CITY OF KNOXVILLE PENSION BOARD REVISED AGENDA AUGUST 11, 2005 8:15 A

CITY OF KNOXVILLE PENSION BOARD

MINUTES

AUGUST 11, 2005

8:15 A.M.

917B E. 5^TH AVENUE

The regular meeting of the City of Knoxville Pension Board was held in the Pension Board Conference Room at 917 E. 5^th Avenue at 8:15 a.m. on August 11, 2005.

Present were: Mr. Kent Bates, Mr. Buddy Harrell, Mr. Stephen King, Mr. Christopher Kinney, Ms. Barbara Pelot, Mr. Michael Cherry and Attorney C. C. “Bud” Gilbert.

Also present: Mr. Dan Holmes – Summit Strategies; Christopher Cowie - Silchester International Investors; Jason Trow - Enhanced Investment Technologies (INTECH).

CALL TO ORDER:

Mr. Bates presided and called the meeting to order at 8:18 a.m.

APPROVAL OF REGULAR MEETING MINUTES FOR July 14, 2005

Motion: Mr. Bates made a motion to approve the July 14, 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:

4^th Quarter 2005 – Pension Board Meeting Dates

The 4^th Quarter 2005 Pension Board Meeting dates were agreed upon as follows:

Thursday, October 13, 2005 – 8:15 a.m.

Thursday, November 10, 2005 – 8:15 a.m.

Thursday, December 8, 2005 – 8:15 a.m.

Charter Amendment List – Exhibit 2

Attorney Gilbert distributed to the Board a list of suggested charter amendments for review and consideration for the 2006 referendum.

EXECUTIVE DIRECTOR COMMENTS: None

Mr. King arrived at 8:27 a.m.

ATTORNEY COMMENTS:

Glenda Fields Litigation

Attorney Gilbert advised the Board that there was no change in the status on the Glenda Field’s litigation.

Global Crossing Bankruptcy Proceedings

Attorney Gilbert advised the Board that he and his firm were monitoring the legal proceedings of the defendants with more significant funds involved in the Global Crossing Bankruptcy proceedings. The firm has been in contact with other defendants who are preparing a response to the court. He will continue to monitor the responses and, if possible and economical to the system, join efforts with other defendants to contain legal costs.

Investment Authority for pension trust funds in Tennessee statutes

Attorney Gilbert indicated that his firm is in the process of completing a review of the state statutes regarding the Pension Board’s authority to invest the system’s trust funds as a result of the proposed changes to the Board’s Statement of Investment Policy. He indicated that he intended to issue a memorandum in the near future that would confirm that the Board has a wide range of investment authority provided the investment falls within the standards set by the Tennessee Uniform Prudent Investor Act.

ENROLLMENTS:

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

Brenda J. Abernathy

Ronald E. Adams

Stacey Isom

Chris K. Jones

William E. Keesee

Elizabeth A. Oran

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 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.

Jennifer Artrip, General Government – G1 – Non-vested

Jack W. Ingram, General Government – G2 – Vested

Jeffrey T. Inman, General Government – G1 - Vested

Alfonso Jenkins, Fire Department – Plan C - Vested

Jeffrey Snyder, 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.

APPEALS: None

RETIREMENTS:

APPLICATION FOR EARLY RETIREMENT: PLAN A

CHARTER SECTION 1360.17

Earlene Arnwine, Schools Certified No Option

Date of birth, January 2, 1945: 60 years of age

Total City credited service: 8 years

Total County credited service: 18 years

Total credited service: 26 years

Last date of employment with City: June 1987

Last date of employment with County: May 2005

Average base earnings for 4 years: $400.00 x 75% = $3.00

Average excess earnings for 4 years, $899.42 x 1.50% = $13.49

Making a total of $16.49 benefit per year of service. $16.49 x 8 =

$131.92 x ER factor .9075 =

$119.72 pension effective August 1, 2005.

The City benefit payment is determined by 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 $1,196.98.

25 years required for Early retirement. Supreme Court ruling entitles retiree to combine City & County service.

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

APPLICATION FOR SURVIVOR’S BENEFIT: PLAN G2

CHARTER SECTION 1360.25

Steven R. Inklebarger, active General Government died in service July 19, 2005.

Mr. Inklebarger’s statistics:

Date of birth, August 8, 1949: 55 years of age

Credited years of service: 29 years 10 months 25 days

Average monthly salary - $2,981.19 x .021 = $62.60 x 29.90183 =

$1,871.85. Mr. Inklebarger chose Option A-6 – 100% without reinstatement to Melissa Minton. $1,871.85 x .7779 =

$1,456.11 pension to Melissa Minton effective August 1, 2005.

Motion: Mr. Kinney made a motion to approve this application for a survivor’s benefit. Ms. Pelot seconded the motion. The motion carried unanimously by the members present.

APPROVAL OF INVOICES FOR PROFESSIONAL SERVICES: (GREEN TAB)

Bryan, Pendleton, Swats & McAllister – Actuary (June 2005) $ 2,550.00

State Street – Custodial (June 2005) $ 14,247.62

State Street – Custodial (July 2005) $ 14,166.67 Kennerly, Montgomery & Finley, Attorney – (July 2005) $ 3,564.00

Calamos Investments – money manager (2^nd Qtr. 2005) $45,214.00

Deutsche Asset Man. – money manager (2^nd Qtr. 2005) $38,798.50

STW – money manager – (2^nd Qtr. 2005) $37,145.39

TCW – money manager – (2^nd Qtr. 2005) $88,311.44 UBS – money manager – (2^nd Qtr. 2005) $35,603.88

Mr. Cherry, Executive Director, has reviewed the bills and certifies that they are consistent with the services provided.

Motion: Mr. Harrell made a motion to approve these invoices. Mr. King seconded the motion. The motion carried unanimously by the members present.

OTHER:

INVESTMENT MATTERS:

Money Manager Reviews

Silchester International Investors

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.

After a brief recess at 9:28 a.m. the following presentation was made.

Enhanced Investment Technologies (INTECH)

Jason Trow 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.

Dan Holmes – Summit Strategies

Mr. Holmes made a presentation of the 2^nd Quarter, 2005 Performance Report. Copies of his report are on file in the Pension Office.

Motion: Mr. Harrell made a motion to authorize Summit Strategies to provide the Board an evaluation of managers in the small cap value and growth styles. Mr. Kinney seconded the motion. The motion carried unanimously by the members present.

Ms. Pelot left the meeting at 11:07 a.m.

PUBLIC COMMENTS: None

ADJOURNMENT:

There being no further business, Mr. Bates adjourned the meeting without objection at 11:10 a.m.

_____________________

Chair

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Date

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