At the regularly scheduled meeting of the Fire and Police Pension Fund Board of Directors held on the 5th day of May 2016, President Craig Joel presided. The meeting was held at the Pension Office, 6009 John Douglass Drive, Chattanooga, TN 37421.
The meeting convened at 1409 hours with board members Craig Joel, Kelly Simmons, Mark Coffman, Charlie Thomason, Tommy Meeks, Less Lee, and Vickie Haley. Attorney Bill Robinson was also present.
Motion by Mark Coffman and seconded by Kelly Simmons to approve the minutes of April 21, 2016 meeting. Motion carried unanimously.
Firefighter Stacy Brogden appeared before the Board and presented an application for Job Related Disability. Mr. Brogden confirmed that he is off from work using his Personal Leave and has exhausted Injured-On-Duty Leave.
Luke Provenzano, the Fund’s relationship manager with Wells Fargo Bank appeared before the Board to discuss new SEC rules on mutual funds/cash sweep vehicles. Mr. Provenzano presented four options that satisfy the new SEC rules. The Board discussed the options. Motion by Less Lee and seconded by Kelly Simmons to approve the Wells Fargo Collateralized Institutional Bank Deposit Account. Motion carried unanimously.
Mr. Provenzano told the Board that he is retiring on July 7 and this would be the last meeting that he would attend. Mr. Provenzano told the Board that Wells Fargo’s relationship with the Fund is one of the best that he has ever worked with, stating that the Board has the right mix of Directors and a knowledgeable staff who care deeply for the Fund’s participants. He said that he does not often see the level at which the Fund operates to act in the best interest of the participants.
Bill Robinson updated the Board on the status of the Frazier and Dodd lawsuits. Frank Hamilton asked President Joel if the Fraternal Order of Police planned to continue paying for Dodd’s legal fees in the lawsuit. Mr. Joel confirmed that the FOP does have a pending request from Retired Chief Dodd to pay his legal fees. Mr. Joel stated that the FOP generally does not provide legal representation for retirees and he feels that the approval came from the State level FOP.
Motion by Mark Coffman and seconded by Tommy Meeks to approve the following membership items:
ADD TO THE ROLLS:
Police Sergeant Cherilyn E. Bryant, retiring with 25 years of service unadjusted for J&S 10-Yr Certain Option (Barbara Bryant) effective 05/01/2016; participation date of 04/08/1991 and terminated 04/28/2016 (2-411, 2-418)
Police Lieutenant Darrell Whitfield, retiring with 26 years and 7 months of service, reduced to 25 year pension and 19 months DROP, effective 06/01/2016, participation date of 09/08/1989 and terminated 05/05/2016 (2-411, 2-422)
REFUND CONTRIBUTIONS:
Former Fire Captain Joyce Miller Bridges, terminated with more than 10 years of service effective 01/26/2016, participation date of 02/11/2002 (2-415)
Former Police Officer Sarah Fuller, terminated with less than 10 years of service effective 04/28/2016, participation date of 06/13/2014 (2-413)
Motion carried unanimously.
The Board reviewed the bills paid since the last meeting.
Wallace Johnson and Mark Hicks of Gerber Taylor Associates presented the 1Q-2016 Investment Performance report to the Board. Mr. Johnson reported that the first quarter was one of the most volatile since 2008 and the Fund returned -1.3% for the first three months of 2016 with an ending balance of $206,308,548.
Gerber Taylor recommends the following reallocation of assets:
Transfer $1.5MM from 1607 Fund to Eagle Global on June 1, 2016
Replace PIMCO All Asset All Authority with PIMCO All Asset
Withdraw $3MM from Evanston on September 30, 2016
Withdraw $2.5MM from Pointer at Year End
The withdrawals from Evanston and Pointer will be to provide cash for benefit payments and/or rebalance the portfolio allocating to other managers. The Board discussed the recommendations at length. Motion by Charlie Thomason and seconded by Kelly Simmons to approve the asset reallocation recommended by Gerber Taylor Associates. Motion carried unanimously.
Motion by Mark Coffman and seconded by Kelly Simmons to adjourn at 1627 hours. Motion carried unanimously.
Notes:
Received March City Court Fees
No meeting on May 19 due to lack of quorum
Annual meeting is scheduled for September 20-21, 2016
