CITY OF KNOXVILLE PENSION BOARD

MINUTES

APRIL 14, 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 April 14, 2005.

 

Present were:  Mayor Bill Haslam, Mr. Kent Bates, Mr. Buddy Harrell, Mr. Stephen King, Mr. Christopher Kinney, Mr. Michael Cherry and Attorney C. C. “Bud” Gilbert.

 

Also present:  Mr. Dan Holmes, Summit Strategies; Attorney Tony Farmer, representing Injury Not In Line of Duty applicant, Glenda Fields.

 

CALL TO ORDER:

           Mr. Bates presided and called the meeting to order at 8:23 a.m.

 

APPROVAL OF REGULAR MEETING MINUTES FOR MARCH 10, 2005

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

           HG&A Associates – Exhibit 2

 

Motion:  Mr. Kinney made a motion to accept the contract with HG&A Associates for the audit of the Pension System’s financial statements for the year ending June 30, 2005, for a fee of $7,500.00.  Mr. Harrell seconded the motion.  The motion carried unanimously b the members present.

 

ADMINISTRATIVE MATTERS:

 

           Letter from Dr. Cooper – Exhibit 3

 

Mr. Cherry informed the Board that per Dr. Cooper’s letter dated March 25, 2005, Dr.
Cooper would no longer be available to the Board for disability evaluations beginning January 2006.

 

           Letter to Ricky Bundren – Exhibit 4

 

Mr. Cherry reviewed for the Board the situation with Ricky Bundren, a General Government employee who had filed for a disability in-line of duty retirement benefit.  Mr. Cherry explained to the Board that Mr. Bundren had failed to keep several appointments with the Board’s contract physician, Dr. Cooper, and Mr. Cherry had sent Mr. Bundren a letter explaining that his application for a disability retirement benefit was being withdrawn. Mr. Bundren has 60 days from the receipt of the letter to appeal his decision to the Pension Board.

 

EXECUTIVE DIRECTOR COMMENTS:

 

           Dr. Cooper’s replacement

Mr. Harrell asked Mr. Cherry for suggestions on how the Board should proceed in finding a replacement for Dr. Cooper.  Mr. Cherry suggested to the Board that he would begin to look for a group of doctors who might have multiple specialists.  Mr. Kinney advised Mr. Cherry that he might want to contact Gary Estes with Risk Management for help with this.

 

ATTORNEY COMMENTS:  None

 

 

ENROLLMENTS:

 

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

 

           Jeffrey H. Brooks

Callie A. Caplenor

Jerry D. Conard

Kathleen M. Gibi

Kyndra Holsapple

Charles P. Hopkins, II

Colin F. Ickes

Denise L. Jones

Charles T. Payne, Jr.

Clarence W. Sudderth

Jack C. Wang          

           Ricky L. Webber

 

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

 

The following Police Department – Uniformed employees have filed applications to become members of the Plan C pension system.

          

           Rachel Bachorek

           Jeffrey H. Brooks – transferred from General Government

           Thomas Clinton

           Timothy Edwards

           Caryn Gibson

           Eric Heitz

           Samuel Henard

           Brian Kauffman

           Charles Luttrell

           Steven Mayfield, Jr.

           Rollin McGowan

           Jason McSpadden

           Benjamin McVay

           Michael Price

John-Michael Scott

Kevin Shaw

Neil Smith

Philip Smith

Charles Terry

Saundra Townsend

Timothy Walker

Richard Wallace

Stephanie Wilson

 

Motion:  Mr. King made a motion to approve these applications for enrollment in the Plan C pension system.  Mr. Harrell 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.

 

Ryan Acuff, Police Department, Plan C- Vested           

Werner J. Anderson, General Government – Plan G1 – Non-vested

*James L. Arwood, General Government – Plan G1 – Vested

* (supplemental retirement account only)

Nelson Dawson, Fire Department – Plan C - Vested

Johnny Ketron, General Government – Plan G2 - Vested

Richard J. Page, General Government, Plan G1 – Non-vested

James Raley, General Government, Plan G1 – Non-vested

Phyllis Richards, General Government, Plan G1 - Vested

Terrence M. Walker, General Government, Plan G1 – Non-vested   

 

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

 

Mayor Haslam arrived at 8:55 a.m.

 

RETIREMENTS:

 

 

APPLICATION FOR RETIREMENT:  PLAN G1

CHARTER SECTION 1360.12

 

           James L. Arwood, General Government                                    No Option

           Date of birth, March 19, 1943:  62 years of age

           Total credited service:  6 years 10 days

           Average monthly salary for 2 highest 12 month periods, $1,795.21 x .0115% =

           $20.64 x 6.02740 =

           $124.41 (defined benefit) pension effective April 1, 2005.

           One time payment of Supplemental Retirement Account.

 

Motion:  Mr. Harrell made a motion to approve this application for retirement.  Mr. King seconded the motion.  The motion carried unanimously by the members present.

 

APPLICATION FOR RETIREMENT:  PLAN G2                                

CHARATER SECTION 1360.12

 

           Robert F. Anderson, General Government                                Option B-11 – 10 Yr.

                                                                                                                  Certain & Life

           Date of birth, August 25, 1932:  72 years of age

           Total credited service:  14 years 28 days

           Average monthly salary for 2 highest 12 month periods, $1,979.07 x .021 =

$41.56 x 14.07671 = $585.03.  Mr. Anderson chose Option B-11 – 10 Yr. Certain & Life to June Anderson, spouse.  $585.03 x .8696 =

           $508.74 pension effective April 1, 2005.

 

Motion:  Mr. King made a motion to approve this application for retirement payable under Option B-11.  Mr. Kinney 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.

 

           Terry D. Moyers, Police Department Uniformed                        Option A-6 – 100%

                                                                                                                  without reinstatement

           Date of birth, November 3, 1954:  50 years of age

           Total credited service:  25 years 4 months 19 days

           Average monthly salary for 2 highest 12 month periods, $4,056.08 x 2.5% =

$101.40 x 25.38539 = $2,574.08.  Mr. Moyers chose Option A-6 – 100% without reinstatement to Sonya A. Moyers, spouse.  $2,574.08 x .9431 =

           $2,427.61 pension effective April 1, 2005.

           DROP complete March 31, 2007

 

Motion:  Mr. Harrell made a motion to approve this application for DROP retirement payable under Option A-6. Mr. King seconded the motion.  The motion carried unanimously by the members present.

 

APPROVAL OF INVOICES FOR PROFESSIONAL SERVICES:    

          

Bryan, Pendleton, Swats & McAllister – Actuary (February)                 7,923.00                   Kennerly, Montgomery & Finley, P.C. – Attorney (March)                    980.60

HG& A Associates (auditor – yr. ended 6/30/04)                                  7,500.00                                      

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.

 

OTHER:

 

           Mr. Cherry reviewed with the Board the FYI sheet.

 

INVESTMENT MATTERS:

 

Dan Holmes began a discussion and gave a presentation to the Board and distributed written reports.  Copies of Mr. Holmes reports are on file in the Pension Office.

 

APPLICATION FOR DISABILITY NOT IN LINE OF DUTY RETIREMENT:  PLAN C

CHARTER SECTION 1350.2 & 1390.12

 

           Glenda F. Fields, Police Department – Uniformed                   No Option

           Date of birth, November 10, 1952:  52 years of age

           Total credited service:  21 years

Average monthly salary for 2 highest 12 month periods, $3,466.21 x 2.0% =

$69.3242 x 21 =

$1,455.81 pension effective February 1, 2005.

 

Tony Farmer, attorney representing Ms. Glenda Fields, spoke on her behalf requesting that she be awarded a Not In Line of Duty retirement, but he advised the Board that Ms. Fields was not relinquishing her right to appeal for an In Line of Duty Retirement.

 

Motion:  Mr. Kinney made a motion to approve this application for disability not in line of duty retirement.  Mr. Bates seconded the motion.  The motion carried unanimously by the members present.

 

INVESTMENT MATTERS cont’d:

 

 

Mr. Holmes continued his presentation and led the Board in a discussion of Alternative Investing including Hedge Funds and Private Equity.

 

Mayor Haslam left the meeting at 10:02 a.m.

          

PUBLIC COMMENTS:  None

 

ADJOURNMENT:

 

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

 

Motion:  Mr. Harrell made a motion to adjourn the meeting at 11:48 a.m.  Mr. King seconded the motion.  The motion carried unanimously by the members present.

 

 

 

 

 

                                                                                _____________________________

                                                                                Chair

 

 

 

                                                                                _______________________________

                                                                                Date