At the regularly scheduled meeting of the Fire and Police Pension Fund Board of Directors held on the 18th day of May 2017, President Craig Joel presided. The meeting was held at the Pension Office, 6009 John Douglass Drive, Chattanooga, TN 37421.
The meeting convened at 0912 hours with board members Craig Joel, Kelly Simmons, Tommy Meeks, Phillip McClain, Vickie Haley and Charlie Thomason. Attorneys Bill Robinson and Cameron Hill were also present. Mark Coffman was an excused absence.
Motion by Phillip McClain and seconded by Kelly Simmons to approve the minutes of the May 04, 2017 meeting. Motion carried unanimously.
Attorney Bill Robinson updated the Board on the status of the request for additional information by the IRS regarding the Fund’s request for a favorable determination letter. The Fund has submitted the requested information by the deadline of May 12, 2017. Attorney Robinson discussed proposed legislation amendments to comply with IRS requirements, pending the IRS approval of the language.
Attorney Robinson also updated the Board on new state legislation that no longer exempts state and local government pensions in Tennessee from complying with Qualified Domestic Relations Orders (QDROs). Mr. Robinson is currently drafting a QDRO Policy for review by the Policy Committee to establish rules to determine what constitutes a “Qualified Domestic Relations Order.”
Motion by Phillip McClain and seconded by Charlie Thomason to approve the following membership items:
ADD TO THE ROLLS:
- Firefighter Jerry R. Lee, vesting with 16 years of service, terminated on 05/10/2017, adjusted pension credit service date of 02/24/2001. Deferred Vested benefit begins effective 08/01/2027.
REFUND CONTRIBUTIONS:
- Former Police Officer Jonathan Parker, terminated effective 04/15/2017, participation date of 03/22/2008 (2-413)
- Former Police Officer Tyler B. Stewart, terminated effective 04/28/2017, participation date of 09/18/2015 (2-413)
- Former Police Officer Bryan Moody, III, terminated effective 05/09/2017, participation date of 06/27/2008 (2-413)
- Former Firefighter Michael Fasolo, terminated effective 05/11/2017, participation date of 09/04/2015 (2-143)
- Former Police Officer Mikel Thomas, terminated effective 5/12/2017, participation date of 3/27/2017 (2-143)
Motion carried unanimously.
The Board reviewed the bills paid since the last meeting.
Fund Administrator Katrina Abbott discussed the amendment to the Nationwide 457 Plan Resolution to bring the 457 Plan into compliance with recent staffing changes. Motion by Phillip McClain and seconded by Charlie Thomason to adopt the amendment to the Nationwide 457 Plan Resolution.
The Board rescheduled the annual DROP/Retirement Seminar that was previously postponed, for September 7, 2017 at 6 p.m. In light of retaining its new Investment Consultant, Dahab & Associates, the Board discussed the option of holding its annual business meeting on Long Island this fall to allow Board members to meet Dahab’s management and staff, as well as to have a more hands on experience with their operations, as it has done in the past when hiring new professional vendors.
The Board recessed for an executive legal session at 0951. The Board reconvened at 1155.
Steve Roth of Dahab Associates appeared before the Board to discuss the upcoming conversion timeline and the process of reviewing our investments as the Fund’s new Investment Consultant. Dahab recommended full redemption of the I-shares Russell Mid-Cap ETF in order to purchase equal shares in the Vanguard Mid-Cap Index Fund to realize an immediate cost savings. Motion by Tommy Meeks and seconded by Kelly Simmons to accept the recommendation. Motion carried unanimously. Dahab also recommended combining the two separate allocations to Metropolitan West Total Return to the less expensive share class of the two to provide an immediate cost savings. Motion by Phillip McClain and seconded by Charlie Thomason to accept the recommendation. Motion carried unanimously.
Motion by Phillip McClain and seconded by Vickie Haley to adjourn at 1213 hours. Motion carried unanimously.
Notes: City Parking Fees received for April 2017 ($4,615.00)
Notes: The Disability Hearing for Police Officer Charles G. Blankenship has been tentatively scheduled for June 15, 2017 at 11 a.m.
Notes: The following graduated the Police Academy and became new members of the plan effective 04/17/2017:
- Bryan Asbury, Albert Beard, Christopher Blackburn, Johnny Blakley, Josiah Blakney, Bradford Callaway-Wright, Jon Jeffrey Cannon, Chandler Cooke, Caleb Corbin, Charles Darling, Matthew Gerity, Jillian Hampton, Dustin Harwood, Michael Hogsed, James King, Shane Martin, Abiodun Oseni, Daniel Parda, Kendra Randolph, Jacob Sain, Nicholas Shelor, Cody Thomas, and Daniel White
Visitors Not Appearing Before the Board: Michael Hart, Ron Boyd
Craig Joel Kelly Simmons
President Vice President