CITY OF KNOXVILLE PENSION BOARD
MINUTES
Thursday – January 8, 2009
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 January 8, 2009.
Present were: Ms. Barbara Pelot, Mr. Joe Hackney, Mr. James Hutchens, Ms. Robin Shelton, Mr. Jim York and Mr. Michael Cherry.
CALL TO ORDER:
Ms. Pelot presided and called the meeting to order at 8:15 a.m.
WELCOME TO NEW MEMBER
Ms. Pelot welcomed new Pension Board member, General Government – Seat A, representative, Mr. James Hutchens.
REAPPOINTMENT OF BARBARA PELOT BY CITY COUNCIL AS REPRESENTATIVE – Exhibit 1
Ms. Pelot informed the Board that she had been reappointed by City Council as Representative to the Pension Board for an additional term at the December 30, 2008, City Council meeting.
ELECTION OF OFFICERS - CHAIR, VICE-CHAIR & SECRETARY FOR 2009
Motion: Ms. Shelton made a motion to elect Mayor Haslam as Chair. Mr. Hackney seconded the motion. The motion carried.
Motion: Ms. Shelton made a motion to elect Ms. Pelot as Vice-Chair. Mr. Hackney seconded the motion. The motion carried.
Motion: Ms. Shelton made a motion to elect Mr. Coker as Secretary. Mr. Hackney seconded the motion. The motion carried.
APPROVAL OF REGULAR MEETING MINUTES FOR December 11, 2008:
Mr. Hackney made a motion to approve the December 11, 2008, meeting minutes. Ms. Pelot seconded the motion. The motion carried unanimously by the members present.
APPROVAL OF REVISED AGENDA: Exhibit 1
CONTRACTS:
Batterymarch
Mr. Cherry advised the Board of the concerns regarding the Batterymarch contract and advised the Board that further conversations with Investment Consultant, Dan Holmes, needed to take place before Attorney Gilbert could complete the contract. Mr. Cherry advised the Board that Mr. Holmes would be attending the February board meeting, at which the contract could again be discussed with the Board.
Union Bancaire Privee
Motion: Mr. Hackney made a motion affirming the Executive Director’s issuance of a redemption letter to Union Bancaire Privee upon the advice of Summit Strategies. Ms. Shelton seconded the motion. The motion carried unanimously by the members present.
EXECUTIVE DIRECTOR COMMENTS:
Personnel Committee
Mr. Cherry advised the Board that a personnel committee member needed to be selected to replace Buddy Harrell, whose term as board member and personnel committee member ended December 31, 2008.
Motion: Mr. York nominated James Hutchens as personnel committee member to replace Buddy Harrell and made a motion that the two existing members, Mr. Joe Hackney and Mr. Greg Coker remain on the committee. Mr. Hackney seconded the motion. The motion carried unanimously by the members present.
ATTORNEY COMMENTS:
Glenda Fields’ Litigation
Mr. Cherry reminded the Board that the hearing in the Glenda Field’s matter was still scheduled for Tuesday, January 13, 2009.
Securities Litigation Policy
Motion: Mr. York made a motion to defer discussion and approval of the Securities Litigation Policy to the February 12, 2009, board meeting. Mr. Hackney 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.
Cynthia Davis, Police Dept., Plan C – Vested
Motion: Mr. York made a motion to approve this application for withdrawal of employee contributions. Ms. Shelton seconded the motion. The motion carried unanimously by the members present.
APPLICATION FOR NORMAL RETIREMENT: PLAN A
CHARTER SECTION 1360.12
Jimmie Thacker, Schools Certified No Option
Date of birth, May 24, 1938: 70 years of age
Total City credited service: 16 yrs.
Total County credited service: 21 years 6 months
Total credited service: 37 years 6 months
Last date of employment with City: June 1987
Last date of employment with County: December 2008
Average base earnings for 4 years, $400.00 x .88% = $3.52
Average excess earnings for 4 years, $2,799.42 x 1.76% = $49.27
making a total of $52.79 benefit per year of service. $52.79 x 16.0 =
$844.64 pension effective January 1, 2009
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 $5,099.63.
Motion: Mr. York made a motion to approve this application for normal retirement. Mr. Hackney seconded the motion. The motion carried unanimously by the members present.
APPLICATION FOR DEFERRED RETIREMENT: PLAN A
CHARTER SECTION 1360.28
Sandra W. Morgan, Schools Certified No Option
Date of birth, December 3, 1946: 62 years of age
Total City credited service: 19 yrs.
Total County credited service: 1 year
Total credited service: 20 years
Last date of employment with City: June 1987
Last date of employment with County: June 1988
Average base earnings for 4 years, $400.00 x .75% = $3.00
Average excess earnings for 4 years, $1,370.14 x 1.50% = $20.55
making a total of $23.55 benefit per year of service. $23.55 x 19.0 =
$447.45 pension effective January 1, 2009
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 $530.20.
Motion: Mr. Hackney made a motion to approve this application for deferred retirement. Mr. York seconded the motion. The motion carried unanimously by the members present.
APPLICATION FOR DEFERRED RETIREMENT: PLAN G2
CHARTER SECTION 1360.28
James L. Myers, General Government Option A-6
100% without reinstatement
Date of birth, July 18, 19 46: 62 years of age
Total credited service: 11 years 11 months 15 days
Average monthly salary for 2 highest 12 month periods, $2,113.04 x .021 =
$44.37 x 11.95776 = $530.57. Mr. Myers chose Option A-6 – 100% without reinstatement to Maryleen Myers, spouse. $530.57 x .8273 =
$438.94 pension effective November 1, 2008
Motion: Mr. York made a motion to approve this application for deferred retirement payable under Option A-6. Ms. Shelton seconded the motion. The motion carried unanimously by the members present.
APPLICATION FOR EARLY RETIREMENT: PLAN A
CHARTER SECTION 1360.17
Jacqueline E. Womack, Schools Certified No Option
Date of birth, December 28, 1953: 55 years of age
Total City credited service: 12 yrs.
Total County credited service: 21 years 6 months
Total credited service: 33 years 6 months
Last date of employment with City: June 1987
Last date of employment with County: December 2008
Average base earnings for 4 years, $400.00 x .75% = $3.00
Average excess earnings for 4 years, $1,197.61 x 1.50% = $17.96
making a total of $20.96 benefit per year of service. $20.96 x 12.0 =
$251.52 x ER Factor .5245 =
$131.92 pension effective January 1, 2009
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 $1,117.50.
Motion: Mr. York made a motion to approve this application for early retirement. Mr. Hackney 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 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.
Randall C. Carman, Police Dept. - Uniformed No Option
Date of birth, February 28, 1957: 51 years of age
Total credited service: 30 years 20 days
Average monthly salary for 2 highest 12 month periods, $4,657.24 x .025 =
$116.43 x 30 =
$3,492.90 pension effective January 1, 2009.
DROP complete December 31, 2010.
Motion: Mr. Hackney made a motion to approve this application for DROP retirement. Ms. Shelton seconded the motion. The motion carried unanimously by the members present.
Thomas A. Fox, Police Dept. - Uniformed Option A-8
75% with reinstatement
Date of birth, May 21, 1954: 54 years of age
Total credited service: 29 years 10 months 24 days
Average monthly salary for 2 highest 12 month periods, $4,670.11 x .025 =
$116.75 x 29.89909 = $3,490.72. Mr. Fox chose Option A-8 – 75% with reinstatement to Vickie E. Fox, spouse. $3,490.72 x .9516 =
$3,321.77 pension effective January 1, 2009.
DROP complete December 31, 2010.
Motion: Mr. Hackney made a motion to approve this application for DROP retirement payable under Option A-8. Ms. Shelton seconded the motion. The motion carried unanimously by the members present.
Lloyd S. Huskey, Jr., Fire Dept. - Uniformed No Option
Date of birth, March 28, 1945: 63 years of age
Total credited service: 35 years 7 months 18 days
Average monthly salary for 2 highest 12 month periods, $4,139.70 x .025 =
$103.49 x 30 =
$3,104.70 pension effective January 1, 2009.
DROP complete December 31, 2010.
Motion: Mr. Hackney made a motion to approve this application for DROP retirement. Ms. Shelton seconded the motion. The motion carried unanimously by the members present.
Stanley W. Ingle, Fire Dept. - Uniformed Option A-8
75% with reinstatement
Date of birth, July 26, 19 48: 60 years of age
Total credited service: 38 years 4 days
Average monthly salary for 2 highest 12 month periods, $4,315.12 x .025 =
$107.88 x 30 = $3,236.40. Mr. Ingle chose Option A-8 – 75% with reinstatement to Linda W. Ingle, spouse. $3,236.40 x .9363 =
$3,030.24 pension effective January 1, 2009.
DROP complete December 31, 2010.
Motion: Mr. Hackney made a motion to approve this application for DROP retirement payable under Option A-8. Ms. Shelton seconded the motion. The motion carried unanimously by the members present.
Robert E. Pointer, Fire Dept. - Uniformed No Option
Date of birth, April 8, 19 49: 59 years of age
Total credited service: 37 years 2 months 28 days
Average monthly salary for 2 highest 12 month periods, $4,424.84 x .025 =
$110.62 x 30 =
$3,318.60 pension effective January 1, 2009.
DROP complete December 31, 2010.
Motion: Mr. Hackney made a motion to approve this application for DROP retirement. Ms. Shelton seconded the motion. The motion carried unanimously by the members present.
Robert P. Pressley, Fire Dept. - Uniformed No Option
Date of birth, February 22, 1949: 59 years of age
Total credited service: 36 years 9 months 26 days
Average monthly salary for 2 highest 12 month periods, $6,751.48 x .025 =
$168.79 x 30 =
$5,063.70 pension effective January 1, 2009.
DROP complete December 31, 2010.
Motion: Mr. Hackney made a motion to approve this application for DROP retirement. Ms. Shelton seconded the motion. The motion carried unanimously by the members present.
APPROVAL OF INVOICES FOR PROFESSIONAL SERVICES:
Bryan, Pendleton, Swats & McAllister – Actuary (Nov. 2008) $14,319.00
State Street – Custodial (Oct. 2008) 8,356.97 State Street – Custodial (Nov. 2008) 8,370.83
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. York made a motion to pay these invoices. Mr. Hackney seconded the motion. The motion carried unanimously by the members present.
INVESTMENT MATTERS: None
OTHER:
Cost of Living Adjustments
Mr. Cherry advised the Board that Plan F members 2009 Cost of Living Adjustment had been applied to their first checks in 2009, and letters to all other plan participants would be mailed out next week detailing their adjustments.
PUBLIC COMMENTS: None
ADJOURNMENT:
There being no further business, the following motion was made:
Ms. Shelton made a motion to adjourn the meeting at 8:49 a.m. Mr. Hackney seconded the motion. The motion carried unanimously by the members present.
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Chair
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Date
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