CITY OF KNOXVILLE PENSION BOARD
MINUTES
Thursday – May 10, 2007
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 May 10, 2007,
Present were: Mayor Bill Haslam, Mr. Scott Calloway, Mr. Greg Coker, Mr. Buddy Harrell, Mr. Stephen King, Mr. Larry Martin, Ms. Barbara Pelot, Mr. Michael Cherry and Attorney Bud Gilbert.
Also present: Lt. Cheri Matlock, Knoxville Police Department; Mr. Dan Holmes, Summit Strategies; Ms. Jennifer Perkins, Principle Global Investors; Mr. Jack Estes, Cadogen Management.
CALL TO ORDER:
Mayor Haslam presided and called the meeting to order at 8:16 a.m.
APPROVAL OF REGULAR MEETING MINUTES FOR April 12, 2007:
Mr. Harrell made a motion to approve the April 12, 2007, meeting minutes. Mr. Martin 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:
AQR Capital Management
Mr. Cherry advised the Board that the contract with small cap growth manager, AQR, had been completed and funds had been transferred to both AQR Capital Management and to the hedge fund manager, Union Bancaire Privee Asset Management.
ADMINISTRATIVE MATTERS:
3rd Quarter 2007 – Pension Board Meeting Dates
Thursday, July 12, 2007 – 8:15 a.m.
*Thursday, August 9, 2007 – 8:15 a.m.
Thursday, September 13, 2007 – 8:15 a.m.
*Three manager presentations scheduled in August. Please plan for a long meeting.
It was the consensus of the Board to accept the Pension Board meeting schedule for the third quarter 2007.
EXECUTIVE DIRECTOR COMMENTS:
Fund Report
Mr. Cherry advised the Board that the fund’s investment returns continued to be very
positive.
Mr. King arrived at 8:17 a.m.
ATTORNEY COMMENTS: None
ENROLLMENTS:
The following General Government employees have filed applications to become members of the Plan G1 pension system.
Randall D. Dotson
Vicki C. Dotson
Thomas F. Heater
Ricky L. Johnson
Larry B. Martin
Aaron Mayes
Davey McMurry
Enzo Montenotte
Dennis Pack
Carl M. Starnes
Cedric Taylor
Theresa L. Watson
Steve C. Webster
Motion: Mr. Coker 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 employee(s) have filed applications to withdraw employee pension contributions plus 4% interest and the supplemental retirement account as applicable in Plan G Option 1.
Robert K. Blevins, III, Police Dept., Plan C – Non-vested
Chuck L. Cline, General Government, G1 – Non-vested
Kevin W. Corum, General Government, Plan A – Non-vested
David Nichols, General Government, G1 – Non-vested
Robert Stokes, General Government, G1 – Non-vested
Motion: Mr. Coker 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.
Mr. Calloway arrived at 8:18 a.m.
APPLICATION FOR RETIREMENT: PLAN G1
CHARTER SECTION 1360.12
Willard E. Farr, General Government No Option
Date of birth, April 13, 1945: 62 years of age
Total credited service: 8 years 10 months 28 days
Average monthly salary for 2 highest 12 month periods, $1,792.12 x .0115% = $20.61
x 8.91005 = $183.64
*Total defined benefit: $183.64 (all service was post 1997)
$183.64 pension effective May 1, 2007.
One time payment of Supplemental Retirement Account.
*Defined benefit portion. Mr. Farr will receive a lump sum, one time payment, for the supplemental retirement account.
Motion: Mr. Coker made a motion to approve this application for retirement. Ms. Pelot 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 G.
The following employees have chosen a Delayed Retirement Option and will receive a one-time payment of the accumulated monthly benefits on termination of employment with the City of Knoxville.
Rosa Lee Edmonds, General Government – Plan G2 Option B-10
5 Years Certain & Life Date of birth, October 25, 1946: 60 years of age
Total credited service: 32 years 6 months 25 days
Average monthly salary for 2 highest – 12 month periods, $2,714.43 =
$2,714.43 x .021 =$57.00 x 32.56849 = $1,856.40. Ms. Edmonds chose Option B -10, 5 Yr. Certain & Life to Ida Mary Phillips, sister. $1,856.40 x .9897 =
$1,837.28 pension effective May 1, 2007.
DROP complete April 30, 2009.
Motion: Mr. Harrell made a motion to approve this application for DROP retirement payable under Option B-10. Mr. Coker seconded the motion. The motion carried unanimously by the members present.
W. Mark Geldmeier, General Government – Plan G2 No Option
Date of birth, October 30, 1956: 50 years of age
Total credited service: 29 years 10 months 28 days
Average monthly salary for 2 highest 12 month periods, $6,206.45 =
$6,206.45 x .021 = $130.34 x 29.91005 =
$3,898.48 pension effective May 1, 2007.
DROP complete April 30, 2009.
Motion: Mr. Harrell made a motion to approve this application for DROP retirement. Mr. Coker seconded the motion. The motion carried unanimously by the members present.
Millard A. Scarbrough, General Government – Plan G2 Option B-12
15 Years Certain & Life
Date of birth, July 5, 1953: 53 years of age
Total credited service: 26 years 4 months 8 days
Average monthly salary for 2 highest – 12 month periods, $2,384.45 =
$2,384.45 x .021 =$50.07 x 26.35525 = $1,319.61. Mr. Scarbrough chose Option B -12, 15 Yr. Certain & Life to Anna L. Scarbrough, spouse. $1,319.61 x .9625 =
$1,270.12 pension effective May 1, 2007.
DROP complete April 30, 2009.
Motion: Mr. Harrell made a motion to approve this application for DROP retirement payable under Option B-12. Mr. Coker seconded the motion. The motion carried unanimously by the members present.
APPLICATION FOR BUYBACK OF PRIOR MILITARY SERVICE: - Exhibit 2
(Charter Section 1350.9(E)
Molly K. Hyatt, General Government – Plan G2
Buyback of two (2) years seven (7) months for the amount of $19,168.93
Motion: Mr. Martin made a motion to approve this application to buyback two years and seven months of prior military service in the amount of $19,168.93. Mr. King seconded the motion. The motion carried unanimously by the members present.
APPLICATION FOR REINSTATEMENT OF PRIOR SERVICE: - Exhibit 3
Charlene H. Landry, General Government – Plan G1
September 17, 2001 – July 16, 2004
$6,170.77
Motion: ______ made a motion to approve this application for reinstatement of the prior service period of September 17, 2001 – July 16, 2004, for the amount of $6,170.77. _____ seconded the motion. The motion carried unanimously by the members present.
APPROVAL OF INVOICES FOR PROFESSIONAL SERVICES:
Bryan, Pendleton, Swats & McAllister – Actuary (March 2007) $ 3,755.00
State Street – Custodial (February 2007) 8,441.40
STW – money manager (1st Qtr. 2007) 28,852.02
TCW – money manager (1st Qtr. 2007 & April 07 - Final) 126,888.93 Calamos – money manager (1st Qtr. 2007) 38,820.00
Cortina – money manager (1st Qtr. 2007) 35,010.07
INTECH – money manager (1st Qtr. 2007) 65,043.54
UBS – money manager (1st Qtr. 2007) 27,478.92
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 system’s financial plan.
Motion: Mr. Martin made a motion to approve payment for these bills. Mr. King seconded the motion. The motion carried unanimously by the members present.
INVESTMENT MATTERS:
Dan Holmes – Summit Strategies
Mr. Holmes made a presentation of the 1st Quarter, 2007 Performance Report. Copies of his report are on file in the Pension Office.
Small Cap Growth Equity Manager Search
A discussion was held with Dan Holmes on the Small Cap Growth Equity manager search. After the discussion with Mr. Holmes, the following motion was made:
Motion: Mr. Martin made a motion to interview Pinnacle Associates, Columbia Partners Investment Management and Pier Capital. Mr. Harrell seconded the motion. The motion carried unanimously by the members present. Mr. Holmes advised the Board that he would schedule the interviews for Thursday, June 14, 2007, after the regularly scheduled board meeting.
Portable Alpha and 130/30 Education
Mr. Holmes gave a presentation to the Board on the Portable Alpha and 130/30 Education. Copies of his presentation material are on file in the Pension Office.
Mayor Haslam left the meeting at 8:43 a.m. and Mr. Calloway presided.
Principle Global Investors Review
Jennifer Perkins of Principle Global Investors made a presentation to the Board. A copy of the report is on file in the Pension Office.
Cadogan Management Review
Jack Estes of Cadogan Management made a presentation to the Board. A copy of the report is on file in the Pension Office.
OTHER: None
PUBLIC COMMENTS: None
ADJOURNMENT:
_____________________
Chair
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Date
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