CITY OF KNOXVILLE PENSION BOARD
MINUTES
Thursday – April 9, 2009
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 9, 2009.
Present were: Mayor Bill Haslam, Mr. Joe Hackney, Mr. Jim Hutchens, Ms. Barbara Pelot, Ms. Robin Shelton, Mr. Jim York, Mr. Michael Cherry and Attorney Bud Gilbert.
Also present: Ms. Valerie Coleman, General Government employee.
CALL TO ORDER:
Mayor Haslam presided and called the meeting to order at 8:20 a.m.
APPROVAL OF REGULAR MEETING MINUTES FOR March 12, 2009.
Ms. Pelot made a motion to approve the March 12, 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.
ADMINISTRATIVE MATTERS:
Federal Withholding Tables
Mr. Cherry advised the Board that new federal withholding tables had been installed and new rates were effective with the March benefit checks.
Private Equity International Forum – Exhibit 2
Mr. Cherry distributed to the Board a handout on an upcoming private equity international forum which he thought some of the board members might be interested in attending in May.
Southeast Public Funds Investment Conference
Mr. Cherry informed the Board about the upcoming Southeast Public Funds Investment Conference in Atlanta this June, which he thought might be an informative session for any board member interested in attending.
ATTORNEY COMMENTS:
Glenda Fields’ Litigation
Attorney Gilbert advised the Board that he was still awaiting a decision from Chancellor Weaver on Glenda Fields’ litigation.
Investment Committee Policy– Exhibit 3
Attorney Gilbert distributed to the Board a copy of the Pension Board Investment Committee Charter which he had previously distributed to the Board in March and asked for any recommendations or changes.
Guidelines – Hiring Process – Exhibit 4
Attorney Gilbert distributed to the Board a suggested hiring process draft for their consideration in regards to the Accounting/Assistant Executive Director position. Attorney Gilbert advised the Board that he would revise the draft with the suggested changes.
Gillis Barbee Appeal
Attorney Gilbert advised the Board that an opinion on this matter would be ready by the next Board meeting.
Stone Energy Litigation – Exhibit 5
Attorney Gilbert informed the Board about the opportunity of the Pension System to be the lead institutional plaintiff in the Stone Energy Corporation securities litigation and distributed a copy of the Board’s Policies and Procedures for Monitoring and Managing Securities Related Claims, which is attached as Exhibit 5. After a discussion of the existing litigation and the possible involvement of the Pension Board as the substituted lead plaintiff in the case, the following motion was made:
Motion: Mr. Hutchens made a motion authorizing the Pension Board to enter the Stone Energy Corporation securities litigation as lead plaintiff and to authorize Mr. Cherry to sign an engagement letter with the Board’s securities firm Barroway Topaz Kessler Meltzer & Check, LLP, subject to review by Attorney Gilbert and in accordance with the Pension Board’s policies and procedures for monitoring and managing securities related claims. Ms. Pelot seconded the motion. The motion carried unanimously by the members present.
William Manis overpayments
Attorney Gilbert updated the Board on the progress made in recapturing the overpayment of retirement benefits made for the benefit of deceased retiree, Mr. William Manis.
Plan G1 Member Benefit Calculation – Exhibit 6
Attorney Gilbert informed the Board about a letter he had received from Attorney Al Holifield who represents a group of City of Knoxville employees who are requesting a limited opportunity to move to Plan G2 or have their calculation of retirement benefits changed from Plan G1 to the calculation provisions in Plan G2, since they were required to make the election prior to the implementation of the Rule of 80.
General Government employee, Ms. Valerie Coleman, spoke on behalf of herself and 31 additional employees who were also involved in this request.
Attorney Gilbert advised the Board that he would contact Mr. Holifield for a discussion regarding the matter and make a recommendation to the Board at a later date.
Mr. Hutchens made a request to the Board that if there was a one-time provision to allow these members to change from Plan G1 to Plan G2 that an opportunity also be given to certain Plan A members to switch to Plan G.
CONTRACTS: None
EXECUTIVE DIRECTOR COMMENTS: None
WITHDRAWALS:
The following employees have filed an application to withdraw employee pension contributions plus 4% interest and the supplemental retirement account as applicable in Plan G Option 1.
Michael D. Barlow, Police Dept., Plan C – Non-vested
Ronald L. Frank, General Govt., Plan G1 – Non-vested
Motion: Ms. Shelton 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 A
CHARTER SECTION 1360.28
Carrell D. Ray, Schools No Option
Date of birth, March 17, 1947: 62 years of age
Total credited service: 10 years (last employed June 1979)
$78.30 pension effective April 1, 2009
MOTION: Mr. York made a motion to approve this application for a Deferred retirement. Mr. Hutchens seconded the motion. The motion carried unanimously by the members present.
APPROVAL OF INVOICES FOR PROFESSIONAL SERVICES: (GREEN TAB)
Bryan, Pendleton, Swats & McAllister – Actuary (Feb. 2009) $15,695.00
Kennerly,Montgomery & Finley – Attorney (General –Feb. 09) 1,615.50
Kennerly,Montgomery & Finley – Attorney (General –Mar. 09) 4,442.50
Kennerly,Montgomery & Finley – Attorney (Global Crossing) 11.58
State Street – Trustee (January 2009) 3,376.76 State Street – Trustee (February 2009) 3,352.83
State Street – Custodial (February 2009) 8,393.27
AQR – Money Manger (4th Qtr – 2008) 61,682.00
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. Hackney seconded the motion. The motion carried unanimously by the members present.
INVESTMENT MATTERS:
State Street Securities Lending
Mr. Cherry informed the Board that State Street had formalized its investment policy for its Securities Lending collateral pools. The custodian is focusing on very liquid securities and shortening the duration of the investments. In addition State Street Global Advisors who manages an S&P Index fund, which fund participates in the Security Lending program, has established withdrawal parameters. He recommended staying in the State Street Securities Lending program.
Fixed Income Bond Downgrades - Exhibit 7
Mr. Cherry distributed to the Board information from Calamos and STW on bond downgrades for the Board’s information and review. Mr. Cherry informed the Board that he did not receive the requested information from Aberdeen but would follow up with this investment advisor.
Summit Strategies Questionnaire – Exhibit 8
Mr. Cherry distributed to the Board a questionnaire completed by Investment Consultant, Mr. Dan Holmes of Summit Strategies, which the Board decided to review and discuss with Mr. Holmes, in person, at the May meeting.
OTHER: None
PUBLIC COMMENTS: None
ADJOURNMENT:
With no further business before the Board, Mayor Haslam adjourned the meeting at 9:10 a.m.
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Chair
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Date
M:\Board\minutes\2009\april.doc