CITY OF KNOXVILLE PENSION BOARD

MINUTES

Thursday – December 13, 2007

8:15 A.M.

917B E. 5^TH AVENUE

 

 

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 13, 2007.

 

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 Bratton with Bryan, Pendleton, Swats & McAllister; Ms. Robin Shelton, General Government and Mr. Joe Hackney, Fire Department – newly elected Pension Board (Seat B) representatives beginning January 1, 2008, and Mr. Jim York, General Government employee and current City Treasurer.

 

CALL TO ORDER:

           

            Scott Calloway presided and called the meeting to order at 8:22 a.m.

 

APPROVAL OF REGULAR MEETING MINUTES FOR November 8 and November 13, 2007:

 

Mr. Harrell made a motion to approve the November 8 and November 13, 2007, meeting minutes.  Ms. Pelot seconded the motion.  The motion carried unanimously by the members present.

 

APPROVAL OF REVISED AGENDA:

The Revised Agenda was approved without objection.   Exhibit 1

 

CONTRACTS:  None

 

ADMINISTRATIVE MATTERS:

 

Actuary Presentation and Acceptance of Actuarial Report

 

Mayor Haslam arrived at 8:48 a.m.

 

Alan Pennington – Bryan, Pendleton, Swats & McAllister returned, as scheduled in November, and presented to the Board a revised actuarial valuation for the Board’s consideration.  Mr. Pennington’s presentation concluded with the following recommendations:

 

1)     Move to an Entry Age Normal Funding Method (to be consistent with GASB 50 and to produce a more stable annual contribution).

2)     Make a one-time adjustment to the assets equal to the liability losses this past year.

3)     Move to a 10-year smoothing of assets (currently use a 5-year smoothing).

 

Motion:  Mr. Martin made a motion to accept the actuarial report as of July 1, 2007, as prepared and presented by Mr. Alan Pennington, the Pension Board’s actuary, including the proposed recommendations as outlined above.   Ms. Pelot seconded the motion.  The motion carried unanimously by the members present.

 

Mr. Cherry advised the Board that he would send a letter to the Treasurer’s and Mayor’s office regarding the City’s employer contributions recommended by the Pension Board.

 

Reminder to elect 2008 Officers (Chair, Vice-Chair & Secretary) at the January 10, 2008, Board Meeting

 

Mr. Cherry reminded the Pension Board members that officers for the 2008 calendar year would need to be elected at the January 10, 2008, Pension Board meeting.

 

Pension Board Representative Elections

 

General Government Seat B Election – Exhibit 2

 

Mr. Cherry advised the Board that Robin Shelton had been certified as elected as General Government – Seat B representative for the three year term beginning January 1, 2008 through December 31, 2010. 

 

Uniformed Bodies Seat B Election – Exhibit 3

 

Mr. Cherry advised the Board that Joe Hackney had been certified as elected as Fire Department, Uniformed  – Seat B representative for the three year term beginning January 1, 2008 through December 31, 2010. 

 

            Post Retirement Benefit Adjustment Resolution – Exhibit 4

 

Motion:  Ms. Pelot made a motion to approve the Post Retirement Benefit Adjustment Resolution as presented by the Executive Director in the November agenda packet. Mr. Harrell seconded the motion. The motion carried unanimously by the members present.

 

EXECUTIVE DIRECTOR COMMENTS:

 

            Pension Board Composition – Section 1324

 

Mr. Cherry informed the Board that Section 1324 of the city charter indicates the city finance director is one of two ex officio Board members. It is his understanding that with most recent reorganization of the city departments, Mr. Jim York will be named to the position of Finance Director. Upon the formal approval of this reorganization by City Council and Mr. York taking the oath of office as Finance Director, he will automatically replace Mr. Martin as a member of the Pension Board.

 

ATTORNEY COMMENTS:

 

            Glenda Field’s Litigation

 

Attorney Gilbert advised the Board that an informal rehearing might be scheduled in January on the Glenda Field’s matter.

 

ENROLLMENTS:

 

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

 

Jason W. Artymovich

Joseph P. Bowers, Jr.

Brian L. Bumpus, II

Ty S. Compton

Michael W. Cooper

Nicola M. Coplan

Judson S. Dunnavant

Charles C. C. Fritz

Lynette K. Grissom

John A. Martin

James D. Hanley

Aaron M. McPeters

Sara K. Morgan

Kelli N. Pannell

Dan Roark

Ryan E. Self

Brandon P. Shelley

Shawn W. Shreve

Ryan M. Smith

Steven J. Smith

Andrew D. Summers

Thomas A. Thurman

Coy L. Tucker, II

Michael S. Tucker, Jr.

Zack D. Wilson

 

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

           

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

 

                        Janice E. Rhymer

                        Wesley A. Rutledge, Jr.

 

Motion:  Mr. Martin made a motion to approve these applications for enrollment in the Plan G1 pension system. Mr. Calloway 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.

                                   

                        Latosha Battle, General Government, G1 – Non-vested

                        Willa L. Essie, General Government, G1 – Non-vested

Matthew Heisig, Police Dept. – Plan C – Non-vested

Brian Hoover, Police Dept. – Plan C – Vested

Julie Kvam, Police Dept. – Plan C – Non-vested

            Michael Widener, General Government, G1 – Non-vested

            Jeff Yates, General Government, G1 – Non-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.

 

APPLICATION FOR SURVIVOR’S BENEFIT:  PLAN G2

CHARTER SECTION 1360.28

 

Joseph T. Tarantino, survivor of Theresa A. Tarantino, (deferred – vested) who died October 27, 2007, without an option on file.

The following are Mrs. Tarantino’s statistics:

Date of birth, September 30, 1947:  60 years of age

Credited service:  12 years

Average monthly salary for 2 highest 12 month periods, $2,256.33 x .021 =

$47.38 x 12 = $568.56.  The default benefit is 50% Joint & Survivor payable to spouse.

$568.56 x .9245 = $525.63.  $525.63 x .50 =

$262.82 Joseph T. Tarantino’s monthly benefit beginning November 1, 2007.

 

 

Motion:  Ms. Pelot made a motion to approve this application for a survivor’s benefit.   Mr. Calloway seconded the motion.  The motion carried unanimously by the members present.

 

APPLICATION FOR BUYBACK OF PRIOR MILITARY SERVICE:  Exhibit 5

(Charter Section 1350.9(E)

 

            Jack L. Hampson, General Government – Plan G1

            Buyback of three (3) years for the amount of $10,045.72

 

Motion:  Mr. Calloway made a motion to approve this application to buy back three years of prior military service in the amount of $10,045.72.  Ms. Pelot seconded the motion.  The motion carried unanimously by the members present.

 

 

            APPROVAL OF INVOICES FOR PROFESSIONAL SERVICES:    

           

Bryan, Pendleton, Swats & McAllister – Actuary (October 2007)      $  21,276.00

Kennerly, Montgomery & Finley – Attorney (General – Oct. 2007)         2,455.50 

Kennerly, Montgomery & Finley – Attorney (G. Fields – Oct. 2007)          120.70

Kennerly, Montgomery & Finley – Attorney (General – Nov. 2007)        3,953.60 

Kennerly, Montgomery & Finley – Attorney (G. Fields – Nov. 2007)         105.00

Kennerly, Montgomery & Finley – Attorney (Global Crossing – Oct -07)     25.87

State Street – Trustee (October - 2007)                                                        3,316.39

State Street – Custodial (July – 2007)                                                           8,390.02

State Street – Custodial (August – 2007)                                                      8,348.33

State Street – Custodial (September – 2007)                                              8,648.84

Summit Strategies – Investment Consultant (4^th Qtr – 2007)               31,250.00

State Street Global – Money Manager (3^rd Qtr – 2007)                               2,839.41

Aberdeen Investment – Money Manager (3^rd Qtr. 2007)                36,366.14

Calamos Investments – Money Manager (3^rd Qtr. 2007)                39,832.00

 

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 system’s financial plan.

 

Motion:  Mr. Martin made a motion to pay these invoices.  Mr. Calloway seconded the motion.  The motion carried unanimously by the members present.

 

INVESTMENT MATTERS: 

 

Mr. Cherry gave an update to the Board on Mr. Dan Holmes, the Board’s Investment Consultant.

 

OTHER:

 

RECOGNITION OF MR. SCOTT CALLOWAY AND MR. STEPHEN KING FOR THEIR SERVICE ON THE PENSION BOARD:

 

Mayor Haslam presented Mr. Calloway and Mr. King with a plaque in appreciation of their service on the Pension Board. 

 

 

PUBLIC COMMENTS:  None

 

ADJOURNMENT:

 

There being no further business before the Board, Mayor Haslam adjourned the meeting at 9:49 a.m.

 

 

 

______________________

                                                                                    Chair

 

 

                                                                                    _______________________

Date

 

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