CITY OF KNOXVILLE PENSION BOARD
MINUTES
Thursday – September 10, 2009
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 10, 2009.
Present were: Ms. Barbara Pelot, Mr. Greg Coker, Mr. Joe Hackney, Mr. Jim Hutchens, Ms. Robin Shelton, Mr. Jim York, Mr. Michael Cherry and Attorney Bud Gilbert.
CALL TO ORDER:
Ms. Pelot presided and called the meeting to order at 8:17 a.m.
APPROVAL OF REGULAR MEETING MINUTES FOR August 13, 2009.
Mr. Coker made a motion to approve the August 13, 2009 meeting minutes. Mr. Hackney seconded the motion. The motion carried unanimously by the members present.
APPROVAL OF REVISED AGENDA: - Exhibit 1
CONTRACTS: None
ADMINISTRATIVE MATTERS:
Councilman Booker – Exhibit 2
Attorney Gilbert discussed with the Board Councilman Booker’s eligibility for participation in the pension system. After a discussion with the Board and a review of the charter it was determined by Attorney Gilbert that Councilman Booker would not be required to participate since he was appointed to City Council, instead of elected, and therefore not a member of the system.
EXECUTIVE DIRECTOR COMMENTS: None
ATTORNEY COMMENTS:
Plan G1 Member Complaint
Attorney Gilbert informed the Board of progress made in addressing the complaint filed by 31 Plan G1 members, during his recent phone conversation with attorney Al Holifield. Attorney Gilbert informed the Board that the matter would probably be ready to be heard at the October meeting at which time the Board would be given the opportunity to meet in Executive Session. Since two current board members may have a conflict of interest in the matter, Attorney Gilbert explained the pros and cons of their attendance in the Executive Session, and advised against their attendance as fiduciaries of the plan, and reminded them that they would not be able to vote on the matter.
Personnel Committee Report
The Personnel Committee reported to the Board that clarification was needed on a matter which they hoped to have resolved by the next meeting date and made the following motion:
Motion: Mr. Coker made a motion to reconsider this morning’s earlier motion to approve the August 13, 2009, meeting minutes. Mr. Hutchens seconded the motion. The motion carried unanimously by the members present.
Motion: Mr. Hackney made a motion to defer the approval of the August 13, 2009, meeting minutes to the October 8, 2009, meeting. Mr. Coker seconded the motion. The motion carried unanimously by the members present.
Motion: Mr. Coker made a motion to reconsider the Pension Board’s action at its August 13, 2009 meeting to approve the Personnel Committee’s recommendation regarding certain salary adjustments for the Pension Board’s two administrative staff positions. Mr. Hackney seconded the motion. The motion carried unanimously by the members present, after which Mr. Coker withdrew his motion to approve the Personnel Committee’s recommendation without objection.
ENROLLMENTS:
The following General Government employees have filed applications to become members of the Plan G1 pension system.
Hannah Lee Parker
Motion: Mr. York made a motion to approve these applications for enrollment in the Plan G1 pension system. Mr. Hutchens seconded the motion. The motion carried unanimously by the members present.
WITHDRAWALS:
The following employees have filed an application to withdraw employee pension contributions plus 4% interest and the supplemental retirement account as applicable in Plan G Option 1.
Kristopher M. Bostic, General Govt. – G1; Non-vested
Glenda Britton, Schools – Plan A; Non-vested
Shea Burris, Schools – Plan A; Non-vested
Ginger Cockrum, Schools – Plan A; Non-vested
Patricia Graves, Schools – Plan A; Non-vested
Ruth B. Smith, Schools – Plan A; Non-vested
Bonnie Spicer, Schools – Plan A; Non-vested
Karen R. Suarez, Schools – Plan A; Non-vested
Christina Wilson, General Govt. – G1; Non-vested
Motion: Mr. Hackney made a motion to approve these applications for withdrawal of employee contributions. Mr. Coker seconded the motion. The motion carried unanimously by the members present.
APPLICATION FOR NORMAL RETIREMENT: PLAN A
CHARTER SECTION 1360.12
Barbara A. Golec, Schools Non-Certified No Option
Date of birth, November 29, 1941: 67 years of age
Total credited service: 32 years 7 months (combined City & County)
Average base earnings for 3 years, $400.00 x .88% = $3.52
Average excess earnings for 3 years, $1,880.73 x 1.76% = $33.10
making a total of $36.62 benefit per year of service. $36.62 x 32.5833 =
$1,193.20 Total benefit
879.41 minus County benefit
$313.79 City pension effective August 1, 2009
Motion: Mr. Hutchens made a motion to approve this application for retirement. Mr. Hackney seconded the motion. The motion carried unanimously by the members present.
APPLICATION FOR EARLY RETIREMENT: PLAN A
CHARTER SECTION 1360.17
Philip Akers, Schools Certified Option A-4
50% without reinstatement
Date of birth, October 1, 1949: 59 years of age
Total City credited service: 15 years 9 months
Total County credited service: 22 years
Total credited service: 37 years 9 months
Last date of employment with City: June 1987
Last date of employment with County: May 2009
Average base earnings for 4 years, $400.00 x .75% = $3.00
Average excess earnings for 4 years, $1,428.54 x 1.50% = $21.43
making a total of $24.43 benefit per year of service. $24.43 x 15.75 =
$384.77 x ER Factor .8250 = $317.44. Mr. Akers chose Option A-4 – 50% without reinstatement to Julia M. Akers, spouse. $317.44 x .8935 =
$283.63 pension effective June 1, 2009
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 $1,825.73.
25 years required for Early retirement. Supreme Court ruling entitles retiree to combine City & County credited service.
Motion: Mr. Coker made a motion to approve this application for retirement payable under Option A-4. Mr. York 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.
Gary R. Broyles, General Government – Plan G2 No Option
Date of birth, August 3, 1949: 60 years of age
Total credited service: 32 years 8 months 12 days
Average monthly salary for 2 highest – 12 month periods, $3,046.54 x .021 =
$63.98 x 32.69954 =
$2,092.12 pension effective September 1, 2009.
DROP complete August 31, 2011.
Motion: Mr. York made a motion to approve this application for DROP retirement. Mr. Coker seconded the motion. The motion carried unanimously by the members present.
APPROVAL OF INVOICES FOR PROFESSIONAL SERVICES:
Bryan, Pendleton, Swats & McAllister – Actuary (July 2009) $ 5,509.00
Kennerly,Montgomery & Finley – Attorney (General –July 09) 6,684.67
Pugh & Co. – Auditor (June 30, 2009 progress billing) 18,000.00
State Street – Custodial (July 2009) 8,357.98
State Street – Trustee (July 2009) 3,384.75
Summit Strategies – Money Manager (3rd Qtr – 2009) 31,250.00
State Street Global – Money Manager (2nd Qtr – 2009) 2,500.00
Securities Lending Revenue (4,301.45)
Credit due fund (1,801.45)
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. York made a motion to pay these invoices. Mr. Hackney seconded the motion. The motion carried unanimously by the members present.
INVESTMENT MATTERS:
Final Investment Policy Draft – Exhibit 3
Attorney Gilbert reviewed with the Board the changes made, in conjunction with Mr. Dan Holmes, to the Investment Policy, which changes included those suggested by the Investment Committee.
Ms. Shelton arrived at 9:17 a.m.
Motion: Mr. Coker made a motion to approve the revised Statement of Investment Policy substantially in the form presented by legal counsel and Mr. Cherry subject to the following changes. Mr. Hackney seconded the motion. The motion carried unanimously by the members present.
1) removal of two addenda to the revision of language at page 11 under the asset structure to articulate a required policy for maintaining an asset allocation and targets for those asset allocations that would be in the control of the Board and that would also be reported to City Council with the regular reports that are required to be submitted;
2) change to Section C under Real Assets on page 16, after consultation with Mr. Holmes and Mr. Cherry to better describe that category of assets for the lay person; and
3) clarify, on page 26 of the Investment Policy, which LIBOR term is used
Investment Committee Minutes
Mr. Cherry provided to the Board a copy of the September Investment Committee meeting minutes.
OTHER: None
PUBLIC COMMENTS: None
ADJOURNMENT:
There being no further business, the following motion was made:
Mr. Coker made a motion to adjourn the meeting at 9:43 a.m. Mr. Hackney seconded the motion. The motion carried unanimously by the members present.
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Chair
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Date
M:\Board\minutes\2009\september.doc