CITY OF KNOXVILLE PENSION BOARD

MINUTES

Thursday – February 14, 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 February 14, 2008.

 

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: Lt. Cheri Matlock, Knoxville Police Department; Rebecca Murray, Attorney (Kennerly, Montgomery & Finley); Attorney Tony Farmer, representing Injury In Line of Duty applicant, Glenda Fields; Georgette H. Mitchell, court reporter.

 

CALL TO ORDER:

 

            Mayor Haslam presided and called the meeting to order at 8:24 a.m.

 

RECONSIDERATION OF ELECTION OF OFFICER ELECTIONS

 

Mr. York asked the Board for a discussion to reconsider the officer elections in which he declined to accept the nomination as Vice-Chair made at the January board meeting.

 

Motion:  Ms. Shelton made a motion to reconsider the action taken in January to nominate Mr. Jim York as Vice-Chair and Ms. Barbara Pelot as Secretary as Pension Board officers for the 2008 calendar year.  Mayor Haslam seconded the motion.  The motion carried.

 

Motion:  Ms. Shelton made a motion to elect Ms. Pelot for Vice-Chair.  Mr. Hackney seconded the motion.  The motion carried. 

 

Motion:  Mr. Harrell made motion to elect Ms. Shelton for Secretary.  Ms. Shelton declined and Mr. Harrell then made a motion to nominate Mr. Coker for Secretary.  Ms. Shelton seconded the motion.  The motion carried. 

 

ATTORNEY COMMENTS:

 

            Glenda Fields – Rehearing

 

Attorney Gilbert reviewed for the new and former board members, the past action taken regarding the disability in-line of duty application for Glenda Fields, former uniformed, Police Department employee and advised the Pension Board on the agreed order of the Knox County Chancery Court dated October 4, 2007, remanding the matter to the Pension Board for additional deliberations on the existing record of evidence.  Attorney Tony Farmer, representing Ms. Fields, then made a presentation before the Board and requested that the Board award Ms. Fields with a Disability In Line of Duty pension instead of a Not In Line of Duty pension awarded by the Board on April 14, 2005.  No new evidence was presented in accordance with the agreed order of the Knox County Chancery Court.

 

A transcript, including exhibits, of the full proceeding including the Board’s deliberations on the matter was recorded by Georgette H. Mitchell, registered professional reporter, with Stogsdill court reporting services and is made a part of these minutes as Exhibit A.

 

Motion:  Mr. Coker made a motion based on the record before the Pension Board, which motion is more fully stated in the transcript incorporated into these minutes as Exhibit A, to deny Ms. Field’s application for an In Line of Duty retirement.  Mr. Harrell seconded the motion.  The motion passed on a vote of 5-1.  Mr. Coker, Mr. Harrell, Ms. Pelot, Ms. Shelton and Mr. York voted yes.  Mr. Hackney voted no.  Mayor Haslam did not vote.

 

Mayor Haslam left the meeting at 9:49 a.m. and Ms. Pelot presided.

 

 

INVESTMENT MATTERS:

 

            Money Manager Reviews

 

                        Aberdeen Asset Management

 

William Lissenden with Aberdeen Asset Management made a presentation and distributed a written report.  A copy is on file in the Pension Office.

 

Mr. Coker left at 10:40 a.m.

 

                        Principal Global Investors

 

Paul Stover and Jennifer Perkins with Principal Global Investors made a presentation and distributed a written report.  A copy is on file in the Pension Office.

 

ADMINISTRATIVE MATTERS:

 

            Fund Report

 

Mr. Cherry gave an update to the Board of the continued market decline, reflected in the fund assets, down to $515 million from $538 million in December.

           

 

 

ATTORNEY COMMENTS – cont’d.

 

            Charter Amendment List Discussion – Exhibits 1and 2

 

Attorney Gilbert distributed to the Board the pension board rules regarding pension system charter amendments (exhibit 1), and a list of suggested charter amendments for the 2008 referendum (exhibit 2).  Attorney Gilbert reviewed the items and gave a brief discussion of each of the suggested charter amendments.

 

APPROVAL OF REGULAR MEETING MINUTES FOR January 10, 2008.

 

Mr. Harrell made a motion to approve the January 10, 2008, meeting minutes.  Mr. Coker seconded the motion.  The motion carried unanimously by the members present.

 

APPROVAL OF REVISED AGENDA:  Exhibit 3

 

            The Revised Agenda was approved without objection.

 

CONTRACTS:  None

 

EXECUTIVE DIRECTOR COMMENTS:  None

 

ENROLLMENTS:

 

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

 

                        Robert A. Akins

Kevin L. Burris

Timothy S. Dimick

                        Mark A. Elliott

                        Robert S. Hobbs

                        James Lyon

Penny M. Owens

Karen M. Randolph

                        Charles J. Woodle

 

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

                                   

                        Demarcus Andrews, General Government, G1 – Non-vested

                        Thomas F. Barr, General Government, G1 – Vested

                        Jack Housewright, General Government, G1 –Non-vested

                        Robert Lawson, Fire Dept., Plan C – Non-vested

                        Margie Nichols Gill, General Government, G1 – Non-vested

David L. Wear, Fire Dept., Plan C - Vested

 

Motion:  Mr. York 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 EARLY RETIREMENT:  PLAN A

CHARTER SECTION 1360.17

 

John E. McCook, Schools Certified                                   Option A-9

                                                                                    100% with reinstatement

Date of birth, July 3, 1946:  61 years of age

Total City credited service:  11 years

Total County credited service:  20 years 7 months

Total credited service:  31 years 7 months

Last date of employment with City:  June 1987

Last date of employment with County:  January 2008

Average base earnings for 4 years, $400.00 x 75% = $3.00

Average excess earnings for 4 years, $3,132.24 x 1.50% = $46.98

Making a total of $49.98 benefit per year of service.  $49.98 x 11 =

$549.78.  Mr. McCook chose Option A-9 – 100% with reinstatement to Jennie J. McCook, spouse.  $549.78 x .8080 =

$444.22 City pension effective February 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 and County benefit is $3,137.60.

 

25 years required for Early retirement.  Supreme Court ruling entitles retiree to combine City & County credited service.

 

Motion:  Mr. York made a motion to approve this application for Early Retirement payable under Option A-9 – 100% with reinstatement.  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 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 Knoxville.

 

            Margaret Linda Coffey, General Government – Plan G2 No Option

            Date of birth, October 2, 1950:  57 years of age

            Total credited service:  28 years 5 months 5 days

            Average monthly salary for 2 highest 12 month periods, $3,702.45 x 2.1% =

            $77.75 x 28.43037 =

            $2,210.46 pension effective February 1, 2008.

            DROP complete January 31, 2010.

 

Motion:  Mr. Harrell made a motion to approve this application for DROP retirement.  Mr. Coker seconded the motion.  The motion carried unanimously by the members present.

 

Cheryl F. Morris, General Government – Plan G2             No Option

            Date of birth, November 1, 1945:  62 years of age

            Total credited service:  19 years 6 days

            Average monthly salary for 2 highest 12 month periods, $2,706.18 x 2.1% =

            $56.83 x 19.01644 =

            $1,080.70 pension effective February 1, 2008.

            DROP complete January 31, 2010.

 

Motion:  Mr. Harrell made a motion to approve this application for DROP retirement.  Mr. Coker seconded the motion.  The motion carried unanimously by the members present.

 

Tommy L. White, General Government – Plan G2            Option A-4

                                                                                                50% without reinstatement

            Date of birth, December 19, 1954:  53 years of age

Total credited service:  33 years 4 months

             Average monthly salary for 2 highest 12 month periods, $4,241.21 x 2.1% =

$89.07 x 33.33333 = $2,969.00.  Mr. White chose Option A-4 – 50% without reinstatement to Glenda J. White, spouse.  $2,969.00 x .9563 =

$2,839.25 pension effective February 1, 2008.

            DROP complete January 31, 2010.

 

Motion:  Mr. Harrell made a motion to approve this application for DROP retirement payable under Option A-4.  Mr. Coker seconded the motion.  The motion carried unanimously by the members present.

 

APPROVAL OF INVOICES FOR PROFESSIONAL SERVICES:     

           

Bryan, Pendleton, Swats & McAllister – Actuary (December)      $ 10,821.00

Kennerly,Montgomery & Finley – Attorney (General – Dec. 07)          681.17

Kennerly,Montgomery & Finley – Attorney (G. Fields – Dec. 07)        140.00

State Street – Custodial (December 2007)                                           8,399.72

Aberdeen – Money Manager (4th Qtr. -2007)                                  36,974.62

INTECH – Money Manager (4th Qtr. – 2007)                                        22,322.53

Calamos – Money Manager (4th Qtr. – 2007)                                       38,178.00

Pinnacle Associates – Money Manger (4th Qtr. – 2007)         71,241.00

STW Fixed Income – Money Manager (4th Qtr. – 2007)                 30,634.05

UBS – Money Manager (4th Qtr. – 2007)                                              30,537.63

 

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

 

 

OTHER:  None

 

PUBLIC COMMENTS:  None

 

ADJOURNMENT:

 

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

 

Motion:  Mr. York made a motion to adjourn the meeting at 11:45 a.m.  Mr. Harrell seconded the motion.  The motion carried unanimously by the members present.

 

 

 

                                                           

                                                                                                            ___________________

                                                                                                            Chair

 

                                                                                                            ____________________

                                                                                                            Date