At the regularly scheduled meeting of the Fire and Police Pension Fund Board of Directors held on the 20th day of July 2017, President Craig Joel presided. The meeting was held at the Pension Office, 6009 John Douglass Drive, Chattanooga, TN 37421.
The meeting convened at 0917 hours with board members Craig Joel, Tommy Meeks, Phillip McClain, Charlie Thomason, Kelly Simmons and Vickie Haley. Attorney Bill Robinson was also present. Mark Coffman was an excused absence.
Motion by Charlie Thomason and seconded by Phillip McClain to approve the minutes of the July 06, 2017 meeting. Motion carried unanimously.
Motion by Phillip McClain and seconded by Kelly Simmons to approve the following membership items:
REMOVE FROM THE ROLLS:
- Retired Police Sergeant James W. Wilson, effective 07/31/2017, passed away 07/05/2017 (2-411)
ADD TO THE ROLLS:
- Deborah Wilson, surviving spouse of Retired Police Sergeant James W. Wilson, effective 08/01/2017 (2-411)
REFUND CONTRIBUTIONS:
- Former Police Officer Jeffery Rahn, terminated effective 07/11/2017, adjusted participation date of 04/20/2014 (2-413)
- Former Police Officer Charles Brock, terminated effective 07/12/2017, adjusted participation date of 02/09/2009 (2-413)
- Former Fire Engineer Bradford Ransom, terminated effective 06/22/2017, adjusted participation date of 02/2/2011(2-413)
PAY DEATH BENEFITS:
- Deborah Wilson, designated beneficiary of James W. Wilson (2-411)
Motion carried unanimously.
The Board reviewed the bills paid since the last meeting.
Fund Administrator Katrina Abbott updated the Board on the status of researching Cyber Security issues, including Insurance, for the Fund. Katrina Abbott is currently reviewing all documentation and compliance regulations with a Cyber Security Specialist from Baker Donelson, as well as the Fund’s IT specialist.
The Board recessed for an executive legal session at 0944 to discuss current disability pensioners and the possibility of recalling such pensioners for a review of their status; as well as other legal matters. The Board reconvened at 1030. After a short discussion, motion by Charlie Thomason and seconded by Phillip McClain to retain Ted Siedle, an attorney, to assist the Board and Dahab Associates in conducting a review of past investments to determine if the Fund is entitled to any adjustments to fees related to such past investments. Motion carried unanimously. The Board then instructed Bill Robinson to prepare a written engagement agreement with Mr. Siedle.
Barry Bryant and Steve Roth of Dahab Associates appeared before the Board to present an asset allocation study for the Fund. Dahab Associates provided ten alternative mixes for target allocations for the Board to review. After discussion and a question and answer period with Barry and Steve, motion by Tommy Meeks and seconded by Kelly Simmons to approve Mix 4 of the July 2017 Asset Allocation Study. Mix 4 provides a target allocation as follows: Large Cap Equity (20%), Mid Cap Equity (15%), Small Cap Equity (5%), International Equity (10%), Emerging Markets Equity (10%), Private Equity (5%), Timber (5%), Farmland (5%), Real Estate (5%), and Domestic Fixed Income (20%). Barry and Steve emphasized that these are just goals for asset allocation and they may be revised in the future. Dahab Associates and Bill Robinson will revise the Fund’s investment policy statement to bring it in line with the new asset allocation targets and Dahab Associates will begin the process of redemption requests, as well as the selection of managers to move towards our target allocation.
Motion by Charlie Thomason and seconded by Tommy Meeks to adjourn at 1155 hours. Motion carried unanimously.
Notes: Craig Joel, Kelly Simmons, Mark Coffman, Charlie Thomason and Tommy Meeks earned the Accredited Fiduciary designation through NCPERS.
Notes: Received Open Records Request 7/13/17 – denied due to out of state residence
Notes: Lateral Police Officers Aron Duty and James Elliott became members of the Fund on 07/07/2017.
Notes: Lateral Police Officer Sonny Warren has repaid employee contributions to receive prior pension credit service, with an adjusted pension date of 12/7/2016.
Notes: Following Membership Changes during 2017 YTD:
- 22 Police and 5 Fire terminated employment
- 6 Police retired; 4 Fire retired
- 1 Police Disability and 1 Pending Disability Application (Police)
- 8 Retirees passed away; 7 beneficiaries passed away
- 6 new beneficiaries added to rolls
- 26 New Police Officers and 35 New Firefighters
Visitors not Appearing Before the Board: Michael Hart, Ron Boyd, Don Bickford
Craig Joel Kelly Simmons
President Vice President