At the regularly scheduled meeting of the Fire and Police Pension Fund Board of Directors held on the 2nd day of February 2017, President Craig Joel presided. The meeting was held at the Pension Office, 6009 John Douglass Drive, Chattanooga, TN 37421.
The meeting convened at 0909 hours with board members Craig Joel, Kelly Simmons, Mark Coffman, Charlie Thomason, Tommy Meeks, and Vickie Haley. Attorney Bill Robinson was also present. Phillip McClain was an excused absence.
Motion by Mark Coffman and seconded by Kelly Simmons to approve the minutes of the January 19, 2017 meeting. Motion carried unanimously.
Wells Fargo Relationship Manager Laurie Adams appeared before the Board to provide an update on the 4Q activity with the Fund’s accounts.
Attorney Bill Robinson reported that he has completed a draft of the Agreement between the Fund and the City to provide continued group health insurance coverage to current Fund employees and retired Fund Administrator Frank Hamilton. Upon review and approval by Interim Fund Administrator Katrina Abbott, he will submit the draft to the City attorney for review.
Motion by Mark Coffman and seconded by Tommy Meeks to approve the following membership items:
REFUND CONTRIBUTIONS:
- Former Police Officer Joseph P. Fagan, terminated 01/15/2017, participation date of 12/2/2016 (2-413)
- Former Police Officer Mikel A. Thomas, terminated 01/27/2017, adjusted participation date of 05/09/2014 (2413)
- Former Firefighter Steven K. Ratledge, terminated 12/22/2016, adjusted participation date of 07/24/2013 (2-413)
Motion carried unanimously.
The Board reviewed the bills paid since the last meeting.
Interim Fund Administrator Katrina Abbott updated the Board on a termination issue regarding Police Officer Jonathan Parker. The Fund previously received notice from Chief Fletcher’s office that Officer Parker had terminated his employment with the City of Chattanooga on 12/21/2016, and had therefore approved him to receive a refund of his employee contributions at the 01/05/2017 Board meeting. It has come to the attention of the Fund Staff that Mr. Parker’s termination date was rescinded by the City and he is still an active employee in the City of Chattanooga Police Department until his accrued personal leave has expired. Therefore, he is not currently entitled to a refund of his employee contributions. The refund has not yet been made. Motion by Charlie Thomason and seconded by Tommy Meeks to revoke the prior authorization to refund Officer Parker’s employee contributions and to amend the 01/05/2017 minutes to include a comment that this termination is rescinded. Motion carried unanimously.
In light of the recent issue with Mr. Parker, and past confusion with terminology used in termination letters, Interim Fund Administrator Katrina Abbott will draft letters to both the Fire and Police Chiefs requesting a more appropriate method of confirming terminations and retirements and notifying the Fund by both departments. The Fire Department does not currently provide notices of terminations or retirements.
The Board discussed the importance of keeping City officials notified of Board actions, such as their recommendation to lower the Fund’s discount rate to 7.5% and to fully implement level dollar amortization effective with the 1/1/2017 actuarial valuation, in order to be proactive in the current market environment. They acknowledged that, as a general rule, allowing the City’s representative to the Board to pass on information regarding the Board’s activities is sufficient. The Board does realize that there may be times when it needs to take more direct steps to inform the City of changes to the Fund.
Interim Fund Administrator Katrina Abbott provided the Board with an updated summary of the RFPs for Investment Consultants that were received, as well as the schedule to complete the selection process.
Motion by Tommy Meeks and seconded by Kelly Simmons to adjourn at 1001 hours. Motion carried unanimously.
Notes: Received CARTA parking fees for December 2016 ($4,590)
Notes: Personnel Committee to meet after quarterly investment report on 2/16/17
Notes: Received City Court Fees for December 2016 ($21,762.47)
Visitors Not Appearing Before the Board: Ron Boyd and Don Bickford
Craig Joel Mark Coffman
President Secretary