CITY OF KNOXVILLE PENSION BOARD

 MINUTES

SEPTEMBER 9, 2004

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, 917 E. 5th Avenue at 8:15 a.m. on September 9, 2004.

 

Present were: Mayor Bill Haslam, Mr. Kent Bates, Mr. Scott Calloway, Ms. Brenda Hankins, Mr. Buddy Harrell, Mr. Christopher Kinney, Ms. Carol Mahler, Mr. Barbara Pelot, Attorney C. C. “Bud” Gilbert and Mr. Michael Cherry.

 

Also present:  Mr. Fred Hunter, retired Fire Department, Plan F member.

 

CALL TO ORDER:

            Mayor Haslam presided and called the meeting to order at 8:20 a.m.

 

APPROVAL OF REGULAR MEETING MINUTES FOR August 12, 2004

Motion:  Mr. Harrell made a motion to approve the August 12, 2004 meeting minutes.  Mr. Bates seconded the motion.  The motion carried unanimously by the members present.

APPROVAL OF REVISED AGENDA:   Exhibit 1

 

Motion:  Mr. Harrell made a motion to approve and substitute the Revised Agenda.  Mr. Bates seconded the motion.  The motion carried unanimously by the members present.

 

CONTRACTS:

            State Street Global Advisors

 

Mr. Cherry reported to the Board that a transfer of assets of approximately $40,900,000 was made this month from the SSGA S & P 500 Index Fund to the SSGA S & P 500 Provisional Index Fund.  Mr. Cherry advised the Board that the transfer was recommended by State Street Global Advisors to their clients. Mr. Cherry discussed the matter with investment consultant, Dan Holmes of Summit Strategies whose firm felt the transfer was in the best interest of the fund.

 

ADMINISTRATIVE MATTERS:  None

 

EXECUTIVE DIRECTOR COMMENTS:  None

 

ATTORNEY COMMENTS:

 

Re-employment of Retired Member – Administrative Rules  - Exhibit 2

 

Attorney Gilbert reviewed for the Board the change in the “Pension Board Rules for Calculation of Pension Benefits for Reemployed Retirees” regarding reemployed retired members who become disabled in item 3 section E, on page two which was approved at the August 12, 2004 pension board meeting.

 

ENROLLMENTS:

 

The following General Government employee has filed application to become a member of the Plan G1 pension system.

 

            David Dyer

Salina K. Garrett

Kelly S. Harbin

Sterling Owen IV

 

Motion:  Ms. Pelot made a motion to approve these applications for enrollment in the Plan G1 pension system.  Mr. Harrell 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.

 

Becky Acuff, General Government, G1 – Vested (supplemental retirement account only)

Scott Freiburger, Police Department, Plan C – Non-Vested

Bryan L. Merritt, General Government, G1 – Non-Vested

Heather Sumpter-Blakemore, General Government, G1 – Non-Vested

 

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

           

APPEALS:  None

 

RETIREMENTS:

 

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

CHARTER SECTION 1360.20

 

            Michael Jones, General Government                                 Option B-12

                                                                                                            15 Year Certain & Life

            Date of birth, July 17, 1956:  48 years of age

            (computed as if 62 years of age)

            Total credited service:  24 years 4 months

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

            Average excess earnings for 3 years, $1,407.09 x 1.50% = $21.11

making a total of $24.11 benefit pr year of service.   $24.10635 x 24.3333 = $586.59

Mr. Jones chose Option B-12 0 15 Year Certain & Life.  $586.59 x = .9164 =

            $537.55 pension effective October 1, 2004.

 

Motion:  Mr. Harrell made a motion to approve this disability, not in line of duty retirement payable under Option B-12.  Ms. Pelot seconded the motion.  The motion carried unanimously by the members present.

 

           

APPLICATION FOR EARLY RETIREMENT:  PLAN A

CHARTER SECTION 1360.17

 

            Jerry L. Akin, Schools Non-Certified                                  Option A-9

                                                                                                            100% with reinstatement

Date of birth, October 8, 1942:  61 years of age

Total credited service:  41 years 1 month 

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

Average excess earnings for 3 years, $2,859.83 x 1.50% = $42.90

making a total of $45.90 benefit per year of service.  $45.90 x 41.08333 =

$1,885.72.  Total benefit

834.04         minus County benefit =

1,051.68    Mr. Akin chose Option A-9 – 100% with reinstatement to Brenda K. Akin, spouse.  $1,051.68 x .8029 =

$844.39 pension effective September 1, 2004.

 

Motion:  Mr. Harrell made a motion to approve this application for retirement payable under Option A-9.  Ms. Hankins seconded the motion.  The motion carried unanimously by the members present.

 

Michael D. Zukowski, Schools Certified                            No Option

            Date of birth, September 16, 1947:  56 years of age

            Total City credited service:  17 years 6 months

            Total County credited service:  15 years

            Total credited service:  32 years 6 months

            Last date of employment with City:  June 1987

            Last date of employment with County:  May 2002

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

            Average excess earnings for 4 years, $1,735.12 x 1.50% = $26.03

            making a total of $29.03 benefit per year of service.  $29.03 x 17.50 =

            $508.03 x ER Factor .6260 =

$318.03 pension effective September 1, 2004

 

The City benefit 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 $1,040.04.

 

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.

 

APPLICATION FOR DEFERRED RETIREMENT:  PLAN A

CHARTER SECTION 1360.28

 

            Gail Bristow, Schools Non -Certified                                              No Option

            Date of birth, May 29, 1939:  65 years of age

            Total City credited service:  10 years 5 months

            No County service

            Total credited service:            10 years 5 months

            Average base earnings for 3 years, $400.00 x .88% = $3.52

            Average excess earnings for 3 years, $341.26 x 1.76% = $6.01

            making a total benefit of $9.53 benefit per year of service.  $9.52618 x 10.41667 =

            $99.23 pension effective June 1, 2004.

 

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

 

APPLICATION FOR RETIREMENT:  PLAN C

CHARTER SECTION 1390.6

 

            Pat Edward Cureton, Fire Uniformed                                 Option A-6

                                                                                                            100% without reinstatement

Date of birth, February 24, 1937:  67 years of age

            Total credited service:  37 years 11 months

$4,113.92 pension effective September 1, 2004. 

Calculation in accordance with the Pension Board Rules for calculation of pension benefits for reemployed retirees adopted on August 12, 2004.

 

Motion:  Mr. Calloway made a motion to approve this application for retirement payable under Option A-6 – 100% without reinstatement.  Mr. Bates seconded the motion.  The motion carried unanimously by the members present.

           

 

APPLICATION FOR PARTICIPATION IN THE DELALYED 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 the accumulated monthly benefits on termination of employment with the City of Knoxville.

 

            Lynn E. Kirby, Fire Department Uniformed                        Option A-9

                                                                                                            100% with reinstatement

            Date of birth, November 28, 1946:  57 years of age

            Total credited service:  33 years 8 months

            Average monthly salary for 2 highest 12 month periods, $3,850.73 x 2.5% =

$96.27 x 30 = $2,888.10.  Mr. Kirby chose Option A-9 – 100% with reinstatement to Veda Kirby, spouse.  $2,888.10 x .9017 =

            $2,604.20 pension effective September 1, 2004

            DROP complete August 31, 2006.

 

Motion:  Mr. Calloway made a motion to approve this application for DROP retirement payable under Option A-9.  Ms. Pelot seconded the motion.  The motion carried unanimously by the members present.

 

APPLICATION FOR LEAVE OF ABSENCE FOR MILITARY SERVICE:  CHARTER SECTION 1390.20(B)     

 

            Jeffrey Shane Conner, General Government:  August 8, 2004 – December 2005.

 

Motion:  Mr. Calloway 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 (July)                  4,110.00                      

State Street – Trustee (July 2004)                                      3,508.56

State Street – Custodial (June 2004)                                           21,947.10       

State Street – Custodial (July 2004)                                             14,597.00                   

State Street Global Advisors (money manager)                 4,767.23

Summit Strategies Group – investment consultant                       31,250.00                                       

INTECH – money manager                                                  81,713.89

 

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. Bates made a motion to pay these invoices.  Ms. Mahler seconded the motion.  The motion carried unanimously by the members present.

 

OTHER:

 

            Cost of Living Adjustments – Education Employees

 

Ms. Hankins asked the Board to consider extending  the enhanced COLA adjustments for City A teachers who continued to work for the County after June 1987.  Mr. Cherry advised the Board that the charter provision for the present calculation for the COLA’s would expire on January 15, 2007 unless extended by charter amendment.  Mayor Haslam asked Mr. Cherry to estimate the costs of extending the enhanced COLAs and report to the Board at the October 14, 2004, Pension Board meeting.

 

INVESTMENT MATTERS:

 

            Sterling Johnston Performance Update & Oechsle Presentation  

 

Mr. Cherry reviewed with the Board the performance update and presentation materials supplied by money managers, Sterling Johnston and Oechsle.

 

PUBLIC COMMENTS:

 

Mr. Fred Hunter, a retired, Fire Department Plan F member addressed the Board again, as at the Pension Board Meeting in August, regarding the 2004 Cost of Living Adjustment (COLA).  Mr. Cherry had prepared a spreadsheet for Mr. Hunter detailing the adjustment, but Mr. Hunter has asked for further clarification.  Mayor Haslam suggested that Mr. Hunter might benefit from explanation from another Plan F member.  The Board members all concurred that Mr. Cherry was performing the calculation and paying the benefits in accordance with Plan F provisions.

 

ADJOURNMENT:

 

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

 

Motion:  Mr. Bates made a motion to adjourn the meeting at 9:03 a.m.  The motion carried unanimously by the members present.

 

 

 

 

 

                                                                                    ________________________

                                                                                    Chair

 

 

                                                                                    _________________________

                                                                                    Date

 

M:\Board\minutes\2004\september.doc