At the regularly scheduled meeting of the Fire and Police Pension Fund held on the 2nd day of October 2014, Vice President Mark Coffman presided. The meeting was held at the Pension Office, 6009 John Douglass Drive, Chattanooga, TN 37421.
The meeting convened at 0905 hours with board members Mark Coffman, Craig Joel, Jerome Halbert, Kelly Simmons, Phillip McClain, Less Lee, and Brent Goldberg. Attorneys Bill Robinson and Melanie Prince were also present.
Motion by Less Lee and seconded by Jerome Halbert to approve the minutes from the September 4, 2014 meeting. Motion carried unanimously. No meeting was held on September 18, 2014.
Retired Police Officer Johnny Frazier appeared before the Board and expressed his desire to see the Board structure modified to include retirees on the Board of Directors. Members of the Board discussed the matter with Mr. Frazier.
Retired Police Sergeant Kirk Salter had requested to appear before the Board but was not present during the meeting.
Motion by Brent Goldberg and seconded by Less Lee to approve the following membership changes:
REMOVE FROM THE ROLLS:
Retired Fire Captain James Ray Pippin, effective 9/30/2014, died 9/10/2014, (2-411)
Retired Fire Lieutenant John Ross Anderson, effective 10/31/2014, died 10/01/2014 (2-411)
ADD TO THE ROLLS:
Pam Pippin, surviving spouse and 50% J&S of Retired Fire Captain James R. Pippin, effective 10/1/2014 (2-411)
REFUND CONTRIBUTIONS:
Former Firefighter Pierce T. Franklin, terminated 09/24/2014, participation date of 4/19/2013 (2-413)
Former Police Officer Jason M. Andrews, terminated 09/12/2014, participation date of 04/18/2014 (2-413)
Former Police Officer Anthony Brown, terminated 09/22/2014, participation date of 04/18/2014 (2-413)
Former Police Officer James H. Smith, terminated 09/26/2014, participation date of 12/05/2008 (2-413)
Former Police Officer Benjamin Robbs, terminated 09/30/2014, participation date of 04/18/2014 (2-413)
PAY DEATH BENEFITS:
Pam Pippin, designated beneficiary of James R. Pippin (2-411)
Estate of John Ross Anderson (2-411)
Motion carried unanimously.
The Board discussed the Fund’s Investment Policy Statement and then recessed the meeting at 0929 hours for a scheduled conference call with Bill Pickens, Wallace Johnson, and Mark Hicks of Gerber Taylor Associates to discuss their recommendations for reallocation of the Fund and Bill Gross leaving PIMCO. The meeting reconvened at 1001 hours.
The Board continued discussion of the Investment Policy Statement including recommendations from Gerber Taylor. Motion by Phillip McClain and seconded by Brent Goldberg to modify the Investment Policy Statement by renaming Real Estate to Real Assets and increase the maximum allowable allocation of Alternative Investment to 35% of the Fund’s portfolio. Motion carried unanimously.
The Board discussed Gerber Taylor’s recommendations for reallocation of the Fund. Motion by Brent Goldberg and seconded by Phillip McClain to make the following modifications to the Fund’s allocation based on the advice of Gerber Taylor Associates:
Sell all holdings in the PIMCO Total Return and PIMCO Unconstrained Funds immediately and temporarily allocate the proceeds to the Vanguard Total Bond Market Index Fund, Institutional and Admiral Classes until a further recommendation can be made.
Hire Forester Capital allocating proceeds from sale of Barlow Partners plus $3.5 million from PIMCO High Yield Bond Fund ($1MM), PIMCO Loan Interests & Credit Fund ($1.5MM), and TCW ($1MM).
Reallocate $1.8 million from Real Estate Management Services to Cohen & Steers.
Move DROP allocation of Eagle Global and BlackRock to the Pension allocation (reporting purposes only).
Motion carried unanimously.
Motion by Phillip McClain and seconded by Kelly Simmons to accept the recommendation of Segal Select Insurance brokers for renewal of Fiduciary Liability Insurance with Ullico/Alterra. Motion carried unanimously.
Motion by Brent Goldberg and seconded by Phillip McClain to accept the Policy Committee’s recommended additions of Actively Employed and Actively Working to the Fund’s Policy Definitions. Motion carried unanimously.
Motion by Phillip McClain and seconded by Less Lee to accept the Policy Committee’s recommendation to adopt the formalized Disability Policy. Motion carried unanimously.
The Board discussed the Fund’s Purchase and Procurement Policy. The Policy Committee recommends no changes to the Policy at this time, but noted that the Board approves an annual budget and under the Policy, regular bills should only be presented as a report rather than requiring a Board vote. The Board will continue to vote on other items as required by the Policy.
Motion by Phillip McClain and seconded by Brent Goldberg to adjourn at 1030 hours. Motion carried unanimously.
Notes:
Katrina Abbott earned the Retirement Plans Associate certification on September 5, 2014.
Less Lee and Kelly Simmons completed New Director Orientation on September 9, 2014.
Additional 1% refunds have been scheduled to be paid on 10/03/2014. The following members have not turned in their refund applications: Joshua Burchard, Stephen D. Davis, David A. Huggins Jr., and Damany Norwood.
