CITY OF KNOXVILLE PENSION BOARD
MINUTES
Thursday – April 10, 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 April 10, 2008.
Present were: 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 were: Lt. Cheri Matlock, Knoxville Police Department; Ms. Barbara Adcock, survivor of Police Department retiree, William Irwin; Kim Scarborough and William Lyons, General Government employees.
CALL TO ORDER:
Ms. Pelot presided and called the meeting to order at 8:15 a.m.
APPROVAL OF REVISED AGENDA: Exhibit 1
The Revised Agenda was approved without objection.
CONTRACTS: None
ADMINISTRATIVE MATTERS:
Charter Amendment Proposal Received – Exhibit 2
Mr. Cherry advised the Board of a charter amendment proposal received on March 20, 2008, for the August 7, 2008 referendum, by Mr. Paul Bean, retired Education division employee.
Appeal of Administrative Determination – Kim Scarborough – Exhibit 3
Motion: Mr. York made a motion to approve Ms. Scarborough’s appeal for reinstatement of prior service. Ms. Pelot seconded the motion. Mr. Coker, Mr. Hackney, Ms. Pelot, Ms. Shelton and Mr. Jim York voted yes. Mr. Harrell voted no. The motion passed 5-1.
William Irwin – Optional Benefit Payment
Attorney Gilbert reviewed with the Board deceased Police Department employee, William Irwin’s optional choice of benefit payment of 100% to former spouse, Barbara Adcock, his named beneficiary. Attorney Gilbert explained to the Board that in Mr. Irwin and Ms. Adcock’s divorce decree, Ms. Adcock had waived her right to the pension benefit due from Mr. Irwin. Attorney Gilbert summarized to the Board his firm’s research regarding the matter, which was inconclusive regarding the issue and reflected a split in the various Circuit Courts of Appeals that had considered a number of somewhat similar cases under ERISA (all of which were not entirely on point and distinguishable from the facts under review). He indicated that it was Mr. Cherry’s and his recommendation that the Board proceed with payment to Ms. Adcock, the named beneficiary at the time of Mr. Irwin’s retirement.
Motion: Mr. York made a motion to approve Mr. Irwin’s optional form of benefit payment of 100% to former spouse, Ms. Barbara Adcock. Mr. Coker seconded the motion. The motion carried unanimously by the members present.
EXECUTIVE DIRECTOR COMMENTS: None
ATTORNEY COMMENTS: None
ENROLLMENTS:
The following General Government employees have filed applications to become members of the Plan G1 pension system.
Gary N. Johnson
William Hinton
Eric Missett
Matthew T. Pyatt
Jack Valentine
Annemarie L. Wallace
Jessica Watson
Motion: Mr. Harrell made a motion to approve these applications for enrollment in the Plan G1 pension system. Mr. Hackney 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.
Brenda Abernathy, General Government, G1 – Non-vested
Scott D. Bell, Fire Dept., Plan C – Non-vested
Zina M. Bergman, General Government, G1 – Non-vested
Jonee Dorsett, General Government, G1 – Non-vested
Marcy L. Griffin, General Government, G1 – Non-vested
Scott Kinser, General Government, G1 – Vested
Robert Lister, Police Dept., Plan C – Non-vested
B. J. Meigs, General Government, G1 - Vested
Charles T. Payne, Jr., General Government, G1 – Non-vested
Kevin L. Ragland, Police Dept., Plan C – Non-vested
Amanda L. Smith, General Government, G1 – Vested (supplemental portion only)
Jason Stewart, Police Dept., Plan C – Non-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.
DISABILITIES
APPLICATION FOR INJURY IN LINE OF DUTY RETIREMENT: PLAN C - Exhibit 4
CHARTER SECTION: 1390.11
Donna Lisa Betschart, Police Department – Uniformed No Option
Date of birth, February 24, 1960: 48 years of age
Total credited service: 10 years 7 months 23 days
Average monthly salary for 2 highest – 12 month periods, $3,375.66 x 50% =
$1,687.83 pension effective May 1, 2008.
Motion: Mr. Coker made a motion to approve this application for injury in line of duty pension, based on Mr. Cherry’s Disability Recommendation Report and the medical records. Mr. Harrell seconded the motion. The motion carried unanimously by the members present.
APPLICATION FOR INJURY IN LINE OF DUTY: PLAN G2 - Exhibit 5
CHARTER SECTION 1360.22
Glenn E. Owen, General Government Option A-6
100% without reinstatement
Date of birth, December 15, 1948: 59 years of age*
Total credited service: 31 years 1 month 5 days**
*Computed as if 62 years of age
**Computed as if worked until 62
Average monthly salary for 2 highest 12 month periods, $2,131.12 x .021 =
$44.75 x 31.09703 = $1,391.59. Mr. Owen chose Option A-6 – 100% without reinstatement to Brenda V. Owen. $1,391.59 x .8154 =
$1,134.70 pension effective March 1, 2008.
Motion: Mr. Harrell made a motion to approve this application for injury in line of duty pension based on Mr. Cherry’s Disability Recommendation Report and the medical records. Mr. Coker seconded the motion. The motion carried unanimously by the members present.
APPLICATIONS FOR SURVIVOR’S BENEFIT: PLAN G1
CHARTER SECTION 1360.24
Rebecca B. Brack, active General Government employee died in service March 27, 2008. Ms. Brack chose the Cash Refund option to Adam Brack and Kelley Castillo. The present value of Ms. Brack’s pension, discounted to her date of death, is less than Ms. Brack’s total contributions. A refund will be payable to her beneficiaries.
Present value at death benefit under the Cash Refund Option - $13,767.22.
Total contributions - $17,669.77
$8,834.88 amount payable to Adam Brack
$8,834.89 amount payable to Kelley Castillo
Motion: Mr. Coker made a motion to approve this application for a survivor’s benefit. Mr. Harrell seconded the motion. The motion carried unanimously by the members present.
Scotty R. Walker, active General Government employee died in service March 19, 2008. Mr. Walker chose the Cash Refund option to Nathan Walker and Jacob Walker. The present value of Mr. Walker’s pension, discounted to his date of death, is less than Mr. Walker’s total contributions. A refund will be payable to his beneficiaries.
Present value at death benefit under the Cash Refund Option - $3,516.99.
Total contributions - $10,744.95
$5,372.48 amount payable to Nathan Walker
$5,372.47 amount payable to Jacob Walker
Motion: Mr. York made a motion to approve this application for a survivor’s benefit. Mr. Harrell seconded the motion. The motion carried unanimously by the members present.
APPLICATION FOR DEFERRED RETIREMENT: PLAN A
CHARTER SECTION 1360.28
Alfred L. Nance, Schools Option A-6
100% without reinstatement
Date of birth, March 19, 1946: 62 years of age
Total City credited service: 9 years 3 months
Total County credited service: 12 years 5 months
Total Credited service: 21 years 8 months
Last date of employment with City: June 1987
Last date of employment with County: September 2005
Average base earnings for 4 years, $400.00 x 75% = $3.00
Average excess earnings for 4 years, $899.10 x 1.50% = $13.49
making a total of $16.49 benefit per year of service. $16.49 x 9.250 =
$152.53. Mr. Nance chose Option A-6 – 100% without reinstatement to Anna Bell Nance, mother. $152.53 x .9817 =
$149.74 pension effective April 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 $1,023.94
Motion: Mr. York made a motion to approve this application for Deferred retirement payable under Option A-6. Mr. Harrell seconded the motion. The motion carried unanimously by the members present.
APPLICATION FOR RETIREMENT: PLAN G2 – RULE OF 80
CHARTER SECTION 1371.4
James M. Porter, General Government Option A-6
100% without reinstatement
Date of birth, June 26, 1948: 59 years of age
Total credited service: 39 years 10 months 26 days
Average monthly salary for 2 highest 12 month periods, $3,820.39 x .021 =
$80.23 x 39.90457 = $3,201.54. Mr. Porter chose Option A-6 – 100% without reinstatement to Dollie R. Porter, spouse. $3,201.54 x .8075 =
$2,585.24 pension effective April 1, 2008.
Motion: Mr. Harrell made a motion to approve this application for a Rule of 80 retirement payable under Option A-6. Mr. York 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.
Martha J. Shannon, General Government – Plan G2 Option A-9
100% with reinstatement
Date of birth, March 11, 1944: 64 years of age
Total credited service: 17 years 1 month 1 day
Average monthly salary for 2 highest 12 month periods, $3,050.24 x .021 =
$64.06 x 17.08607 = $1,094.53. Mrs. Shannon chose Option A-9 – 100% with reinstatement to William J. Shannon, spouse. $1,094.53 x .904 =
$989.46 pension effective April 1, 2008.
DROP complete March 31, 2010.
Motion: Mr. Harrell made a motion to approve this application for DROP retirement payable under Option A-9. Ms. Shelton seconded the motion. The motion carried unanimously by the members present.
APPROVAL OF INVOICES FOR PROFESSIONAL SERVICES:
Bryan, Pendleton, Swats & McAllister – Actuary (February) $3,514.00
Kennerly,Montgomery & Finley – Attorney (General – Feb. 08) 1,150.80
Kennerly,Montgomery & Finley – Attorney (G. Fields – Feb. 08) 1,320.00
Kennerly,Montgomery & Finley – Attorney (General – March 08) 4,855.64
Kennerly,Montgomery & Finley – Attorney (G. Fields – March 08) 420.00
Kennerly,Montgomery & Finley – Attorney (Global Crossing Lit.) 17.98
State Street – Trustee (December 2007) 3,327.42
State Street – Custodial (February 2008) 8,342.53
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. Hackney made a motion to pay these invoices. Mr. Coker seconded the motion. The motion carried unanimously by the members present.
INVESTMENT MATTERS:
Missouri State Retirement System
Mr. Cherry led a discussion with the Board about an article on the Missouri State Retirement System.
OTHER:
PUBLIC COMMENTS: None
ADJOURNMENT:
There being no further business, the meeting was adjourned without objection from the members.
___________________
Chair
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Date
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