CITY OF KNOXVILLE PENSION BOARD
MINUTES
Thursday – December 11, 2008
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 11, 2008.
Present were: Present were: Mayor Bill Haslam, Mr. Greg Coker, Mr. Joe Hackney, Mr. Buddy Harrell, Ms. Barbara Pelot, Ms. Robin Shelton, Mr. Jim York, Mr. Michael Cherry and Attorney Bud Gilbert.
Also present: General Government employees, Mr. David Walton, Mr. Richard Woodby; Attorney Tim Ferraris.
CALL TO ORDER:
Ms. Pelot presided and called the meeting to order at 8:15 a.m.
APPROVAL OF REGULAR MEETING MINUTES FOR November 13, 2008.
Mr. Hackney made a motion to approve the December 11, 2008, meeting minutes. Ms. Shelton 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:
Actuarial Valuation
Motion: Mr. Coker made a motion to accept the actuarial report as of July 1, 2008, as prepared and presented by Mr. Alan Pennington, the Pension Board’s actuary. Mr. Hackney seconded the motion. The motion carried unanimously by the members present.
General Government Seat A Election – Exhibit 2
Ms. Pelot advised the Board that James Hutchens had been certified as elected as General Government – Seat A representative for the three year term beginning January 1, 2009 through December 31, 2011.
Uniformed Bodies Seat A Election – Exhibit 2
Ms. Pelot advised the Board that Greg Coker had been certified as elected, for a second term, as Police Department, Uniformed – Seat A representative for the three year term beginning January 1, 2009 through December 31, 2011.
Election of Pension Board Officers
Ms. Pelot reminded the Pension Board members that officers for the 2009 calendar year would need to be elected at the January 8, 2009, Pension Board meeting.
Post Retirement Benefit Adjustment Resolution – Exhibit 3
Motion: Mr. York made a motion to approve the Post Retirement Benefit Adjustment Resolution as presented by the Executive Director. Mr. Harrell seconded the motion. The motion carried unanimously by the members present.
EXECUTIVE DIRECTOR COMMENTS:
Indexing Seminar
Mr. Cherry thanked the Board for allowing him to attend the conference on Indexing last week.
ATTORNEY COMMENTS:
Glenda Fields’ Litigation – Exhibit 4
Attorney Gilbert distributed to the Board a responsive brief on the Glenda Fields matter which had been rescheduled for January 13, 2009, at 9:30 a.m. in Chancellor Weaver’s court.
Mayor Haslam arrived at 8:33 a.m. and presided.
Securities Litigation Policy – Exhibit 5
Attorney Gilbert presented the
Board, for their review, a draft policy for monitoring and managing securities
related claims, which they will discuss again at the January board meeting.
APPEAL BY MR. RICHARD WOODBY TO HAVE PRIOR SERVICE REINSTATED: - Exhibit 6
General Government employee, Mr. Richard Woodby and his attorney, Tim Ferraris presented their appeal to the Board to have Mr. Woodby’s prior service time reinstated. Mr. Woodby admitted, and documentation was provided by the Pension Office, that an opportunity to purchase this prior service was given to Mr. Woodby via ordinance 0-441-98, Section 1350.9 in January 1999. Although Mr. Woodby made application to purchase this time back, the records confirm that Mr. Woodby did not make payment within the 45 day period required to submit his funds. Mr. Woodby was made aware of the 45 day requirement as documented in Executive Director, Michael Cherry’s letter to Mr. Woodby, dated April 6, 1999.
Attorney Ferraris argued that the required payment in full was a hardship on Mr. Woodby at that time. Mr. Cherry advised that the ordinance to purchase the service in question was no longer in the charter which was the basis for Mr. Cherry’s denial since this window of opportunity has passed.
APPEAL BY MR. DAVID WALTON TO HAVE PRIOR SERVICE REINSTATED: - Exhibit 7
General Government employee, Mr. David Walton presented his appeal to the Board to have his prior service time reinstated. Documentation provided to the Board indicated that an application to reinstate prior service was sent to Mr. Walton in January 1999 and a reminder letter sent in March 1999, but a response from Mr. Walton was never received until May 2008 after the window of opportunity had closed, which, again, was the basis for Mr. Cherry’s denial.
Motion: Mr. Harrell made a motion to deny Mr. Walton’s appeal to have his prior service reinstated. Mr. Coker seconded the motion. The motion to deny Mr. Walton’s request passed unanimously by the Board. The denial was based on the lack of any charter language which would provide authority to grant Mr. Walton’s appeal.
ENROLLMENTS:
The following General Government employees have filed applications to become members of the Plan G1 pension system.
Mark Barbra
James D. Clabough
Shanan K. Cook
Nicholas G. Gill
Gavin D. Lowe
William I. Sturgis
Amanda P. Thomas
Lewis A. Whisnant
Motion: Mr. Hackney made a motion to approve these applications for enrollment in the Plan G1 pension system. Mr. Coker 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 Burnette, Police Dept., Plan C – Non-vested
W. Morris Kizer, General Govt., Plan G1 – Non-vested
Garrett McKinney, General Govt., Plan G1 – Non-vested
Jonathan C. Parr, Fire Dept., Plan C - Vested
Quentin A. Smith, Fire Dept., Plan C – Non-vested
Tyler Wylie, Police Dept., Plan C - Non-vested
Motion: Ms. Shelton 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 NORMAL RETIREMENT: PLAN A
CHARTER SECTION 1360.12
Charles J. Burnett, General Government No Option
Date of birth, November 20, 1946: 62 years of age
Total credited service: 34 years 4 months 19 days
Average base monthly salary for 2 years, $400.00 x .75% = $3.00
Average excess monthly earnings for 2 years, $2,895.74 x 1.50% = $43.44
making a total of $46.44 benefit per year of service. $46.44 x 34.38538 =
$1,596.86 pension effective December 1, 2008
Motion: Mr. Harrell made a motion to approve this application for normal retirement. Mr. Coker seconded the motion. The motion carried unanimously by the members present.
APPLICATION FOR EARLY RETIREMENT: PLAN A
CHARTER SECTION 1360.17
Christopher D. Lindsay, Schools Certified Option B-11
10 Yr. Certain & Life
Date of birth, January 2, 1954: 54 years of age
Total City credited service: 11 yrs.
Total County credited service: 21 years 4 months
Total credited service: 32 years 4 months
Last date of employment with City: June 1987
Last date of employment with County: November 2008
Average base earnings for 4 years, $400.00 x .75% = $3.00
Average excess earnings for 4 years, $1,445.46 x 1.50% = $21.68
making a total of $24.68 benefit per year of service. $24.68 x 11.0 =
$271.48 x ER Factor .5245 = $142.39. Mr. Lindsay chose Option B-11 – 10 Yr. Certain & Life to Courtney M. Lindsay, Cassidy M. Lindsay and Canaan M. Lindsay, daughters. $142.39 x .9800 =
$139.54 pension effective December 1, 2008
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 & County benefit is $1,454.39.
25 years required for Early retirement. Supreme Court ruling entitles retiree to combine City and County credited service.
Motion: Ms. Pelot made a motion to approve this application for retirement payable under Option B-11. Ms. Shelton seconded the motion. The motion carried unanimously by the members present.
APPLICATION FOR DEFERRED RETIREMENT: PLAN A
CHARTER SECTION 1360.28
Nancy DeCosta, Schools Non-Certified Option C – Cash Refund
Date of birth, November 29, 1946: 62 years of age
Total credited service: 17 years 2 months (combined City & County)
Average base earnings for 3 years, $400.00 x .75% = $3.00
Average excess earnings for 3 years, $2,338.19 x 1.50% = $35.07
making a total of $38.07 benefit per year of service. $38.07 x 17.1667 =
$653.54 Total benefit
573.51 minus County benefit
$ 80.03 Ms. DeCosta chose Option C – Cash Refund to Joseph F. DeCosta, spouse.
$ 80.03 x .9410 cash refund option factor :
$ 75.31 pension effective December 1, 2008
Motion: Ms. Pelot made a motion to approve this application for retirement payable under Option C. Ms. Shelton seconded the motion. The motion carried unanimously by the members present.
APPLICATION FOR PARTICIPATION IN THE DELAYED RETIREMENT OPTION PROGRAM (DROP): PURSUANT TO CHARTER SECTION 1390.22 – PLAN C.
The following employees have chosen a Delayed Retirement Option and will receive a one-time payment of the accumulated monthly benefits on termination of employment with the City of Knoxville.
Larry D. Pickard, Police Dept. - Uniformed Option A-6
100% without reinstatement
Date of birth, April 29, 1951: 57 years of age
Total credited service: 31 years 3 months 10 days
Average monthly salary for 2 highest 12 month periods, $4,374.23 x .025 =
$109.36 x 30 = $3,280.80. Mr. Pickard chose Option A-6 – 100% without reinstatement to Karen J. Pickard, spouse. $3,280.80 x .9064 =
$2,973.72 pension effective December 1, 2008.
DROP complete November 30, 2010.
Motion: Mr. Coker made a motion to approve this application for DROP retirement payable under Option A-6. Mr. Harrell seconded the motion. The motion carried unanimously by the members present.
William Mark Pressley, Police Dept. - Uniformed Option A-6
100% without reinstatement
Date of birth, November 23, 1958: 50 years of age
Total credited service: 30 years 23 days
Average monthly salary for 2 highest 12 month periods, $4,948.55 x .025 =
$123.71 x 30 = $3,711.30. Mr. Pressley chose Option A-6 – 100% without reinstatement to Sharon R. Pressley, spouse. $3,711.30 x .9378 =
$3,480.46 pension effective December 1, 2008.
DROP complete November 30, 2010.
Motion: Mr. Coker made a motion to approve this application for DROP retirement payable under Option A-6. Mr. Harrell seconded the motion. The motion carried unanimously by the members present.
APPLICATION FOR PARTICIPATION IN THE DELAYED RETIREMENT OPTION PROGRAM (DROP): PURSUANT TO CHARTER SECTION 1371.8 – PLAN G.
The following employees have chosen a Delayed Retirement Option and will receive a one-time payment of the accumulated monthly benefits on termination of employment with the City of Knoxville.
Danny E. Stallings, General Government – Plan G2 Option A-6
100% without reinstatement
Date of birth, January 19, 1959: 49 years of age
Total credited service: 30 years 5 months 25 days
Average monthly salary for 2 highest 12 month periods, $2,624.97 x .021 =
$55.12 x 30.48516 = $1,680.34. Mr. Stallings chose Option A-6 – 100% without reinstatement to Vivian Leigh Stallings, spouse. $1,680.34 x .9389 =
$1,577.67 pension effective December 1, 2008.
DROP complete November 30, 2010.
Motion: Mr. Harrell made a motion to approve this application for DROP retirement payable under Option A-6. Ms. Pelot seconded the motion. The motion carried unanimously by the members present.
APPROVAL OF INVOICES FOR PROFESSIONAL SERVICES:
Bryan, Pendleton, Swats & McAllister – Actuary (Oct. 2008) $ 9,610.00
Kennerly,Montgomery & Finley – Attorney (General – Nov. 08) 2,080.00
Kennerly,Montgomery & Finley – Attorney (G. Fields – Nov. 08) 3,696.00
State Street – Trustee (Sept. 2008) 3,394.28 State Street – Trustee (Oct. 2008) 3,384.10
State Street Global – Money Manager 536.44 Summit Strategies – Investment Consultant (4th Qtr. 2008) 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 system’s financial plan.
Motion: Ms. Pelot made a motion to pay these invoices. Mr. Hackney seconded the motion. The motion carried unanimously by the members present.
INVESTMENT MATTERS: None
OTHER:
RECOGNITION OF MR. BUDDY HARRELL FOR HIS SERVICE ON THE PENSION BOARD:
Mayor Haslam presented Mr. Harrell with a plaque in appreciation of his service on the Pension Board.
PUBLIC COMMENTS: None
ADJOURNMENT:
There being no further business before the Board, Mayor Haslam adjourned the meeting at 9:20 a.m.
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Chair
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Date