CITY OF KNOXVILLE PENSION BOARD

MINUTES

Thursday – February 12, 2009

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 February 12, 2009.

 

Present were:  Ms. Barbara Pelot, Mr. Greg Coker, Mr. Joe Hackney, Mr. Jim Hutchens, Ms. Robin Shelton, Mr. Jim York, Mr. Michael Cherry and Attorney Bud Gilbert.

 

Also present:  Ms. Kristi Paczkowski, Pugh and Company; Mr. Dan Holmes, Summit Strategies

 

CALL TO ORDER:

 

            Ms. Pelot presided and called the meeting to order at 8:15 a.m.

 

ENROLLMENTS:

 

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

                       

                        Pamela J. Boden

                        Mark Byrd

                        Roger C. Fernandez

                        Cris Fuller

                        Bilinda Gregory

                        Joseph L. Holloway

                        Donald James

                        Clyde Jones

                        John R. Little, Jr.

                        Lennon Marcum

                        Chris Meyers

                        David Peacock

                        Dustin E. Sands

                        Vernal J. Smith

                        Carmen Vittoni

                        Alan R. Whitson

 

Motion:  Mr. Hackney made a motion to approve these applications for enrollment in the Plan G1 pension system. Ms. Shelton seconded the motion.  The motion carried unanimously by the members present.

 

WITHDRAWALS:

The following employee has filed an application to withdraw employee pension contributions plus 4% interest and the supplemental retirement account as applicable in Plan G Option 1.

 

            Adam J. Barnett, Police Dept., Plan C – Non-vested

Danny M.  Blair, General Govt., G-1 – Non-vested

Jason Brink, Police Dept., Plan C – Vested

Travis Cox, General Govt., G-1 – Vested

Robert Downs, Police Dept., Plan C – Non-vested

                        Michael Ivester, Police Dept., Plan C - Vested

 

Motion:  Mr. Coker made a motion to approve these applications for withdrawal of employee contributions.  Mr. Hackney seconded the motion.  The motion carried unanimously by the members present.

 

APPLICATION FOR DEFERRED RETIREMENT:  PLAN G2

CHARTER SECTION 1360.28

 

            Carolyn L. Cate, General Government                                           No Option

Date of birth, January 7, 1947:  62 years of age

            Total credited service: 19 years 10 months 14 days (last employed October 2005)

            Average monthly salary for 2 highest 12 month periods, $3,189.01 x .021 =

            $66.97 x 19.87169 =

$1,330.81 pension effective February 1, 2009

 

Motion:  Mr. York made a motion to approve this application for deferred retirement.  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.

 

Van James Bubel, Police Dept. - Uniformed                     Option A-6

                                                                                                100% without reinstatement

Date of birth, November 28, 1946: 62 years of age

            Total credited service:  30 years 20 days

            Average monthly salary for 2 highest 12 month periods, $4,753.26 x .025 =

$118.83 x 30 = $3,564.90.  Mr. Bubel chose Option A-6 – 100% without reinstatement to Brenda Carolyn Bubel, spouse.  $3,564.90 x .9138 =

            $3,257.61 pension effective February 1, 2009.

            DROP complete January 31, 2011.

 

Motion:  Mr. Coker made a motion to approve this application for DROP retirement payable under Option A-6.  Mr. Hackney seconded the motion.  The motion carried unanimously by the members present.

 

APPROVAL OF INVOICES FOR PROFESSIONAL SERVICES:    

           

Bryan, Pendleton, Swats & McAllister – Actuary (Dec. 2008)          $ 4,096.00

            Kennerly,Montgomery & Finley – Attorney (General –Dec.  08)         2,186.90

Kennerly,Montgomery & Finley – Attorney (G. Fields – Dec.  08)      1,022.40

State Street – Trustee (Nov. 2008)                                                 3,407.21                     State Street – Custodial (Dec. 2008)                                                          8,389.95

Aberdeen – Money Manager (4^th Qtr. – 2008)                                  31,250.95

Calamos – Money Manager (4^th Qtr. – 2008)                                       25,836.00

INTECH – Money Manager (4^th Qtr. – 2008)                                           6,116.70

            Pinnacle Associates – Money Manager (4^th Qtr. – 2008)                  38,714.00

STW – Money Manager (4^th Qtr. – 2008)                                               29,853.14

UBS – Money Manager (4^th Qtr. – 2008)                                               13,107.64

                       

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. Coker made a motion to pay these invoices.  Mr. Hackney seconded the motion.  The motion carried unanimously by the members present.

 

Audit Presentation

           

            2007 – 2008 Audit Report & Financial Statement – Ted Hotz

 

Ms. Kristi Paczkowski of Pugh & Co. made a presentation to the Pension Board of the annual audit for fiscal year July 1, 2007 through June 30, 2008.  A copy is on file in the Pension Office.

 

Motion:  Mr. York made a motion to accept the Audit Report – June 30, 2007 and June 30, 2008.  Ms. Shelton seconded the motion.  The motion carried unanimously by the members present.

 

APPROVAL OF REGULAR MEETING MINUTES FOR January 8, 2009.

 

Mr. Coker made a motion to approve the January 8, 2009, meeting minutes.  Mr. Hackney 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:

 

            Adams Street Partners

 

Mr. Cherry advised the Board that the agreement with Adams Street Partners, the private equity diversified funds manager hired by the Board in October, was ready to be submitted.

 

ADMINISTRATIVE MATTERS:

 

            Appointment of Investment Committee

 

The Board decided to discuss at the upcoming March meeting, the formation of an Investment Committee.

 

Schedule Pension Board Meetings for Second Quarter 2009

 

                        Thursday, April 9, 2009 – 8:15 a.m.

            Thursday, May 14, 2009 – 8:15 a.m.

                        Thursday, June 11, 2009 – 8:15 a.m.

 

The Pension Board meeting schedule was accepted without objection.

 

2008 – 2009 Audit

 

Mr. Cherry asked the Board for direction in securing an audit contract for the 2008 – 2009 fiscal year.

 

Motion:  Ms. Shelton made a motion to continue with auditors, Pugh & Company, for one additional year, contingent upon a satisfactory fee arrangement being negotiated by Mr. Cherry.  Mr. Hackney seconded the motion.  The motion passed unanimously by the members present.

 

EXECUTIVE DIRECTOR COMMENTS:

 

ATTORNEY COMMENTS:

 

            Glenda Fields’ Litigation

 

Attorney Gilbert informed the Board that oral arguments in the Glenda Field’s litigation were presented to Chancellor Weaver in connection with the briefs filed by each party, which then resulted in Chancellor Weaver’s request for each side to submit a list of the evidence from the record supporting that party’s position.  Attorney Gilbert’s firm has already complied with that request.  Attorney Gilbert advised the Board that a decision from the Chancellor was expected soon.

           

            Securities Litigation Policy – Exhibit 2

 

Mr. Hutchens arrived at 9:15 a.m.

 

Motion:  Mr. Coker made a motion to adopt the Policy and Procedures for Monitoring and Managing Securities Related Claims as presented and prepared by Attorney Gilbert.  Mr. Hackney seconded the motion.  The motion carried unanimously by the members present.

 

INVESTMENT MATTERS:

           

Dan Holmes – Summit Strategies

           

UBP Redemption Request

 

Mr. Holmes informed the Board that the redemption request had been made early, to Union Bancaire Privee.

 

Motion:  Mr. Hackney made a motion, upon the recommendation of Investment Consultant, Mr. Dan Holmes, authorizing Summit Strategies to perform a search to replace Hedge Fund Manager, Union Bancaire Privee Asset Management.  Mr. Coker seconded the motion.  The motion carried unanimously by the members present.

 

4Q 2008 Performance Report

 

Mr. Dan Holmes made a presentation of the 4th Quarter 2008, Performance Report and distributed several reports on the current economic situation and outlook.  Copies of the reports are on file in the Pension Office.

 

OTHER:  None

 

PUBLIC COMMENTS:  None

 

ADJOURNMENT:

 

Motion:  Ms. Shelton made a motion to adjourn the meeting at 10:49 a.m.  Mr. Coker seconded the motion.  The motion carried unanimously by the member present.

 

 

 

                                                                                                _____________________

                                                                                                Chair

 

                                                                                                ______________________

                                                                                                Date