Duncan retirement talks cost $568

For what it’s worth. Looks like one of the county pension board’s law firms billed the board some $568 in September as officials figured out just how much of his retirement former Knox County Trustee John Duncan III should get back.

At this point, it looks like he’ll get back all the money he put in. However, the coin from the county match will go into an escrow account (where it will still lose or gain) for now. If Duncan, who pleaded guilty to felony official misconduct in July, completes the terms of judicial diversion, then he’ll get the rest.

If not, then, well, no.

Here’s a look at the receipts from attorney Bill Mason of Kennerly, Montgomery and Finley:

Sept. 11: Billed for 30 minutes to the tune of $55.50 for an office consultation with Bill Mason, regarding “J. Duncan’s guilty plea to official misconduct and whether plea would result in forfeiture of retirement plan benefit.”

 Sept. 11: Billed for a one hour telephone conference with Pension Board Executive Director Kim Bennett for $285 regarding his withdrawal and rollover in his retirement plan, which is somewhat like a 401(k). According to the notation, the two discussed “the reimbursement of county and forfeiture provisions applicable for a felony conviction involving official county duties. There was also an office conference regarding “criminal law and status of the case and judicial diversion.” There also was a telephone conversation with Knox County Law Director Bud Armstrong about “county position on the charter forfeiture provisions.” And a telephone conference with Bennett regarding “further email from J. Duncan re follow up on same.”

Sept. 12: Billed $228 for 80 minutes. Apparently, the attorney reviewed the email from Duncan to Bennett. Attorney also drafted email from Bennett and Armstrong confirming the discussion from the previous day, and “with proposed response to J. Duncan re forfeiture provisions. Review her email to J. Ducan re same.”

Pension board won't move; members may

As officials on the pension board wrestle over zillion dollar retirement plans, the board this morning did agree not to move its office out of the Deathstar.

As pension board Executive Director Kim Bennett said: “The move will cost easily another $30,000 to $40,000 a year.”

For about a year now, members have been in discussion about relocating the tiny office from the Deathstar’s third floor over to Landmark Plaza, at the corner of Papermill and Northshore drives. There are some advantages, like accessibility, parking, space, etc. But there are also costs.

In the end it came down to the county cutting the board a deal. I’m not going to get into it, because this stuff is already boring enough. Just know that the office is not moving. And that the spitting contest between the administration and the pension board could be over. At least on this issue. Then again . . . .

During this morning’s meeting the board also talked about a few other items that cost coin: traveling and the retiree luncheon.

So, the pension board office is staying put, but some members may be on the move as they have an opportunity to take two trips. One places them in San Diego around April 22 and the other in New York from May 5 through 10. Based on past records, the trips cost about $2,000 per person.

The California trip is the annual Wilshire convention. Wilshire is the board’s investment consultant. The New York trip is for the National Conference on Public Employee Retirement Systems.

The reality is that the trips are probably worthwhile. From what I understand the current board members actually attend the meetings and the seminars. (This was not always the case in the past when some other folks served.) And, yes, they are allowed to play golf, but they don’t when the courses are held.

“It’s time very well spent,” said, Doctor, Colonel and County Commissioner Richard Briggs, also a pension board member.

Added pension board member, educator and County Commissioner Tony Norman: “Mike, I’m thinking about taking one of these trips so go ahead and write about it.”

OK, no problem.

The pension board also hosts its annual retiree luncheon on April 10. This is the big fling-ding where all the folks get to hang out and eat a free (for them) meal, usually catered by Rothchild. They also have the chance to snag a door prize. Last year the event cost about $9,100, but donations paid more about half of that, Bennett said, adding that about two-thirds of the costs and a small amount of door prizes are already covered for this year’s event.

Lobetti has two years to pay back coin

Yesterday, I noted how I had a bunch of scribblings left from Monday's pension board meeting. Good stuff. Heh.

Anyhoo, awhile back political operative Robert M. “Mose” Lobetti had a little debate with the board over some coin members say he owes.

Halls Shopper reporter Betty Bean wrote about it right smack here. Essentially, Mose, who has worked behind the scenes (and not so behind the scenes) on a number of political campaigns, including the recent failed effort by Mark Padgett to gain the Knoxville mayoral seat, is on the Uniformed Officers Pension Plan.

Yup, same plan that voters thought was for deputies, jailers and overall ass-kicking law enforcement officers out there risking their lives every day because they don't make a whole heck of a lot of money. But, yeah, he's on it, cause bailiffs (which are technically called courtroom security officers) are on it.

(Forgot one thing: Mose has also been involved in some Congressional races for the Duncans, but, uh, a trained monkey could run that family's campaign. They don't lose. In fact, if a Duncan doesn't get 80 percent of the vote, it's an upset. But, I digress.)

Soooo, some folks were pretty shocked that he's on the plan and owes some money. Again, read Bean's story for the background because I'm just jumping into what followed on Monday. Cause it's silly. And we like silly at Screams from da Porch.

Entertainment at the expense of others and all that.

(By the way, this guys is more connected to the incestuous relationships inside the Deathstar than then brick and mortar that hold the building together. So, if you think I'm picking on him – and I'm not – I don't really care. Public figure and all that. Plus, he goes around, wanting people to refer to him as “The Godfather.”)

So, the pension board/office wants the old dude to pay pack $13,000. (He should have paid it back a long time ago but, due to an “oversight,” he wasn't informed until – I think – earlier this year.)

That's the $11K he took out, plus some interest and 7.5 percent rate of return on investments even thought – during the lifetime of the UOPP – the rates have come in at negative 3.12, according to third quarter – it ended Sept. 30 – reports. (That was a mouthful.)

Heh. Good deal for the pension system. Bad deal for Mose. Now, Mose, 82, doesn't want to pay this back. And I don't blame him. But, if he doesn't, then he's not going to get the full benefits of the UOPP until the coin gets returned.

His attorney, Steve Sharp, also doesn't want him to have to pay it back. Can't blame him, either, since he's paid to not want Mose to have to pay it back.

Said Sharp: “Mr. Lobetti is not a wealthy man and $13,000 is a lot of money.”

Now, the pension board is willing to work with them. Members suggested giving him two years to pay it back. In monthly installments. (That would be $531.666 a month.)

Mose, visibly disgusted, didn't like that.

“They (the pension office) have known this for four years and didn't tell me, but I'm not blaming anybody,” he told the board.

Say what?

Mose, who makes $44,116.28 in annual salary, added: “It's going to be rough if I have to pay back (the money) every month. It may put me in bankruptcy.”

Now, historically, officials said, those transferred to the UOPP “had six months to repay any distributions to reinstate the time in the UOPP.”

Mose at one point also asked whether he could pay back part of the coin with a $10,000 life insurance policy or something or other he's had since 1950 when he served in the U.S. Navy.

Pension Board attorney Richard Beeler told him that wasn't gonna fly – no, he can't sign over a policy to the county.

Apparently frustrated, Mose told the board that when he joined the pension plan he turned over $130,000.

He made this out to be a big deal. Let me tell you something: That $130,000 isn't jack.

Under the Sheriff's Office defined benefit plan he's going to get $33,087 a year in retirement, plus a 3 percent cost of living adjustment each year. That's 75 percent of his total salary.

Now, how much a year do you think he's gonna get with that $130,000, which no doubt would be worth about 5 cents (give or take a penny) right now because of the stock market?

That's what I thought.

Now, people might think I'm being harsh, but, seriously, quit your whining.

Additionally, some folks at the meeting (and Mose a few months ago) made it out that Mose just HAD to take that $11,000 payout – that it was just forced right on into his wallet.

Nope. According to pension board executive director Kim Bennett, he received the minimal required distribution, but because he was employed, “it technically wasn't required that he take it.”

So, round and around we go.

Now, Mose says he doesn't understand “why I have to pay the interest.”

Uh . . . . Huh?

He said if the board gave him two years, then he'd pay back the $11,000. (Screw the interest or whatever, I suppose.)

Huh? So, make up your mind. Do you have the coin or not? What are you gonna do between now and then to raise $11K?

Never mind, don't answer that.

Eventually county commissioner and pension board member Richard Briggs wanted this mess to end. He said $13K was “a big chunk of money if you don't anticipate it or get blindsided by it.

He suggested giving Mose two years to repay it “with one stipulant (that's French by the way for “stipulating”): That he can't die in two years.”

He was kidding.

If Mose does, then the coin (which we will now refer to as “debt”) will be taken out of his death benefits that will be passed along to whoever.

So, the board – which at one point had no idea what it was voting to approve – agreed to give the guy two years to pay back what will eventually be more than $13K. Mose said he'll pay it in one lump sum at that time.

Bennett said her office will recalculate the coin and come back with the exact amount of scratch later. It's going to be more than $13K, but she has two years to come up with the new number.

In the meantime, Mose ain't gonna die. He'll make sure Congressman Jimmy Duncan gets a law passed to prevent that from happening.

Retirement plan audits to cost $42K

Sat in the pension board meeting Monday for more than two hours. Exciting stuff, I'll tell ya. No, really. Good stuff. Heh.

Anyhoo, I've got a notebook full of information, most of it will never see print because we don't have the space, so I'll start dumping some of it here on the ole blog.

The County Commission recently (it might have been Monday when I was sleeping) signed a four-year contract with Pugh and Company, which will serve as its external auditor. The Knoxville-based company also will work with the pension board.

Some officials, particularly Knox County Senior Director of Finance John “Mad Dog” Troyer, have been itching to get someone to audit the county's six retirement programs.

Now, don't go and get too excited. For someone who operates with the glass half full, even I seriously doubt they're going to find anything. (Other than investment returns kind of suck. But that's true pretty much everywhere.)

In fact, Troyer called it a “straight forward vanilla” audit. (Although he might have said a “Donila” audit.)

The IRS looked over some of the plans (if not all of them) not to long ago and didn't find anything. (As I recall there were some payroll issues or something to do with the county not putting in interest or whatnot, but the plans were pretty much clean.)

The pension board will pick up the tab – about $42,000 for the first year's audit. Executive Director Kim Bennett said the scratch will come from a pot of coins set aside to purchase new software.(She hinted pretty hard Monday to the board that if she uses this money for the audit, she'd still need the software in 2013. In other words, fellas, don't be surprised if I put some extra coinage in there 18 months from now!)

ON A SIDE NOTE: Ann Acuff, who is pretty much second-in-command of the county's finance office is (or has) retired. I met her a few times and she has always been very pleasant and very helpful. Her effective retirement date is Dec. 1. She's leaving after more than 46 years.

That's pretty cool. So congrats goes out to her.

Pension boredom office to relocate?

If you’re not into county pension board/office stuff, you might want to skip this one.

Then again, maybe not.

As the News Sentinel reported (click right smack here) a week or so ago, the city’s pension board or its officials or whatnot are looking into a proposed charter amendment that would require that all votes on board action take a majority of all seven board members to pass.

Who knows if it will pass. Politics are involved. You know how that goes.

Anyhoo, the county’s financial minister, John Troyer, wants the county pension board to look into the same proposal.

But, when he suggested it during the board meeting this past Monday, other members met with some blank stares.

(Yeah. I’m not too sure this one is gonna fly.)

Troyer was upset because board members are talking about moving the office from the Deathstar’s third floor over to Landmark Plaza, which is at the corner of Papermill and Northshore drives.

Last month, the board, in a 4-1 vote, agreed to let pension board Executive Director Kim Bennett look further into the proposal.

The county pension board, though, has 9 members, including four commissioners. It also includes county Mayor Tim Burchett, but let’s face it, he doesn’t like meetings, so Mad Dog John is his official stand-in. ANYWAY, as I was saying, last month, the four commissioners bolted early from the meeting to grab some grub at commission Chairman Mike Hammond’s monthly luncheon. That left JT and four others.

And when Troyer voted against the proposal to move, he thought he had won. (JT figured you needed five “yes” votes to get something approved.)

He didn’t.

Pension board attorney, former county law director and (newly appointed) nemesis to the county’s administration Richard Beeler (because Burchett doesn't want his firm to be the county's bond counsel) said it takes a majority of a quorum to approve a board action – not five.

JT didn’t like that.

The Actual Relocation

One a side note, Bennett said it would cost about $50,000 to move the office and about $32,000 (at least) a year more to maintain operations.

She handed out a worksheet, listing the four “cons” and the 11 “pros,” which made me chuckle.
I agree that her office needs more space. It’s like a matchbox right now. And, it’s not very accessible to the seniors who make up 91 percent of the office’s clientele.

But her other reasons?

“More flexibility in future needs for office.” Really? We hiring more people in that pension office?
“Free up floor space in the (Deathstar) for expansion.” Really? Is The Man with the Badge finally going to get that intake center he always wanted?

“Participants perception of independence.” Come on. Just go to a board meeting. The attorneys like to remind the administration every ten minutes that the board is independent.

“Larger board room available for board meetings.” Huh? There’s like a 100 big rooms in the Deathstar you can use.

OK, I’m rambling.

Count on the board approving this next month.

Count on Burchett, I mean JT, voting against it. (And maybe a few other folks.)

Some pension office 'boredom' news

Sat in the county's retirement and pension board meeting Monday. The big story that came out of it obviously was the board's move to shoot down a request from four civilian employees to join the upgraded pension plan for deputies.

I'm not going to recap it. (It's old by now.) And for the most part, the rest of this post is probably going to bore you, but I figured I'd get it on record anyway.(And I got nothing right now. Heh.)

Apparently pension board Executive Director Kim Bennett is looking to move her staff out of the Deathstar. (Can you blame her?). She's been looking around for some space which I believe will be in the downtown area, but I was dozing for part of the meeting, so I'm not positive. (Pension board Chairman Rick Trott suggested that she seeks space where retirees already go for services, which makes sense.)

Anyhoo, the move could save between $27,000 to $40,000 a year. Right now, the office spends almost $139,000, which includes overhead, spaces, maintenance and phones. Low estimates, according to some numbers Bennett passed out Monday would cost the office around $98,800. The predicted high is about $112,000.

The office currently operates in about 2,100-square feet and are looking for a little more, using 3,000-square feet as the baseline. (Yeah, I told you this stuff wasn't exactly thrilling.) The board, though, would probably still hold meetings at the Deathstar.

If the office moves, the city will get a first look at the open space.

Just figured I'd bore you today.

Mayor: Do as I say, not as I do

Apparently, the administration – even in the face of proposed layoffs – can hire (or sign off on) any new employees. And it has.

You know, a few folks in risk management. Maybe a guy who knows the chief of staff for a nice Community Outreach manager position. Some people over in the engineering department.

But, it didn’t want to sign off on some pay raises for three workers in the Retirement and Pension Board (department). You see, awhile back, the board – which doesn’t answer to the administration by the way – agreed to let Executive Director Kim Bennett hire a new employee.

Instead, she gave three current workers more responsibilities and raises – including “one sizeable raise.”

But, the pay-bumps were under what it would have cost to hire a new worker. And, she is still going to come under her overall budget for this year.

However, the county's finance director (and mayor's representative on the pension board) John Troyer – apparently at the mayor’s orders – told the board this morning that sBennett probably shouldn’t give the salary increases. He said other “regular employees” haven’t received raises in years and with layoffs pending it wouldn’t send a good message to the rest of the workforce.

“I’m not trying to challenge the authority of this but (rather) the wisdom of the move at this time,” said Troyer, more than likely realizing the mayor had just thrown him under the bus on this one.

The good doctor and Commissioner Richard Briggs, also a pension board member, pointed out that “there’s a difference between a pay raise and a promotion.”

In a 8-1 vote the board agreed, signing off on the promotions and salary increases.
Troyer was the dissenting vote.

This probably would have been a good time for county Mayor Tim Burchett to not miss a meeting for a board on which he serves. He says that Troyer is his stand-in for him on the pension board because because Troyer “understands finances better than anyone I know.”

That might be true.

But this wasn’t a case of understanding finances.

And Burchett argues better than Troyer.