CITY OF
MINUTES
THURSDAY –
917B
The regular meeting of the City of
Present were: Ms. Barbara Pelot, Mr. Greg Coker, Mr. Jim Hutchens, Mr. Stephen
King, Mr.
Also present: Mr. Alan Pennington and Ms. Mandy Lee Bratton - Bryan, Pendleton, Swats & McAllister; Mr. Michael Paseur, General Government employee; newly elected council members Finbarr Saunders and Marshall Stair; Mr. John Craig – City of Knoxville resident.
CALL TO ORDER:
Ms. Pelot presided and called the meeting
to order at
APPROVAL OF REGULAR MEETING MINUTES for
Mr.
Martin made a motion to approve the November 10, 2011 meeting minutes. Mr. Coker seconded the motion. The motion carried unanimously by the members
present.
APPROVAL OF REVISED AGENDA: - Exhibit 1
The Revised Agenda was accepted by the Pension Board without objection.
ENROLLMENTS:
The
following General Government employees have filed applications to become
members of the Plan G1 pension system:
Rachel E. Butzler
Michelle L. Dresch
Rhonda J. Elfvin
Raymond L. Jackson
Robert D. Jones
Julie S. Maxwell
Rocky A. McClulloch
Roger E. Phillips
Dan W. Sambrano
David A. Smith
Christine M. Stickler
Motion: Mr. York 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 employees have filed an application to withdraw employee pension
contributions plus 4% interest and the supplemental retirement account as
applicable in Plan G Option 1:
Jeff Roberts, General Govt. – Plan G1, Vested
Tim Ward, Police Dept. – Plan C, Vested
Motion:
Mr. Martin made a motion to approve these applications for withdrawal of
employee contributions. Mr. Coker
seconded the motion. The motion carried
unanimously by the members present.
APPLICATION FOR DEFERRED RETIREMENT: PLAN C
CHARTER SECTION 1390.16
Howard G. Kidder, Police Dept. - Uniformed Option A-9
100% with reinstatement
Date
of birth,
Total credited service: 13 years 6 months
Last employed: June 2000
Total credited service: 13 years
Average monthly salary for 2 highest 12 month periods, $3,002.57 x .02 =
$60.05 x 13 = $780.65. Mr. Kidder chose Option A-9 – 100% with reinstatement to Elise P. Kidder, spouse. $780.65 x .9216 =
$719.45
pension effective
Motion: Mr. Martin made a motion to approve this
application for Deferred
retirement payable under Option A-9. Mr.
Coker seconded the motion. The motion
passed unanimously by the members present.
Mr.
Hutchens and Mr. King arrived at
APPLICATION FOR DEFERRED RETIREMENT: PLAN G1
CHARTER SECTION 1360.28
Steven E. Roberts, General Govt. No Option
Date
of birth,
Total credited service: 13 years 7 months
Last employed: August 2003
Plan A benefit: Average base salary for 2 highest 12 month periods, $400.00 x .0081% = $3.24 x 7.50 = $24.30 plus average excess salary for 2 highest 12 month periods, $5,473.48 x .0162% = $88.67 x 7.50 = $665.03. Total A benefit = $689.33
Plan G1 benefit: Average monthly salary for 2 highest 12 month periods,
$5,873.48 x .0115% = $67.55 x 6.0833 = $410.93.
Plan A benefit $689.33 + Plan G1 benefit $410.93 =
$1,100.26
pension effective
*Defined
benefit only. Mr. Roberts previously
withdrew the value of the supplemental retirement account, applicable in Plan G
– Option1, upon his termination.
Motion:
Mr. York made a motion to approve this application for Deferred retirement.
Mr. Martin seconded the motion.
The motion passed 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 employee has 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
Samuel Rivera, Jr., Police Dept. - Uniformed Option A-4
50% without reinstatement
Date
of birth,
Total credited service: 25 years 3 months 22 days
Average monthly salary for 2 highest 12 month periods, $4,440.20 x .025 =
$111.01 x 25.31027 =
$2,809.69* pension
effective
DROP
complete
*No reduction in
Plan C for 50% Joint and Survivor Option to spouse.
Motion: Mr. Coker made a motion to approve this
application for Drop retirement payable under Option A-4. Mr. Hutchens seconded the motion. The motion passed 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 employee has 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
James C. Bishop, General Government – Plan G2 Option A-9
100% with reinstatement
Date of birth,
Total credited service: 26 years 3 months 6 days
Average monthly salary for 2 highest 12 month periods, $2,925.89 x .021 =
$61.44 x 26.26644 = $1,613.81. Mr. Bishop chose Option A-9 – 100 Joint and Survivor with reinstatement to Robin D. Bishop, spouse. $1,613.81 x .8368 =
$1,350.44 pension effective
DROP complete
Motion: Mr. Hutchens made a motion to approve this
application for Drop retirement payable under Option A-9. Mr. Coker seconded the motion. The motion passed unanimously by the members
present.
Betty L. Davis, General Government – Plan G2 No Option
Date of birth,
Total credited service: 20 years 3 months 6 days
Average monthly salary for 2 highest 12 month periods, $2,623.85 x .021 =
$55.10 x 20.26644 =
$1,116.68
pension effective
DROP complete
Motion: Mr. Hutchens made a motion to approve this
application for Drop retirement. Mr.
Coker seconded the motion. The motion
passed unanimously by the members present.
John E. Huff, General Government – Plan G2 Option A-6
100% without reinstatement
Date of birth,
Total credited service: 17 years 11 months 25 days
Average monthly salary for 2 highest 12 month periods, $3,695.63 x .021 =
$77.61 x 17.98516 = $1,395.83. Mr. Huff chose Option A-6 – 100% Joint and Survivor without reinstatement to Reaunette Huff, spouse. $1,395.83 x .8466 =
$1,181.71 pension effective
DROP complete
Motion: Mr. Hutchens made a motion to approve this
application for Drop retirement payable under Option A-6. Mr. Coker seconded the motion. The motion passed unanimously by the members
present.
APPROVAL OF INVOICES FOR PROFESSIONAL SERVICES:
Bryan, Pendleton, Swats & McAllister – Actuary (Oct 2011) $33,784.00
Kennerly, Montgomery & Finley – Attorney (General – Nov 2011) 5,114.50
Kennerly, Montgomery & Finley – Attorney (G1 – Nov 2011) 1,949.40
Kennerly, Montgomery & Finley – Attorney (Frye Lit. – Sept 2011) 1,345.50
Kennerly, Montgomery & Finley – Attorney (Frye Lit. – Oct 2011) 1,260.00
Kennerly, Montgomery & Finley – Attorney (Frye Lit. – Nov 2011) 1,875.00
State Street – Custodial (Oct 2011) 8,507.36
State Street – Trustee (Oct 2011) 3,388.28
Calamos – Money Manager (3rd Qtr 2011) 24,858.00
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 the invoices
as presented. Mr. Coker seconded the
motion. The motion carried unanimously
by the members present.
ADMINISTRATIVE MATTERS:
Election of Pension Board Officers
Mr. Cherry reminded the Pension Board
members that officers for the 2012 calendar year would need to be elected at
the January Pension Board meeting in accordance with City of
Donald
Sams – request to establish prior service as creditable service – Exhibit 2
After a lengthy discussion by the Board regarding Officer Sams’ request to obtain prior service as credited service in Pension Plan C, the following motion was made:
Motion: Mr. Martin made a motion to defer this
decision, consistent with advice of legal counsel, to the January board meeting
pending council’s further research on the matter and for ample time to develop
a rule definition of “regularly employed”.
Mr. Hutchens seconded the motion.
The motion passed 4-2. Ms. Pelot
and Mr. Coker voted no.
2006 – 2011 Experience Study and Actuarial
Assumption Discussion –
Exhibit 3
The Board’s Actuary, Mr. Alan
Pennington with
Motion: Mr. Martin made a motion to accept the
Experience Study as presented and to adopt the assumptions recommended and
summarized by Mr. Pennington in the actuary’s letter of November 10, 2011 except
for the future investment return assumption, which Mr. Martin lowered to 7.25%
as part of his motion. Mr. Martin withdrew his motion after it failed to
receive a second.
Motion:
Following additional discussion, Mr. Martin made a motion to accept the
Experience Study as presented and to adopt the assumptions recommended and summarized
by Mr. Pennington in the actuary’s letter of
Mr.
Hutchens called for a brief recess at
Motion:
Mr. York made a motion to amend Mr. Martin’s motion, but it failed for a lack
of a second.
After
a lengthy discussion by the Board with careful thought and deliberation, Mr.
Martin’s motion was restated and passed on a vote of
INVESTMENT MATTERS:
Investment Committee Minutes – Exhibit 4
A draft of the Investment Committee’s
De-risking recommendation
Ms. Pelot informed the Board that the
de-risking discussion was ongoing by the Investment Committee. Attorney Gilbert reviewed with the full Board
the Investment Committee’s
EXECUTIVE DIRECTOR COMMENTS:
General Government Seat A Election
Mr. Cherry advised the Board that Mr.
Michael Paseur had been certified as elected, for the General Government – Seat
A representative for the three year term beginning
Uniformed Bodies Seat A
Election
Mr. Cherry advised the Board that Mr.
Greg Coker had been certified as re-elected, for the Police Department,
Uniformed – Seat A representative for the three year
term beginning
ATTORNEY COMMENTS:
Derrell Frye Litigation
Attorney Gilbert updated the Board on the Derrell Frye litigation.
G1 Litigation Discussion - Post Chancellor
Fansler’s Ruling
Attorney Michael Kelly informed the Board of various key dates for making an appeal decision relative to Chancellor Fansler’s ruling in the G1 Litigation and also discussed with the Board the option of filing a motion with the Chancellor to clarify his opinion that would allow the Board more time to consider an appeal of the court’s decision.
Motion: Mr. Coker made a motion to enter into
Executive Session. Ms. Pelot seconded
the motion. The motion carried. Mr. York abstained.
Mr.
York left the meeting at 11:53 a.m. prior to the commencement of the Executive
Session
Motion: Mr. Coker made a motion to end the Executive
Session. Ms. Pelot seconded the motion
and the meeting was called back to order at
Motion: Mr. Coker made a motion directing and
authorizing legal counsel to file a motion with Chancellor Fansler to
reconsider, alter/amend his decision.
Mr. Hutchens seconded the motion.
The motion passed
CONTRACTS: None
OTHER:
RECOGNITION OF MS. BARBARA PELOT, MR. JIM HUTCHENS AND MR. LARRY MARTIN
FOR THEIR SERVICE ON THE PENSION BOARD:
Mr. Cherry presented Ms. Pelot, Mr. Hutchens and Mr. Martin with plaques in appreciation of their service on the Pension Board. In addition, Mr. Cherry advised the Board that a plaque had been prepared for Mayor Daniel Brown to be presented to him later.
PUBLIC COMMENTS: None
ADJOURNMENT:
There being no further business, the following motion was made:
Motion: Mr. Coker made a motion to adjourn the
meeting at
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Chair
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Date