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 November 11, 2004.

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

Also present: Mr. Dan Holmes, Summit Strategies; Mr. Peter Clarke and Mr. Michael Lammers, UBS Global Asset Management; Mr. Charles George and Mr. Jon Thompson, RREEF.

Mayor Haslam presided and called the meeting to order at 8:17 a.m.

It was the consensus of the Board to accept the Revised Agenda.

Schedule Pension Board Meetings for First Quarter 2005

Thursday, January 13, 2005

Thursday, February 10, 2005

Thursday, March 10, 2005

All meeting times are at 8:15 a.m. at 917 E. Fifth Avenue in the Conference Room.

It was the consensus of the Board to accept the Pension Board meeting schedule for the first quarter 2005.

Post Retirement Benefit Adjustment Resolution - Exhibit 2

Mr. Cherry updated the Board on the Fire Department – Seat B and the General Government – Seat B representative elections, which were still underway.

Motion: Mr. Harrell made a motion to accept the actuarial report as prepared and presented by the Pension Board’s actuary at the October 14, 2004, Pension Board meeting. Mr. Calloway seconded the motion. The motion carried unanimously by the members present.

Mr. Cherry informed the Board that the disability, not in line of duty pension benefit, approved at the October 14, 2004, Pension Board meeting, had been postponed for Nancy Pressley since she has not officially terminated employment with Knox County Schools. Attorney Gilbert advised Mr. Cherry to send a letter to Ms. Pressley explaining why her benefit had not been started.

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

Michael C. Weth

Motion: Mr. Harrell made a motion to approve this application for enrollment in the Plan G1 pension system. Mr. Calloway seconded the motion. The motion carried unanimously by the members present.

The following Police Department – Uniformed employees have filed applications to become members of the Plan C pension system.

Joel L. Ascencio

Brian L. Baldwin

Jason A. Birkmeier

Timothy A. Chambers

Robert A. Downs

Hakan Dururvurur

Michael T. Foster

Christina N. Freels

Brandon A. Glover

Jason T. Hughett

Adam M. Moore

Jeremy L. Moses

Timothy E. Riddle

Michael E. Spence

Christopher R. Williams

Motion: Mr. Bates made a motion to approve these applications for enrollment in the Plan C pension system. Mr. Pelot seconded the motion. The motion carried unanimously by the members present.

 

The following employees have filed applications to withdraw employee pension contributions plus 4% interest and the supplemental retirement account as applicable in Plan G Option 1.

Jeff Anderson, Police Department, C Plan – Non-vested

Deborah Lee, General Government, G1 Plan - vested

Willie E. Long, Jr. General Government, G1 Plan – Non-vested

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

Herchel J. Dixon, General Government Option A-8

75% with reinstatement

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

Total credited service: 32 years 6 months 28 days

Average monthly salary for 2 highest 12 month periods, $4,249.86 x 2.1% =

$89.25 x 32.57671 = $2,907.47. Mr. Dixon chose Option A-8 – 75% with reinstatement to Frances H. Dixon. $2,907.47 x .8501 =

$2,471.64 pension effective November 1, 2004.

Motion: Ms. Mahler made a motion to approve this application for a Rule of 80 retirement payable under Option A-8. Mr. Harrell seconded the motion. The motion carried unanimously by the members present.

Jimmie D. Pipkin, Police Department Option B-11

10 Yr. Certain & Life

Date of birth, October 9, 1943: 61 years of age

Total credited service: 30 years 4 days

Average monthly salary for 2 highest 12 month periods, $4,238.04 x 2.5% =

$105.95 x 30 = $3,178.50. Mr. Pipkin chose Option B-11 – 10 Yr. Certain & Life to Janet Claire "Pipkin" Freeman and Jacquelyn Jean Merryman. $3,178.50 x .9479 =

$3,012.90 pension effective November 1, 2004.

DROP complete October 31, 2006.

Bryan, Pendleton, Swats & McAllister – Actuary (September) 24,747.00 Kennerly, Montgomery & Finley- Attorney (October) 900.00

State Street – Custodial (September 2004) 17,675.50

State Street – Trustee (September 2004) 3,558.58 TCW Asset Management – money manager thru 9/30/2004 87,893.90

STW Fixed Income – money manager thru 9/30/2004 37,486.65

Calamos Asset Management – money manager thru 9/30/2004 48,386.00

Sterling Johnston Capital – money manager thru 9/30/2004 66,928.42

Deutsche Asset Man. – money manager thru 9/30/2004 37,493.60

UBS Global Asset – money manager thru 9/30/2004 32,991.47

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

Mr. Holmes presented to the Board a detailed custodial services evaluation of five different custodial candidates. The current contract with State Street is due to expire at the end of this calendar year. After a lengthy examination of the different proposals, the Board requested Summit Strategies to contact our current custodian to discuss some specific fees. The discussion was suspended to hear presentations from two visiting money managers and would then be resumed.

Michael Lammers and Peter Clarke of UBS Global Asset Management made a presentation and distributed a written report. A copy of the report is on file in the Pension Office.

RREEF – DB Real Estate Money Manager Review

Mr. Charles George and Mr. Jon Thompson of RREEF made a presentation and distributed a written report. A copy of the report is on file in the Pension Office.

During the money manager presentations, Mr. Holmes arranged a contact call from his office to State Street to negotiate for a lower fee.

After the two money manager presentations were concluded, Mr. Holmes informed the Board that State Street had verbally agreed to reduce their flat fee bid by $10,000 and requested a two year contract term. After much consideration by the Board of the custodial proposals, the following motion was made:

Motion: Ms. Pelot made a motion to accept the proposal for a two year contract with State Street, with a flat fee of $170,000. Mr. Calloway seconded the motion. The motion carried unanimously by the members present.

Mr. Holmes made a presentation of the 3^rd Quarter 2004 Performance Report. A copy of his report is on file in the Pension Office.

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

Motion: Mr. Calloway made a motion to adjourn the meeting at 11:47 a.m. Mr. Harrell 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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