CITY OF KNOXVILLE PENSION BOARD
MINUTES
Thursday – March 13, 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 March 13, 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: Mr. Dan Holmes, Summit Strategies
CALL TO ORDER:
Mayor Haslam presided and called the meeting to order at 8:15 a.m.
APPROVAL OF REGULAR MEETING MINUTES FOR February 14, 2008.
Mr. Harrell made a motion to approve the February 14, 2008, meeting minutes. Ms. Pelot seconded the motion. The motion carried unanimously by the members present.
APPROVAL OF REVISED AGENDA:
The Revised Agenda was approved without objection. Exhibit 1
CONTRACTS:
Notice of Attorney fee increase – Exhibit 2
Mr. Cherry informed the Board that Attorney Gilbert had notified the Board of a fee increase in his hourly rate from $175 to $200 to be effective January 1, 2008. Mr. Gilbert advised the Board that the last fee adjustment was on January 1, 2005, and provided a letter of notification to the Board per the agreement with his firm. Mayor Haslam assured the Board that he believed the fees proposed to be reasonable.
Motion: Ms. Pelot made a motion to accept the new fee schedule as proposed by Kennerly, Montgomery & Finley, P.C., to be effective January 1, 2008, increasing Mr. Gilbert’s hourly rate from $175 to $200. Ms. Shelton seconded the motion. The motion carried unanimously by the members present.
ADMINISTRATIVE MATTERS:
Schedule Pension Board Meetings for Second Quarter 2008
Thursday, April 10, 2008 – 8:15 a.m.
Thursday, May 8, 2008 – 8:15 a.m.
Thursday, June 12, 2008 – 8:15 a.m.
The Pension Board meeting schedule was accepted without objection.
EXECUTIVE DIRECTOR COMMENTS: None
ATTORNEY COMMENTS:
2008 Charter Amendment Timetable – Exhibit 3
Attorney Gilbert distributed to the Board another copy of the timetable for the August and November 2008 referendums first presented to the Board in February. Attorney Gilbert asked the Board to review the list of suggested charter amendments for 2008, and inquired whether the Board deemed any of the items worthy for the August referendum. Attorney Gilbert discussed with the Board the importance of timing and suggested to the Board that there was nothing on the list that could not wait two years.
Mr. Coker advised the Board that the Police Officers might propose a charter amendment to extend the drop plan from a two year term to a four year term.
Mr. Cherry told the Board that he expected the education group to submit a proposed charter change regarding the cost of living increases for some of their members since such a change was defeated in the prior election.
Attorney Gilbert advised the Board that they would revisit the issue of 2008 Charter Amendments again, before the November referendum, but reminded the Board that the deadline to submit any changes to the Board was March 20, 2008, for the August 7, 2008 referendum.
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.
William J. Baker, General Government, G1 – Vested
Jo Ferguson, General Government, G1 – Non-vested
Milton C. Gordon, General Government, G1 – Non-vested
Charles L. Hicks, General Government, G1 –Non-vested
James E. McCarter, General Government, G2 – Vested
Pamela S. Whited, Fire Dept., Plan C - Vested
Diane Wyrick, General Government, G1 – Vested
Motion: Ms. Shelton made a motion to approve these applications for withdrawal of employee contributions. Ms. Pelot seconded the motion. The motion carried unanimously by the members present.
APPLICATION FOR DEFERRED RETIREMENT: PLAN G2
CHARTER SECTION 1360.28
Abigail S. Hudgens, General Government Option A-9
100% with reinstatement
Date of birth, February 24, 1946: 62 years of age
Total credited service: 18 years 4 months
Average monthly salary for 2 highest 12 month periods, $5,604.15 x .021 =
$117.69 x 18.33333 = $2,157.65. Ms. Hudgens chose Option A-9 – 100% with reinstatement to Edward Boone Hudgens. $2,157.65 x .8292 =
$1,789.12 pension effective March 1, 2008.
Motion: Mr. Harrell made a motion to approve this application for Deferred retirement payable under Option A-9. Mr. Hackney 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.
Virginia K. Carty, General Government – Plan G2 Option C – Cash Refund
Date of birth, June 23, 1942: 65 years of age
Total credited service: 23 years 2 months 29 days
Average monthly salary for 2 highest 12 month periods, $2,295.51 x .021 =
$48.21 x 23.24612 = $1,120.70. Ms. Carty chose Option C – Cash Refund to John William Carty, spouse. $1,120.70 x .921 =
$1,032.16 pension effective March 1, 2008.
DROP complete February 28, 2010.
Motion: Ms. Pelot made a motion to approve this application for DROP retirement payable under Option C. Mr. Harrell seconded the motion. The motion carried unanimously by the members present.
Mary M. Floyd, General Government – Plan G2 No Option
Date of birth, February 18, 1945: 63 years of age
Total credited service: 16 years 1 month 29 days
Average monthly salary for 2 highest 12 month periods, $2,196.75 x .021 =
$46.13 x 16.16279 =
$745.59 pension effective March 1, 2008.
DROP complete February 28, 2010.
Motion: Ms. Pelot made a motion to approve this application for DROP retirement. Mr. Harrell seconded the motion. The motion carried unanimously by the members present.
Kathy A. Fox, General Government – Plan G2 Option A-9
100% with reinstatement
Date of birth, March 7, 1954: 53 years of age
Total credited service: 30 years 4 months 27 days
Average monthly salary for 2 highest 12 month periods, $3,340.11 x .021 =
$70.14 x 30.40731 = $2,132.77. Ms. Fox chose Option A-9 – 100% with reinstatement to Michael Fox, spouse. $2,132.77 x .8792 =
$1,875.13 pension effective March 1, 2008.
DROP complete February 28, 2010.
Motion: Ms. Pelot made a motion to approve this application for DROP retirement payable under Option A-9. Mr. Harrell seconded the motion. The motion carried unanimously by the members present.
Ollie M. Messer, General Government – Plan G2 No Option
Date of birth, May 10, 1957: 50 years of age
Total credited service: 29 years 3 months 4 days
Average monthly salary for 2 highest 12 month periods, $2,338.59 x .021 =
$49.11 x 29.26096 =
$1,437.01 pension effective March 1, 2008.
DROP complete February 28, 2010.
Motion: Ms. Pelot made a motion to approve this application for DROP retirement. Mr. Harrell seconded the motion. The motion carried unanimously by the members present.
Mary A. Winton, General Government – Plan G2 Option A-7
50% with reinstatement
Date of birth, January 26, 1947: 61 years of age
Total credited service: 22 years 7 months 11 days
Average monthly salary for 2 highest 12 month periods, $1,978.78 x .021 =
$41.55 x 22.61347 = $939.59. Ms. Winton chose Option A-7 – 50% with reinstatement to Herbert L. Winton, spouse. $939.59 x .9016 =
$847.13 pension effective March 1, 2008.
DROP complete February 28, 2010.
Motion: Ms. Pelot made a motion to approve this application for DROP retirement payable under Option A-7. 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 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.
William D. Green, Police Department Uniformed Option A-6
100% without reinstatement
Date of birth, August 1, 1956: 51 years of age
Total credited service: 29 years 8 months 25 days
Average monthly salary for 2 highest 12 month periods, $6,581.86 x .025 =
$164.55 x 29.73516 = $4,892.92. Mr. Green chose Option A-6 – 100% without reinstatement to Patricia R. Green, spouse. $4,892.92 x .9338 =
$4,569.01 pension effective March 1, 2008.
DROP complete February 28, 2010.
Motion: Mr. Coker 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.
Michael L. Sullivan, Police Department Uniformed Option A-5
75% without reinstatement
Date of birth, July 28, 1953: 54 years of age
Total credited service: 28 years 3 months 19 days
Average monthly salary for 2 highest 12 month periods, $4,277.52 x.025 =
$106.94 x 28.30205 = $3,026.62. Mr. Sullivan chose Option A-5 – 75% without reinstatement to Marilyn J. Sullivan, spouse. $3,026.62 x .9571 =
$2,896.78 pension effective March 1, 2008.
DROP complete February 28, 2010.
Motion: Mr. Coker made a motion to approve this application for DROP retirement payable under Option A-5. Ms. Pelot seconded the motion. The motion carried unanimously by the members present.
APPROVAL OF INVOICES FOR PROFESSIONAL SERVICES:
Bryan, Pendleton, Swats & McAllister – Actuary (January ) $ 5,778.00
Kennerly,Montgomery & Finley – Attorney (General – Jan. 08) 4,541.90
SSGA – Money Manager (4th Qtr. 2007) 2,389.02
State Street – Custodial (January 2008) 8,489.61
Summit Strategies – Investment Consultant (1st 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. York seconded the motion. The motion carried unanimously by the members present.
INVESTMENT MATTERS:
Dan Holmes – Summit Strategies
Mr. Dan Holmes made a presentation of the 4th Quarter 2007, Performance Report and distributed a report on distressed market opportunities which he plans to review with the Board at a later time. Copies of the reports are on file in the Pension Office.
OTHER: None
PUBLIC COMMENTS: None
ADJOURNMENT:
There being no further business, Mayor Haslam adjourned the meeting at 9:09 a.m.
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Chair
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Date
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