CITY OF KNOXVILLE PENSION BOARD
MINUTES
August 10, 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 August 10, 2006.
Present were: Mayor Bill Haslam, Mr. Scott Calloway, Mr. Greg Coker, Mr. Buddy Harrell, Mr. Stephen King, Mr. Christopher Kinney, Ms. Barbara Pelot, Mr. Michael Cherry and Attorney Bud Gilbert.
Also present: Mr. Dan Holmes, Summit Strategies; Mr. Russell Bjorkman, Enhanced Investment Technologies (INTECH); Mr. Christopher Cowie, Silchester International Investors.
CALL TO ORDER:
Mayor Haslam presided and called the meeting to order at 8:15 a.m.
APPROVAL OF REGULAR MEETING MINUTES FOR July 13, 2006
Motion: Mr. Harrell made a motion to approve the July 13, 2006, meeting minutes. Ms. Pelot seconded the motion. The motion carried unanimously by the members present.
APPROVAL OF REVISED AGENDA: Exhibit 1
The Revised Agenda was approved without objection.
INVESTMENT MATTERS:
Money Manager Reviews
Enhanced Investment Technologies (INTECH)
Russell Bjorkman of Enhanced Investment Technologies (INTECH) made a presentation to the Board. A copy of his report is on file in the Pension Office.
Mr. King arrived at 8:20 a.m.
Mr. Gilbert arrived at 8:25 a.m.
Silchester International Investors
Christopher Cowie of Silchester International Investors made a presentation to the Board. A copy of his report is on file in the Pension Office.
Dan Holmes – Summit Strategies
Mr. Holmes made a presentation of the 2nd Quarter, 2006 Performance Report. Copies of his report are on file in the Pension Office.
CONTRACTS:
Mr. Cherry reminded the Board that the custodial contract with State Street would expire January 1, 2007. Mr. Holmes advised Mr. Cherry and the Board that the RFI questionnaire was being processed by his firm.
ADMINISTRATIVE MATTERS:
Fiduciary Insurance Policy Renewed
Mr. Cherry advised the Board that the Fiduciary Insurance Policy had been renewed for an annual premium of $26,300.00, an increase over last year’s policy.
Administrative Staff Pay
Mayor Haslam appointed Mr. Calloway, Mr. Coker and Mr. Harrell as the personnel committee to establish criteria for administrative staff evaluations and recommend pay adjustments to the full Board annually.
EXECUTIVE DIRECTOR COMMENTS:
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.
ENROLLMENTS:
Mayor Haslam left the meeting at 10:00 a.m. and Mr. Calloway presided.
The following General Government employees have filed applications to become members of the Plan G1 pension system.
Patrick T. Bird
Greg Combs
Heather E. Dodge
Melissa A. Looney
Karen Robnett
Motion: Ms. Pelot made a motion to approve these applications for enrollment in the Plan G1 pension system. Mr. Kinney 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.
Wayne Brister, General Government, G-1 – Non-vested
James Davis, General Government, G-1 – Vested
Dawn M. Ellison, General Government, G-1 – Vested
Christina Graham, Police Department, Plan C – Non-vested
Chester Hembree, Police Department, Plan C – Non-vested
Joseph T. Jones, Jr., General Government, G-2 - Vested
Jackie McCarty, General Government, G-1 – Non-vested
Carlos E. Perez, Fire Department, Plan C – Non-vested
Motion: Mr. Harrell made a motion to approve these applications for withdrawal of employee contributions. Ms. Pelot seconded the motion. The motion carried unanimously by the members present.
APPLICATION FOR BUYBACK OF PRIOR MILITARY SERVICE:
(Charter Section 1350.9(E) – Exhibit 2
Gary K. Houston, General Government – Plan G2
Buyback of 7 months for the amount of $7,196.66.
Motion: Mr. Kinney made a motion to approve this application to buyback 7 months of prior military service for the amount of $7,196.66. Mr. Harrell seconded the motion. The motion carried unanimously by the members present.
RETIREMENTS:
APPLICATION FOR RETIREMENT: PLAN A
CHARTER SECTION 1360.12
Elizabeth S. Cooper, Schools Non-Certified No Option
Date of birth, November 21, 1937: 68 years of age
Total credited service: 35 years 6 months
Average base earnings for 3 years, $400.00 x .88% = $3.52
Average excess earnings for 3 years, $2,381.55 x 1.76% = $41.92
making a total of $45.44 benefit per year of service. $45.44 x 35.5 =
$1,613.12 Total benefit
946.85 minus County benefit
666.27 City pension effective July 1, 2006.
Motion: Ms. Pelot made a motion to approve this application for normal retirement. Mr. Kinney seconded the motion. The motion carried unanimously by the members present.
Martha J. Hawkins, Schools Non-Certified No Option
Date of birth, June 21, 1940: 66 years of age
Total credited service: 26 years 6 months
Average base earnings for 3 years, $400.00 x .88% = $3.52
Average excess earnings for 3 years, $1,020.31 x 1.76% = $17.96
making a total of $21.48 benefit per year of service. $21.48 x 26.5 =
$569.22 Total benefit
471.96 minus County benefit
97.26 City pension effective June 1, 2006.
Motion: Ms. Pelot made a motion to approve this application for normal retirement. Mr. Kinney seconded the motion. The motion carried unanimously by the members present.
Julia A. Rogers, Schools Non-Certified No Option
Date of birth, March 3, 1944: 62 years of age
Total credited service: 31 years 6 months (combined City & County)
Average base earnings for 3 years, $400.00 x .75% = $3.00
Average excess earnings for 3 years, $790.41 x 1.50% = $11.86
making a total of $14.86 benefit per year of service. $14.86 x 31.50 =
$468.09 Total benefit
342.17 minus County benefit
125.92 City pension effective June 1, 2006.
Motion: Ms. Pelot made a motion to approve this application for normal retirement. Mr. Kinney seconded the motion. The motion carried unanimously by the members present.
Frances H. Smith, Schools Non-Certified No Option
Date of birth, April 12, 1936: 70 years of age
Total credited service: 42 years 9 months (combined City & County)
Average base earnings for 3 years, $400.00 x .88% = $3.52
Average excess earnings for 3 years, $2,387.55 x 1.76% = $42.02
making a total of $45.54 benefit per year of service. $45.54 x 42.75 =
$1,946.84 Total benefit
921.33 minus County benefit
1,025.51 City pension effective August 1, 2006.
Motion: Ms. Pelot made a motion to approve this application for normal retirement. Mr. Kinney seconded the motion. The motion carried unanimously by the members present.
Owen Weston, Schools Certified No Option
Date of birth, October 21, 1943: 62 years of age
Total City credited service: 16 years
Total County credited service: 19 years
Total credited service: 35 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 16 =
$384.48 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 & County benefit is $1,953.35.
Motion: Ms. Pelot made a motion to approve this application for normal retirement. Mr. Kinney seconded the motion. The motion carried unanimously by the members present.
APPLICATION FOR EARLY RETIREMENT: PLAN A
CHARTER SECTION 1360.17
Dana Kenny, Schools Certified Option A-9
100% with reinstatement
Date of birth, December 7, 1950: 55 years of age
Total City credited service: 15 years 11 months
Total County credited service: 18 years 8 months
Total credited service: 34 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, $1,305.28 x 1.50% = $19.58
making a total of $22.58 benefit per year of service. $22.58 x 15.91667 =
$359.40 x ER Factor .5726 = $205.79. Ms. Kenny chose Option A-9 – 100% with reinstatement to Bernard Fegan Kenny, spouse. $205.79 x .8678
$178.58 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 $975.22.
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 payable under Option A-9. Mr. Kinney seconded the motion. The motion carried unanimously by the members present.
APPLICATION FOR DEFERRED RETIREMENT: PLAN A
CHARTER SECTION 1360.28
Janet A. Murray, Schools Certified No Option
Date of birth, January 27, 1945: 61 years of age
Total City credited service: 18 years
Total County credited service: 17 years
Total credited service: 35 years
Last date of employment with City: June 1987
Last date of employment with County: June 2004
Average base earnings for 4 years: $400.00 x 75% = $3.00
Average excess earnings for 4 years, $1,475.03 x 1.50% = $22.13
making a total of $25.13 benefit per year of service. $25.13 x 18 =
$452.34 pension effective August 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 $2,105.95.
Motion: Ms. Pelot made a motion to approve this application for deferred 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 (June 2006) $ 7,784.00 Kennerly, Montgomery & Finley – Attorney (July 2006 –general) 2,071.50
Aberdeen Asset Man. - money manager (2nd Qtr. 2006) 38,679.65
Calamos Investments – money manager (2nd Qtr. 2006) 40,468.00
STW Fixed Income – money manager (2nd Qtr. 2006) 32,002.97
Sterling Johnston – money manager (2nd Qtr. 2006) (final bill) 74,762.73
UBS Global Asset – money manger (2nd Qtr. 2006) 25,735.59
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. Harrell made a motion to approve payment for these bills. Mr. Coker seconded the motion. The motion carried unanimously by the members present.
OTHER:
Pension Board Meeting Schedule
The Board in their discussions indicated their meetings beginning October 2006, would be moved back to the second Thursday of each month.
PUBLIC COMMENTS:
Letter from Police Chief, Sterling Owen – Exhibit 3
The Board acknowledged the letter from Chief Owen.
ADJOURNMENT:
There being no further business, the following motion was made:
Ms. Pelot made a motion to adjourn the meeting at 10:12 a.m. Mr. Coker seconded the motion. The motion carried unanimously by the members present.
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Chair
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Date
M:\Board\minutes\2006\AUGUST.doc