CITY OF KNOXVILLE PENSION BOARD
MINUTES
Thursday - March 8, 2007
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 March 8, 2007.
Present were: Mayor Bill Haslam, Mr. Scott Calloway, Mr. Buddy Harrell, Mr. Stephen King, Mr. Michael Cherry and Attorney Bud Gilbert.
CALL TO ORDER:
Mayor Haslam presided and called the meeting to order at 8:20 a.m.
APPROVAL OF REGULAR MEETING MINUTES FOR February 8, 2007:
Mr. Harrell made a motion to approve the February 8, 2007, meeting minutes. Mr. King seconded the motion. The motion was approved without objection.
APPROVAL OF REVISED AGENDA: Exhibit 1
The Revised Agenda was approved without objection.
CONTRACTS: None
ADMINISTRATIVE MATTERS:
Schedule Pension Board Meetings for Second Quarter 2007
Thursday, April 12, 2007 – 8:15 a.m.
Thursday, May 10, 2007 – 8:15 a.m.
Thursday, June 14, 2007 – 8:15 a.m.
It was the consensus of the Board to accept the Pension Board meeting schedule for the first quarter 2007.
EXECUTIVE DIRECTOR COMMENTS:
Investment Return Comparison with KUB – Exhibit 2
Mr. Cherry provided the Board with a comparison of City’s investment return with KUB at June 30, 2006 and December 31, 2006, over a one, three and five year period.
Southeastern Public Employees Conference
After attending the Southeastern Public Employees Conference in Atlanta, Mr. Cherry would discuss with Board counsel, Mr. Gilbert, trustees’ fiduciary responsibilities with respect to corporate governance issues and securities litigation monitoring. Mr. Cherry would make a recommendation as to appropriate education and potential action with respect to each of these issues at the April meeting.
ATTORNEY COMMENTS:
Glenda Fields’ Litigation
Attorney Gilbert reminded the Board that the upcoming motion to remand in the Glenda Fields’ litigation, was scheduled for March 23, 2007.
ENROLLMENTS:
The following General Government employees have filed applications to become members of the Plan G1 pension system.
Michael Hinricher
Brian D. Lynch
Rickey J. McMurtrie
Edward J. Warren, III
Eric White
Motion: Mr. Calloway made a motion to approve these applications for enrollment in the Plan G1 pension system. Mr. Harrell seconded the motion. The motion carried unanimously by the members present.
The following Fire Department, Uniformed employees, have filed applications to become members of the Plan C pension system.
Deanna A. Allen
Bradley J. Bailey
James H. Boyd, III
Stephen B. Brunson, Jr.
James A. Davis
Corey J. Dotson
Shawn D. Eldridge
Brad A. Elliott
Joshua E. Foster
Steven A. Hall
Michael W. Hopson
Andrew J. Howard
Donald W. Johnson
Robert A. La Shier
Ronald E. Layne
David D. Lowe
Alfred S. Ludwig, II
Jacob W. Mason – (transferred from General Government)
Christopher A. Medley
Henry C. Michael
Bradley L. Miller
Jennifer K. Myers
Rushie L. M. Myers
Melody B. Neubert
David E. Randles
James E. Risden
Eric R. Roddy
Jason D. Toth
Luke B. Vandergriff
Eric N. White – (transferred from General Government)
Jonathan C. Wormsley
Motion: Mr. Calloway made a motion to approve these applications for enrollment in the Plan C pension system. Mr. Harrell 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.
Jeffrey Brooks, Police Dept., Plan C – Non-vested
Raymond E. Gass, General Government, G1 – Non-vested
Anthony Macon, General Government, G1 – Non-vested
Robert E. Stooksbury, General Government, G1 – Vested
Margo Thompson, General Government, G1 – Non-vested
Motion: Mr. Calloway made a motion to approve these applications for withdrawal of employee contributions. Mr. King seconded the motion. The motion carried unanimously by the members present.
DISABILITY
APPLICATION FOR INJURY IN LINE OF DUTY RETIREMENT: PLAN C
CHARTER SECTION: 1390.11
Kelvin R. Reed, Police Department – Uniformed No Option
Date of birth, April 19, 1966: 40 years of age
Total credited service: 12 years 3 months 17 days
Average monthly salary for 2 highest – 12 month periods, $3,520.39 x 50% =
$1,760.20 pension effective March 1, 2007.
Motion: Mr. Harrell made a motion to approve this application for injury in line of duty pension, based on Dr. Jeffrey Uzzle’s report, to be reviewed in two years. Mr. King seconded the motion. The motion carried unanimously by the members present.
APPLICATION FOR BUYBACK OF PRIOR MILITARY SERVICE: - (BLUE TAB)
(Charter Section 1350.9(E)
Willie P. Ownby, General Government – Plan G1
Buyback of four years for the amount of $14,828.68
Motion: Mr. Harrell made a motion to approve this application to buyback four years of prior military service for the amount of $14,828.68. Mr. King seconded the motion. The motion carried unanimously by the members present.
APPLICATION FOR EARLY RETIREMENT: PLAN A
CHARTER SECTION 1360.17
Velma Kay Southern, Schools Certified Option A-9
100% with reinstatement
Date of birth, March 19, 1951: 55 years of age
Total City credited service: 12 years
Total County credited service: 19 years 8 months
Total credited service: 31 years 8 months
Last date of employment with City: June 1987
Last date of employment with County: February 2007
Average base earnings for 4 years, $400.00 x 75% = $3.00
Average excess earnings for 4 years, $1,054.60 x 1.50% = $15.82
making a total of $18.82 benefit per year of service. $18.82 x 12 =
$225.84 x ER factor .5726 = $129.32. Ms. Southern chose Option A-9 – 100% without reinstatement to Mack N. Southern, father. $129.32 x .9574 =
$123.81 pension effective March 1, 2007.
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 $1,009.65.
25 years required for Early retirement. Supreme Court ruling entitles retiree to combine City & County credited service.
Motion: Mr. King made a motion to approve this application for retirement payable under Option A-9. Mr. Harrell seconded the motion. The motion carried unanimously by the members present.
APPLICATION FOR RETIREMENT: PLAN G2 – NORMAL
CHARTER SECTION 1360.12
James A. Harrell, General Government Option A-6
100% without reinstatement
Date of birth, November 30, 1941: 65 years of age
Total credited service: 12 years 5 months 24 days
Average monthly salary for 2 highest 12 month periods, $2,248.97 x 2.1% =
$47.23 x 12.48242 = $589.54. Mr. Harrell chose Option A-6 – 100% without reinstatement to Lena Harrell, spouse. $589.54 x .8075 =
$476.05 pension effective March 1, 2007.
Motion: Mr. Calloway made a motion to approve this application for retirement payable under Option A-6. Mr. King seconded the motion. The motion carried unanimously by the members present.
APPROVAL OF INVOICES FOR PROFESSIONAL SERVICES:
Bryan, Pendleton, Swats & McAllister – Actuary (January 2007) $ 5,682.00
Kennerly, Montgomery & Finley – Attorney (General – Jan. 07) 1,581.00
State Street – Custodial (January 2007) 8,333.33 State Street – Trustee (January 2007) 3,319.55
State Street Global – Money Manager (4th Qtr. 2006) 3,686.99
Summit Strategies – Investment Consultant (1st Qtr. 2007) 31,250.00
Cortina Asset Management – Money Manager (3rd Qtr 2006) 74,479.38
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. Mr. King seconded the motion. The motion carried unanimously by the members present.
INVESTMENT MATTERS: None
OTHER: None
PUBLIC COMMENTS: None
ADJOURNMENT:
There being no further business before the Board, Mayor Haslam adjourned the meeting at 8:42 a.m.
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Chair
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Date
M:\Board\minutes\2007\march.doc