CITY OF KNOXVILLE PENSION BOARD

MINUTES

Thursday – April 12, 2007

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 April 12, 2007.

 

Present were:  Mayor Bill Haslam, Mr. Scott Calloway, Mr. Greg Coker, Mr. Buddy Harrell, Mr. Stephen King, Mr. Larry Martin, Ms. Barbara Pelot, Mr. Michael Cherry and Attorney Bud Gilbert.

 

Also present:  Lt. Cheri Matlock, Knoxville Police Department

 

CALL TO ORDER:

 

             Mr. Calloway presided and called the meeting to order at 8:20 a.m.

 

APPROVAL OF REGULAR MEETING MINUTES FOR March 8, 2007:

Mr. Harrell made a motion to approve the March 8, 2007, meeting minutes.  Mr. Martin 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:  None

 

ADMINISTRATIVE MATTERS:

 

May Pension Board Meeting Date

 

Mr. Cherry advised the Board that Investment Consultant, Dan Holmes, had a May schedule conflict and had inquired as to whether or not the May 10, 2007, meeting could be rescheduled.  After a discussion by the Board it was decided not to change the May meeting date and allow Mr. Holmes to send another representative from his firm to the meeting in May, if necessary.

 

Securities Litigation Recommendation

 

Mr. Cherry made a recommendation to the Board to hire Glass Lewis for purposes of doing a back-test on securities litigation claims. 

 

Motion:  Ms. Pelot made a motion authorizing Mr. Cherry to complete a contract with Glass Lewis, subject to review by legal counsel, to do a back-test on potential securities litigation claims. Mr. Cherry explained Glass Lewis would retain 25% of any successful recoveries. Mr. Coker seconded the motion.  The motion carried unanimously by the members present.

 

EXECUTIVE DIRECTOR COMMENTS:

 

            Uniformed Bodies – In Line of Duty Disability Benefit – Tax Issue

 

Mr. Cherry informed the Board that he had asked Attorney Gilbert to have his firm render an opinion regarding whether or not the in-line of duty disability pension in the uniformed body division, Plan C, is taxable.  Mr. Cherry advised the Board that further investigation is needed regarding this due to an off-set relationship of benefits with worker’s compensation.

 

Mr. Cherry advised the Board that this question arose out of the Pension Protection Act which became effective in January 2007, which allows retirees in the uniformed bodies division to elect to have up to $3,000 of their health insurance premiums excluded for tax purposes.  Mr. Cherry told the Board that he is in the process of mailing applications to all Uniformed Bodies retirees who participate in the City’s health insurance plan, so they have the opportunity to elect to have these premiums excluded from taxable income.

 

ATTORNEY COMMENTS:

 

            Glenda Fields Litigation

 

Attorney Gilbert informed the Board that upon Attorney Tony Farmer’s request, the March hearing in the Glenda Fields’ litigation had been re-scheduled to July 20, 2007.

 

ENROLLMENTS:

 

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

 

                        Charles Edward Davis        

                        Ddonna B. Goodman

Alexandra Hussey

Kimberly E. Jones

Christopher Jon Livengood

Roger M. Nooe

Carrie L. Perry

James Smithhart

Dena Stevenson

Rebecca Wade

 

Motion:  Mr. King 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.

                       

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.

 

                        Jerry Barrett, General Government, G1 – Non-vested

                        Michele Dinsmore, General Government, G1 – Non-vested

Alison A. Elliott, General Government, G1 – Vested

Mark A. Ford, General Government, G1 – Vested

James M. Glovier, General Government, G1 - Vested    

Robert D. Greene, General Government, G1 – Vested

Jeremy McCord, Police Department, Plan C – Non-vested

Jammel McCuien, Police Dept., Plan C – Non-vested

Wanda F. Neal, General Government, G1 – Non-vested

Margaret Schmidt, General Government, G1 – Non-vested

Tony J. Shirk, General Government, G1 – Non-vested

 

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

 

DISABILITIES  

 

APPLICATION FOR INJURY IN LINE OF DUTY RETIREMENT:  PLAN C

CHARTER SECTION:  1390.11

         

          Kenneth E. Brewer, Fire Department – Uniformed - Exhibit 2            No Option

            Date of birth, March 24,1960 :  47 years of age                           

            Total credited service:   1 year 9 months 25 days

            Average monthly salary for 2 highest – 12 month periods, $2,388.77 x 50% =

            $1,194.39  pension effective April 1, 2007.

 

Motion:  Mr. Martin made a motion to approve this application for injury in line of duty pension, based on Dr. Jeffrey Uzzle’s medical report and Mr. Cherry’s Disability Recommendation Report, to be reviewed in two years or sooner if Mr. Brewer elects to have more aggressive treatment as stated in Mr. Cherry’s report.  Mr. Harrell seconded the motion.  The motion carried unanimously by the members present.

 

Mayor Haslam arrived at 9:05 a.m. and presided.

 

            Christine A. Piscatelli, Police Department – Uniformed – Exhibit 3                  No Option       Date of birth, July 6,1963:  43 years of age

            Total credited service:  9 years 8 months 28 days

Average monthly salary for 2 highest – 12 month periods, $3,268.68 x 50% =

            $1,634.34  pension effective November 1, 2006.

 

Motion:  Mr. Coker made a motion to approve this application for injury in line of duty pension based on Dr. Jerry Embry’s medical report and Mr. Cherry’s Disability Recommendation Report (with no future review).  Mr. Harrell seconded the motion.  The motion carried unanimously by the members present.

 

APPLICATION FOR INJURY IN LINE OF DUTY:  PLAN G2  

CHARTER SECTION 1360.22

 

            Henry M. Brown, General Government- Exhibit 4                                                No Option

            Date of birth, August 6, 1944:  62 years of age*

            Total credited service:  14 years 10 months 10 days**

            *Computed as if worked until age 62

**Computed as if worked until 62 (15 years 2 months 7 days)

Average monthly salary for 2 highest 12 month periods, $2,204.55 x .021 =

$46.30 x 15.18584 =

            $703.10 pension effective February 1, 2007.

 

Motion:  Mr. Harrell made a motion to approve this application for an In Line of Duty Disability based upon Dr. Kliefoth’s medical report and Mr. Cherry’s Disability Recommendation Report (with no future review).  Ms. Pelot seconded the motion.  The motion carried unanimously by the members present.

 

 

APPLICATION FOR PARTICIPATION IN THE DELALYED 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 Knoxville.

 

            Mark A. Waggoner, Police Department Uniformed                      No Option

            Date of birth, December 4, 1955:  51 years of age

            Total credited service:  28 years 9 months 26 days

            Average monthly salary for 2 highest 12 month periods, $3,860.41 x 2.5% =

            $96.51 x 28.82123 =

            $2,781.54 pension effective April 1, 2007.

            DROP complete March 31, 2009.

 

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

 

APPLICATION FOR LEAVE OF ABSENCE FOR MILITARY SERVICE: 

 

            David S. Blevins, Fire Department – Uniformed:  November 11, 2006 – April 5, 2007          

Albert T. Gibson, Jr., Fire Department – Uniformed:  March 4, 2007 – August 8, 2007

 

Frederick Kimber, Police Department – Uniformed:  January 24, 2007 – June 1, 2008

 

Motion:  Mr. Calloway made a motion to approve this application for Military Leave.  Mr. Harrell seconded the motion.  The motion carried unanimously by the members present.

 

APPROVAL OF INVOICES FOR PROFESSIONAL SERVICES:    

           

Bryan, Pendleton, Swats & McAllister – Actuary (February 2007)       $9,784.00  

Kennerly, Montgomery & Finley – Attorney (General – Feb. 2007)       2,456.50         

Kennerly, Montgomery & Finley – Attorney (G. Fields Lit. – Feb. 07)      792.00

Kennerly, Montgomery & Finley – Attorney (General – March 2007)    2,824.00         

Kennerly, Montgomery & Finley – Attorney (G. Fields Lit. – Mar. 07)   2,572.50                          

Kennerly, Montgomery & Finley – Attorney (Global Crossing Lit.)           150.57

 

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 these invoices.  Ms. Pelot seconded the motion.  The motion carried unanimously by the members present.

 

INVESTMENT MATTERS:

 

            Preliminary quarterly report

 

Mr. Cherry informed the Board that Investment Consultant, Dan Holmes, had sent the preliminary quarterly report for the quarter ended March 31, 2007, with good results and fund assets totaling $533 million.

 

OTHER:  None

 

PUBLIC COMMENTS:  None

 

ADJOURNMENT:

 

There being no further business before the Board, Mayor Haslam adjourned the meeting at 9:09 a.m.

 

 

 

                                                                                    _______________________

                                                                                    Chair

 

 

                                                                                    ________________________

                                                                                    Date

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