CITY OF KNOXVILLE PENSION BOARD
MINUTES
June 8, 2006
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 June 8, 2006.
Present were: Ms. Barbara Pelot, Mr. Buddy Harrell, Mr. Stephen King, Mr. Christopher Kinney, Mr. Michael Cherry and Attorney Bud Gilbert.
Also present: Lt. Cheri Matlock, Knoxville Police Department.
CALL TO ORDER:
Ms. Pelot presided and called the meeting to order at 8:25 a.m.
APPROVAL OF REGULAR MEETING MINUTES FOR May 11, 2006
Motion: Mr. Harrell made a motion to approve the May 11, 2006, meeting minutes. Mr. Kinney 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:
Cortina Asset Management
Mr. Cherry advised the Board that the Cortina Asset Management contract was close to being finalized.
ADMINISTRATIVE MATTERS:
Schedule Pension Board Meetings for Third Quarter 2006
Thursday, July 13, 2006 – 8:15 a.m.
Thursday, August 10, 2006 – 8:15 a.m.
Thursday, September 14, 2006 – 8:15 a.m.
It was the consensus of the Board to accept the Pension Board meeting schedule for the July and August meetings. The Board meetings for September 2006 through January 2007, will be scheduled at a later date due to scheduling conflicts with some of the Board members.
EXECUTIVE DIRECTOR COMMENTS:
City Council Meeting
Mr. Cherry advised the Board that the Pension Charter Amendments passed 1st Reading at the June 6, 2006, council meeting, after having each item separated by individual ordinance. All three ordinances passed by a unanimous vote except for the ordinance regarding the thirty-three general government employees request for a one time opportunity to switch from Pension Plan G-1 to Pension Plan G-2 as a result of the Rule of 80 change. This ordinance passed on first reading by a vote of 7-yes and 2-no.
All three amendments will be scheduled before City Council for second reading at the June 20, 2006, City Council meeting. Attorney Gilbert advised the Board that he was going to research the material used during the initial enrollment period for Plan A to Plan G employees.
Mr. Cherry advised the Board that the Pension Office would be faxing a letter, today, to City employee groups regarding proposed Pension Charter Amendments for the November Referendum. Mr. Cherry told the Board that any such proposals would need to be received in the Pension office by June 15, 2006.
ATTORNEY COMMENTS:
Global Crossing Bankruptcy Proceedings
Attorney Gilbert advised the Board that there was no additional information on the Global Bankruptcy Proceedings since last meeting.
Glenda Fields Litigation
Attorney Gilbert advised the Board that there were no further reports regarding this litigation since the last meeting.
Draft Rule – disability applicants
Attorney Gilbert advised the Board that he would prepare a draft rule for disability applicants regarding medical exam,s which would be ready at the July 13, 2006, Pension Board Meeting.
ENROLLMENTS:
The following General Government employees have filed applications to become members of the Plan G1 pension system.
Victor E. Caylor
Boyce H. Evans
Allen D. Foust
Steven M. Grant
Kristin Manuel
James R. Miller
Stephen Millsaps
Rocky J. D. Perry
Timothy A. Woods
Motion: Mr. Kinney 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.
June R. Jones, Schools, Plan A – Non-vested
Christian Sramek, Police Dept., Plan C – Vested
Motion: Mr. Harrell made a motion to approve this application for withdrawal of employee contributions. Mr. King seconded the motion. The motion carried unanimously by the members present.
DISABILITY
APPLICATION FOR INJURY IN LINE OF DUTY RETIREMENT: PLAN C
CHARTER SECTION: 1390.11 – Exhibit 2
Lisa D. Green, Police Dept. – Uniformed Option A-4
50% without reinstatement
Date of birth, September 17, 1969: 36 years of age
Total credited service: 12 years 2 months 7 days
Average monthly salary for 2 highest – 12 month periods, $3,420.20 x 50% =
$1,710.10. Ms. Green chose Option A-4 – 50% without reinstatement to Ronald K. Green, Jr., spouse.
$1,710.10 pension effective October 1, 2005.
(No reduction for 50% option when spouse is beneficiary in Plan C)
Application was approved at the May 11, 2006, Pension Board meeting pending permanent restriction document from a medical physician, which was subsequently received and distributed to the Board.
RETIREMENTS:
APPLICATION FOR RETIREMENT: PLAN A
CHARTER SECTION 1360.12
Joseph W. Anderson, General Government Option B-11
10 Yr. Certain & Life
Date of birth, May 27, 1942: 64 years of age
Total credited service: 13 years 9 months 28 days
Average base monthly salary for 2 years, $400.00 x .83% = $3.32
Average excess monthly earnings for 2 years, $1,760.97 x 1.66% = $29.23
making a total of $32.55 benefit per year of service. $32.55 x 13.8267 =
$450.09. Mr. Anderson chose Option B-11 – 10 Yr. Certain & Life to Kathy A. Anderson, spouse. $450.09 x .9480 =
$426.69 pension effective June 1, 2006.
Motion: Mr. Kinney made a motion to approve this application for normal retirement payable under Option B-11. Mr. King seconded the motion. The motion carried unanimously by the members present.
Freda Mann, Schools Non-Certified Option A-4
50% without reinstatement
Date of birth, December 11, 1939: 66 years of age
Total credited service: 32 years
Average base earnings for 3 years, $400.00 x .88% = $3.52
Average excess earnings for 3 years, $1,659.04 x 1.76% = $29.20
Making a total of $32.72 benefit per year of service. $32.72 x 32 =
$1,047.04 Total benefit
658.62 minus County benefit
388.42 Ms. Mann chose Option A-4 – 50% Joint & Survivor without reinstatement to Samantha Jane Edwards, granddaughter. $388.42 x .7707 =
299.36 City pension effective June 1, 2006.
Motion: Mr. Kinney made a motion to approve this application for normal retirement payable under Option A-4. Mr. King seconded the motion. The motion carried unanimously by the members present.
Constance C. Wilkes, Schools Certified Option B-11
10 Yr. Certain & Life
Date of birth, October 30, 1942: 63 years of age
Total City credited service: 22 years 5 months
Total County credited service: 19 years
Total credited service: 41 years 5 months
Last date of employment with City: June 1987
Last date of employment with County: May 2006
Average base earnings for 4 years, $400.00 x .78% = $3.12
Average excess earnings for 4 years, $1,545.33 x 1.58% = $24.42
making a total of $27.54 benefit per year of service. $27.54 x 22.4167 =
$617.36. Ms. Wilkes chose Option B-11 – 10 Yr. Certain & Life to Jane Ann Rymer, sister. $617.36 x .9480 =
$585.26 pension effective June 1, 2006.
Motion: Mr. Kinney made a motion to approve this application for normal retirement payable under Option B-11. Mr. King seconded the motion. The motion carried unanimously by the members present.
APPLICATION FOR EARLY RETIREMENT: PLAN A
CHARTER SECTION 1360.17
Judy A. Fleenor, Schools Certified No Option
Date of birth, October 11, 1946: 59 years of age
Total City credited service: 19 years 6 months
Total County credited service: 19 years
Total credited service: 38 years 6 months
Last date of employment with City: June 1987
Last date of employment with County: May 2006
Average base earnings for 4 years: $400.00 x 75% = $3.00
Average excess earnings for 4 years, $1,529.92 x 1.50% = $22.95
making a total of $25.95 benefit per year of service. $25.95 x 19.50 =
$506.03 x ER factor .8250
$417.47 pension effective June 1, 2006.
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 $1,923.85.
25 years required for Early retirement. Supreme Court ruling entitles retiree to combine City & County credited service.
Motion: Mr. Kinney made a motion to approve this application for retirement. Mr. King seconded the motion. The motion carried unanimously by the members present.
Jacqueline Gallman, Schools Certified No Option
Date of birth, February 16, 1947: 59 years of age
Total City credited service: 17 years
Total County credited service: 19 years
Total credited service: 36 years
Last date of employment with City: June 1987
Last date of employment with County: May 2006
Average base earnings for 4 years: $400.00 x 75% = $3.00
Average excess earnings for 4 years, $1,289.36 x 1.50% = $19.34
making a total of $22.34 benefit per year of service. $22.34 x 17 =
$379.78 x ER factor .7813
$285.33 pension effective June 1, 2006.
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 $1,592.79.
25 years required for Early retirement. Supreme Court ruling entitles retiree to combine City & County credited service.
Motion: Mr. Kinney made a motion to approve this application for retirement. Mr. King seconded the motion. The motion carried unanimously by the members present.
Jerry Gibson, Schools Certified Option A-4
50% without reinstatement
Date of birth, August 24, 1946: 59 years of age
Total City credited service: 11 years
Total County credited service: 19 years
Total credited service: 30 years
Last date of employment with City: June 1987
Last date of employment with County: May 2006
Average base earnings for 4 years: $400.00 x 75% = $3.00
Average excess earnings for 4 years, $1,402.09 x 1.50% = $21.03
making a total of $24.03 benefit per year of service. $24.03 x 11 =
$264.33 x ER factor .8250 = $218.07. Mr. Gibson chose Option A-4 – 50% without reinstatement to Judy H. Gibson, spouse. $218.07 x .9266 =
$202.06 pension effective June 1, 2006.
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 $1,273.26.
25 years required for Early retirement. Supreme Court ruling entitles retiree to combine City & County credited service.
Motion: Mr. Kinney made a motion to approve this application for retirement payable under Option A-4. Mr. King seconded the motion. The motion carried unanimously by the members present.
Jennifer Gilreath, Schools Certified No Option Date of birth, November 7, 1950: 55 years of age
Total City credited service: 14 years 7 months
Total County credited service: 19 years
Total credited service: 33 years 7 months
Last date of employment with City: June 1987
Last date of employment with County: May 2006
Average base earnings for 4 years: $400.00 x 75% = $3.00
Average excess earnings for 4 years, $1,316.64 x 1.50% = $19.75
making a total of $22.75 benefit per year of service. $22.75 x 14.5833 =
$331.77 x ER factor .5726
$189.97 pension effective June 1, 2006.
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 $1,105.33.
25 years required for Early retirement. Supreme Court ruling entitles retiree to combine City & County credited service.
Motion: Mr. Kinney made a motion to approve this application for retirement. Mr. King seconded the motion. The motion carried unanimously by the members present.
Pam Jackson, Schools Certified No Option Date of birth, January 26, 1951: 55 years of age
Total City credited service: 12 years
Total County credited service: 19 years
Total credited service: 31 years
Last date of employment with City: June 1987
Last date of employment with County: May 2006
Average base earnings for 4 years: $400.00 x 75% = $3.00
Average excess earnings for 4 years, $1,052.52 x 1.50% = $15.79
making a total of $18.79 benefit per year of service. $18.79 x 12 =
$225.48 x ER factor .5245
$118.26 pension effective June 1, 2006.
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 $948.09.
25 years required for Early retirement. Supreme Court ruling entitles retiree to combine City & County credited service.
Motion: Mr. Kinney made a motion to approve this application for retirement. Mr. King seconded the motion. The motion carried unanimously by the members present.
Delores Jones, Schools Certified No Option Date of birth, October 17, 1950: 55 years of age
Total City credited service: 12 years 8 months
Total County credited service: 19 years
Total credited service: 31 years 8 months
Last date of employment with City: June 1987
Last date of employment with County: May 2006
Average base earnings for 4 years: $400.00 x 75% = $3.00
Average excess earnings for 4 years, $1,221.25 x 1.50% = $18.32
making a total of $21.32 benefit per year of service. $21.32 x 12.6667 =
$270.05 x ER factor .5726
$154.63 pension effective June 1, 2006.
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 $1,081.41.
25 years required for Early retirement. Supreme Court ruling entitles retiree to combine City & County credited service.
Motion: Mr. Kinney made a motion to approve this application for retirement. Mr. King seconded the motion. The motion carried unanimously by the members present.
Katherine McDuffey, Schools Certified No Option Date of birth, April 12, 1948: 58 years of age
Total City credited service: 11 years 10 months
Total County credited service: 19 years
Total credited service: 30 years 10 months
Last date of employment with City: June 1987
Last date of employment with County: May 2006
Average base earnings for 4 years: $400.00 x 75% = $3.00
Average excess earnings for 4 years, $1,066.18 x 1.50% = $15.99
making a total of $18.99 benefit per year of service. $18.99 x 11.8333 =
$224.71 x ER factor .6853
$154.00 pension effective June 1, 2006.
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 $1,108.27.
25 years required for Early retirement. Supreme Court ruling entitles retiree to combine City & County credited service.
Motion: Mr. Kinney made a motion to approve this application for retirement. Mr. King seconded the motion. The motion carried unanimously by the members present.
Suzanne Ott, Schools Certified No Option
Date of birth, August 29, 1945: 60 years of age
Total City credited service: 11 years 1 month
Total County credited service: 19 years
Total credited service: 30 years 1 month
Average base earnings for 4 years: $400.00 x 75% = $3.00
Average excess earnings for 4 years, $1,402.09 x 1.50% = $21.03
making a total of $24.03 benefit per year of service. $24.03 x 11.0833 =
$266.33 x ER factor .9075
$241.69 pension effective June 1, 2006.
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 $895.45.
25 years required for Early retirement. Supreme Court ruling entitles retiree to combine City & County credited service.
Motion: Mr. Kinney made a motion to approve this application for retirement. Mr. King seconded the motion. The motion carried unanimously by the members present.
Mamie Porter, Schools Certified No Option
Date of birth, August 7, 1944: 61 years of age
Total City credited service: 12 years 9 months
Total County credited service: 19 years
Total credited service: 31 years 9 months
Average base earnings for 4 years: $400.00 x 75% = $3.00
Average excess earnings for 4 years, $1,115.87 x 1.50% = $16.74
making a total of $19.74 benefit per year of service. $19.74 x 12.7500 =
$251.69 x ER factor 1.000
$251.69 pension effective June 1, 2006.
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 $1,708.79.
25 years required for Early retirement. Supreme Court ruling entitles retiree to combine City & County credited service.
Motion: Mr. Kinney made a motion to approve this application for retirement. Mr. King seconded the motion. The motion carried unanimously by the members present.
Gary Raley, Schools Certified Option A-9
100% with reinstatement Date of birth, February 18, 1951: 55 years of age
Total City credited service: 12 years
Total County credited service: 19 years
Total credited service: 31 years
Last date of employment with City: June 1987
Last date of employment with County: May 2006
Average base earnings for 4 years: $400.00 x 75% = $3.00
Average excess earnings for 4 years, $1,289.02 x 1.50% = $19.34
making a total of $ benefit per year of service. $22.34 x 12 =
$268.08 x ER factor .5245 = $140.61. Mr. Gibson chose Option A-9 – 100% with reinstatement to Sara Raley, spouse. $140.61 x .8774 =
$123.37 pension effective June 1, 2006.
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 $796.19.
25 years required for Early retirement. Supreme Court ruling entitles retiree to combine City & County credited service.
Motion: Mr. Kinney made a motion to approve this application for retirement payable under Option A-9. Mr. King seconded the motion. The motion carried unanimously by the members present.
APPLICATION FOR LEAVE OF ABSENCE FOR MILITARY SERVICE: see FYI File
Matthew D. Cataline, Fire Department – Uniformed: June 1, 2006 – December 2, 2006
Motion: Mr. Kinney made a motion to approve this application for leave of absence for military service. Mr. Harrell seconded the motion. The motion carried unanimously by the members present.
APPROVAL OF INVOICES FOR PROFESSIONAL SERVICES: (GREEN TAB)
Bryan, Pendleton, Swats & McAllister – Actuary (March 2006) $1,443.00
Kennerly, Montgomery & Finley – Attorney (General – Apr. 06) 1,648.00
Kennerly, Montgomery & Finley – Attorney (G. Fields – Apr. 06) 245.00
State Street Global – money manager (1st Qtr. – 2006) 4,490.16
Aberdeen Asset Man. – money manager (1st Qtr. – 2006) 38,665.45
Summit Strategies Group – investment consultant (2nd Qtr. -2006) 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: Mr. Kinney made a motion to approve payment for these bills. Mr. Harrell seconded the motion. The motion carried unanimously by the members present.
OTHER:
Interviews
Ms. Pelot reminded the Board about the Hedge Fund Manager Search interviews which were scheduled for the following day, Friday, June 9, 2006.
PUBLIC COMMENTS: None
ADJOURNMENT:
There being no further business, the following motion was made:
Mr. Kinney made a motion to adjourn the meeting at 8:45 a.m. Mr. Harrell seconded the motion. The motion carried unanimously by the members present.
______________________
Secretary/Acting Chair
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Date
M:\Board\minutes\2006\june.doc