CITY OF KNOXVILLE PENSION BOARD

MINUTES

Thursday – May 8, 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 May 8, 2008.

 

Present were: Mayor Bill Haslam, 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. Billy Williams, STW Fixed Income Management; Mr. Jack Estes and Ms. Chi Hae Park, Cadogan Management; Mr. Dan Holmes and Mr. Chris Jordan, Summit Strategies.

 

 

CALL TO ORDER:

 

            Ms. Pelot presided and called the meeting to order at 8:15 a.m.

 

APPROVAL OF REGULAR MEETING MINUTES FOR March 13, 2008.

 

Ms. Shelton made a motion to approve the March 13, 2008, meeting minutes.  Mr. Hackney seconded the motion.  The motion carried unanimously by the members present.

 

APPROVAL OF REGULAR MEETING MINUTES FOR April 10, 2008.

 

Mr. Hackney made a motion to approve the April 10, 2008, meeting minutes.  Mr. Harrell seconded the motion.  The motion carried unanimously by the members present.

 

APPROVAL OF REVISED AGENDA:

 

            The Revised Agenda was approved without objection.

 

INVESTMENT MATTERS:

 

STW Management Review

 

Billy Williams of STW Fixed Income Management made a presentation to the Board.  A copy of the report is on file in the Pension Office.

 

                        Cadogan Management Review

 

Jack Estes and Chi Park of Cadogan Management made a presentation to the Board.  A copy of the report is on file in the Pension Office.

 

Mayor Haslam arrived at 9:20 a.m. and presided after a brief recess.

                       

Dan Holmes – Summit Strategies

 

Mr. Holmes made a presentation of the 1st Quarter, 2008 Performance Report.  Copies of his report are on file in the Pension Office.

 

Asset Liability Study

 

Mr. Chris Jordan and Mr. Dan Holmes of Summit Strategies gave a presentation to the Board on an Asset/Liability study performed by Summit Strategies in conjunction with Bryan, Pendleton, Swats & McAllister.  The Board’s actuary, Mr. Alan Pennington, was also available during the presentation.

 

Mayor Haslam left the meeting at 10:10 a.m.

 

CONTRACTS:

                        Audit Contract

 

Mr. Cherry informed the Board that HG&A Associates would no longer be able to perform the audit report for the pension system due to a staffing shortage.  Mr. Cherry advised the Board that he would immediately begin to search for another firm to complete the audit.

 

ADMINISTRATIVE MATTERS: None

 

EXECUTIVE DIRECTOR COMMENTS:

 

            Kim Scarborough

 

Mr. Cherry informed the Board that Kim Scarborough had completed a formal application for reinstatement of prior service which the Board approved in April, and payment had been received and deposited into the fund for the prior service time reinstated.

 

ATTORNEY COMMENTS:

 

            Global Crossing Litigation – Exhibit 2

 

Attorney Gilbert distributed a memo to the Board regarding the Global Crossing litigation, which included an offer of settlement. 

 

Motion:  Mr. York made a motion to authorize the Executive Director to approve any reasonable settlement in this matter.  Mr. Harrell seconded the motion.  The motion carried unanimously by the members present.

 

Education Division – Charter Amendment Proposal

 

Attorney Gilbert reminded Mr. Cherry and the Board that a report on the charter amendment proposal, presented to the Board by the Education Division, was due to City Council by May 20, 2008.

 

ENROLLMENTS:

 

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

 

                        Gillis L. Barbee

                        Timothy W. Conway

                        Michelle L. Dockett

                        Ronda Halseth

                        Keith J. Hogue

                        Gregory Jones

                        Tracy McFarland

                        Precious McMahan

                        Nicholas Miley

                        Eric R. Miller

                        Elizabeth Morrow

                        Deborah E. Murphy

                        Benjamin Peterson

Terry Russell

Rachel Searcy

Michael Tinlsey

Raymond E. Webster

Tim Woods

Harry Franklin Young

 

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.

                       

                        James Hanley, Police Dept., Plan C – Non-vested

Kevin Hoffman, General Government, G2 - Vested

Alexandra Hussey, General Government, G1 – Non-vested

Ryan Smith, Police Dept., Plan C – Non-vested

Steven J. Smith, Police Dept., Plan C – Non-vested

                        Andrew Summers, Police Dept., Plan C – Non-vested

                        Christian Thompson, General Government, G1 - Vested

 

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

 

APPLICATION FOR DEFERRED RETIREMENT:  PLAN A

CHARTER SECTION 1360.28

 

            Sandra Sincerbox, Schools Certified                                             Option A-7

50% with reinstatement

            Date of birth, April 19, 1946:  62 years of age

            Total City credited service:  19 years

            Total Credited service:  19 years (no County service)

            Last date of employment with City:  June 1987

            Average base earnings for 4 years, $400.00 x 75% = $3.00

            Average excess earnings for 4 years, $1,495.23 x 1.50% = $22.43

            making a total of $25.43 benefit per year of service.  $25.43 x 19 =

$483.17.  Ms. Sincerbox chose Option A-7 – 50% with reinstatement to David R. Sincerbox, spouse.  $483.17 x .9066 =

            $438.04 pension effective May 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.

 

Motion:  Mr. York made a motion to approve this application for deferred retirement payable under Option A-7.  Ms. Shelton seconded the motion.  The motion carried unanimously by the members present.

 

APPLICATION FOR EARLY RETIREMENT:  PLAN A

CHARTER SECTION 1360.17

 

Deborah Henry, Schools Certified                                      No Option

Date of birth, March 12, 1952:  56 years of age

Total City credited service:  13 years

Total County credited service:  20 years 9 months

Total credited service:  33 years 9 months

Last date of employment with City: June 1987

Last date of employment with County:  April 2008

Average base earnings for 4 years, $400.00 x 75% = $3.00

Average excess earnings for 4 years, $1,105.99 x 1.50% = $16.59

Making a total of $19.59 benefit per year of service.  $19.59 x 13 =

$254.67 x ER Factor .5726 =

$145.82 City pension effective May 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 $1,155.26.

 

25 years required for Early retirement.  Supreme Court ruling entitles retiree to combine City & County credited service.

 

Motion:  Mr. Harrell made a motion to approve this application for Early Retirement.  Mr. Hackney seconded the motion.  The motion carried unanimously by the members present.

           

APPLICATION FOR RETIREMENT:  PLAN G2 – RULE OF 80

CHARTER SECTION 1371.4

 

            Vivian D. Fritz, General Government                                              No Option

            Date of birth, October 7, 1954:  53 years of age

            Total credited service:  28 years 6 months 6 days

            Average monthly salary for 2 highest 12 month periods, $2,744.75 x .021 =

$57.64 x 28.51644 =

            $1,643.69 pension effective May 1, 2008.

 

Motion:  Mr. York made a motion to approve this application for Rule of 80 Retirement.  Mr. Harrell seconded the motion.  The motion carried unanimously by the members present.

 

APPROVAL OF INVOICES FOR PROFESSIONAL SERVICES:    

Bryan, Pendleton, Swats & McAllister – Actuary (March 2008)               $ 7,922.00

Aberdeen Asset Man. – Money Manager (1st Qtr. 2008)            36,556.46

Calamos – Money Manager (1st Qtr. 2008)                                               31,656.00

INTECH – Money Manager (1st Qtr. 2008)                                       8,898.52

Pinnacle Associates – Money Manager (1st Qtr. 2008)                            62,166.00

STW – Money Manager (1st Qtr. 2008)                                                      30,357.37             

State Street – Trustee (January 2008)                                                         3,368.89

State Street – Trustee (February 2008)                                                       3,344.60                                      

State Street – Custodial (March 2008)                                                       8,400.28                                              

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. York made a motion to pay these invoices.  Mr. Harrell seconded the motion.  The motion carried unanimously by the members present.

 

OTHER:  None

 

PUBLIC COMMENTS:  None

 

ADJOURNMENT:

 

There being no further business, the following motion was made:

 

Motion:  Mr. Hackney made a motion to adjourn the meeting at 11:08 a.m.  Mr. Harrell seconded the motion.  The motion carried unanimously by the members present.

 

 

 

 

                                                                                   

                                                                                    ______________________

                                                                                    Chair

 

                                                                                    _______________________

                                                                                    Date

 

 

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