At the regularly scheduled meeting of the Fire and Police Pension Fund Board of Directors held on the 17th day of December 2015, President Craig Joel presided. The meeting was held at the Pension Office, 6009 John Douglass Drive, Chattanooga, TN 37421.
The meeting convened at 0907 hours with board members Craig Joel, Kelly Simmons, Mark Coffman, Phillip McClain, Charlie Thomason, Tommy Meeks, Less Lee and Vickie Haley. Attorney Bill Robinson was also present.
Motion by Phillip McClain and seconded by Less Lee to approve the minutes of December 3, 2015 meeting. Motion carried unanimously.
Luke Provenzano of Wells Fargo Bank appeared before the Board providing an update on the Fund’s Trust/Custody relationship.
Master Police Officers Charles H. Darling and Rhonda Darling appeared before the Board. Both Officers plan to retire on December 31, 2015 and are the first who plan to retire under the new DROP (2-423) provisions adopted in 2014. Frank Hamilton explained to the Board that each Officer was initially provided an over-estimate of their DROP amounts. The initial estimated included the member contributions during the DROP period as required by previous legislation. Both Officers requested that the Board include their employee contributions in the DROP calculation. Mr. Robinson stated to the Board that benefits must be calculated in accordance with current legislation which does not include member contributions. He added that to include DROP-period member contributions in the DROP calculation would require a change in the legislation.
Mr. Hamilton notified the Board that a DROP cost review is required by current legislation and suggested that a committee be established to recommend objective criteria for determining cost-neutrality of the new DROP (2-423). Motion by Mark Coffman and seconded by Phillip McClain to establish a DROP cost committee with members Vickie Haley, Craig Joel, Mark Coffman, and Frank Hamilton. The Board agreed that the actuarial review of the new DROP (2-423) include cost-neutrality of adding DROP-period member contributions in the DROP calculation. Motion carried unanimously. Once the DROP review has been completed, the Board will determine appropriate steps that it needs to take regarding the DROP (2-423) calculation. The original DROP (2-422) will remain unaffected by the review.
Bill Robinson provided an update on the status of the current litigation.
Motion by Mark Coffman and seconded by Tommy Meeks to approve the following membership items:
ADD TO THE ROLLS:
Police Captain Corliss Cooper, retiring with 28 years of service, reduced to a 25 year pension and 36 month DROP, effective 01/1/2016, participation date of 06/19/1987 (2-411, 2-422)
Master Police Officer Rhonda K. Darling, retiring with 27 years of service, adjusted for 10-Yr Certain Option (Larriette Greene) and reduced to a 25 year pension rate with a 28 months DROP, effective 01/1/2016, participation date of 08/12/1988 (2-411, 2-418, 2-423)
Fire Captain Terry Martin, retiring with 28 years of service, reduced to a 25 year pension rate with a 36 month DROP, effective 01/01/2016, participation date of 10/23/1987 (2-411, 2-422)
Fire Lieutenant Jeffrey J. Rorex, retiring with 28 years of service, reduced to a 25 year pension rate and a 36 month DROP, effective 01/01/2016, participation date of 10/23/1987 (2-411, 2-422)
Fire Lieutenant Christopher Rader, retiring with 28 years of service, reduced to a 25 year pension rate with a 36 month DROP, effective 01/01/2016, participation date of 10/23/1987 (2-411, 2-422)
Master Police Officer Charles H. Darling, retiring with 28 years of service, reduced to a 25 year pension rate with a 36 month DROP, effective 01/01/2016, participation date of 06/22/1987 (2-411, 2-423)
REFUND CONTRIBUTIONS:
Former Police Officer Brian J. Cottell, terminated 12/15/2015, participation date of 5/31/2013 (2-413)
Motion carried unanimously.
The Board reviewed and discussed the recommendations of the Personnel Committee for FY2016. Motion by Phillip McClain and seconded by Tommy Meeks to approve the recommendations. Motion carried unanimously.
Motion by Mark Coffman and seconded by Tommy Meeks to adjourn at 1017 hours. Motion carried unanimously.
Notes:
Board Advisory Committee meeting today immediately following Board meeting
