CITY OF
MINUTES
917B
The regular meeting of the City of
Present were: Mayor Bill Haslam, Mr. Kent Bates, Mr. Scott Calloway, Ms. Brenda Hankins, Mr. Buddy Harrell, Mr. Christopher Kinney, Ms. Carol Mahler, Ms. Barbara Pelot, Attorney C.C. Bud Gilbert and Mr. Michael Cherry.
Also present: Mr.
CALL TO ORDER:
Mr. Bates presided and called the
meeting to order at
APPROVAL OF REGULAR
MEETING MINUTES FOR
Motion: Mr. Harrell made a motion
to approve the
APPROVAL OF REVISED AGENDA: Exhibit 1
The Revised Agenda was adopted without objection.
CONTRACTS:
Principal Financial Group
Mr. Cherry and Attorney Gilbert updated
the Board on the contract with Principal Financial Group, the new real estate
money manager. Attorney Gilbert was reviewing
some sample side agreement letters other public pension plans have used to
determine if numerous required provisions of our standard money manager agreement
may be incorporated into a final agreement with Principal. Mr. Gilbert advised
the Board that an agreement would be with the Principal Life Insurance Company
rather than the Principal Real Estate Group which acts as a sub-advisor to the
life insurance company. Mr. Gilbert had requested Mr. Holmes to assist in gathering
financial information on the life insurance company. In addition Mr. Holmes
will discuss with Principal the exact legal status of our funds in the case
of a bankruptcy filing by the insurance company.
State Street Contract
Mr. Cherry advised the Board that
the contract with the Boards present trustee,
ADMINISTRATIVE MATTERS:
RREEF Fund Transfer
Mr. Cherry informed the Board that
the final demand letter from RREEF had been received for a transfer of $2,200,000.00
to be made on
EXECUTIVE DIRECTOR COMMENTS: None
ATTORNEY COMMENTS:
Re-employment of Retired Member Administrative Rules - Exhibit 2
Attorney Gilbert distributed to the
Board handouts of proposed rules for calculating pension benefits for reemployed
retirees with changes that resulted from discussions with the actuary,
Mayor Haslam arrived
at
Ms. Mahler requested the rules be modified to insure anyone who is disabled in the line of duty during the reemployment would be eligible to receive the higher of the disability benefit or the original benefit increased by any subsequent increases during the reemployment period. After a lengthy discussion of the proposed rules by the Board the following motion was made:
Motion: Mr. Calloway made a motion
to adopt the policy for calculating benefits for reemployed retirees as presented
with the addition of a provision for calculating disability benefits which Attorney
Gilbert would prepare. Ms. Pelot seconded
the motion. The motion passed with a
majority vote of 4 to 3. Mr. Bates, Mr. Harrell and Mr. Kinney voted
no.
ENROLLMENTS:
The following General Government employees have filed applications to
become members of the Plan G1 pension system.
Joseph Bailey
Robert D. Becker
Janet C. McGaha
Marilyn L. Roddy
Christopher Woodhull
Motion: Ms. Mahler 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.
Harry Backhurst, General Government Plan G-1 Non-vested
Matt B. Black, General Government Plan G-1 Non-vested
James W. Cox, General Government Plan G-1 Non-vested
Sophia Dardy, General Government Plan G-1 Non-vested
Clarence Flemmings, General Government Plan G-1 Non-vested
Michael A. Greene, General Government Plan G-2 Vested
Steven E. Roberts, General Government
Plan G-1 Vested (supplemental retirement
account only)
Marie Sims, General Government Plan
G-1 Non-vested
Derek H. Weller, Police Department Plan C Vested
Nathaniel L. Young, Police Department Plan C - Vested
Motion: Mr. Harrell 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.
APPEALS: None
Mr. Kinney left at
RETIREMENTS:
APPLICATION FOR RETIREMENT:
PLAN A
CHARTER SECTION 1360.12
David E. Thomas, Schools Non-Certified Option B-11
10 Years Certain & Life
Date of birth,
Total credited service: 39 years (City & County combined)
Average base earnings for 3 years, $400.00 x .88% = $3.52
Average excess earnings for 3 years, $3,402.73 x 1.76% = $59.89
making a total of $62.69 benefit per year of service. $63.41 x 39 =
$2,472.99. Total benefit
1,164.56 minus County benefit =
1,308.43 Mr. Thomas chose Option B-11 10 years certain & life to Linda & Carla Thomas. $1,308.43 x .9359 =
$1,224.56
pension effective
Motion: Ms. Hankins made a motion
to approve this application for retirement payable under Option B-11.
Ms. Mahler seconded the motion. The
motion carried unanimously by the members present.
Charlenia E. Wilson, Schools Certified No Option
Date of birth,
Total credited service: 37 years 8 months
Last date of employment with City: June 1987
Last date of employment with County: June 2004
Average base earnings for 4 years, $400.00 x 75% = $3.00
Average excess earnings for 4 years, $1,551.61 x 1.50% = $23.27
making a total of $26.27 benefit per year of service. $26.27 x 20.6667 =
$542.91
pension effective
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 & County benefit is $2,125.91.
Motion: Ms. Hankins made a motion
to approve this application for retirement. Ms. Mahler seconded the motion. The motion carried unanimously by the members
present.
APPLICATION FOR EARLY
RETIREMENT: PLAN A
CHARTER SECTION 1360.17
Martha S. Bibee, Schools Certified No Option
Date of birth,
Total credited service: 38 years
Last date of employment with City: June 1987
Last date of employment with County: May 2004
Average base earnings for 4 years, $400.00 x 75% = $3.00
Average excess earnings for 4 years, $1,378.12 x 1.50% = $20.67
Making a total of $23.67 benefit per year of service. $23.67 x 21 =
$497.07 x ER Factor .8250 =
$410.08 pension effective
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 $1,573.45.
25 years required for Early retirement. Supreme Court ruling entitles retiree to combine City & County credited service.
Motion: Mr. Harrell made a motion
to approve this application for early retirement. Ms. Hankins seconded the motion. The motion carried unanimously by the members
present.
John W. Stooksbury, Schools Certified Option A-6
100% without reinstatement
Date of birth,
Total credited service: 29 years 7 months
Last date of employment with City: June 1987
Last date of employment with County: December 2003
Average base earnings for 4 years, $400.00 x 75% = $3.00
Average excess earnings for 4 years, $2,271.86 x 1.50% = $34.08
making a total of $37.08 benefit per year of service. $37.08 x 13 =
$482.04 x ER Factor .5726 =
$276.02. Mr. Stooksbury chose Option A-6 100% without reinstatement to Cynthia Sue Stooksbury, spouse. $276.02 x .8548 =
$235.94 pension effective
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 $1,505.76.
25 years required for Early retirement. Supreme Court ruling entitles retiree to combine City & County credited service.
Motion: Mr. Harrell made a motion
to approve this application for early retirement payable under Option A-6.
Ms. Hankins seconded the motion. The
motion carried unanimously by the members present.
APPLICATION FOR DEFERRED
RETIREMENT: PLAN A
CHARTER SECTION 1360.28
Martha M. Young, Schools Certified No Option
Date of birth,
Total credited service: 22 years 3 months
Last date of employment with City: June 1987
Last date of employment with County: June 1998
Average base earnings for 4 years, $400.00 x 75% = $3.00
Average excess earnings for 4 years, $1,250.42 x 1.50% = $18.76
making a total of $21.76 benefit per year of service. $21.76 x 11.25000 =
$244.80 pension effective
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 $1,010.82
.
Motion: Ms. Hankins made a motion
to approve this application for a deferred retirement. 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
1371.8 PLAN G2. The following employee
has 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
Karen R. Day, General Government Option A-8
75% with reinstatement
Date of birth,
Total credited service: 27 years 10 months
Average monthly salary for 2 highest 12 month periods, $6,893.91 x 2.1% =
$144.77 x 27.83333 = $4,029.43. Ms. Day chose Option A-8 75% with reinstatement to Jerry W. Day, spouse. $4,029.43 x .9191 =
$3,703.45
pension effective
DROP complete
Motion: Ms. Mahler made a motion
to approve this application for DROP retirement payable under Option A-8. Mr. Bates seconded the motion. The motion carried unanimously by the members
present.
APPLICATION FOR LEAVE
OF ABSENCE FOR MILITARY SERVICE: CHARTER
SECTION 1390.20(B)
Robert G. Russell, Jr., Fire Department
Uniformed:
Motion: Mr. Harrell made a motion
to approve this application for leave of absence for military service. Mr. Bates seconded the motion. The motion carried unanimously by the members
present.
APPROVAL OF INVOICES
FOR PROFESSIONAL SERVICES:
Bryan, Pendleton, Swats & McAllister Actuary (June) 1,648.00
Kennerly, Montgomery & Finley Attorney (July) 1,740.00
State Street Trustee (June 2004) 3,531.52
State Street Custodial ( May 2004) 17,171.30
Calamos Asset Management money manager 49,554.00
Deutsche Asset Management money manager 36,472.70
STW Fixed Income money manager 39,999.83
TCW Asset Management money manager 97,679.25
UBS Global Asset Management money manager 36,223.93
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 2004 financial plan.
Motion: Mr. Bates made a motion
to pay these invoices. Mr. Harrell seconded
the motion. The motion carried unanimously
by the members present.
OTHER: None
PUBLIC COMMENTS:
Mr. Fred Hunter, a retired, Fire Department Plan F member addressed the Board to voice his concerns that the 2004 Cost of Living Adjustment (COLA) had not been calculated properly. Mr. Cherry, after having explained the calculation to Mr. Hunter on previous occasions, tried to detail for the Board and Mr. Hunter the calculation. Mr. Cherry will prepare an additional spreadsheet showing his benefits the past two years and for 2005 and forward to Mr. Hunter.
Mayor Haslam called a recess at
Mayor Haslam and Ms.
Pelot left at
INVESTMENT MATTERS:
Assets Listing Exhibit 3
Mr. Cherry distributed to the Board
a Quick View of Market Value of Assets for July 2004 and calendar year 2004.
INTECH Money Manager Review
Carl Zangardi of Enhanced Investment Technologies (INTECH) made a presentation and distributed a written report. A copy of the report is on file in the Pension Office.
Silchester Money Manager Review
Christopher Cowie of Silchester International Investors made a presentation and distributed a written report. A copy of the report is on file in the Pension Office.
Mr. Holmes made a presentation of
the 2nd Quarter 2004 Performance Report. Mr. Holmes also distributed
a Hedge Fund Review document which will discussed by the Board at a future meeting.
Copies of his reports are on file in the Pension Office.
ADJOURNMENT:
There being no further business, the following motion was made:
Motion: Mr. Harrell made a motion
to adjourn the meeting at _____ a.m. Scott
Callaway seconded the motion. The motion
carried unanimously by the members present.
_________________________
Chair
__________________________
Date
M:\Board\minutes\2004\august.doc