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 December 9, 2004.

Present were: Mayor Bill Haslam, 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: Debbie Beeler, General Government employee.

Ms. Mahler presided and called the meeting to order at 8:18 a.m.

The Revised Agenda was approved without objection.

Mr. Cherry informed the Board that he had not yet received the final contract from State Street to renew the custodial contract, but that he did not expect any problems with the contract. Attorney Gilbert advised the Board that State Street did indicate they would amend the current base contract to reflect the flat fee and the 120 day termination provision.

Motion: Ms. Pelot made a motion to authorize Mr. Cherry to execute the necessary paper work with State Street for a two year custodial contract with State Street, at an annual flat fee of $170,000 with a 120 day termination provision and a securities lending agreement. Mr. Kinney seconded the motion. The motion carried unanimously by the members present.

Ms. Mahler informed the Board that the General Government – Seat B and Fire Uniformed – Seat B Pension Board Representative elections had been concluded. Mr. Cherry certified that Stephen King, Engineering (General Government), and Scott Calloway (Fire Department) had received a majority of the votes received. Ms. Mahler told the Board that she had enjoyed her time as General Government representative and had appreciated her opportunity to serve on the Board for the past three years.

Motion: Mr. Kinney made a motion to accept the results of the elections as certified by Mr. Cherry, the Executive Director. Mr. Harrell seconded the motion. The motion carried unanimously by the members present.

Attorney Gilbert distributed to the Board a marked up copy of the Rules for election of Board Members for review, which were adopted by the Board in 1999. Mr. Gilbert explained the need to the Board for the proposed revisions to the rules, and informed the Board that he would present to the Board a finalized copy with the revised language at the January board meeting.

Attorney Gilbert reviewed for the Board three methods for the Board’s review and discussion on required procedures for proposals to amend the city charter pension provisions. After a discussion by the Board with Mr. Gilbert, the Board directed that the recommendations be shared with their actuary for review and comment. In addition, the Board asked Attorney Gilbert to amend the requirement for submitting any ordinance or resolution from thirty (30) days to sixty (60) days as mentioned in guideline I. A. (a). Since the next opportunity to place a charter amendment before the voters is August 2006, it was discussed that a presentation be made to city council regarding an ordinance they may wish to consider during the interim. If a charter amendment is subsequently approved the ordinance would be repealed coincident with the charter amendment passage.

Ms. Beeler made an appeal to the Board for consideration to reinstate some prior credited service time. Mr. Cherry reviewed with the Board the history and policies regarding the reinstatement rules. After a discussion by the Board with Mr. Cherry and Ms. Beeler, the Board asked Mr. Cherry to conduct additional research and to list the appeal on the January agenda for consideration again.

Motion: Mr. Kinney made motion to have Mr. Cherry conduct additional research and report back to the Board for their consideration at the January Pension Board meeting. Ms. Mahler seconded the motion. The motion passed. Mr. Calloway, Ms. Hankins and Ms. Pelot voted no.

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

Jerry Barrett

Clifford S. Bowen

James Donnell, Jr.

Benny T. Evans

Milton C. Gordon

Marcy L. Griffin

Stephen D. James

Penny L. Mize

Johnny Strader

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

Wanda Moore Lynn, beneficiary of Kenny D. Moore, General Government –

G-1, non-vested, who died in service May 26, 2004.

Claude Keith, General Government – G-1 – non-vested

Scott Lundy, General Government – G-1 – non-vested

Myron Massey, Police Department – Plan C - vested

Misty Miller, General Government – G-1 – non-vested

James Murray, Police Department – Plan C - vested

Daniel L. Myers, General Government – G1 – non-vested

Mark C. White, Fire Department – Plan C – vested

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

 

William J. Cooper

Kenneth Jones

Motion: Mr. Harrell made a motion to approve these two applications to transfer credited pension service from Plan G to Plan C. Mr. Calloway seconded the motion. The motion carried unanimously by the members present.

R. David Giles, active General Government employee died in service November 13, 2004.

Mr. Giles’ statistics:

55 years of age, 32 years 2 months 13 days service

Average monthly salary $4,692.56 x .021 = $98.54 x 32.20228 =

$3,173.21. Mr. Giles chose Option A-6 – 100% Joint & Survivor to Darla C. Giles, spouse. $3,173.21 x .8872 =

$2,815.27 pension effective December 1, 2004, to Mrs. Darla C. Giles.

Ronald L. Hurst , General Government Option A-7

50% with reinstatement

Date of birth, July 12, 1955: 49 years of age

Total credited service: 30 years 8 months 27 days

Average monthly salary for 2 highest 12 month periods, $3,219.57 x 2.1% =

$67.61 x 30.74064 = $2,078.37. Mr. Hurst chose Option A-7 – 50% with reinstatement to Jane A. Hurst, spouse.

$2,078.37 x .9484 =

$1,971.13 pension effective December 1, 2004.

Motion: Mr. Harrell made a motion to approve this application for a Rule of 80 retirement payable under Option A-7. Ms. Pelot seconded the motion. The motion carried unanimously by the members present.

Billy J. Viles , General Government No Option Date of birth, July 23, 1946: 58 years of age

Total credited service: 31 years 4 months 18 days

Average monthly salary for 2 highest 12 month periods, $2,705.90 x 2.1% =

$56.82 x 31.38265 =

$1,783.16 pension effective December 1, 2004.

Motion: Mr. Harrell made a motion to approve this application for a Rule of 80 retirement. Ms. Pelot seconded the motion. The motion carried unanimously by the members present.

Jack M. Oglesby, Jr., Police Department No Option Date of birth, January 19, 1954: 50 years of age

Total credited service: 25 years 19 days

Average monthly salary for 2 highest 12 month periods, $3,510.69 x 2.5% =

$87.77 x 25.05206 =

$2,198.82 pension effective December 1, 2004.

DROP complete November 30, 2006.

Bryan, Pendleton, Swats & McAllister – Actuary (October) 17,845.00 Kennerly, Montgomery & Finley – Attorney (November) 1,810.83

State Street – Custodial (August 2004) 17,745.81

State Street – Trustee (October 2004) 3,518.02 State Street Global – money manager (3^rd Quarter 2004) 4,755.13

INTECH – money manager (3^rd Quarter 2004) 87,361.54 Summit Strategies – investment consultant (4^th Quarter 2004) 31,250.00

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

Request from retired school teacher

Mr. Cherry informed the Board that a retired certified teacher had requested from the Pension Board a listing of all teachers who had retired early since July 1, 1987. We will provide the retiree name and benefit commencement date. This will enable them to determine those who retired before and after October 15, 2003 when the County announced their early retirement incentive plan. Mr. Cherry informed the Board that he expected the retiree would want to speak to the Board at a later date.

Recognition of Ms. Brenda Hankins’ service on the Pension Board:

Mayor Haslam presented Ms. Hankins with a plaque in appreciation of her service on the Pension Board.

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

Motion: Mayor Haslam adjourned the meeting at 10:03 a.m.

Chair

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Date

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