CITY OF KNOXVILLE PENSION BOARD

 MINUTES

MARCH 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 March 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. John Pannell and Mr. Brian F.Tankersley with HG & A Associates; Attorney Tony Farmer, representing Injury In Line of Duty applicant, Glenda Fields.  Lt. Cheri Matlock, Knoxville Police Department.

 

CALL TO ORDER:

           Mayor Haslam presided and called the meeting to order at 8:18 a.m.

 

APPROVAL OF REGULAR MEETING MINUTES FOR FEBRUARY 10, 2005

Motion:  Mr. Harrell made a motion to approve the February 10, 2005, meeting minutes.  Mr. Bates 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:

ADMINISTRATIVE MATTERS:

 

           2003 – 2004 Audit Report & Financial Statement – John Pannell

 

Mr. John Pannell of HG&A Associates made a presentation to the Pension Board of the annual audit for June 30, 2003 and June 30, 2004.  A copy is on file in the Pension Office.

 

DISABILITIES

 

APPLICATION FOR INJURY IN LINE OF DUTY:  PLAN C

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.

 

Tony Farmer, Attorney for Disability In Line of Duty applicant, Glenda Fields, offered to answer any questions the Board might have regarding  Ms. Field’s application which had been deferred from the February 10, 2005, Pension Board meeting.  Mr. Farmer reviewed for the Board the medical evidence presented. During the Board’s discussion of the application, some members questioned the evidence relating the application to an in line of duty injury. The Board asked questions of Attorney Gilbert to help them in their decision making.  After a lengthy discussion and review by the Board the following motion was made.

 

Motion:  Mr. Kinney made a motion to approve this application for an In Line of Duty Disability.  Mr. Harrell seconded the motion.  The motion failed on a vote of 2-4.  Mr. Kinney and Mr. Harrell voted yes.  Mr. Bates, Mr. Calloway, Ms. Pelot and Mr. King voted no.

          

           Disability Committee

 

Mayor Haslam asked Mr. Cherry to put together a committee to discuss new ways to review disability applications.  Board members Mr. Kinney and Mr. Calloway agreed to serve on such a committee.

 

APPLICATION FOR INJURY IN LINE OF DUTY:  PLAN G2

CHARTER SECTION 1360.22

 

           Dewey W. Snyder, General Government                        No Option

           Date of birth, June 9, 1951:  53 years of age*

           Total credited service:  25 years 1 month 28 days**

           *Computed as if 62 years of age

           **Computed as if worked until 62 (33 years 4 months 28 days)

           Average monthly salary for 2 highest 12 month periods, $2,139.36 x .021 =

           $44.93 x 33.41005 =

           $1,501.11 pension effective April 1, 2005.

 

Motion:  Mr. Harrell made a motion to approve this application for an In Line of Duty Disability based upon the medical documentation including the functional capacity reports provided.  Mr. Bates seconded the motion.  The motion carried unanimously by the members present.

 

EXECUTIVE DIRECTOR COMMENTS:

           Ricky Bundren – Disability applicant

 

Mr. Bundren came to the Pension Office on Thursday morning, March 10, 2005, and said he had not received notification from the Pension office regarding his medical appointment.  Another attempt will be made by the Pension Staff to have Mr. Bundren see Dr. Cooper.

 

           Annual Certificates

 

Mr. Cherry informed the Board that annual certificates had been mailed to all active members’ homes, detailing their benefit entitlements.  Mr. Cherry advised the Board that this was the second year the certificates had been distributed.

 

ATTORNEY COMMENTS:

 

Pension Charter Amendments – proposed protection measures – Exhibit 2

 

Attorney Gilbert distributed to the Board the final presentation of the Suggested Pension Charter Amendment Protection Measures, which had been revised from the previous month’s meeting.  Attorney Gilbert informed the Board that he had met with the City Council’s attorney, Charles Swanson, and Attorney Swanson had agreed that all were good measures.

 

Motion:  Mr. Calloway made a motion to approve the Pension Board Rules for Recommending Pension Charter Amendments as outlined in Exhibit 1, pages two and three, which the exception that Attorney Gilbert will revise some of the wording that begins in part E. on page three to read “ when directed by the Pension Board, or”.  Also, on page one, item I. (b) fill in the blank with ˝ basis point of asset value.  Mr. Bates seconded the motion.  The motion carried unanimously by the members present.

 

Motion:  Mr. Kinney made a motion to recommend to City Council an ordinance be adopted and a charter amendment be proposed calling for a referendum by the citizens.  Mr. Calloway seconded the motion.  The motion carried unanimously by the members present.

 

ENROLLMENTS:

 

The following General Government employees have filed applications to become members of the Plan G1 pension system.

 

           Christopher Alexander

           Paul M. Burroughs

           Charles R. Dossett

           Junior Hammock

           William A. Housley

           Brandon Hsieh

           Anthony Johnson

           James W. Johnson

           David V. Lewis

           Christopher J. Livengood

           Kenneth J. Parrott

           Gregory A. Sayles

           Michael Teaster

 

Motion:  Mr. Harrell made a motion to approve these applications for enrollment in the Plan G1 pension system.  Ms. Pelot seconded the motion.  The motion carried unanimously by the members present.

          

 

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.

 

           Benton Bettge, General Government – Plan G1, Non-vested

           William Glenn, Fire Department – Plan C, Non-vested

Kristina L. Norris, Police Department – Plan C – Vested

 

Motion: Mr. Calloway made a motion to approve these applications for withdrawal of employee contributions.  Mr. Bates seconded the motion.  The motion carried unanimously by the members present.

 

RETIREMENTS: APPLICATION FOR RETIREMENT:  PLAN A

CHARTER SECTION 1360.12

 

           Frank H. Clabough, Schools Non-Certified                   Option A-9 – 100%

                                                                                                       with reinstatement

           Date of birth, September 13, 1942:  62 years of age

           Total credited service:  41 years 7 months (City & County combined)

           Average base earnings for 3 years, $400.00 x .75% = $3.00

           Average excess earnings for 3 years, $4,982.94 x 1.50% = $74.74

           making a total of $77.74 benefit per year of service.  $77.74 x 41.58333 =

           $3,232.69  Total benefit

             1,339.68  minus County benefit =

  1,893.01.  Mr. Clabough chose Option A-9 – 100% with reinstatement to Norma Jean

  Clabough, spouse.  $1,893.01 x .8029  = $1,519.90  

  City pension effective February 1, 2005.

 

Motion:  Ms. Pelot made a motion to approve this application for retirement payable under Option A-9.  Mr. Bates 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 1390.22 – PLAN C.

The following employee has chosen a Delayed Retirement Option and will receive a one-time payment of accumulated benefits on termination of employment with the City of Knoxville.

 

           Wayne C. Fox, Fire Department Uniformed                Option A-5 – 75%

                                                                                                        without reinstatement

           Date of birth, November 6, 1948:  56 years of age

           Total credited service:  32 years 27 days

           Average monthly salary for 2 highest 12 month periods, $3,755.88 x 2.5% =

$93.90 x 30 = $2,817.00.  Mr. Fox chose Option A-5 – 75% without reinstatement to Patricia B. Fox, spouse.  $2,817.00 x .957700 = $2,697.84 pension effective March 1, 2005. DROP complete February 28, 2007.

          

Motion:  Mr. Calloway made a motion to approve this application for DROP retirement payable under Option A-5.  Mr. Bates seconded the motion.  The motion carried unanimously by the members present.

 

APPROVAL OF INVOICES FOR PROFESSIONAL SERVICES:    

          

Bryan, Pendleton, Swats & McAllister – Actuary (January)                  1,667.00

Kennerly, Montgomery & Finley, P.C. – Attorney (January)                        2,545.95       

Kennerly, Montgomery & Finley, P.C. – Attorney (February)                      1,540.00

State Street – custodial (November 2004)                                  15,904.27

State Street – custodial (December 2004)                                  15,726.34

State Street Global – money manager (4th Quarter 2004)               4,989.50

INTECH – money manager (4th Quarter 2004)                                   90,322.65

Sterling Johnston – money manager (4th Quarter 2004)            75,680.57

Summit Strategies Group – investment consultant (1st Qtr. 2005)      31,250.00

UBS Global – money manager (4th Quarter 2004)                        27,791.76                                                              

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. Harrell made a motion to pay these invoices.  Mr. Calloway seconded the motion.  The motion carried unanimously by the members present.

 

 

INVESTMENT MATTERS:

 

Mr. Cherry informed the Board that $5M had been transferred to Principal Financial Group on March 1, 2005, for the real estate allocation.

 

OTHER:  None 

 

PUBLIC COMMENTS:  None

 

ADJOURNMENT:

 

           There being no further business, the following motion was made:

 

           Motion:  Mayor Haslam adjourned the meeting at 9:53 a.m.

 

 

 

 

                                                                                           

                                                                                           _____________________

                                                                                           Chair

 

 

                                                                                           ______________________

                                                                                           Date

 

 

 

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