CITY OF KNOXVILLE PENSION BOARD
MINUTES
Thursday – July 12, 2007
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 12, 2007.
Present were: Mayor Bill Haslam, Mr. Scott Calloway, Mr. Buddy Harrell, Mr. Stephen King, Mr. Larry Martin, Mr. Michael Cherry and Attorney Bud Gilbert.
Also present: Austin F. Copeland, General Government – In Line of Duty applicant.
CALL TO ORDER:
Mayor Haslam presided and called the meeting to order at 8:22 a.m.
APPROVAL OF REGULAR MEETING MINUTES FOR June 14, 2007:
Mr. Martin made a motion to approve the June 14, 2007, 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 approved without objection.
CONTRACTS:
ADMINISTRATIVE MATTERS:
Fiduciary Insurance Policy Renewed
Mr. Cherry advised the Board that the Fiduciary Insurance Policy had been renewed without an increase over last year’s policy.
EXECUTIVE DIRECTOR COMMENTS: None
ATTORNEY COMMENTS:
Pinnacle Associates, LTD
Attorney Gilbert informed the Board that he continued to make progress on the contract with Pinnacle Associates, LTD., the new small cap value equity manager that the Board hired in June 2007.
Glenda Field’s litigation
Attorney Gilbert advised the Board that Tony Farmer, attorney for Glenda Fields, had requested that the trial date be rescheduled to September 2007.
ENROLLMENTS:
The following General Government employees have filed applications to become members of the Plan G1 pension system.
William F. Bell, Jr.
Timothy D. Cordell
Mary K. Davis
Todd H. Kennedy
Britt Newman
Madeline Rogero
Clevon E. Thompson
Motion: Mr. Martin made a motion to approve these applications for enrollment in the Plan G1 pension system. Mr. Calloway 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.
Jill Van Beke, General Government, G1 – Non-vested
Sean French, Police Department, Plan C – Non-vested
Junior R. Hammock, General Government, G1 – Non-vested
Joshua Householder, General Government, G1 - Vested
Helen Lewis, beneficiary of David V. Lewis who died in service - General Government, G1 – Non-vested
Amy Nolan, General Government, G1 – Non-vested
Richard Reagan, General Government, G1 – Non-vested
Robert Russell, General Government, G1 – Non-vested
Saundra L.Townsend, Police Department, Plan C – Non-vested
Motion: Mr. Martin made a motion to approve these applications for withdrawal of employee contributions. Mr. Calloway seconded the motion. The motion carried unanimously by the members present.
DISABILITY
APPLICATION FOR INJURY IN LINE OF DUTY: PLAN G2 – Exhibit 2
CHARTER SECTION 1360.22
Austin F. Copeland, General Government No Option
Date of birth, October 13, 1975: 31 years of age*
Total credited service: 10 years 10 months 17 days**
*Computed as if 62 years of age
**Computed as if worked until age 62 (41 years 2 months 30 days)
Average monthly salary for 2 highest 12 month periods, $2,163.68 x .021 =
$45.44 x 41.24886 =
$1,874.35 pension effective June 1, 2007.
Motion: Mr. Martin made a motion to approve this application for an In Line of Duty Disability based upon Dr. Lisa Bellner’s medical report, Mr. Austin’s Functional Capacity Evaluation and Mr. Cherry’s Disability Recommendation Report to be reviewed in two years. Mr. Calloway seconded the motion. The motion carried unanimously by the members present.
APPLICATION FOR SURVIVOR’S BENEFIT: PLAN G1
CHARTER SECTION 1360.24
Merri F. Pyle, active General Government employee died in service June 10, 2007.
Ms. Pyle’s statistics:
45 years of age, 9 years 11 months 10 days service
Average monthly salary for 2 highest 12 month periods, $1,816.02 x .0115% =
$20.88 x 9.94406 = $207.63.
Ms.Pyle chose Option B-10 – 5 Yr. Certain & Life.
Mr. Thomas E. Pyle, beneficiary of Ms. Pyle, elected to disclaim the pre-retirement option on file, per Charter Section 1360.24, in order to have the benefit calculated under Option A-4 – 50% Joint & Survivor.
$207.63 x .8943 = $185.68. $185.69 x .50 = $92.84.
*Mr. Pyle elected to convert the supplemental retirement account applicable in Plan G1, into an additional annuity. His benefit consists of $92.84 (defined benefit) plus $74.62 (supplemental portion).
*$167.46 Thomas Pyle’s monthly benefit beginning July 1, 2007.
Motion: Mr. Harrell made a motion to approve this application for a survivor’s benefit. Mr. Calloway seconded the motion. The motion carried unanimously by the members present.
APPLICATION FOR RETIREMENT: PLAN A
CHARTER SECTION: 1360.12
Janice Clark, Schools Certified Option A-9
100% with reinstatement
Date of birth, October 16, 1941: 65 years of age
Total City credited service: 12 years
Total County credited service: 20 years
Total credited service: 32 years
Last date of employment with City: June 1987
Last date of employment with County: May 2007
Average base earnings for 4 years, $400.00 x 88% = $3.52
Average excess earnings for 4 years, $1,316.64 x 1.76% = $23.17
making a total of $26.69 benefit per year of service. $26.69 x 12 =
$320.28. Ms. Clark chose Option A-9 – 100% with reinstatement to Pamela A. Berg, daughter. $320.28 x .6796 =
$217.66 pension effective June 1, 2007
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 & county benefit is $1,508.39.
Motion: Mr. Calloway made a motion to approve this application for retirement payable under Option A-9. Mr. Harrell seconded the motion. The motion carried unanimously by the members present.
APPLICATIONS FOR EARLY RETIREMENT: PLAN A
CHARTER SECTION 1360.17
Charles A. Cheatham, Schools Certified No Option
Date of birth, March 2, 1951: 56 years of age
Total City credited service: 14 years
Total County credited service: 20 years
Total credited service: 34 years
Last date of employment with City: June 1987
Last date of employment with County: June 2007
Average base earnings for 4 years, $400.00 x 75% = $3.00
Average excess earnings for 4 years, $1,375.13 x 1.50% = $20.63
making a total of $23.63 benefit per year of service. $23.63 x 14 =
$330.82 x .5726 =
$189.43 pension effective July 1, 2007.
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 $2,172.68.
25 years required for Early retirement. Supreme Court ruling entitles retiree to combine City & County credited service.
Motion: Mr. Calloway made a motion to approve this application for Early Retirement. Mr. Harrell seconded the motion. The motion carried unanimously by the members present.
Ernestine Cody, Schools Certified No Option
Date of birth, December 5, 1950: 56 years of age
Total City credited service: 11 years 1 month
Total County credited service: 19 years
Total credited service: 30 years 1 month
Last date of employment with City: June 1987
Last date of employment with County: May 2007
Average base earnings for 4 years, $400.00 x 75% = $3.00
Average excess earnings for 4 years, $1,019.32 x 1.50% = $15.29
making a total of $18.29 benefit per year of service. $18.29 x 11.08333 =
$202.74 x .6260 =
$126.90 pension effective July 1, 2007.
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 $1,136.71.
25 years required for Early retirement. Supreme Court ruling entitles retiree to combine City & County credited service.
Motion: Mr. Calloway made a motion to approve this application for Early Retirement. Mr. Harrell seconded the motion. The motion carried unanimously by the members present.
Marilyn Davidson, Schools Certified No Option
Date of birth, March 27, 1950: 57 years of age
Total City credited service: 15 years
Total County credited service: 20 years
Total credited service: 35 years
Last date of employment with City: June 1987
Last date of employment with County: June 2007
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 15 =
$341.25 x .6260 =
$213.62 pension effective July 1, 2007.
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 $2,305.37.
25 years required for Early retirement. Supreme Court ruling entitles retiree to combine City & County credited service.
Motion: Mr. Calloway made a motion to approve this application for Early Retirement. Mr. Harrell seconded the motion. The motion carried unanimously by the members present.
Beverly Stokes, Schools Certified Option A-7
50% with reinstatement
Date of birth, March 4, 1948: 59 years of age
Total City credited service: 13 years
Total County credited service: 20 years
Total credited service: 33 years
Last date of employment with City: June 1987
Last date of employment with County: June 2007
Average base earnings for 4 years, $400.00 x 75% = $3.00
Average excess earnings for 4 years, $1,203.54 x 1.50% = $18.05
making a total of $21.05 benefit per year of service. $21.05 x 13 =
$273.65 x .7513 = $205.59. Ms. Stokes chose Option A-7 – 50% with reinstatement to Douglas R. Stokes, spouse. $205.59 x .9158 =
$188.28 pension effective July 1, 2007.
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 $1,385.94.
25 years required for Early retirement. Supreme Court ruling entitles retiree to combine City & County credited service.
Motion: Mr. Calloway made a motion to approve this application for retirement payable under Option A-7. Mr. Harrell seconded the motion. The motion carried unanimously by the members present.
Brenda Thomas, Schools Certified No Option
Date of birth, January 6, 1951: 56 years of age
Total City credited service: 12 years 8 months
Total County credited service: 19 years 11 months
Total credited service: 32 years 7 months
Last date of employment with City: June 1987
Last date of employment with County: June 2007
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 12.6667 =
$248.14 x .5726
$142.08 pension effective July 1, 2007.
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 $1,406.00.
25 years required for Early retirement. Supreme Court ruling entitles retiree to combine City & County credited service.
Motion: Mr. Calloway made a motion to approve this application for Early Retirement. Mr. Harrell seconded the motion. The motion carried unanimously by the members present.
Susan Tolson, Schools Certified No Option
Date of birth, November 15, 1951: 55 years of age
Total City credited service: 14 years 4 months
Total County credited service: 20 years
Total credited service: 34 years 4 months
Last date of employment with City: June 1987
Last date of employment with County: June 2007
Average base earnings for 4 years, $400.00 x 75% = $3.00
Average excess earnings for 4 years, $1,167.40 x 1.50% = $17.51
making a total of $20.51 benefit per year of service. $20.51 x 14.3333 =
$293.98 x .5726
$168.33 pension effective July 1, 2007.
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 $1,268.61.
25 years required for Early retirement. Supreme Court ruling entitles retiree to combine City & County credited service.
Motion: Mr. Calloway made a motion to approve this application for Early Retirement. Mr. Harrell seconded the motion. The motion carried unanimously by the members present.
APPLICATION FOR RETIREMENT: PLAN C
CHARTER SECTION 1390.6
Jeffrey D. Clift, Police Department Option C – Cash Refund
Date of birth, July 1, 1957: 50 years of age
Total credited service: 28 years 4 months 24 days
Average monthly salary for 2 highest – 12 month periods, $4,649.80 x 2.5% =
$116.25 x 28.39909 = $3,301.39. Mr. Clift chose Option C – Cash Refund to Justin D. Clift and Donnie Clift, sons. $3,301.39 x .9714 =
$3,206.97 pension effective July 1, 2007.
Motion: Mr. Calloway made a motion to approve this application for retirement payable under Option C. Mr. Harrell seconded the motion. The motion carried unanimously by the members present.
APPLICATION FOR RETIREMENT: PLAN G1 – NORMAL
CHARTER SECTION 1360.12
Charles N. Davis, General Government No Option
Date of birth, January 18, 1943: 64 years of age
Total credited service: 8 years 5 months 29 days
Average monthly salary for 2 highest 12 month periods, $4,735.83 x .0127% =
$60.15 x 8.49612 =
*$511.04 pension effective July 1, 2007.
*defined benefit portion; Mr. Davis chose to receive a lump sum payment for the supplemental account applicable to Plan G1.
Motion: Mr. Harrell made a motion to approve this application for retirement. Mr. Martin seconded the motion. The motion carried unanimously by the members present.
Carlos W. Wolfe, General Government No Option
Date of birth, December 9, 1944: 62 years of age
Total credited service: 8 years 9 months 21 days
Average monthly salary for 2 highest 12 month periods, $2,161.99 x .0115% =
$24.86 x 8.80753 = $218.96
*Mr. Wolfe elected to convert the supplemental retirement account applicable in Plan G1, into an additional annuity. His benefit consists of $218.96 (defined benefit) plus $106.44 (supplemental portion).
*$325.40 pension effective July 1, 2007.
Motion: Mr. Harrell made a motion to approve this application for retirement. Mr. Martin seconded the motion. The motion carried unanimously by the members present.
APPROVAL OF INVOICES FOR PROFESSIONAL SERVICES:
Bryan, Pendleton, Swats & McAllister – Actuary (May 2007) $ 3,234.00
Kennerly, Montgomery & Finley – Attorney (general – June 07) 2,201.19
State Street – Trustee (March 2007) 3,373.71
State Street – Trustee (April 2007) 3,273.24
State Street – Custodial (March 2007) 8,454.36
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. King made a motion to pay these invoices. Mr. Martin seconded the motion. The motion carried unanimously by the members present.
INVESTMENT MATTERS:
Mr. Cherry advised the Board that June had been a particularly good month, but overall it had been an excellent 12 months.
OTHER:
Personnel Committee
Motion: Mr. Harrell made a motion to approve performance pay bonuses for the Pension Board staff. Mr. Calloway seconded the motion. The motion passed unanimously by the members present.
PUBLIC COMMENTS: None
ADJOURNMENT:
There being no further business before the Board, the meeting was adjourned at 8:38 a.m.
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