CITY OF KNOXVILLE PENSION BOARD
MINUTES
July 13, 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 July 13, 2006.
Present were: Mr. Scott Calloway, Mr. Buddy Harrell, Mr. Stephen King, Ms. Barbara Pelot, Mr. Michael Cherry and Attorney Bud Gilbert.
Also present: Ms. Anita Cash, City Employees’ Association; Lt. Cheri Matlock, Knoxville Police Department; Mr. Harry Boss, General Government employee.
CALL TO ORDER:
Mr. Calloway presided and called the meeting to order at 8:23 a.m.
APPROVAL OF REGULAR MEETING MINUTES FOR June 8, 2006
Ms. Pelot made a motion to approve the June 8, 2006, meeting minutes. Mr. Harrell seconded the motion. The motion carried unanimously by the members present.
APPROVAL OF SPECIAL MEETING MINUTES FOR June 9, 2006
Ms. Pelot made a motion to approve the June 9, 2006, special meeting minutes. Mr. Harrell seconded the motion. The motion carried unanimously by the members present.
APPROVAL OF REVISED AGENDA: Exhibit 1
The Revised Agenda was adopted without objection.
PUBLIC COMMENTS:
Mr. Harry Boss, a General Government employee, addressed the Board requesting them to reconsider a proposed charter change, dismissed earlier this year, to allow employees on a leave of absence, as a result of an injury in line of duty and eligible for worker’s compensation, to purchase credited pension service for their leave time.
Attorney Gilbert advised Mr. Boss that it was too late for the 2006 referendum. Mr. Harrell requested that it be considered for the 2008 referendum, and Attorney Gilbert agreed to put this item on the list for the 2008 referendum.
CONTRACTS:
HG&A Associates
Mr. Cherry advised the Board that he had received a proposal from HG& A Associates for the 2005/2006 audit, for a fee of $7,900.00 which was a $400.00 increase from last year’s fee.
Motion: Mr. Harrell made a motion to accept the contract with HG&A Associates for the audit of the Pension System’s financial statement for the year ending June 30, 2006, for a fee of $7,900.00. Mr. King seconded the motion. The motion carried unanimously by the members present.
ADMINISTRATIVE MATTERS:
James A. Hubbs
Mr. Cherry informed the Board that Mr. James A. Hubbs, a longtime KUB employee and former employee of the Pension Board, passed away July 1, 2006. Ms. Pelot recommended that Mr. Cherry send a letter of condolence to Mr. Hubb’s family. Mr. Cherry advised the Board that he would prepare and send the letter of condolence.
Notice to City Council – Exhibit 2
Attorney Gilbert distributed to the Board a draft copy of a letter to City Law Director, Morris Kizer and a report to City Council, regarding an agenda item for August 1, 2008, consisting of a request from City Employee’s Association President, Anita Cash, to increase the General Government Pension Plans G1 and G2 multiplier.
Motion: Mr. Harrell made a motion to approve the report to City Council subject to final review by legal counsel. Ms. Pelot seconded the motion. The motion carried unanimously by the members present.
Memorandum to City Council
Mr. Cherry advised the Board that he had sent a preliminary notice, dated June 29, 2006, in accordance with the Pension Board’s rules to City Council members regarding the above proposed charter change.
Pension Board Meetings Schedule
Mr. Cherry advised the Board that after considering the preferences submitted by the Board members, the second Wednesday of each month, at 8:15 a.m., would be the best time to schedule the pension board meetings for September 2006 through January 2007. Mr. Cherry advised the Board that a new schedule would be sent out to all board members and that the revised schedule was a temporary change through January 2007.
Financial Plan for 2006-2007- Exhibit 3
Mr. Cherry presented to the Board and discussed with them the financial plan for the fiscal year beginning July 1, 2006.
Motion: Mr. Harrell made a motion to approve the financial plan for the current fiscal year beginning July 1, 2006, as presented by Mr. Cherry. Mr. King seconded the motion. The motion carried unanimously by the members present.
Cortina Contract
Mr. Cherry advised the Board that the Cortina contract had been completed and the assets were transferred on June 30, 2006.
Cadogen Contract
Mr. Cherry advised the Board that contracts with Union Bancaire Privee and Cadogan were still being reviewed and we are hoping to complete the contract and transfer assets by transferred by September 1, 2006.
EXECUTIVE DIRECTOR COMMENTS:
City Council Meeting
Mr. Cherry advised the Board that all three, pending Pension Charter Amendments, which were split by City Council’s request, passed June, 20, 2006, on 2nd Reading, at the City Council meeting and would be presented to voters on the November ballot along with the Pension Board charter protection measures.
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 last meeting.
Proposed Disability Rule – Exhibit 4
Attorney Gilbert distributed to the Board and reviewed a draft of a proposed Pension Board Rule regarding disability pension benefits. Attorney Gilbert suggested to the Board that the proposed rule might need to be embodied in the charter at some point. Mr. Calloway requested that Mr. Gilbert add this item to the 2008 referendum list.
Motion: Mr. Pelot made a motion to approve the pension board rule for disability pension benefits. Mr. Harrell seconded the motion. The motion carried unanimously by the members present.
ENROLLMENTS:
The following General Government employee has filed application to become a member of the Plan G1 pension system.
Jacob W. Mason
Motion: Ms. Pelot 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.
The following Police Department employees have filed applications to become members of the Plan C pension system.
Jeffery T. Allgood
Brian E. Bell
Christopher P. Caserto
Anthony M. Delalla
Charles A. Ellis
Brian C. Etters
Brian M. Foulks
Sean C. French
Andrew L. Gyorfi
Tony K. Hall
Matthew L. Heisig
Matthew D. Janish
Keith E. Johnson
Horace M. Lane, III
Ronald D. Majors, Jr.
Sergio A. Marrero
Justin R. Massengill
Jennifer L. Mathiak
Michael F. Matise
Reginald McCullough
Barry D. Moore
William J. Muhlfeld
Brian M. Mullane
Geoffrey K. Murret
John D. Pickens
Scott M. Pugliese
Bryan J. Schreiber
Randall E. Smith
Jason A. Stewart
Brandon L. Stryker
Timothy E. Thornton
Ryan A. Vickery
Jayson M. Waggoner
Michael D. Washam
Preston D. Whillock
James A. Wilson
Motion: Mr. King made a motion to approve these applications for enrollment in the Plan C 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.
Timothy Belcher, Police Dept., Plan C – Vested
Tiffany Booker, General Government, G-1 – Vested
Tresia Conner, General Government, G-1 – Non-vested
Steven R. Mayfield, Jr., Police Dept., Plan C – Non-vested
Jason A. Mills, Police Dept., Plan C - Non-vested
Sherrie Scott, General Government, G-1 - Vested
Motion: Mr. King 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.
RETIREMENTS:
APPLICATION FOR EARLY RETIREMENT: PLAN A
CHARTER SECTION 1360.17
Elizabeth Bunker, Schools Certified No Option
Date of birth, February 16, 1948: 58 years of age
Total City credited service: 11 years 9 months
Total County credited service: 19 years
Total credited service: 30 years 9 months
Last date of employment with City: June 1987
Last date of employment with County: June 2006
Average base earnings for 4 years, $400.00 x .75% = $3.00
Average excess earnings for 4 years, $773.02 x 1.50% = $11.60
making a total of $14.60 benefit per year of service. $14.60 x 11.750 =
$171.55 x ER Factor .6853 =
$117.56 pension effective July 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 $1,491.33.
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. Ms. Pelot seconded the motion. The motion carried unanimously by the members present.
Roberta Lanauze, Schools Certified No Option
Date of birth, October 16, 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: June 2006
Average base earnings for 4 years, $400.00 x .75% = $3.00
Average excess earnings for 4 years, $1,179.52 x 1.50% = $17.69
making a total of $20.69 benefit per year of service. $20.69 x 14.58333 =
$301.73 x ER Factor .5726 =
$172.77 pension effective July 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 $2,035.67.
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. Ms. Pelot seconded the motion. The motion carried unanimously by the members present.
Patricia Littlejohn, Schools Certified No Option Date of birth, August 16, 1947: 58 years of age
Total City credited service: 15 years 6 months
Total County credited service: 19 years
Total credited service: 34 years 6 months
Last date of employment with City: June 1987
Last date of employment with County: June 2006
Average base earnings for 4 years, $400.00 x .75% = $3.00
Average excess earnings for 4 years, $1,246.95 x 1.50% = $18.70
making a total of $21.70 benefit per year of service. $21.70 x 15.5000 =
$336.35 x ER Factor .7513 =
$252.70 pension effective July 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 $2,253.22.
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. Ms. Pelot seconded the motion. The motion carried unanimously by the members present.
Sandra Myers, Schools Certified No Option Date of birth, November 8, 1945: 60 years of age
Total City credited service: 11 years 2 months
Total County credited service: 19 years
Total credited service: 30 years 2 months
Last date of employment with City: June 1987
Last date of employment with County: June 2006
Average base earnings for 4 years, $400.00 x .75% = $3.00
Average excess earnings for 4 years, $1,126.04 x 1.50% = $16.89
making a total of $19.89 benefit per year of service. $19.89 x 11.16667 =
$222.11 x ER Factor .9075 =
$201.56 pension effective July 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 $1,601.78.
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. Ms. Pelot seconded the motion. The motion carried unanimously by the members present.
Joe Sabo, Schools Certified Option A-6
100% without reinstatement Date of birth, December 30, 1947: 58 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, $1,331.02 x 1.50% = $19.97
making a total of $22.97 benefit per year of service. $22.97 x 17 =
$390.49 x ER Factor .7513 = $293.38. Mr. Sabo chose Option A-6 – 100% without reinstatement to Janice Sabo, spouse. $293.38 x .8571 =
$251.46 pension effective July 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 $1,266.89.
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 payable under Option A-6. Ms. Pelot seconded the motion. The motion carried unanimously by the members present.
APPLICATION FOR RETIREMENT: PLAN G2
CHARTER SECTION 1360.12
Thomas E. Cinnamon, General Government Option A-6
100% without reinstatement
Date of birth, June 17, 1938: 68 years of age
Total credited service: 10 years 4 months 22 days
Average monthly salary for 2 highest – 12 month periods, $6,085.01 x 2.1% =
$127.79 x 10.39361 = $1,328.20
$1,056.58 pension effective July 1, 2006.
Motion: Ms. Pelot made a motion to approve this application for Retirement payable under Option A-6. Mr. Harrell seconded the motion. The motion carried unanimously by the members present.
APPLICATION FOR DEFERRED RETIREMENT: PLAN G2
CHARTER SECTION 1360.28
Vivian B. Albury, General Government Option A-7
50% with reinstatement
Date of birth, June 6, 1944: 62 years of age
Total credited service: 7 years 2 months
Average monthly salary for 2 highest 12 month periods, $2,156.78 x 2.1% =
$45.29 x 7.16667 = $324.58. Mr. Albury chose Option A-7- 50% with reinstatement to Carol Jean Albury, spouse. $324.58 x .9034 =
$293.23 pension effective July 1, 2006.
Motion: Mr. Harrell made a motion to approve this application for Retirement payable under Option A-7. Mr. King seconded the motion. The motion carried unanimously by the members present.
APPROVAL OF INVOICES FOR PROFESSIONAL SERVICES:
Bryan, Pendleton, Swats & McAllister – Actuary (May 2006) $13,214.00
Kennerly, Montgomery & Finley – Attorney (General – May 06) 5,510.91
Kennerly, Montgomery & Finley – Global Crossing – April 06) 83.65
State Street – Custodial (May 2006) 14,166.67
TCW Asset Management – Money Manager (4th Qtr – 2005) 86,299.29
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. Harrell seconded the motion. The motion carried unanimously by the members present.
OTHER: None
ADJOURNMENT:
There being no further business, the following motion was made:
Mr. King made a motion to adjourn the meeting at 9:25 a.m. Mr. Harrell seconded the motion. The motion carried unanimously by the members present.
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Chair
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Date
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