment is determined using City only salaries and City service time.
The City benefit does not include any County service.
The total amount of the combined City and County benefit is $836.45.
25 years required for Early retirement. Supreme Court ruling entitles retiree to combine City & County credited service.
Motion: Mr. Calloway made a motion to approve
this application for Early retirement for the City portion payable under
Option A-9. Ms. Pelot
seconded the motion. The motion
carried unanimously by the members present.
Carolyn D. Chandler, Schools Certified No Option
Date of birth, June 22, 1944: 60 years of age
Total City credited service: 20 years 8 months
Total County credited service: 17 years 7 months
Total credited service: 38 years 3 months
Last date of employment with City: June 1987
Last date of employment with County: January 2005
Average base earnings for 4 years, $400.00 x 75% = $3.00
Average excess earnings for 4 years, $1,509.78 x 1.50% = $22.65
making a total of $25.65 benefit per year of service. $25.65 x 20.66667 =
$530.10 x ER Factor .9075 =
$481.07 pension effective February 1, 2005.
The City benefit payment is determined using City only salaries and City service time.
The City benefit does not include any County service.
The total amount of the combined City and County benefit is $1,999.41.
25 years required for Early retirement. Supreme Court ruling entitles retiree to combine City & County credited service.
Motion: Mr. Calloway made a motion to approve
this application for Early retirement for the City portion. Ms. Pelot seconded the motion. The motion carried unanimously by the
members present.
APPLICATION FOR DEFERRED RETIREMENT: PLAN G1
CHARTER SECTION 1360.28
Tommie Sue Smallman, General Government No Option
Date of birth, January 26, 1943: 62 years of age
Total credited service: 9 years 1 month
Plan A benefit: Average base salary for 2 highest 12 month periods, $400.00 x
.0081% = $3.24 x 3.58333 = $11.61 plus Average excess salary for 2 highest 12 month periods, $1,452.95 x .0162% = $23.54 x 3.58333 = $84.35. Total A benefit = $95.96.
Plan G1 benefit: Average monthly salary for 2 highest 12 month periods, $1,852.95 x .0115% = $21.31 x 5.50 = $117.20
*Total defined benefit: $213.16
$213.16 pension effective February 1, 2005.
*Defined benefit portion only. Ms. Smallman had previously applied
for and received a lump sum for the supplemental retirement account.
Motion: Ms.
Pelot made a motion to approve this application for a deferred retirement. Mr. Calloway seconded the motion. The motion carried unanimously by the
members present.
APPLICATION FOR PARTICIPATION IN THE
DELAYED RETIREMENT OPTION PROGRAM (DROP):
PURSUANT TO CHARTER SECTION 1371.8 – PLAN G2
The following employees have chosen a
Delayed Retirement Option and will receive a one-time payment of accumulated
benefits on termination of employment with the City of Knoxville.
Genie P. Braid, General Government No Option
Date of birth, July 10, 1943: 61 years of age
Total credited service: 38 years 9 months 16 days
Average monthly salary for 2 highest 12 month periods, $2,805.90 x 2.1% =
$58.92 x 38.79383 =
$2,285.73 pension effective February 1, 2005. (Full benefit pursuant to Rule of 80)
DROP complete January 31, 2007.
Motion: Mr. Harrell made a motion to approve
this application for DROP retirement. Ms. Pelot seconded the motion.
The motion carried unanimously by the members present.
John L. Inman, General Government Option A-9
100% with reinstatement
Date of birth, October 13, 1942 : 62 years of age
Total credited service: 25 years 4 months 13 days
Average monthly salary for 2 highest 12 month periods, $2,277.77 x 2.1% =
$47.83 x 25.36895 = $1,213.40. Mr. Inman chose Option A-9 – 100% with reinstatement to Linda I. Inman, spouse. $1,213.40 x .7737 =
$938.81 pension effective February 1, 2005.
DROP complete January 31, 2007.
Motion: Mr. Harrell made a motion to approve
this application for DROP retirement payable under Option A-9. Ms. Pelot seconded the motion. The motion carried unanimously by the
members present.
Will E. Miles, Jr., General Government No Option
Date of birth, February 26, 1945: 59 years of age
Total credited service: 32 years 9 months 21 days
Average monthly salary for 2 highest 12 month periods, $3,503.23 x 2.1% =
$73.57 x 32.80753 =
$2,413.65 pension effective February 1, 2005. (Full benefit pursuant to Rule of 80)
DROP complete January 31, 2007.
Motion: Mr. Harrell made a motion to approve
this application for DROP retirement.
Ms. Pelot seconded the motion. The
motion carried unanimously by the members present.
Leo C. Moore, Jr., General Government Option A-6
100% without reinstatement
Date of birth, July 21, 1953 : 51 years of age
Total credited service: 28 years 10 months 4 days
Average monthly salary for 2 highest 12 month periods, $2,632.07 x 2.1% =
$55.27 x 28.84429 = $1,594.22. Mr. Moore chose Option A-6 – 100% without reinstatement to Debra G. Moore, spouse. $1,594.22 x .8854 =
$1,411.52 pension effective February 1, 2005. (Full benefit pursuant to Rule of 80)
DROP complete January 31, 2007.
Motion: Mr. Harrell made a motion to approve
this application for DROP retirement payable under Option A-6. Ms. Pelot seconded the motion. The motion carried unanimously by the
members present.
Wayman R. Whaley, General Government Option A-6
100% without reinstatement
Date of birth, December 17, 1931: 73 years of age
Total credited service: 39 years 8 months 11 days
Final average monthly salary for 2 highest 12 month periods, $4,078.32 x 2.1% =
$85.64 x 39.69680 = $3,399.63. Mr. Wayman chose Option A -6 – 100% without reinstatement to Betty L. Whaley, spouse. $3,399.63 x .7416 =
$2,521.17 pension effective February 1, 2005.
DROP complete January 31, 2007.
Motion: Mr. Harrell made a motion to approve
this application for DROP retirement payable under Option A-6. Ms. Pelot seconded the motion. The motion carried unanimously by the
members present.
APPROVAL OF INVOICES FOR PROFESSIONAL SERVICES: (GREEN TAB)
Kennerly, Montgomery & Finley, P.C. – Attorney (December) 840.00
State Street – Trustee (December 2004) 3,602.37
Calamos Investments – money manager 52,238.00
Deutsche Asset Management – money manager 37,844.49
STW Fixed Income – money manager 34,815.21
TCW Asset Management – money manager 95,873.54
Mr. Cherry, Executive Director, has reviewed the bills and certifies that they are consistent with the services provided and are within the budgeted figures of the FY 2005 financial plan.
Motion: Mr. Kinney made a motion to pay these
invoices. Mr. Harrell seconded
the motion. The motion carried
unanimously by the members present.
INVESTMENT MATTERS:
Dan Holmes - International
Growth Equity Presentations
Mr. Holmes recommended that a planning session be scheduled with the Board in April to interview international growth managers as potential replacements for Oechsle International Advisors. It was agreed on by the Board to schedule interviews with four firms, for Wednesday, April 13, 2005, from 2:00 – 5:00 p.m. before the regular meeting on Thursday, April 14, 2005, at 8:15 a.m., at which strategy discussions can be held with Mr. Holmes.
Motion: Mr. Harrell made a motion to have Mr.
Holmes commence with a search for a possible replacement for Oeschsle
International Advisors. Mr.
Calloway seconded the motion. The
motion carried unanimously by the members present.
Mr. Kinney left the meeting
at 10:55 a.m.
Mr. Bates called a recess
at 10:57 a.m. and called the meeting back to order shortly thereafter.
Deutsche Asset Management
Money Manager Review
Bill Lissenden and Beth Flanagan of Deutsche Asset Management made a presentation and distributed a written report. A copy of the report is on file in the Pension Office.
Dan Holmes – Summit
Strategies
Mr. Holmes made a presentation of the 4th Quarter, 2004 Performance Report. Copies of his report are on file in the Pension Office.
OTHER:
None
PUBLIC COMMENTS: None
ADJOURNMENT:
There being no further business, the following motion was made:
Motion: Mr. Calloway made a motion to adjourn
the meeting at 11:45 a.m. Mr.
King seconded the motion. The
motion carried unanimously by the members present.
_________________________
Chair
__________________________
Date
M:\Board\minutes\2005\february.doc