CITY OF KNOXVILLE PENSION BOARD
MINUTES
Thursday – September 11, 2008
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 11, 2008.
Present were: Present were: Mayor Bill Haslam, Mr. Greg Coker, Mr. Joe Hackney, Mr. Buddy Harrell, Ms. Barbara Pelot, Ms. Robin Shelton, Mr. Jim York, Mr. Michael Cherry and Attorney Bud Gilbert.
Also present: Lt. Cheri Matlock, Knoxville Police Department
CALL TO ORDER:
Mayor Haslam presided and called the meeting to order at 8:15 a.m.
APPROVAL OF REGULAR MEETING MINUTES FOR August 14, 2008.
Motion: Mr. Harrell made a motion to approve the August 14, 2008, 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.
CONTRACTS: None
ADMINISTRATIVE MATTERS:
Fiduciary Insurance Policy
Mr. Cherry confirmed that the Fiduciary Insurance Policy from Traveler’s Insurance with our agent Mowery Insurance Company had been renewed through the fiscal year ending July 31, 2009. The policy carries a general $10M limit, with a $2M sub-limit on the RREEF portfolio for this fiscal year.
EXECUTIVE DIRECTOR COMMENTS: None
ATTORNEY COMMENTS:
Reinstatement Rule – Exhibit 2
Attorney Gilbert distributed to the Board a proposed rule drafted for reinstatement of prior employment.
Motion: Ms. Pelot made a motion to adopt the rule for Reinstatement of Prior Employment. Mr. Coker seconded the motion. The motion carried unanimously by the members present.
Contracts
Attorney Gilbert advised the Board that he was still working on the money manager contracts for the managers hired by the Board in July.
Glenda Field’s Litigation
Attorney Gilbert advised the Board that the trial date in the Glenda Field’s litigation, had been rescheduled for January 6, 2009, and that his firm was preparing a brief to the court in response to issues raised by Mr. Farmer.
ENROLLMENTS:
The following General Government employees have filed applications to become members of the Plan G1 pension system.
Glenn Olfe
Motion: Ms. Shelton made a motion to approve this application for enrollment in the Plan G1 pension system. Ms. Pelot 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.
Rachel Bachorek, Police Dept., Plan C – Non-vested
Steve Lay, General Govt., Plan G1 - vested
Margaret Moore, Schools, Plan A – vested
Kelli Pannell, Police Dept., Plan C – Non-vested
Gary Shelton, Fire Dept., Plan C – Non-vested
James S. Ward, General Govt., Plan G1 – Non-vested
Theresa Watson, General Govt., Plan G1 – Non-vested
Motion: Mr. York 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.
DISABILITY – Exhibit 3
APPLICATION FOR INJURY IN LINE OF DUTY: PLAN C – BLUE TAB
CHARTER SECTION 1390.11
Walter G. Ricketts, Police Dept. - Uniformed No Option
Date of birth, September 6, 1955: 53 years of age
Total credited service: 19 years 4 months 7 days
Average monthly salary for 2 highest – 12 month periods, $3,851.81 x 50% =
$1,925.91 pension effective September 1, 2008
Motion: Mr. Coker made a motion to approve this application for injury in line of duty pension, with a review to be performed in two years, based on Dr. Bellner’s medical report and Mr. Cherry’s Disability Recommendation Report. Mr. Hackney seconded the motion. The motion carried unanimously by the members present.
APPLICATION FOR DEFERRED RETIREMENT: PLAN A
CHARTER SECTION 1360.28
Diana D. Waldrip, Schools Certified Option A-4
50% without reinstatement
Date of birth, August 7, 1946: 62 years of age
Total City credited service: 16 years 5 months
Total County credited service: 13 years
Total credited service: 29 years 5 months
Last date of employment with City: June 1987
Last date of employment with County: May 2000
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 16.4167 =
$384.15. Ms. Waldrip chose Option A-4 – 50% without reinstatement to William A. Waldrip, Jr., spouse. $384.15 x .9207 =
$353.69 pension effective September 1, 2008.
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 $1,279.17.
Motion: Mr. York made a motion to approve this application for deferred retirement payable under Option A-4. Ms. Pelot seconded the motion. The motion carried unanimously by the members present.
APPLICATION FOR RETIREMENT: PLAN A
CHARTER SECTION 1360.12
Ammie Cole, Schools Certified No Option
Date of birth, January 14, 1944: 64 years of age
Total City credited service: 16 years
Total County credited service: 21 years
Total credited service: 37 years
Last date of employment with City: June 1987
Last date of employment with County: May 2008
Average base earnings for 4 years, $400.00 x .83% = $3.32
Average excess earnings for 4 years, $1,439.83 x 1.66% = $23.90
making a total of $27.22 benefit per year of service. $27.22 x 16 =
$435.52 pension effective June 1, 2008.
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 $2,848.26.
Motion: Mr. Harrell made a motion to approve this application for retirement. Ms. Pelot seconded the motion. The motion carried unanimously by the members present.
APPLICATION FOR EARLY RETIREMENT: PLAN A
CHARTER SECTION 1360.17
Stephen Clabo, Schools Certified Option A-6
100% without reinstatement
Date of birth, November 29, 1947: 60 years of age
Total City credited service: 16 years 8 months
Total County credited service: 21 years 1 month
Total credited service: 37 years 9 months
Last date of employment with City: June 1987
Last date of employment with County: August 2008
Average base earnings for 4 years, $400.00 x .75% = $3.00
Average excess earnings for 4 years, $1,426.21 x 1.50% = $21.39
Making a total of $24.39 benefit per year of service. $24.39 x 16.6667 =
$406.50 x ER Factor .9075 = $368.90. Mr. Clabo chose option A-6 – 100% without reinstatement to Brenda Clabo, spouse. $368.90 x .8458 =
$312.02 pension effective September 1, 2008.
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 $2,030.03.
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 retirement payable under Option A-6. Mr. Coker 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 G.
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.
Samuel P. Anderson, General Government – Plan G2 Option A-7
50% with reinstatement
Date of birth, July 2, 1953: 55 years of age
Total credited service: 32 years 13 days
Average monthly salary for 2 highest 12 month periods, $11,384.18 x .021 =
$239.07 x 32.03562 = $7,658.76. Mr. Anderson chose Option A-7 – 50% with reinstatement to Willie Jean Anderson, spouse. $7,658.76 x .9076 =
$6,951.09 pension effective September 1, 2008.
DROP complete August 31, 2010.
Motion: Ms. Pelot made a motion to approve this application for DROP retirement payable under Option A-7. Ms. Shelton seconded the motion. The motion carried unanimously by the members present.
APPROVAL OF INVOICES FOR PROFESSIONAL SERVICES: (GREEN TAB)
AQR – Money Manager (2nd Qtr. – 2008) 94,111.00
State Street – Trustee (May 2008) 3,375.79
State Street Global – Money Manager (2nd Qtr. – 2008) 892.58
Summit Strategies – Investment Consultant (3rd Qtr. – 2008) 31,250.00
UBS – Money Manager (2nd Qtr. – 2008) 23,519.21
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 approve payment for these bills. Mr. Harrell seconded the motion. The motion carried unanimously by the members present.
INVESTMENT MATTERS:
Summit Strategies
The Board requested a review and evaluation be performed by Summit Strategies on their performance. Mr. Holmes will attend the October 9, 2008, board meeting to discuss Summit’s performance.
OTHER: None
PUBLIC COMMENTS: None
ADJOURNMENT:
Mayor Haslam adjourned the meeting at 9:13 a.m.
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Chair
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Date
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