CITY OF KNOXVILLE PENSION BOARD
MINUTES
Thursday – June 11, 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 June 11, 2009.
Present were: Ms. Barbara Pelot, Mr. Joe Hackney, Ms. Robin Shelton, Mr. Jim York, Mr. Michael Cherry and Attorney Bud Gilbert.
Also present: Mr. Matthew Hollingshead-Cook - Police Department, Uniformed employee; Lt. Cheri Matlock, Knoxville Police Department.
CALL TO ORDER:
Ms. Pelot presided and called the meeting to order at 8:26 a.m.
APPROVAL OF REGULAR MEETING MINUTES FOR May 14, 2009.
Mr. Hackney made a motion to approve the May 14, 2009, meeting minutes. Ms. Shelton seconded the motion. The motion carried unanimously by the members present.
APPROVAL OF REVISED AGENDA: Exhibit 1
The Revised Agenda was approved without objection.
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.
Christopher Alexander, General Govt., Plan G1 – Non-vested
David W. Haase, General Govt., Plan G1 – Non-vested
Steven McGhee, 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
Margaret Leslie, Schools Certified No Option
Date of birth, April 2, 1947: 62 years of age
Total City credited service: 13 yrs.
Total County credited service: 10 year
Total credited service: 23 years
Last date of employment with City: June 1987
Last date of employment with County: June 1997
Average base earnings for 4 years, $400.00 x 75% = $3.00
Average excess earnings for 4 years, $991.01 x 1.50% = $14.87
making a total of $17.87 benefit per year of service. $17.87 x 13 =
$232.31 pension effective June 1, 2009
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 $754.86.
Motion: Mr. York made a motion to approve this application for deferred retirement. Mr. Hackney seconded the motion. The motion carried unanimously by the members present.
APPLICATION FOR RETIREMENT: PLAN A
CHARTER SECTION 1360.12
Rosa Lee Armes, Schools Non-Certified No Option
Date of birth, November 16, 1943: 65 years of age
Total credited service: 39 years 5 months
Average base earnings for 3 years, $400.00 x 88% = $3.52
Average excess earnings for 3 years, $765.77 x 1.76% = $13.48
making a total of $17.00 benefit per year of service. $17.00 x 39.41667 =
$670.08 Total benefit
462.66 minus County benefit
$207.42 City pension effective June 1, 2009.
Motion: Mr. Hackney made a motion to approve this application for retirement. Ms. Shelton seconded the motion. The motion carried unanimously by the members present.
Carolyn Sue McNutt, Schools Non-Certified No Option
Date of birth, February 15, 1944: 65 years of age
Total credited service: 42 years 4 months
Average base earnings for 3 years, $400.00 x 88% = $3.52
Average excess earnings for 3 years, $2,542.17 x 1.76% = $44.74
making a total of $48.26 benefit per year of service. $48.26 x 42.3333 =
$2,043.01 Total benefit
1,116.74 minus County benefit
$926.27 City pension effective June 1, 2009.
Motion: Mr. Hackney made a motion to approve this application for retirement. Ms. Shelton seconded the motion. The motion carried unanimously by the members present.
Janice M. Myers, Schools Non-Certified Option A-9
100% with reinstatement
Date of birth, May 18, 1944: 65 years of age
Total credited service: 46 years 5 months
Average base earnings for 3 years, $400.00 x 88% = $3.52
Average excess earnings for 3 years, $4,055.88 x 1.76% = $71.38
making a total of $74.90 benefit per year of service. $74.90 x 46.41667 =
$3,476.61 Total benefit
1,749.43 minus County benefit = $1,727.18. Ms. Myers chose Option A-9 – 100% Joint and Survivor with reinstatement to Earl S. Myers, spouse. $1,727.18 x .7895 =
$1,363.61 City pension effective June 1, 2009.
Motion: Mr. Hackney made a motion to approve this application for retirement payable under Option A-9. Ms. Shelton seconded the motion. The motion carried unanimously by the members present.
Carolyn G. Noey, Schools Certified No Option
Date of birth, March 14, 1947: 62 years of age
Total City credited service: 13 years 6 months
Total County credited service: 22 years
Total credited service: 35 years 6 months
Last date of employment with City: June 1987
Last date of employment with County: May 2009
Average base earnings for 4 years, $400.00 x 75% = $3.00
Average excess earnings for 4 years, $1,239.83 x 1.50% = $18.60
making a total of $21.60 benefit per year of service. $21.60 x 13.500 =
$291.60 pension effective June 1, 2009.
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 $2,294.01.
Motion: Mr. Hackney made a motion to approve this application for retirement. Ms. Shelton seconded the motion. The motion carried unanimously by the members present.
APPLICATION FOR EARLY RETIREMENT: PLAN A
CHARTER SECTION 1360.17
Priscilla Ayres, Schools Certified Option A-9
100% with reinstatement
Date of birth, December 25, 1952: 56 years of age
Total City credited service: 11 years 11 months
Total County credited service: 22 years
Total credited service: 33 years 11 months
Last date of employment with City: June 1987
Last date of employment with County: May 2009
Average base earnings for 4 years, $400.00 x 75% = $3.00
Average excess earnings for 4 years, $1,054.60 x 1.50% = $15.82
making a total of $18.82 benefit per year of service. $18.82 x 11.9167 =
$224.27 x ER Factor .5726 = $128.42. Ms. Ayres chose Option A-9 – 100% with reinstatement to John Anderson Ayes, III, spouse. $128.42 x .8638 =
$110.93 pension effective June 1, 2009
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 $981.55.
25 years required for Early retirement. Supreme Court ruling entitles retiree to combine City and County credited service.
Motion: Ms. Shelton made a motion to approve this application for retirement payable under Option A-9. Mr. Hackney seconded the motion. The motion carried unanimously by the members present.
Sharon Barnes, Schools Certified No Option
Date of birth, July 4, 1954: 54 years of age
Total City credited service: 10 years 7 months
Total County credited service: 22 years
Total credited service: 32 years 7 months
Last date of employment with City: June 1987
Last date of employment with County: May 2009
Average base earnings for 4 years, $400.00 x 75% = $3.00
Average excess earnings for 4 years, $1,032.29 x 1.50% = $15.48
making a total of $18.48 benefit per year of service. $18.48 x 10.5833 =
$195.58 x ER Factor .5245 =
$102.58 pension effective June 1, 2009
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 $999.08.
25 years required for Early retirement. Supreme Court ruling entitles retiree to combine City and County credited service.
Motion: Ms. Shelton made a motion to approve this application for retirement. Mr. Hackney seconded the motion. The motion carried unanimously by the members present.
Arlah Ewing, Schools Certified No Option
Date of birth, July 28, 1951: 57 years of age
Total City credited service: 11 years
Total County credited service: 22 years
Total credited service: 33 years
Last date of employment with City: June 1987
Last date of employment with County: May 2009
Average base earnings for 4 years, $400.00 x 75% = $3.00
Average excess earnings for 4 years, $1,022.26 x 1.50% = $15.33
making a total of $18.33 benefit per year of service. $18.33 x 11 =
$201.63 x ER Factor .6853 =
$138.18 pension effective June 1, 2009
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 $1,373.41.
25 years required for Early retirement. Supreme Court ruling entitles retiree to combine City and County credited service.
Motion: Ms. Shelton made a motion to approve this application for retirement. Mr. Hackney seconded the motion. The motion carried unanimously by the members present.
Sandra Guion, Schools Certified Option C – Cash Refund
Date of birth, September 30, 1953: 55 years of age
Total City credited service: 9 years 5 months
Total County credited service: 21 years
Total credited service: 30 years 5 months
Last date of employment with City: June 1987
Last date of employment with County: May 2009
Average base earnings for 4 years, $400.00 x 75% = $3.00
Average excess earnings for 4 years, $936.47 x 1.50% = $14.05
making a total of $17.05 benefit per year of service. $17.05 x 9.4167 =
$160.55 x ER Factor .5726 = $91.93. Ms. Guion chose Option C – Cash Refund to Sarah Oyervides, Kathryn Guion and Mary Jessica Moore, daughters.
$91.93 x .9629 =
$88.52 pension effective June 1, 2009
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 $1,049.83.
25 years required for Early retirement. Supreme Court ruling entitles retiree to combine City and County credited service.
Motion: Ms. Shelton made a motion to approve this application for retirement payable under Option C. Mr. Hackney seconded the motion. The motion carried unanimously by the members present.
Patricia Grubb, Schools Certified No Option
Date of birth, March 28, 1954: 55 years of age
Total City credited service: 10 years 5 months
Total County credited service: 22 years
Total credited service: 32 years 5 months
Last date of employment with City: June 1987
Last date of employment with County: May 2009
Average base earnings for 4 years, $400.00 x 75% = $3.00
Average excess earnings for 4 years, $1,013.10 x 1.50% = $15.20
making a total of $18.20 benefit per year of service. $18.20 x 10.4167 =
$189.58 x ER Factor .5245 =
$99.43 pension effective June 1, 2009
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 $1,148.52.
25 years required for Early retirement. Supreme Court ruling entitles retiree to combine City and County credited service.
Motion: Ms. Shelton made a motion to approve this application for retirement. Mr. Hackney seconded the motion. The motion carried unanimously by the members present.
Linda Handly, Schools Certified No Option
Date of birth, July 22, 1947: 61 years of age
Total City credited service: 16 years 2 months
Total County credited service: 22 years
Total credited service: 38 years 2 months
Last date of employment with City: June 1987
Last date of employment with County: May 2009
Average base earnings for 4 years, $400.00 x 75% = $3.00
Average excess earnings for 4 years, $1,359.78 x 1.50% = $20.40
making a total of $23.40 benefit per year of service. $23.40 x 16.1667 =
*$378.30 pension effective June 1, 2009
*no reduction since member is within 6 months of age 62.
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 $2,525.49.
25 years required for Early retirement. Supreme Court ruling entitles retiree to combine City and County credited service.
Motion: Ms. Shelton made a motion to approve this application for retirement. Mr. Hackney seconded the motion. The motion carried unanimously by the members present.
Saundra Ingle, Schools Certified No Option
Date of birth, August 21, 1953: 55 years of age
Total City credited service: 11 years 3 months
Total County credited service: 22 years
Total credited service: 33 years 3 months
Last date of employment with City: June 1987
Last date of employment with County: May 2009
Average base earnings for 4 years, $400.00 x 75% = $3.00
Average excess earnings for 4 years, $1,054.60 x 1.50% = $15.82
making a total of $18.82 benefit per year of service. $18.82 x 11.250 =
$211.73 x ER Factor .5726 =
$121.24 pension effective June 1, 2009
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 $1,223.25.
25 years required for Early retirement. Supreme Court ruling entitles retiree to combine City and County credited service.
Motion: Ms. Shelton made a motion to approve this application for retirement. Mr. Hackney seconded the motion. The motion carried unanimously by the members present.
Connie Phillips, Schools Certified No Option
Date of birth, January 4, 1948: 61 years of age
Total City credited service: 16 years
Total County credited service: 22 years
Total credited service: 38 years
Last date of employment with City: June 1987
Last date of employment with County: May 2009
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 16.0 =
$384.48 x ER Factor .9075 =
$348.92 pension effective June 1, 2009
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 $2,198.08.
25 years required for Early retirement. Supreme Court ruling entitles retiree to combine City and County credited service.
Motion: Ms. Shelton made a motion to approve this application for retirement. Mr. Hackney seconded the motion. The motion carried unanimously by the members present.
Mary Prater, Schools Certified No Option
Date of birth, October 27, 1950: 58 years of age
Total City credited service: 13 years 5 months
Total County credited service: 22 years
Total credited service: 35 years 5 months
Last date of employment with City: June 1987
Last date of employment with County: May 2009
Average base earnings for 4 years, $400.00 x 75% = $3.00
Average excess earnings for 4 years, $1,155.65 x 1.50% = $17.33
making a total of $20.33 benefit per year of service. $20.33 x 13.4167 =
$272.76 x ER Factor .7513 =
$204.92 pension effective June 1, 2009
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 $1,666.49.
25 years required for Early retirement. Supreme Court ruling entitles retiree to combine City and County credited service.
Motion: Ms. Shelton made a motion to approve this application for retirement. Mr. Hackney seconded the motion. The motion carried unanimously by the members present.
APPROVAL OF INVOICES FOR PROFESSIONAL SERVICES:
Kennerly,Montgomery and Finley – Attorney (General – April 09) $ 3,404.90
State Street – Trustee (April 2009) 3,407.29
State Street – Custodial (April 2009) 8,397.95
State Street Global – Money Manager (1st Qtr 2009) 164.91
Summit Strategies – Investment Consultant (2nd Qtr 2009) 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. York made a motion to pay these invoices. Mr. Hackney seconded the motion. The motion carried unanimously by the members present.
CONTRACTS: None
ADMINISTRATIVE MATTERS:
Disability Reviews
Mr. Cherry advised the Board that disability reviews would begin soon. Attorney Gilbert advised Mr. Cherry and the Board that the Executive Director had the authority to use all measures, such as requiring new medical reviews, as well as obtaining the services of a private investigator, if deemed necessary, in conducting these reviews.
EXECUTIVE DIRECTOR COMMENTS:
Conference Call with Mr. Dan Holmes
Mr. Cherry advised the Board that a 9:00 a.m. conference call with Mr. Holmes was scheduled this morning to discuss reports sent by Summit Strategies.
DISABILITY – Exhibit 2
APPLICATION FOR INJURY IN LINE OF DUTY: PLAN C (see Executive Director’s Recommendation Report Attached)
CHARTER SECTION 1390.11
Matthew Hollingshead-Cook, Police Dept. – Uniformed Option A-9
100% with reinstatement
Date of birth, January 6, 1979: 30 years of age
Total credited service: 7 years 9 months 9 days
$1,651.51 pension effective June 1, 2009.
Mr. Cherry informed the Pension Board that he and Attorney Gilbert, upon additional review, did not approve the Pension Board’s conditional approval at the May meeting of Mr. Hollingshead-Cook’s application for an Injury In Line of Duty benefit, but had now reached a contrary conclusion and recommendation based on their additional review of the available medical evidence. Mr. Cherry and Attorney Gilbert also both noted that the applicant and his attorney had requested that this matter be delayed to the next meeting.
Motion: Mr. Hackney made a motion to defer this application to the July meeting per Mr. Hollingshead-Cook’s and Attorney Edward Daniels’s written request. Ms. Shelton seconded the motion. The motion carried unanimously by the members present.
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 Charter
Attorney Gilbert advised the Board that the restated Investment Committee Charter the Board adopted in May with four revisions, would be completed and distributed to the Board before the first scheduled Investment Committee meeting. Mr. Cherry and Ms. Pelot informed Attorney Gilbert that the first meeting had recently been scheduled for Tuesday, June 16, 2009, at 4:30 p.m.
Gillis Barbee Appeal – Exhibit 3
Attorney Gilbert distributed to the Board a legal opinion affirming Mr. Cherry’s administrative determination letter denying prior service credit to Mr. Barbee.
Motion: Ms. Shelton made a motion to defer discussion on the matter to the August 13, 2009, meeting and inform Mr. Barbee of the scheduled hearing so that he may be in attendance. Mr. Hackney seconded the motion. The motion carried unanimously by the members present.
Richard T. Woodby Appeal
Mr. Cherry informed the Board that he had, prior to the meeting, told Mr. Woodby that his appeal would be scheduled to be considered at the July board meeting.
INVESTMENT MATTERS:
Treasury Inflation-Protected Securities Manager Search
Dan Holmes gave a presentation to the Board via teleconference on Treasury Inflation-Protected Securities, after which he recommended using State Street Global Advisors as a passive manager. Copies of his report are on file in the Pension Office.
Motion: Ms. Shelton made a motion on the recommendation of Dan Holmes of Summit Strategies to use State Street Global Advisors as a passive Treasury Inflation-Protected Securities (TIPS) manager. Mr. Hackney seconded the motion. The motion carried unanimously by the members present.
Mr. York left the meeting at 9:30 a.m.
Performance Reports
Dan Holmes gave a preliminary, 2nd Qtr. 2009, performance report to the Board via teleconference and a report on the economy. Copies of his reports are on file in the Pension Office.
OTHER: None
PUBLIC COMMENTS: None
ADJOURNMENT:
There being no further business Ms. Pelot adjourned the meeting at 9:57 a.m.
_________________________
Chair
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Date
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