CITY OF
MINUTES
917B
The regular meeting of the City of
Present were: Mayor Bill Haslam, Mr. Kent Bates, Mr. Buddy Harrell, Mr. Stephen King, Mr. Christopher Kinney, Ms. Barbara Pelot, Mr. Michael Cherry and Attorney Bud Gilbert.
Also present: Deputy Chief Don Green, representing Knoxville
Police Department in consideration of the Rebecca Belprez
disability application, Mr.
CALL TO ORDER:
Mr. Bates presided and called
the meeting to order at
APPROVAL OF REGULAR
MEETING MINUTES FOR
Motion: Ms. Pelot
made a motion to approve the
APPROVAL OF REVISED
AGENDA: Exhibit 1
The Revised Agenda was adopted without objection.
CONTRACTS:
ADMINISTRATIVE
MATTERS:
Pension Board Representative
Elections
Mr. Cherry informed the Board
about the upcoming Pension Board Representative Elections for General
Government representative – Seat A and Police Department (uniformed)
Representative – Seat A. Mr. Cherry told
the Board that the nomination process was currently underway for the Police
Department seat A, and that the deadline for accepting nominations is
Mr. Cherry also informed the Board
that he would be sending a letter to Vice-Mayor, Mark Brown, informing him that
a City Council representative would need to be named before the end of year,
when the current City Council representative term expires.
Retiree Benefits
Mr. Cherry informed the Board that the pension funds had finally been dispersed for Ms. Ophelia Martin.
Mr. Cherry informed the Board about a request he had received from a certified Schools – Plan A retiree, Ms. Nancy Pressley, who was a disability not-in-line of duty benefit recipient. Mr. Cherry explained to the Board that Ms. Pressley had requested retroactive pension benefits back to the date when Ms. Pressley began a medical leave. Mr. Cherry told the Board that pension benefits were typically not started until an employee had officially terminated from their employer. Mr. Cherry informed the Board that he is continuing to consider the request and with assistance of board counsel is researching the charter language and the IRS rules. He will advise the Board upon completion of this review.
Willis Insurance Policy Litigation
Mr. Cherry informed the Board about a litigation notice he had received regarding a worker’s compensation policy with Willis Insurance. Mr. Cherry asked for the Board’s permission to sign the document allowing the Pension System to receive their share of the distribution in the approximate amount of $88.50. The Board agreed to have Mr. Cherry sign the paperwork to receive the settlement distribution.
EXECUTIVE DIRECTOR
COMMENTS:
ATTORNEY COMMENTS: None
ENROLLMENTS:
The following General Government employees have filed applications to
become members of the Plan G1 pension system.
Mary Ann Blankenship
James E. Chesney
Willa L. Essie
Mitchell E. Greene
Ronald J. Hickman
Ginger H. Huskey
Steven L. Moses
William D. Provine
Ernest A. Sealey
Tony
J. Shirk
Vincent E. Turner
Motion: Mr. Harrell made a
motion to approve these applications for enrollment in the Plan G1 pension
system. Mr. Kinney 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.
Bennie Joe Anderson, General
Government, G-1, Non-vested
Samuel Byrd, Jr., Police Department, Plan C, Vested
Clarence Gipson (estate), Fire Department, Plan C,
Vested
Brian K. Hubbs,
General Government, G-2, Vested
Chris Ingersoll, General
Government, G-1, Non-vested
Barbara Johnson, General Government, G-1, Non-vested
Josh Munday, Police Department, Plan C, Vested
Michael A. Pope, General Government, Plan G-1, Non-vested
Johnnie Ratliff, General
Government, Plan G-1, Non-vested
John-Michael Scott, Police Department, Plan C – Non-vested
Beverly D. Solomon, General
Government, Plan G-1, Vested (refund of supplemental account only)
Motion: Ms. Pelot
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
Attorney Gilbert
arrived at
RETIREMENTS:
APPLICATION FOR
INJURY IN LINE OF DUTY RETIREMENT: PLAN
C
CHARTER SECTION
1390.11
Rebecca L. Belprez, Police Department – Uniformed Option A-9
100% with reinstatement
Date of
birth,
Total credited service: 5 years 10 months 26 days
Average monthly salary for 2 highest – 12 month periods, $2,716.52 x 50% =
$1,358.26. Ms. Belprez chose Option A-9 – 100% with reinstatement to Michele Goldsberry. $1,358.26 x .9595 =
$1,303.25 pension effective
Motion: Mr. Kinney made a motion
to approve this application for an injury in line of duty pension, based on Dr.
Cooper’s report, to be reviewed in two years.
Ms. Pelot seconded the motion. The motion carried unanimously by the members
present.
APPLICATION FOR
DEFERRED RETIREMENT: PLAN A
CHARTER SECTION
1360.28
Sonja R. McNeely, Schools Certified No Option
Date of
birth,
Total credited service: 30years 8months
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, $1,333.01 x 1.50% = $20.00
making a total of $23.00 benefit per year of service. $23.00 x 16.1667 =
$371.83 x ER factor .8250 =
$306.76 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 $1,943.55.
Motion: Mr. Harrell made a motion to approve this application for a
Deferred Retirement. Mr. King seconded
the motion. The motion carried
unanimously by the members present.
Roger L. Stanfill, General Government No Option
Date of
birth,
Total credited service, 11 years 3 months
Average base monthly salary for 2 years, $400.00 x .75% = $3.00
Average excess monthly earnings for 2 years, $690.66 x 1.50% = $10.36
making a total of $13.36 benefit per year of service. $13.36 x 11.250 =
$150.30
pension effective
Motion: Mr. Harrell made a
motion to approve this application for a Deferred Retirement. Mr. King seconded the motion. The motion carried unanimously by the members
present.
APPLICATION FOR
DEFERRED RETIREMENT: PLAN C
CHARTER SECTION
1390.16
Paul E. Smiddy, Police Uniformed Option C - Cash Refund
Date of
birth,
Total credited service, 19 years 5 months
Average monthly salary $3,267.20 x 2.0% = $65.34 x 25 =
$1,633.50. $1,633.50 x 19/25 =
$1,241.46. Mr. Smiddy chose Option C – Cash Refund to Deborah G. Smiddy, spouse. $1,241.46 x .9714 =
$1,205.95
pension effective
Motion: Ms. Pelot
made a motion to approve this application for a Deferred Retirement payable
under Option C. Mr. Kinney 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
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
Joe G. Milsaps, Fire Department Uniformed Option A-6
100% without reinstatement
Date of
birth,
Total credited service: 30 years 2 days
Average monthly salary for 2 highest 12 month periods, $3,814.88 x 2.5% =
$95.37 x 30 = $2,861.10. Mr. Milsaps chose Option A-6 – 100% without reinstatement to Ruth Ann Milsaps, spouse. $2,861.10 x .9205 =
$2,633.64
pension effective
DROP
complete
Motion: Mr. Harrell made a
motion to approve this application for DROP retirement payable under Option
A-9. Mr. King 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
Gloria L. Genta-Welch, General Government No Option
Date of
birth,
Total credited service: 28 years 10 months 25 days
Average monthly salary for 2 highest 12 month periods, $2,681.16 x 2.1% =
$56.30 x 28.90183 =
$1,627.17
pension effective
DROP
complete
Motion: Ms. Pelot
made a motion to approve this application for DROP retirement. Mr. King seconded the motion. The motion carried unanimously by the members
present.
APPROVAL OF INVOICES FOR PROFESSIONAL SERVICES:
Bryan, Pendleton, Swats & McAllister – Actuary (June 2005) $10,146.00
Kennerly, Montgomery & Finley – Attorney (General, Aug. 2005) 3,208.50
Kennerly, Montgomery & Finley – Attorney (G. Fields, Aug. 2005) 87.50
Kennerly, Montgomery & Finley – Attorney (General, Sept. 2005) 1,312.10
Kennerly, Montgomery & Finley – Attorney (G. Fields, Sept. 2005) 2,345.00
Summit Strategies Group – Investment Consultant (3rd Qtr. 2005) 31,250.00
State Street – Custodial – August 2005 14,166.67
State Street – Custodial – September 2005 14,166.67
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. Kinney made a motion
to pay these invoices. Ms. Pelot seconded the motion.
The motion carried unanimously by the members present.
ADMINISTRATIVE MATTERS – Cont’d.
Actuary Study – Retired Uniformed Officers
Mr. Cherry and Attorney Gilbert discussed with the Board the request made by retired Fire Department uniformed employee, Mr. Bill Warwick, for an actuarial study regarding proposed amendments to the trust for uniformed retirees. Attorney Gilbert informed the Board that existing trust case law and an IRS requirement that trust assets may be used solely for the benefit of beneficiaries of a trust and for the reasonable expenses of administering the trust. Attorney Gilbert advised the Board that an actuarial study for proposed amendments to the trust provisions are best handled by the trust sponsor.
Charter Amendment List Discussion – Exhibit 2
Mayor Haslam arrived at
Mr. Cherry and Attorney Gilbert led a discussion with the Board regarding each item on the proposed charter amendment list. Further discussion with the Board will be held.
Final Investment Policy – Exhibit 3
Attorney Gilbert distributed to the
Board an Amended and Restated, November 2005, Investment Policy, which he, along
with Investment Consultant,
discussed with the Board. Mr. Holmes and Mr. Gilbert will incorporate the recommended changes to the Investment Policy and present the final draft policy to the Board at the Thursday, November 10, 2005, Pension Board meeting.
Mayor Haslam left the meeting at
OTHER:
INVESTMENT MATTERS:
Money Manager Review
Calamos Asset Management
Mr. Scott Becker and Mr. Craig Mauri with Calamos Asset Management 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 to
the Board and gave a preliminary performance report on the quarter ended
PUBLIC COMMENTS: None
ADJOURNMENT:
There being no further business, the following motion was made:
Motion: Mr. King made a motion
to adjourn the meeting at
______________________
Chair
_______________________
Date
M:\Board\minutes\2005\october.doc