CITY OF KNOXVILLE PENSION BOARD
MINUTES
Thursday – October 11, 2007
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 October 11, 2007.
Present were: Mayor Bill Haslam, Mr. Greg Coker, Mr. Buddy Harrell, Mr. Stephen King, Mr. Larry Martin, Ms. Barbara Pelot, Mr. Michael Cherry and Attorney Bud Gilbert.
Also present: Mr. Dan Holmes, Summit Strategies; Mr. David Nyren and Mr. Alex Becks,
Gryphon International Investment; Mr. Eric Welt and Mr. Martin Coughlin, Calamos Investments; Mr. John B. Stimpson and Mr. Peter Barcia (via teleconference), UBP Asset Management.
CALL TO ORDER:
Mayor Haslam presided and called the meeting to order at 8:15 a.m.
APPROVAL OF REGULAR MEETING MINUTES FOR September 13, 2007:
Mr. Harrell made a motion to approve the September 13, 2007, meeting minutes. Mr. Martin 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:
EXECUTIVE DIRECTOR COMMENTS: None
ATTORNEY COMMENTS:
Glenda Field’s Litigation
Attorney Gilbert informed the Board that Glenda Field’s attorney,Tony Farmer, wished to have the matter reheard before the Board at a later scheduled Pension Board meeting. Attorney Gilbert advised the Board that the matter would be reheard on the original evidence only. Mr. Cherry advised the Board that the matter might be scheduled for the December 13, 2007, meeting and Attorney Gilbert advised the Board that he would arrange for a transcript of the meeting.
Contested Case Hearing Request – Exhibit 2
Attorney Gilbert distributed to the Board a copy of charter section 1333 regarding dependents’ pensions. The Board discussed with Attorney Gilbert their options regarding the request for a benefit for a deceased, Plan B member’s dependent child. Mr. Cherry advised the Board that the matter would be listed on the agenda for November 8, 2007.
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.
Dennis Bambach, Fire Department – Plan C – Non-vested
Eric C. Coleman, General Government, G1 - Vested
Matt Conard, General Government, G1 – Non-vested
Daniel K. Cox, Jr., General Government, G1 - Vested
Reece Davis, General Government, G1 – Non-vested
James Gordon, General Government, G1 – Non-vested
Elizabeth Oran, General Government, G1 – Non-vested
Donald Williamson, General Government, G1 – Vested
Motion: Mr. Martin made a motion to approve these applications for withdrawal of employee contributions. Mr. Harrell seconded the motion. The motion carried unanimously by the members present.
BENEFIT ADJUSTMENT
Benefit approved on September 13, 2007
Eloise Webb, Schools Certified No Option
Date of birth, September 21, 1945: 62 years of age
*Total City credited service: 19 years 8 months
Total County credited service: 6 years
*Total credited service: 25 years 8 months
$527.26 pension effective April 1, 2007.
*Corrected benefit due to service record adjustment:
*Total City credited service: 20 years
Total County credited service: 6 years
*Total credited service: 26 years
Last date of employment with City: June 1987
Last date of employment with County: June 1993
Average base earnings for 4 years, $400.00 x 75% = $3.00
Average excess earnings for 4 years, $1,587.35 x 1.50% = $23.81
making a total of $26.81 benefit per year of service. $26.81 x 20 =
$536.20 pension effective April 1, 2007. – corrected amount
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 $1,354.34.
Motion: Ms. Pelot made a motion to approve this benefit change due to a service record adjustment. Mr. Martin seconded the motion. The motion carried unanimously by the members present.
APPLICATION FOR DEFERRED RETIREMENT: PLAN A
CHARTER SECTION 1360.28
Sharon A. Ezell, Schools Certified Option B-10
5 Yr. Certain & Life
Date of birth, September 19, 1945: 62 years of age
Total City credited service: 15 years 1 month
No County service
Last date of employment with City: January 1986
Total credited service: 15 years 1 month
Average base earnings for 4 years, $400.00 x 75% = $3.00
Average excess earnings for 4 years, $1,126.62 x 1.50% = $16.90
making a total of $19.90 benefit per year of service. $19.90 x 15.0833 =
$300.16. Ms. Ezell chose Option B-10 – 5 Yr. Certain & Life to Carissa K. Sage.
$300.16 x .9884 =
$296.68 pension effective October 1, 2007.
The City benefit payment is determined using City only salaries and City service time.
The City benefit does not include any County service.
Motion: Mr. Harrell made a motion to approve this application for deferred retirement payable under Option B-10. 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 (August 2007) $8,988.00
State Street – Trustee (August 2007) 3,320.37
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. Martin made a motion to pay these invoices. Mr. Harrell seconded the motion. The motion carried unanimously by the members present.
INVESTMENT MATTERS:
Money Manager Reviews
Gryphon International Investment
David Nyren and Alex Becks of Gryphon International Investment
made a presentation to the Board. A copy of the report is on file in the Pension Office.
Calamos Investments
Eric Welt and Martin Coughlan of Calamos Investments made a presentation to the Board. A copy of the report is on file in the Pension Office.
UBP Asset Management
John B. Stimpson of UBP Asset Management made a presentation to the Board, along with Peter Barcia of UBP Asset Management, via teleconference. A copy of the report is on file in the Pension Office
Mayor Haslam left the meeting at 9:50 a.m.
Dan Holmes – Summit Strategies
Mr. Holmes made a presentation to the Board and gave a preliminary performance report on the quarter ended September 30, 2007. Copies of Mr. Holmes report are on file in the Pension Office.
OTHER:
PUBLIC COMMENTS: None
ADJOURNMENT:
There being no further business, the following motion was made:
Mr. Harrell made a motion to adjourn the meeting at 10:45 a.m. Mr. Coker seconded the motion. The motion carried unanimously by the members present.
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Chair
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Date
M:\Board\minutes\2007\october.doc