CITY OF KNOXVILLE PENSION BOARD

MINUTES

SEPTEMBER 8, 2005

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 September 8, 2005.

 

Present were:  Mayor Bill Haslam, Mr. Kent Bates, Mr. Scott Calloway, Mr. Buddy Harrell, Mr. Stephen King, Mr. Christopher Kinney, Ms. Barbara Pelot, Mr. Michael Cherry and Attorney Rob Quillen.

 

CALL TO ORDER:

            Mayor Haslam presided and called the meeting to order at 8:19 a.m.

 

Mr. Cherry introduced Rob Quillen, Attorney with Kennerly, Montgomery & Finley, who attended for Bud Gilbert.

 

APPROVAL OF REGULAR MEETING MINUTES FOR August 11, 2005

Motion:  Mr. Harrell made a motion to approve the August 11, 2005, meeting minutes.  Mr. Bates 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:  None

 

ADMINISTRATIVE MATTERS:

 

            Charter Amendment List Discussion – Exhibit 2

 

Mr. Cherry advised the Board that each item on the list of suggested charter amendments for the 2006 referendum needed to be reviewed and ready for discussion at the October 13, 2005, board meeting. Mr. Cherry noted that Item #10, regarding the cost of living calculation methods for some Board of Education members had been added to the list distributed earlier.

 

            Actuary Study – Retired Uniformed Officers

 

Mr. Cherry informed the Board that he had received a request from retired Fire Department uniformed employee, Mr. Bill Warwick, for an actuary study regarding proposed items for uniformed retirees.  Mr. Cherry advised that the Pension Board has not historically paid for actuarial studies to determine the financial value of proposed benefit enhancements. He further indicated that he would ask Mr. Gilbert to further advise the Board at their October 13, 2005 meeting.

 

Payment of Ophelia Martin’s funds including interest:  Charter Section 1352.6

 

Mr. Cherry advised the Board that he had received the letter of conservatorship necessary to release benefit payments for Ophelia Martin. He recommended the pension board authorize the payment of one year’s interest.

 

Motion:  Mr. Kinney made a motion to pay benefits due of $38,137.33 as of September 28, 2005, plus interest for one year in the amount of $372.64 for a total disbursement of $38,452.82.  Mr. Calloway seconded the motion.  The motion carried unanimously by the members present.

                       

EXECUTIVE DIRECTOR COMMENTS:

 

            RREEF-DB Real Estate

 

Mr. Cherry advised the Board that RREEF owns no property in any of the states affected by hurricane Katrina.

           

ATTORNEY COMMENTS:

 

Glenda Fields Litigation

 

Attorney Quillen advised the Board that there was no change in the status on the Glenda Field’s litigation.

 

Global Crossing Bankruptcy Proceedings – Exhibit 3

 

Attorney Quillen distributed a memorandum to the Board regarding the Global Crossing Limited Adversary Proceedings.  Attorney Quillen advised the Board that his firm was recommending that the Pension System join the Wilmer Group in their motion to dismiss, in the interest of litigation economy.

 

Motion:  Mr. Kinney made a motion that the Pension System join, and be represented by the Wilmer Group in the Global Crossing Bankruptcy Proceedings and that Mr. Cherry be authorized to execute and deliver an engagement agreement reflecting the terms of the Wilmer Group proposal.  Mr. Bates seconded the motion.  The motion carried unanimously by the members present.

 

ENROLLMENTS:

 

The following General Government employees have filed applications to become members of the Plan G1 pension system.

 

            Buford Barnard

Ralph D. Branche

McKinley J. Goetz

            Renee Kesler

            Steven McGhee

            Gary B. Norman       

            David A. Young

 

Motion:  Mr. Bates 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.

 

The following Police Department – Uniformed employees, have filed applications to become members of the Plan C pension system.        

 

            Dana E. Amazeen

            James D. Campbell

            Joshua E. Dykes

            Lance G. Halseth

            Travis M. Harvey

            James A. Henley

            Andrew J. Jurbergs

            Patrick L. Klepper

            Joseph N. Linger

            Robert G. Lister

            Jason A. Mills, Sr.

            Craig B. Milne

            Eric J. P’Simer

            David L. Roncska

            Tyler J. Wylie

 

Motion:  Mr. Bates made a motion to approve these applications for enrollment in the Plan C 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.

 

            Rickey W. Bundren, General Government, G-1, Vested

James D. Clabough, General Government, G-1, Non-vested

Jennifer Coe, Police Department, Plan C, Non-vested

Kevin Dubose, General Government, G -1, Non-vested  

George D. Waller, General Government, G -1, Non-vested

 

Motion:  Mr. Calloway 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.

 

APPEALS:

 

RETIREMENTS:

 

APPLICATION FOR INJURY IN LINE OF DUTY:  PLAN G2  (BLUE TAB)

CHARTER SECTION 1360.22

 

            Walter G. Brabston, Jr., General Government                   Option A-5

                                                                                                            75% without reinstatement

            Date of birth, November 1, 1949:  55 years of age*

            Total credited service:  25 years 2 months 10 days**

            *Computed as if 62 years of age

            **Computed as if worked until 62 (31 years 10 months 26 days)

            $1,519.46 pension effective March 1, 2005.

 

Motion:  Mr. Kinney made a motion to deny this application for an injury in line of duty retirement based on Dr. Cooper’s letter and the medical reports.  Mr. Bates seconded the motion.  The motion to deny carried unanimously by the members present.

 

APPLICATION FOR RETIREMENT:  PLAN G2 – RULE OF 80

CHARTER SECTION 1371.4

 

Walter G. Brabston, Jr., General Government                   Option A-5

                                                                                                            75% without reinstatement

            Date of birth, November 1, 1949:  55 years of age

            Total credited service:  25 years 2 months 10 days

            $1,282.21 pension effective March 1, 2005.

 

Motion:  Mr. Kinney made a motion to approve this application for a Rule of 80 retirement benefit payable under Option A-5.  Mr. Calloway seconded the motion.  The motion carried unanimously by the members present.

 

APPLICATION FOR RETIREMENT:  PLAN A

CHARTER SECTION1360.12

 

            JoAnn F. Beckley, Schools Non-Certified              Option A-9

                                                                                                            100% with reinstatement

            Date of birth, January 12, 1940:  65 years of age

            Total credited service:  35 years 1 month (City & County combined)

            Average base earnings for 3 years, $400.00 x .88% = $3.52

            Average excess earnings for 3 years, $2,335.88 x 1.76% = $41.11

            making a total of $44.63 benefit per year of service.  $44.63 x 35.08333 =

            $1,565.77  Total benefit

 

                 864.39  minus County benefit =

701.38.  Ms. Beckley chose Option A-9 - 100% with reinstatement to Harold L. Gutridge, spouse.  $701.38 x .7876 =

     552.41 City pension effective August 1, 2005.

 

Motion:  Mr. Harrell made a motion to approve this application for retirement payable under Option A-9 with reinstatement.  Mr. Calloway seconded the motion.  The motion carried unanimously by the members present.

 

Walter E. Blakley, General Government                             No Option

            Date of birth, July 21, 1943:  62 years of age

            Total credited service:  13 years 4 months 2 days

            Average base monthly salary for 2 years, $400.00 x .75% = $3.00

            Average excess monthly earnings for 2 years, $1,402.36 x 1.50% = $21.04

            making a total of $24.04 benefit per year of service.  $24.04 x 13.3388 =

            $320.66 pension effective September 1, 2005.

 

Motion:  Mr. Harrell made a motion to approve this application for retirement.  Mr. Calloway seconded the motion.  The motion carried unanimously by the members present.

 

APPLICATION FOR EARLY RETIREMENT:  PLAN A

CHARTER SECTION 1360.17

 

Donald A. Graham, Schools Certified                                No Option

Date of birth, February 13, 1947: 58 years of age

Total City credited service:  17 years

Total County credited service:  18 years

            Total credited service:  35 years

            Last date of employment with City: June 1987

            Last date of employment with County:  June 2005

            Average base earnings for 4 years, $400.00 x 75% = $3.00

            Average excess earnings for 4 years, $1,502.00 x 1.50% = $22.53

            making a total of $25.53 benefit per year of service.  $25.53 x 17 =

            $434.01 x ER factor .7513 =

            $326.07 pension effective September 1, 2005.

 

The City benefit payment is determined by 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 $2,371.33.

 

25 years required for Early retirement.  Supreme Court ruling entitles retiree to combine City & County service.

 

Motion:  Mr. Calloway made a motion to approve this application for retirement.  Mr. Harrell seconded the motion.  The motion carried unanimously by the members present.

 

APPLICATION FOR PARTICIPATION IN THE DELAYED RETIREMENT OPTION PROGRAM (DROP): PURSUANT TO CHARTER SECTION 1371.8 – PLAN G2.

The following employee has chosen a Delayed Retirement Option and will receive a one-time payment of the accumulated monthly benefits on termination of employment with the City of Knoxville.

 

            Linda K. Duncan, General Government                              Option A-7

                                                                                                            50% with reinstatement

            Date of birth, July 13, 1946:  59 years of age

            Total credited service:  21 years 9 months 29 days

            Average monthly salary for 2 highest – 12 month periods, $3,055.66 x 2.1% =

$64.17 x 21.82945 = $1,400.80.  Ms. Duncan chose Option A-7 – 50% with reinstatement to Tom Duncan, spouse.  $1,400.80 x .9185 =

            $1,286.63 pension effective September 1, 2005.

            DROP complete August 31, 2007.

 

Motion:  Mr. Bates made a motion to approve this application for DROP retirement payable under Option A-7 with reinstatement.  Mr. Harrell seconded the motion.  The motion carried unanimously by the members present.

 

Ms. Pelot arrived at 8:50 a.m.

 

            APPROVAL OF INVOICES FOR PROFESSIONAL SERVICES:     (GREEN TAB)

           

Bryan, Pendleton, Swats & McAllister – Actuary (June 2005)              $ 8,235.00

State Street Global – money manager (2nd Qtr. 2005)                             4,214.68

INTECH – money manager (2nd Qtr. 2005)                                              92,912.64       

Sterling Johnston – money manager (2nd Qtr. 2005)                             71,710.14

 

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. Bates made a motion to approve payment of these bills.  Mr. Calloway seconded the motion.  The motion carried unanimously by the members present.

 

OTHER: 

 

INVESTMENT MATTERS:

 

            Final Investment Policy

 

Mr. Cherry advised the Board that he had received information from investment consultant, Dan Holmes, on private equities which would be incorporated into the investment policy.  Mr. Cherry and the Board discussed the need to finalize the investment policy revisions in October, in order to have the revised Investment Policy ready for City Council after November 1, 2005.  Mr. Cherry reminded the Board that Attorney Gilbert would have additional information regarding the Tennessee Uniform Prudent Investor Act to share with the Board.

 

 

PUBLIC COMMENTS:  None

 

ADJOURNMENT: 

 

There being no further business, the following motion was made:

 

Motion:  Ms. Pelot made a motion to adjourn the meeting at 8:53 a.m.  Mr. Bates seconded the motion.  The motion carried unanimously by the members present.

 

 

 

                                                                                                            ____________________

                                                                                                            Chair

 

                                                                                                            ____________________

                                                                                                                        Date

 

 

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