CITY OF KNOXVILLE PENSION BOARD
MINUTES
THURSDAY – December 14, 2006
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 December 14, 2006.
Present were: Mayor Bill Haslam, Mr. Scott Calloway, Mr. Buddy Harrell, Mr. Stephen King, Mr. Larry Martin, Ms. Barbara Pelot, Mr. Michael Cherry and Attorney Bud Gilbert.
Also present: Mr. Alan Pennington and Ms. Mandy Lee Bratten, Bryan, Pendleton, Swats & McAllister.
CALL TO ORDER:
Mayor Haslam presided and called the meeting to order at 8:15 a.m.
Actuary Presentation
Mr. Calloway arrived at 8:20 a.m.
Alan Pennington – Bryan, Pendleton, Swats & McAllister presented the actuarial valuation as of July 1, 2006. A copy of the report is on file in the Pension Office.
Motion: Mr. Martin made a motion to accept the assumption changes recommended by Mr. Pennington in the actuarial presentation. Ms. Pelot seconded the motion. The motion carried unanimously by the members present.
Motion: Mr. Martin made a motion to accept the actuarial report as of July 1, 2006, as prepared and presented by the Mr. Pennington. Mr. Harrell seconded the motion. The motion carried unanimously by the members present.
Mayor Haslam left the meeting at 9:20 a.m. and Mr. Calloway presided.
November Asset Listing
Mr. Cherry advised the Board that an asset listing for November 2006 had been included in their revised agenda packet, and the fund report showed an increase in assets over October 2006.
APPROVAL OF REGULAR MEETING MINUTES FOR November 9, 2006:
Mr. Martin made a motion to approve the November 9, 2006, meeting minutes. Mr. Harrell seconded the motion. The motion carried unanimously by the members present.
APPROVAL OF REVISED AGENDA: Exhibit 1
The Revised Agenda was adopted without objection.
CONTRACTS:
ADMINISTRATIVE MATTERS:
Reminder to elect 2007 Officers (Chair, Vice-Chair & Secretary), at the January 11, 2006, Board Meeting
Mr. Cherry reminded the Pension Board members that officers for the 2007 calendar year would need to be elected at the January 11, 2007, Pension Board meeting.
EXECUTIVE DIRECTOR COMMENTS:
Southeast Public Employee Retirement Systems Forum
Mr. Cherry asked the Board for permission to attend the Southeast Public Employee Retirement Systems Forum being held in Atlanta in February 2007. Mr. Cherry advised the Board that by serving as moderator at the forum there would be no cost to the Pension System. The Board agreed to allow Mr. Cherry to attend the forum in February.
ATTORNEY COMMENTS:
Contracts
Attorney Gilbert advised the Board that he had completed the AQR Capital Mangement, Cadogan and Union Banciare Privee Asset Management contracts. AQR will replace TCW as the small cap value manager, with Cadogan and UBP the two Hedge Fund Managers hired by the Board in June 2006. Mr. Cherry advised the Board that the target date for the transfer of funds is January 1, 2007.
Policy Statement – Annual Staff Reviews
Attorney Gilbert advised the Board that he would have the annual staff review policy statement, requested by the Board in November, ready for their approval at the January 11, 2006, pension board meeting.
ENROLLMENTS:
The following General Government employees have filed applications to become members of the Plan G1 pension system.
Gary W. Alexander
Gary L. Allen
Thomas S. Andrews, Sr.
Deepali Brahmbhatt
David W. Haase
Randall Kenner
Scott E. Lundy
Michael W. Murray
Melissa Willliams
Motion: Mr. Harrell made a motion to approve these applications for enrollment in the Plan G1 pension system. Mr. Martin 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.
Justin Goehring, Fire Dept., Plan C – Non-Vested
Tyrone C. Long, Fire Dept., Plan C – Vested
Reginald McCullough, Police Dept., Plan C – Non-Vested
Eric Shepard, Fire Dept., Plan C - Vested
Stephen B. Sherrod, Fire Dept., Plan C - Vested
Jared Turner, Police Dept., Plan C – Vested
Motion: Mr. Martin made a motion to approve these applications for withdrawal of employee contributions. Mr. King seconded the motion. The motion carried unanimously by the members present.
RETIREMENTS:
APPLICATION FOR RETIREMENT: PLAN A
CHARTER SECTION 1360.12
Joe Ann Thomas, Schools Non-Certified Option B-12
15 Yr. Certain & Life
Date of birth, February 4, 1943: 63 years of age
Total credited service: 35 years 9 months (combined City & County)
Average base earnings for 3 years, $400.00 x .78% = $3.12
Average excess earnings for 3 years, $1,758.52 x 1.58% = $27.79
making a total benefit of $30.91 benefit per year of service. $30.91 x 35.7500 =
$1,105.03 Total benefit
672.27 minus County benefit
432.76 Ms. Thomas chose B-12 – 15 Yr. Certain & Life to Lewis Thomas, spouse. $432.76 x .8986 =
$ 388.88 City pension effective October 1, 2006.
Motion: Mr. Harrell made a motion to approve this application for retirement payable under Option B-12. Ms. Pelot seconded the motion. The motion carried unanimously by the members present.
APPLICATION FOR RETIREMENT: PLAN C
CHARTER SECTION 1360.16
Joseph T. Mase, Police Uniformed Option A-7
50% with reinstatement
Date of birth, November 30, 1951: 55 years of age
Total credited service: 25 years 15 days
Average monthly salary for 2 highest – 12 month periods, $4,079.40 x 2.5% =
$101.99 x 25.04110 = $2,553.94. Mr. Mase chose Option A-7 – 50% with reinstatement to Mary S. Mase, spouse. $2,553.94 x .9941 =
$2,538.87 pension effective December 1, 2006.
Motion: Mr. Martin made a motion to approve this application for retirement payable under Option A-7. Mr. Harrell seconded the motion. The motion carried unanimously by the members present.
APPLICATION FOR DEFERRED RETIREMENT: PLAN C
CHARTER SECTION 1360.16
James E. Goins, Police Uniformed No Option
Date of birth, December 13, 1954: 51 years of age
Total credited service: 18 years
Average monthly salary for 2 highest – 12 month periods, $3,156.35 x 2.0% =
$63.13 x 18.00
$1,136.34 pension effective December 1, 2006.
Motion: Ms. Pelot made a motion to approve this application for retirement. Mr. Martin seconded the motion. The motion carried unanimously by the members present.
APPLICATION FOR RETIREMENT: PLAN F
CHARTER SECTION 1304
Claude E. Earl, Fire Uniformed *Option
Date of birth, October 24, 1934: 72 years of age
Total credited service: 50 years
Highest monthly salary, $4,229.94 x 60% = $2,537.96 monthly benefit
$1,171.37 (bi-weekly) payment effective December 29, 2006.
*Plan F has a built-in option to spouse of 60% of retiree’s benefit being received at member’s death.
Motion: Mr. Martin made a motion to approve this application for retirement payable under Plan F. Mr. Harrell seconded the motion. The motion carried unanimously by the members present.
APPLICATION FOR RETIREMENT: PLAN G2 – NORMAL
CHARTER SECTION 1360.12
Frankie M. Easterday, General Government No Option
Date of birth, November 6, 1944: 62 years of age
Total credited service: 17 years 6 months 27 days
Average monthly salary for 2 highest – 12 month periods, $3,429.35.
$3,429.35 x 2.1% = $72.02 x 17.57397 =
$1,265.68 pension effective December 1, 2006.
Motion: Mr. Martin made a motion to approve this application for retirement. Mr. Harrell seconded the motion. The motion carried unanimously by the members present.
Ralph E. Summey, General Government Option B-10
5 Yr. Certain & Life
Date of birth, April 22, 1933: 73 years of age
Total credited service: 40 years 4 months 19 days
Average monthly salary for 2 highest – 12 month periods, $2,675.18.
$2,675.18 x 2.1% = $56.18 x 40.38539 = $2,268.85. Mr. Summey chose Option B-10 – 5 Yr. Certain & Life to Mildred Summey, spouse. $2,268.85 x .9543 =
$2,165.16 pension effective December 1, 2006.
Motion: Mr. Martin made a motion to approve this application for retirement payable under Option B-10. Mr. Harrell seconded the motion. The motion carried unanimously by the members present.
APPLICATION FOR RETIREMENT: PLAN G2 – RULE OF 80
CHARTER SECTION 1371.4
Frank R. Arnold, Jr., General Government Option A-7
50% with reinstatement
Date of birth, September 30, 1949: 57 years of age
Total credited service: 28 years 1 month 7 days
Average monthly salary for 2 highest – 12 month periods, $2,411.04.
$2,411.04 x 2.1% = $50.63 x 28.10251 = $1,422.83. Mr. Arnold chose Option A-7 – 50% with reinstatement to Karen Ann Arnold. $1,422.83 x .9044 =
$1,286.81 pension effective December 1, 2006.
Motion: Mr. Harrell made a motion to approve this application for retirement payable under Option A-7. Mr. Martin seconded the motion. The motion carried unanimously by the members present.
APPLICATION FOR REINSTATEMENT OF PRIOR SERVICE:
Ginger Huskey, General Government – Plan G1
January 23, 1999 – December 20, 2002
$726.70.
Motion: Mr. Harrell made a motion to approve this application for reinstatement of the prior service period of January 23, 1999 – December 20, 2002, for the amount of $726.70. Mr. Martin seconded the motion. The motion carried unanimously by the members present.
APPROVAL OF INVOICES FOR PROFESSIONAL SERVICES:
Bryan, Pendleton, Swats & McAllister – Actuary (October 2006) $ 20,244.00
Kennerly, Montgomery & Finley – General – (October 06) 3,111.50
Kennerly, Montgomery & Finley – General – (November 06) 1,362.50
Kennerly, Montgomery & Finley – Global Crossing – (October 06) 21.99
State Street – Custodial (September 2006) 14,166.67
State Street – Custodial (October 2006) 14,166.67
State Street Global – money manager (3rd Qtr – 2006) 4,008.14
Aberdeen Asset Management – money manager (3rd Qtr – 2006) 39,983.94
INTECH – money manager (3rd Qtr. – 2006) 84,472.61
Summit Strategies – investment consultant (4th Qtr – 2006) 31,250.00
TCW Asset Management – money manager (2nd Qtr 2006) 91,921.04
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. King seconded the motion. The motion carried unanimously by the members present.
OTHER:
Salary Survey
Mr. Martin advised the Board that efforts were still underway to obtain a salary survey for Pension Board Executive Director, which he was working on in conjunction with the Civil Service office.
INVESTMENT MATTERS: None
PUBLIC COMMENTS: None
ADJOURNMENT:
There being no further business, the following motion was made:
Ms. Pelot made a motion to adjourn the meeting at 9:38 a.m. Mr. King 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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