HomeMy WebLinkAboutOrdinance 6895 (2)113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Ordinance: 6895
File Number: 2025-1006
AN ORDINANCE TRANSFERRING ADMINISTRATION OF RETIREMENT COVERAGE FOR ELIGIBLE
MEMBERS OF THE FAYETTEVILLE POLICE PENSION AND RELIEF FUND TO THE ARKANSAS
LOCAL POLICE AND FIRE RETIREMENT SYSTEM (LOPFI) AND AUTHORIZING THE MAYOR TO
ENTER INTO AN IRREVOCABLE AGREEMENT WITH LOPFI
WHEREAS, the Board of Trustees of the Fayetteville Police Pension and Relief Fund (Local Plan) has elected to have
its Local Plan administered by LOPFI as stated by Resolution dated July 15, 2025; and
WHEREAS, the Board of Trustees has requested by Resolution that the City of Fayetteville, Arkansas act as its agent
henceforth.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE,
ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby acknowledges that if accepted by LOPFI,
the administration of the Fayetteville Police Pension and Relief Fund (Local Plan) shall be transferred to LOPFI under
authority of Arkansas Code Annotated 24-10-101 et. seq., as amended. Such transfer shall mean the administration of
the Local Plan only and not a change in the Local Plan's benefit program unless a benefit increase is formally approved
by the City of Fayetteville, Arkansas, by Ordinance. With the passage of this Ordinance, a three percent (3%)
compound Cost of Living Adjustment (COLA) shall be added to the benefit program of the Local Plan. This COLA
will be awarded each July 1st according to LOPFI guidelines.
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby authorizes the Mayor to enter into an
irrevocable agreement, using a fifteen (15) year amortization schedule, with LOPFI to administer the Local Plan as
stated in Section 1 hereof.
Section 3: That the City Council of the City of Fayetteville, Arkansas hereby ordains that the provisions of this
Ordinance shall be codified into the Code of Ordinances of Fayetteville, Arkansas and the sections thereof may be re -
lettered as necessary to accomplish such intention.
Section 4: That the City Council of the City of Fayetteville, Arkansas hereby consolidates administration of the Local
Plan with LOPFI, an emergency is hereby declared to exist, and this Ordinance shall be in full force from and after the
date of its passage and approval.
Page 1
Ordinance: 6895
File Number: 2025-1006
PASSED and APPROVED on July 15, 2025
Approved:
4t �0�
Molly Rawn, Mayor
Attest:
Kara Paxton, City Clerk Treasurer
This publication was paid for by the City Clerk -Treasurer of the City of Fayetteville,
Arkansas. Amount Paid: $ 185.44
Page 2
CITY OF
FAYETTEVILLE
ARKANSAS
MEETING OF JULY 15, 2025
TO: Mayor Rawn and City Council
THRU:
CITY COUNCIL MEMO
2025-1006
FROM: Steven Dotson, Chief Financial Officer
SUBJECT: Request by the Policemen's Pension and Relief Board of Trustees for approval to
consolidate with LOPFI, including a 3% COLA.
RECOMMENDATION:
The Administration recommends the City Council approve a request to consolidate the Local Police Pension
and Relief Fund with LOPFI, and approve a 3% COLA
BACKGROUND:
At the April 17, 2025 board meeting of the Local Policemens Pension and Relief Fund (PPRF), the feasibility of
consolidating with the Local Police & Fire Retirement System (LOPFI) was discussed. The Board voted to pay
for an actuarial study to be performed by LOPFI (which is a required first step in the process) and to consider
consolidation based on that study. That study was completed and discussed at the June 16, 2025 meeting of
the Local Police Pension Board. At that meeting, the PPRF Board unanimously voted to request that the
Fayetteville City Council (1) approve a consolidation with LOPFI, and (2) requests that the consolidation
include a 3% cost of living adjustment (COLA). The actuarial report was conducted based on a 15-year
amortization period and LOPFI investment earnings of 7.25%. The actuarial report indicated that if the PPRF
consolidation with LOPFI is approved, the current revenues remitted to the City are projected to pay the full
costs of the plan, including the 3% COLA with no additional cost to the City.
DISCUSSION:
If the Local Police Pension & Relief Fund plan is sent to LOPFI for administration, full irrevocable control of the
plan would be assumed by LOPFI. This is a risk since LOPFI may not earn the projected investment earnings
which would result in the City having to pay amounts over the current revenue stream being earned by the
Local Police Pension & Relief Fund. However, consolidation would guarantee pension benefits to the pension
members and administration tasks would be transferred to LOPFI.
Based on the actuarial report, the administration is recommending this consolidation be approved, and include
a 3% COLA.
BUDGET/STAFF IMPACT:
Based on the actuarial study no additional costs would be incurred in 2025, and projected plan revenues are
sufficient to pay current benefits, including a 3% COLA.
ATTACHMENTS: 3. Staff Review Form, 4. LOPFI Consolidation Pkt - Signed Resolution, 5. LOPFI Draft
Mailing address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
Ordinances, 6. Local Pension Report 2024, 7. Consolidation Memo - Fayetteville Police
Mailing address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
City of Fayetteville, Arkansas 113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Legislation Text
File #: 2025-1006
AN ORDINANCE TRANSFERRING ADMINISTRATION OF RETIREMENT COVERAGE
FOR ELIGIBLE MEMBERS OF THE FAYETTEVILLE POLICE PENSION AND RELIEF
FUND TO THE ARKANSAS LOCAL POLICE AND FIRE RETIREMENT SYSTEM (LOPFI)
AND AUTHORIZING THE MAYOR TO ENTER INTO AN IRREVOCABLE AGREEMENT
WITH LOPFI
WHEREAS, the Board of Trustees of the Fayetteville Police Pension and Relief Fund (Local Plan) has
elected to have its Local Plan administered by LOPFI as stated by Resolution dated July 15, 2025; and
WHEREAS, the Board of Trustees has requested by Resolution that the City of Fayetteville, Arkansas
act as its agent henceforth.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby acknowledges that if
accepted by LOPFI, the administration of the Fayetteville Police Pension and Relief Fund (Local Plan)
shall be transferred to LOPFI under authority of Arkansas Code Annotated 24-10-101 et. seq., as
amended. Such transfer shall mean the administration of the Local Plan only and not a change in the
Local Plan's benefit program unless a benefit increase is formally approved by the City of Fayetteville,
Arkansas, by Ordinance. With the passage of this Ordinance, a three percent (3%) compound Cost of
Living Adjustment (COLA) shall be added to the benefit program of the Local Plan. This COLA will be
awarded each July 1 St according to LOPFI guidelines.
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby authorizes the Mayor to
enter into an irrevocable agreement, using a fifteen (15) year amortization schedule, with LOPFI to
administer the Local Plan as stated in Section 1 hereof.
Section 3: That the City Council of the City of Fayetteville, Arkansas hereby ordains that the provisions
of this Ordinance shall be codified into the Code of Ordinances of Fayetteville, Arkansas and the
sections thereof may be re -lettered as necessary to accomplish such intention.
Section 4: That the City Council of the City of Fayetteville, Arkansas hereby consolidates
administration of the Local Plan with LOPFI, an emergency is hereby declared to exist, and this
Ordinance shall be in full force from and after the date of its passage and approval.
Page 1
City of Fayetteville Staff Review Form
2025-1006
Item ID
7/15/2025
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
Steve Dotson 6/25/2025 CHIEF FINANCIAL OFFICER (110)
Submitted By Submitted Date Division / Department
Action Recommendation:
The Administration recommends the City Council approve a request to consolidate the Local Police Pension and
Relief Fund with LOPFI, including a 3% COLA
Budget Impact:
Account Number
Project Number
Budgeted Item? No Total Amended Budget
Expenses (Actual+Encum)
Available Budget
Does item have a direct cost? No Item Cost
Is a Budget Adjustment attached? No Budget Adjustment
Remaining Budget
Purchase Order Number:
Change Order Number:
Original Contract Number:
Comments:
Fund
Project Title
$ -
fi
Previous Ordinance or Resolution #
Approval Date:
V20221130
LOPFI
LOCAL POLICE & FIRE RETIREMENT SYSTEM
May 22, 2025
Board of Trustees
Fayetteville Police Pension Fund
113 W. Mountain
Fayetteville, AR 72701
Via: UPS Overnight Service
Dear Trustees:
620 W. 3rd, Suite 200
Little Rock, Arkansas 72201-2223
Telephone: 501.682.1745
email: info@lopfi-prb.com
website: www.lopfi-prb.com
Enclosed is the consolidation report that lists the employer contribution rates to
assign administration of the local op lice pension fund (Local Plan) to LOPFI. Pages 4-9
provide the employer rates for Local Plan benefits. The listed monthly rates are:
• A 15-year amortization schedule results in a monthly rate of: $39,165 without a
Local Plan COLA or $66,231 with a Local Plan COLA.
The above rates do NOT include employer contributions for the LOPFI-covered
participants. Budget planners would need to factor in the applicable LOPFI rates to
arrive at a total amount for both LOPFI and Local Plan employer contribution costs. If
the Local Plan has its administration assigned to LOPFI this year the above employer
contribution rates will be used through the 2026 calendar year.
As noted above the valuation provides costs for a 15-year amortization period for
the Local Plan liabilities. Once the amortization period is properly completed (all
actuarial assumptions are met), the Local Plan portion of the employer contribution rate
will be satisfied. This will then leave only the ongoing LOPFI employer contribution
costs. Notice, too, that this report is valid until October 31, 2025. This means LOPFI
must receive all documents discussed in the next paragraph by October 31, 2025 in order
to use these results.
Should your Board and city officials wish to proceed with consolidation, please
execute the Resolution, Ordinance, and the original Administrative Services Agreement.
Do not alter or replace the Agreement as the original must be received by LOPFI. A
copy will be returned to you after approval of the LOPFI Board of Trustees.
If you have questions, please feel free to contact Lesley Weaver or Jen Sines.
Respectfully,/ Z
6a"�
David B. Clark
Executive Director
GRS
May 22, 2025
Mr. David B. Clark, Executive Director
Arkansas Local Police and Fire Retirement System
620 West 31d, Suite 200
Little Rock, Arkansas 72201-2212
Re: Actuarial Analysis of Proposed Contribution Rates for the
Fayetteville Police Pension and Relief Fund
Dear Mr. Clark:
800.521.0498 1 P: 248.799.9000 1 www.grsconsulting.com
As requested, enclosed are the results of actuarial valuations which determine the employer contribution
rates which would result from having the Fayetteville Police Pension and Relief Fund administered by the
Arkansas Local Police and Fire Retirement System (LOPFI).
Please call if you have any questions or comments.
Respectfully submitted,
Gabriel, Roeder, Smith & Company
Heidi G. Barry, ASA, FCA, MAAA
�� T41-4-,
CaseyT. Ahlbrandt-Rains, ASA, FCA, MAAA
H G B/CTA: a h
Enclosure
Arkansas Local Police and Fire Retirement System
Fayetteville Police Pension and Relief Fund
Actuarial Valuation of Proposals Under Consideration
as of December 31, 2024
Requested By: Mr. David B. Clark, Executive Director
Arkansas Local Police and Fire Retirement System
Date: May 22, 2025
Submitted By: Heidi G. Barry, ASA, FCA, MAAA and
CaseyT. Ahlbrandt-Rains, ASA, FCA, MAAA
Gabriel, Roeder, Smith & Company
Submitted in this report are the results of actuarial valuations which determine the employer contribution
rates which would result from having the Fayetteville Police "closed plan" (the Local Pension and Relief
Fund) administered by the Arkansas Local Police and Fire Retirement System (LOPFI).
The date of the study was as of December 31, 2024. This supplemental valuation does not predict the
result of the December 31, 2025 valuation or of any other future actuarial valuations. (Future activities
can affect future valuation results in an unpredictable manner.) Rather, the supplemental valuation gives
an indication of the probable effect of the proposed changes on future valuations without comment on
the complete end result of the future valuations.
in accordance with LOPFI Board policy, the employer contribution rates established by this valuation
report are valid for purposes of joining the System until October 31, 2025.
This report is intended to describe the financial effect of the proposed plan changes. No statement in this
report is intended to be interpreted as a recommendation in favor of the changes, or in opposition to
them. GRS is not responsible for unauthorized use of this report.
Heidi G. Barry and Casey T. Ahlbrandt-Rains are Members of the American Academy of Actuaries (MAAA)
and meet the Qualification Standards of the American Academy of Actuaries required to render the
actuarial opinions contained herein. The signing actuaries are independent of the plan sponsor.
The calculations are based upon assumptions regarding future events, which may or may not materialize.
They are also based upon present and proposed plan provisions that are outlined in the report. If you
have reason to believe that the assumptions that were used are unreasonable, that the plan provisions
are incorrectly described, that important plan provisions relevant to this proposal are not described, or
that conditions have changed since the calculations were made, you should contact the authors of this
report prior to relying on information in the report.
This report was prepared using our proprietary valuation model and related software which, in our
professional judgment, has the capability to provide results that are consistent with the purposes of the
valuation, and has no material limitations or known weaknesses. We performed tests to ensure that the
model reasonably represents that which is intended to be modeled.
4G R S 5/22/2025
Arkansas Local Police and Fire Retirement System
Fayetteville Police Pension and Relief Fund
Actuarial Valuation of Proposals Under Consideration
as of December 31, 2024
If you have reason to believe that the information provided in this report is inaccurate, or is in any way
incomplete, or if you need further information in order to make an informed decision on the subject
matter of this report, please contact the authors of the report prior to making such decision.
In the event that more than one plan change is being considered, it is very important to remember that
the results of separate actuarial valuations cannot generally be added together to produce a correct
estimate of the combined effect of all of the changes. The total can be considerably greater than the sum
of the parts due to the interaction of various plan provisions with each other, and with the assumptions
that must be used.
G R S 5/22/2025 2
� vim;
Arkansas Local Police and Fire Retirement System
Fayetteville Police Pension and Relief Fund
as of December 31, 2024
The actuarial methods and assumptions were the same as those in use for the regular valuation as of
December 31, 2024. In particular, the economic assumption used in the supplemental actuarial valuation
is net investment return of 7.25% per year.
Member information is summarized in the following table:
December 31, 2024
Valuation Data*
Members:
Retired Lives:
Number 36
Average Age 74.7years
Total Monthly Benefits $104,474
*Three duplicates stemming from QDRO and Age-60 bonus records are not included in the
number count and average age amounts shown above.
Major Local Fund Benefit Provisions:
Voluntary Retirement — Eligibility at 20 years of service regardless of age.
Paid base benefit: 95% of Final Salary per year (minimum $4,200 annually).
Member Contributions — Member contribution rate of 6% for Paid members. Member contributions are
refundable without interest if termination of employment occurs before monthly benefits are payable.
Automatic Post -Retirement Benefit Increases — None.
Death Benefit— Funeral expense benefit of $6,500.
4 G R S 5/22/2025 3
Arkansas Local Police and Fire Retirement System
Fayetteville Police Pension and Relief Fund
as of December 31, 2024
Results
Asset Information:
Asset information for the Fayetteville Police Pension and Relief Fund was derived from the Fund's annual
financial report provided to us. The date of the report was December 31, 2024. The reported market value
of assets $6,722,837 for the Local Fund, as of December 31, 2024, was used in computing the employer
contribution rates. The computed employer contribution rates are sensitive to changes in overall asset
value. The actual amount transferred to LOPFI will depend on the market value of Local Fund assets when
they are actually liquidated and may differ substantially from the value as of December 31, 2024. This will
likely impact the actual rate computed in the next valuation of the combined plans.
Results:
No COLA
3% COLA
Actuarial Accrued Liabilities (AAL)
Active Members
$
-
$
-
Benefit Recipients
11,245,502
14,371,020
Total AAL
$
11,245,502
$
14,371,020
Assets
Available to Fund AAL
$
6,722,837
$
6,722,837
Member DROP Balance
-
-
Total Assets
$
6,722,837
$
6,722,837
Unfunded AAL
$
4,522,665
$
7,648,183
G R S 5/22/2025 4
Arkansas Local Police and Fire Retirement System
Fayetteville Police Pension and Relief Fund
as of December 31, 2024
Results
If the Local Fund becomes administered by LOPFI, the monthly employer contribution for calendar years
2025 and 2026 would be as follows:
Computed Monthly Employer Contribution
COLA (15-Year Level -Dollar Amortization)
I0.00% $39,165
3.00% $66,231
These monthly contributions are in addition to the contribution determined for LOPFI members only.
These are the estimated contributions needed to pay off the unfunded accrued liability associated with
Closed Plan benefits and would be deposited in the Local Fund Employer Accumulation Account.
In 2024, the Plan received a total of $1,317,890 from State Insurance Premium Tax, Local Millage Tax,
fines and forfeitures, and other allocations. It is expected that similar future inflows will partially or fully
offset future employer contributions.
Contributions are determined by amortizing the unfunded liability as a level -dollar amount over a closed
15-year period. Readers of this report may have an expectation that the contribution shown above will be
paid for 15 years and the employer will be relieved of all liability at that time. That is not the case; as long
as benefits are payable, there is a possibility that employer contributions will be needed.
G R S 5/22/2025
Arkansas Local Police and Fire Retirement System
Fayetteville Police Pension and Relief Fund
as of December 31, 2024
15-Year Level -Dollar Amortization of UAL, No COLA
Projected Cash Flow
Projected
Year Ended
Investment
December 31
Benefits
Contributions'
Earnings
Assets (MV)Z
2024
$ 6,722,837
2025
$ 1,240,200
$ 469,980 $
459,974
6,412,591
2026
1,211,417
469,980
438,506
6,109,661
2027
1,180,947
469,980
417,629
5,816,323
2028
1,148,891
469,980
397,504
5,534,916
2029
1,115,359
469,980
378,296
5,267,833
2030
1,080,464
469,980
360,175
5,017,525
2031
1,044,323
469,980
343,315
4,786,497
2032
1,007,042
469,980
327,893
4,577,329
2033
968,740
469,980
314,093
4,392,662
2034
929,535
469,980
302,101
4,235,208
2035
889,552
469,980
292,109
4,107,746
2036
848,918
469,980
284,315
4,013,124
2037
807,760
469,980
278,921
3,954,266
2038
766,213
469,980
276,134
3,934,167
2039
724,415
469,980
276,165
3,955,898
2040
682,512
469,980
279,233
4,022,599
2041
640,649
-
268,821
3,650,771
2042
598,955
243,349
3,295,165
2043
557,555
219,042
2,956,652
2044
516,556
195,960
2,636,056
2045
476,063
174,159
2,334,151
2046
436,185
153,691
2,051,657
2047
397,048
134,604
1,789,213
2048
358,824
116,938
1,547,327
2049
321,736
100,722
1,326,314
2050
286,044
85,970
1,126,240
2051
252,024
72,676
946,892
2052
219,930
60,817
787,779
2053
189,964
50,348
648,163
2054
162,293
41,212
527,082
2055
137,042
33,333
423,372
2056
114,300
26,624
335,696
2057
94,101
20,986
262,581
2058
76,416
16,316
202,481
2059
61,166
12,501
153,816
2060
48,224
9,434
115,026
2061
37,425
7,006
84,608
2062
28,570
5,117
61,154
2063
21,434
3,670
43,391
2064
15,785
2,584
30,189
2065
11,399
1,783
20,573
2066
8,060
1,204
13,718
2067
5,574
796
8,940
2068
3,764
514
5,690
2069
2,480
324
3,534
4G w
5/22/2025 6
Arkansas Local Police and Fire Retirement System
Fayetteville Police Pension and Relief Fund
as of December 31, 2024
15-Year Level -Dollar Amortization of UAL, No COLA
Projected Cash Flow
(Concluded)
Year Ended
December 31
Benefits Contributions'
Investment
Earnings
Assets (MV)Z
2070
$
1,594 $
$ 199
$ 2,139
2071
997
120
1,262
2072
607
70
725
2073
359
40
405
2074
207
22
220
2075
115
12
117
2076
63
6
61
2077
33
3
31
2078
17
2
15
2079
9
1
7
2080
4
-
4
2081
2
-
2
2082
1 -
-
1
2083
1
-
-
2084
-
-
-
1 Local Plan contributions only; $39,165 monthly in addition to the LOPFI rate (based on level -dollar 15-year amortization). The
first -year contribution assumes that the City will be under LOPFI administration beginning in 2025. The last year contribution,
based on a 15-year amortization schedule, would be applied in 2040.
z Reported market value of assets. Assets are projected at the assumed rate of return of 7.25% per year.
Note: The actual future contributions for this group are affected by investment return, number of
members and life expectancy. This projection does not show the effect on future employer
contributions of differences between actual and assumed future experience. These differences can
have a significant effect on these results.
1 G R S 5/22/2025 7
I[`
Arkansas Local Police and Fire Retirement System
Fayetteville Police Pension and Relief Fund
as of December 31, 2024
15-Year Level -Dollar Amortization of UAL, 3% COLA
Projected Cash Flow
Projected
Year Ended
Investment
December 31
Benefits
Contributions'
Earnings
Assets (MV)Z
2024
$ 6,722,837
2025
$ 1,258,804
$ 794,774
$ 470,879
6,729,686
2026
1,266,476
794,774
471,102
6,729,086
2027
1,271,660
794,774
470,874
6,723,074
2028
1,274,257
794,774
470,346
6,713,937
2029
1,274,177
794,774
469,686
6,704,221
2030
1,271,343
794,774
469,083
6,696,734
2031
1,265,680
794,774
468,742
6,694,570
2032
1,257,113
794,774
468,890
6,701,121
2033
1,245,578
794,774
469,776
6,720,092
2034
1,231,024
794,774
471,669
6,755,512
2035
1,213,416
794,774
474,864
6,811,734
2036
1,192,727
794,774
479,677
6,893,459
2037
1,168,948
794,774
486,449
7,005,734
2038
1,142,087
794,774
495,546
7,153,967
2039
1,112,178
794,774
507,358
7,343,921
2040
1,079,282
794,774
522,301
7,581,715
2041
1,043,474
512,510
7,050,751
2042
1,004,831
-
475,392
6,521,311
2043
963,438
438,482
5,996,355
2044
919,372
401,992
5,478,975
2045
872,721
366,143
4,972,397
2046
823,602
331,166
4,479,960
2047
772,195
297,295
4,005,060
2048
718,794
264,766
3,551,032
2049
663,834
233,807
3,121,005
2050
607,896
204,622
2,717,732
2051
551,667
177,387
2,343,452
2052
495,857
152,240
1,999,835
2053
441,143
129,276
1,687,968
2054
388,189
108,552
1,408,331
2055
337,627
90,079
1,160,784
2056
290,047
73,827
944,563
2057
245,952
59,721
758,332
2058
205,719
47,652
600,266
2059
169,606
37,479
468,138
2060
137,731
29,035
359,442
2061
110,096
22,138
271,484
2062
86,568
16,599
201,516
2063
66,892
12,227
146,851
2064
50,744
8,839
104,946
2065
37,742
6,264
73,469
2066
27,487
4,348
50,329
2067
19,578
2,952
33,703
2068
13,619
1,958
22,042
2069
9,243
1,269
14,068
2070
6,116
802
8,754
2071
3,940
494
5,309
tv5/22/2025 8
Arkansas Local Police and Fire Retirement System
Fayetteville Police Pension and Relief Fund
as of December 31, 2024
15-Year Level -Dollar Amortization of UAL, 3% COLA
Projected Cash Flow
(Concluded)
Projected
Year Ended
Investment
December 31
Benefits
Contributions' Earnings
Assets (MV)Z
2072
$ 2,470
$ $ 297 $
3,136
2073
1,506
174
1,803
2074
891
99
1,011
2075
512
55
555
2076
287
30
298
2077
157
16
156
2078
84
8
81
2079
44
4
41
2080
23
2
20
2081
12
1
9
2082
6
4
2083
3
-
1
2084
1
2085
-
-
1 Local Plan contributions only; $65,231 monthly in addition to the LOPFI rate (based on level -dollar 15-year amortization). The
first -year contribution assumes that the City will be under LOPFI administration beginning in 2025. The last year contribution,
based on a 15-year amortization schedule, would be applied in 2040.
z Reported market value of assets. Assets are projected at the assumed rate of return of 7.25% per year,
Note: The actual future contributions for this group are affected by investment return, number of
members and life expectancy. This projection does not show the effect on future employer
contributions of differences between actual and assumed future experience. These differences can
have a significant effect on these results.
4;;S 5/22/2025 9
Resolution to Assi�um Local Plan Administration to LOPFI
Whereas, the Board of Trustees (the Board) of the FAYETTEVILLE POLICE Pension and
Relief Fund (Local Plan), desires to assign administration of the Local Plan to the Arkansas
Local Police and Fire Retirement System (LOPFI) pursuant to Arkansas Code Annotated 24-10-
101, et. seq., as amended; and
Whereas, such action shall not change the benefit structure unless a benefit increase is formally
approved by the governing body of FAYETTEVILLE, Arkansas, by Ordinance; and
Whereas, the Board received and reviewed the latest actuarial report from LOPFI, which states
the initial required employer contribution rate(s); and
Whereas, the Board finds it is in the best interest of the Local Plan and its participants to have
LOPFI administer the Local Plan; therefore,
BE IT RESOLVED, the Board hereby elects to assign administration of the Local Plan to
LOPFI.
BE IT FURTHER RESOLVED the Board requests the CITY OF FAYETTEVILLE, a political
subdivision of the State of Arkansas, to act as its agent henceforth.
BE IT FURTHER RESOLVED the Board understands any agreement to administer the Local
Plan by LOPFI shall be entered into by and with the governing body of FAYETTEVILLE,
Arkansas, as the Board's agent, and that such agreement shall dissolve said Board.
CERTIFICATION
We certify this Resolution accurately states the action of said Board. Approved this t5► day of
no 11nnc
7
Cl
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IVO�t`` LOPF I !DA'c/
ADMINISTRATIVE SERVICES AGREEMENT
This Administrative Services Agreement (Agreement) is entered into by and between the
ARKANSAS LOCAL POLICE AND FIRE RETIREMENT SYSTEM (LOPFI) and the CITY
OF FAYETTEVILLE for the benefit of its POLICE Pension and Relief Fund (Local Plan).
PARTIES
The City of FAYETTEVILLE, a political subdivision, currently has and administers a Local
Plan.
LOPFI is an agency created by statute (Arkansas Code Annotated 24-10-101, et. seq., as
amended) for the purpose of providing a statewide retirement system with pooled administration.
The Mayor and City Council of FAYETTEVILLE desire to enter into an irrevocable Agreement
with LOPFI to administer its Local Plan and in consideration of the mutual obligations
hereinafter enumerated the parties agree to all of the following:
This Agreement is made pursuant to the authority of A.C.A. 24-10-101, et. seq.,
as amended.
2. This Agreement shall be effective and permanent upon the executed date entered
r- on page two of this Agreement. LL
O a
3. This Agreement is for the administration of the Local Plan and its benefit
structure shall not change unless a benefit increase is formally approved by the
City of FAYETTEVILLE by Ordinance.
4. The actuaries for LOPFI have computed the initial employer contribution rate(s)
to be paid by the City of FAYETTEVILLE to support the benefits paid by the
Local Plan. The City of FAYETTEVILLE agrees to always remit payment at the
level established by the actuaries for LOPFI and in the monthly timeframe set by
LOPFI.
5. Benefits and any member refunds shall be paid effective the first business day of
each month and in accordance with LOPFI procedures and guidelines.
6. LOPFI covenants and agrees to provide the following services:
a. investment of Local Plan assets and the award of annual interest to the
employer reserve account at the end of each fiscal year consistent with the
interest awarded to other LOPFI employer accounts;
b. process retirement applications including determination of eligibility,
calculation of service credit and benefit payment amounts, payment of benefits
to eligible benefit recipients, and satisfaction of state and federal tax
withholding requirements, all in accordance with LOPFI procedures and
guidelines; and
�� LOPFI \V
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City of FAYETTEVILLE
Page 2 of 2
7. The City of FAYETTEVILLE covenants and agrees as follows:
a. upon execution of this Agreement all Local Plan assets and records shall be
promptly transferred to LOPFI. In the sole discretion of LOPFI certain
investments may be allowed to mature to avoid penalties;
b. all employer and applicable employee contributions shall be remitted to LOPFI
in time to be recorded by the tenth (IOth) calendar day of each month for each
reporting period. Remittance shall be made in the manner and amounts
prescribed by LOPFI, which shall include the use of LOPFI's electronic
reporting and LOPFI's e-Payment;
c. the City of FAYETTEVILLE shall execute all documents required by LOPFI to
aid in the administrative process;
d. all members and beneficiaries of the Local Plan have been deemed eligible
pursuant to the standards prevailing at the time of the determination of
eligibility. The parties agree that LOPFI is bound by any determination of
eligibility or ineligibility made by the board of trustees of the Local Plan as
long as such determination(s) conform to state law. The Local Plan and the
City of FAYETTEVILLE indemnify and hold LOPFI harmless for any
eligibility decisions made by the Local Plan.
e. the City of FAYETTEVILLE has disclosed to LOPFI all pending claims,
actions, suits, and threatened liabilities to the Local Plan.
8. FAYETTEVILLE Police Pension and Relief Fund board of trustees' Resolution
elated �- , 2025, and Ordinance No. Gam, dated
2025, of the City of FAYETTEVILLE, are incorporated by
reference herein as though set forth word for word.
This irrevocable Agreement is executed this 1 day of , 2025.
CITY OF FA�i�j,,�,E, ARKANSAS
May oily Rawn
ATTEST:
ATTEST.
City Clerk T
LOPFI
A�f`..aecx
TRUSTEES
BY: f
L PFI Board Chairman
a
O
J
LOPFI
ORDINANCE NO.
AN ORDINANCE TRANSFERRING ADMINISTRATION OF RETIREMENT COVERAGE
FOR ELIGIBLE MEMBERS OF THE FAYETTEVILLE POLICE PENSION AND RELIEF
FUND TO THE ARKANSAS LOCAL POLICE AND FIRE RETIREMENT SYSTEM (LOPFI)
AND AUTHORIZING THE MAYOR TO ENTER INTO AN IRREVOCABLE AGREEMENT
WITH LOPFI.
WHEREAS, the Board of Trustees of the FAYETTEVILLE Police Pension and Relief
Fund (Local Plan) has elected to have its Local Plan administered by LOPFI as stated by
Resolution dated , 2025, and that
WHEREAS, the Board of Trustees has requested by Resolution that the City of
FAYETTEVILLE, Arkansas, act as its agent henceforth.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF FAYETTEVILLE, ARKANSAS:
SECTION 1. If accepted by LOPFI, the administration of the FAYETTEVILLE Police Pension
and Relief Fund (Local Plan) shall be transferred to LOPFI under authority of Arkansas Code
Annotated 24-10-101 et. seq., as amended. Such transfer shall mean the administration of the
Local Plan only and not a change in the Local Plan's benefit program unless a benefit increase is
formally approved by the City of FAYETTEVILLE, Arkansas, by Ordinance.
SECTION 2. The Mayor is hereby authorized to enter into an irrevocable agreement, using a
fifteen (15) year amortization schedule, with LOPFI to administer the Local Plan as stated in
Section 1 hereof.
SECTION 3. It is the intent of the City Council and it is hereby ordained that the provisions of
this Ordinance shall be codified into the Code of Ordinances of FAYETTEVILLE, Arkansas and
the sections thereof may be re -numbered and re -lettered as necessary to accomplish such
intention.
SECTION 4. Due to the need to consolidate administration of the Local Plan with LOPFI, an
emergency is hereby declared to exist and this Ordinance shall be in full force from and after the
date of its passage and approval.
PASSED:
Date
ATTEST:
Witness
APPROVED:
Mayor
ORDINANCE NO.
AN ORDINANCE TRANSFERRING ADMINISTRATION OF RETIREMENT COVERAGE
FOR ELIGIBLE MEMBERS OF THE FAYETTEVILLE POLICE PENSION AND RELIEF
FUND TO THE ARKANSAS LOCAL POLICE AND FIRE RETIREMENT SYSTEM (LOPFI)
AND AUTHORIZING THE MAYOR TO ENTER INTO AN IRREVOCABLE AGREEMENT
WITH LOPFI.
WHEREAS, the Board of Trustees of the FAYETTEVILLE Police Pension and Relief
Fund (Local Plan) has elected to have its Local Plan administered by LOPFI as stated by
Resolution dated , 2025, and that
. WHEREAS, the Board of Trustees has requested by Resolution that the City of
FAYETTEVILLE, Arkansas, act as its agent henceforth.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF FAYETTEVILLE, ARKANSAS:
SECTION 1. If accepted by LOPFI, the administration of the FAYETTEVILLE Police Pension
and Relief Fund (Local Plan) shall be transferred to LOPFI under authority of Arkansas Code
Annotated 24-10-101 et. seq., as amended. Such transfer shall mean the administration of the
Local Plan only and not a change in the Local Plan's benefit program unless a benefit increase is
formally approved by the City of FAYETTEVILLE, Arkansas, by Ordinance. With the passage
of this Ordinance, a three percent (3%) compound Cost of Living Adjustment (COLA) shall be
added to the benefit program of the Local Plan. This COLA will be awarded each July 1st
according to LOPFI guidelines.
SECTION 2, The Mayor is hereby authorized to enter into an irrevocable agreement, using a
fifteen (15) year amortization schedule, with LOPFI to administer the Local Plan as stated in
Section 1 hereof.
SECTION 3. It is the intent of the City Council and it is hereby ordained that the provisions of
this Ordinance shall be codified into the Code of Ordinances of FAYETTEVILLE, Arkansas and
the sections thereof may be re -numbered and re -lettered as necessary to accomplish such
intention.
SECTION 4. Due to the need to consolidate administration of the Local Plan with LOPFI, an
emergency is hereby declared to exist and this Ordinance shall be in full force from and after the
date of its passage and approval.
PASSED:
Date
ATTEST:
Witness
APPROVED:
Mayor
LOCAL PENSION FUND REPORT For 2024
In keeping with statutory requirements, I am
presenting this report for 2024 on the Local Police and
Fire Retirement and Relief Funds for the City of
Fayetteville. Both of these plans were closed, by law,
in 1983 and there are no longer any active working
members remaining.
On August 15,2023 the City Council voted to
consolidate the Local Fire Retirement and Relief Fund
with LOPFI based on a request from the Local Fire
Pension Board of Trustees and recommendation of
the City Administration. That plan is now being
administered by LOPFI and is actuarially sound.
Therefore, this report will focus on the Local Police
Retirement and Relief Fund.
At the end of December 2024 projected expenses
from the Local Police Pension Fund will be
approximately $1.4 million as compared to fund
revenues of $1.5 million. This is before adjusting
investments to current market value. At this time,
there are 36 police retirees and beneficiaries currently
receiving payments from this fund.
Actuarial evaluations are the responsibility of the
State of Arkansas Fire and Police Pension Review
Board. The last evaluations completed were as of May
2024 for the year ending December 31, 2023. Based
on those evaluations the total pension liability of the
Police Local Pension Fund was $14.4 million. The net
pension liabilities for this fund were approximately
$8.3 million. In the annual reports issued by the
Arkansas Pension Review Board the Police Pension
Fund was not considered actuarially sound pursuant to
established financial tests. Key valuation indicators
were mixed, but current assets and projected income
was estimated to be enough to pay promised future
benefits at this time. However, that could change
based on future actuarial valuations which are
currently done on a yearly basis.
The Local Police Pension Board of Trustees did
not request consolidation with LOPFI in 2024.
I will continue to monitor this pension fund in the
future and keep you apprised of any new
developments if necessary.
LOPFI
LOCAL POLICE & FIRE RETIREMENT SYSTEM 620 W. 3rd Street, Suite 200
Little Rock, Arkansas 72201-2223
To: Fayetteville Local Police Pension Plan Telephone: 501.682.1745
Board of Trustees and All Benefit Recipients email: info@lopfi-prb.com
website: www.lopfi-prb.com
From: Local Police and Fire Retirement System (LOPFI)
Re: Consolidation of the Local Plan
Date: 2025-Year
Your Local Plan can legally assign its administration (consolidate) to LOPFI. Consolidation)
means LOPFI serves as the administrator of the Local Plan. Legal benefits can only change if
the municipality approves a benefit increase such as the addition of a three percent (3%)
compound cost of living adjustment (COLA) for the Local Plan.
As of January 1, 2025, LOPFI administers benefits and invests the assets for 255 consolidated
Local Plans. One aspect that guides Local Plans to pursue consolidation is investment
performance. Investment returns for your Local Plan and LOPFI for the following periods were:
December 31, 2023 10-Year Return
Fayetteville Local Police Plan 11.80% 5.66%
LOPFI 15.90% 7.19%
Achieving improved investment returns helps protect the benefits of all Local Plan participants,
which makes safeguarding assets a prime responsibility of each person serving on the Local Plan
board of trustees. These facts support consolidating your Local Plan. The initial step is to
request an actuarial valuation to determine the first year's employer contribution rate to fund
Local Plan benefits. The valuation provides an employer contribution rate to implement a 3%
compound COLA for the Local Plan and a rate without a COLA. The valuation fee is $850, and
the check for this fee is to be payable to Gabriel, Roeder, Smith, & Co. and mailed to LOPFI.
The valuation process takes about four (4) weeks to complete and will begin after the request and
payment are received by LOPFI. LOPFI will send the completed valuation to the Local Plan
along with guidance for the next steps to proceed with consolidation.
Please contact Jen Sines or Lesley Weaver with questions about consolidation.
'Consolidation is mandatory once a Local Plan has fewer than five members. "Member" does not include
beneficiaries. Because mandatory consolidation stipulates that a Local Plan board of trustees may no
longer exist, consolidation must begin without delay once there are fewer than five members.
2LOPFI accepts consolidation valuation requests from April 1 st through September 30t' of each year.
Forth 0.55
N\AiAea
hiddLa
Account #: NWCL5004205
Company: CITY OF FAYETTEVILLE-CLERKS OFFI
113 W MOUNTAIN
FAYETTEVILLE, AR 72701
Ad number #: 523909
PO #:
Matter of: ORD 6895
AFFIDAVIT • STATE OFARKANSAS
ECEIVE
7/15/2025
CRY OF FAYETTEVILLE
CITY CLERK'S OFFICE
I, Maria Hernandez -Lopez , do solemnly swear that I am the Legal Clerk of the NWA Democrat Gazette, a daily
newspaper printed and published in WASHINGTONBENTON county, State of ARKANSAS; that I was so related to
this publication at and during the publication of the annexed legal advertisement in the matter of:
ORD 6895
Pending in the court, in said County, and at the dates of the several publications of said advertisement stated below, and
that during said periods and at said dates, said newspaper was printed and had a bona fide circulation in said County,
that said newspaper had been regularly printed and published in said county, and had a bona fide circulation therein for
the period of one month before the date of the first publication of said advertisement; and that said advertisement was
published in the regular daily issues of said newspaper as stated below.
And that there is due or has been paid the NWA Democrat Gazette for publication the sum of $185.44.
(Includes $0.00 Affidavit Charge).
NWA Democrat Gazette 07120125, NWA nwaonline.com 07120125
BRAStiF.,,
Legal Clerk
\ C�
o:•o�`N•2� Zo3? =,
State ofARKANSAS, County of Sebastian
\ pTARY mLr' I
Subscribed and sworn to before me on this 21st day of July, 2025
"m '• FU B��G Q
gtirco u N,�
NOT4Y PUBLIC
Ordinance: 6895
File Number:2025.1006
AN ORDINANCE TRANSFER-
RING ADMINISTRATION OF RE-
TIREMENT COVERAGE FOR
ELIGIBLE MEMBERS OF THE
FAYETTEVILLE POLICE PENSION
AND RELIEF FUND TO THE
ARKANSAS LOCAL POLICE AND
FIRE RETIREMENT SYSTEM
(LOPFq AND AUTHORIZING THE
MAYOR TO ENTER INTO AN IR-
REVOCABLE AGREEMENT WITH
LOPFI
WHEREAS, the Board of
Trustees of the Fayetteville Po-
lice Pension and Relief Fund
(Local Plan) has elected to have
its Local Plan administered by
LOPFI as stated by Resolution
dated July 15, 2025; and
WHEREAS, the Board of
Trustees has requested by Res-
olution that the Crty of Fayet-
teville, Arkansas act as its agent
henceforth.
NOW, THEREFORE, BE IT OR-
DAINED BY THE CITY COUNCIL
OF THE CITY OF FAYETTEVILLE,
ARKANSAS:
Section 1: That the City Coun-
cil of the City of Fayetteville,
Arkansas hereby acknowledges
that if accepted by LOPFI, the
administration of the Fayet-
teville Police Pension and Relief
Fund (Local Plan) shell be trans-
ferred to LOPFI under authority
of Arkansas Code Annotated 24-
10.101 at. seq., as amended.
Such transfer shall mean the
administration of the Local Plan
only and not a change in the
Local Plan's benefit program
unless a benefit increase is for-
mally approved by the City of
Fayetteville, Arkansas, by Ordi-
nance. With the passage of this
Ordinance, a three percent (3%)
compound Cost of Living Adjust-
ment (COLA) shall be added to
the benefit program of the Local
Plan. This COLA will be
awarded each July 1st accord-
ing to LOPFI guidelines.
Section 2: That the CityCoun-
cil of the City of Fayetteville,
Arkansas hereby authorizes the
Mayor to enter into an irrevoca-
ble agreement, using a fifteen
(15) year amortization schedule,
with LOPFI to administer the
Local Plan as stated in Section
1 hereof.
Section 3: That the City Coun-
cil of the City of Fayetteville,
Arkansas hereby ordains that
the previsions of this Ordinance
shall be codified into the Code
of Ordinances of Fayetteville,
Arkansas and the sections
thereof may be re -lettered as
necessary to accomplish such .
intention.
Section 4: That the City Coun-
cil of the City of Fayetteville,
Arkansas hereby consolidates
administration of the Local Plan
with LOPFI, an emergency is
hereby declared to exist, and
this Ordinance shall be in full
force from and attar the date of
its passage and approval.
PASSED and APPROVED on
July 15, 2025
Approved:
Molly Rawn, Mayor
Attest:
Kara Paxton,
City Clerk Treasurer
This publication was paid for
by the City Clerk -Treasurer of
the City of Fayetteville,
Arkansas.
Amount Paid: $185.44
July 20, 2025 523909