HomeMy WebLinkAbout1973-08-06 Minutes•
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MINUTES OF MEETING OF FIREMEN'S PENSION
AND RELIEF FUND BOARD
AUGUST 6, 1973
4:30 P.M. CITY MANAGER'S OFFICE
Present: Chairman Donald Grimes,
Fire Chief Charles McWhorter, and
Boudrey, Richard Baird, and N. D.
Absent: None.
Treasurer Pat Tobin, Secretary Helen Young,
Fire Pension Board members Larry Poage, Bill
McChristian.
Minutes of the July 2, 1973 meeting had been previously distributed to the
Board members. Charles McWhorter moved the minutes be approved. Richard
Baird seconded the motion. The motion passed unanimously.
Treasurer Pat Tobin presented Pension Authorization Form for the month of
August with no changes. Charles McWhorter moved the Pension Authorization
Form for the month of August be approved. Bill Boudrey seconded the motion.
The motion passed unanimously.
Treasurer Pat Tobin reported that since the July 2, 1973 meeting $132,000 has
been invested at 7-1/,4 percent for four years. At the July 2, 1973 meeting the
Board authorized Mr. Tobin to invest $122,000 for one year if the rate (7-1/4
percent) remained relatively stable. After receiving the approval of a majority
of the Pension Board members by telephone, an extra $10,000 from the cash balance
was added to the monies to be invested, making the total investment $132,000,
which First Federal Savings and Loan offered to accept for a four-year period
at the rate of 7-1/4 percent. This action was taken, Mr. Tobin explained,
because he felt it would be advantageous to the Fund to have monies invested
for four years at 7-1/4 percent which hopefully will prove to be a higher -than -
average interest rate over the four-year period.
Bill Boudrey moved that the minutes reflect that the action described above was
taken after the approval of a majority of the Pension Board members was received
by telephone, and that the action taken be approved by the Board members at this
meeting. N. D. McChristian seconded the motion. The motion passed unanimously.
In answer to question asked by Richard Baird, Mr. Tobin explained that the
interest received on the investments is deposited into the cash balance of the
Fund.
Treasurer Pat Tobin reported that a check in the amount of $24,399.23 has been
received from the Department of Commerce Insurance Department. This money is a
percentage of all insurance premiums paid in the City of Fayetteville. Mr. Tobin
suggested that $20,000 of the money received be added to the $132,000 investment
discussed above if First Federal Savings and Loan will accept it; if not, Mr.
Tobin suggested buying 30 to 90 -day Treasury Bills which accrue interest at the
rate of 8-1/2 percent currently.until other investments mature, at which time
the monies can be lumped together for a larger investment.
Fire Chief McWhorter moved that Mr. Tobin be authorized to invest an additional
$20,000 along with the $132,000 already invested if that is possible, and if
that is not possible, that Mr. Tobin be authorized to negotiate for the best
rate possible. Bill Boudrey seconded the motion which passed unanimously.
August 6, 1973
Page 2
Fire Chief McWhorter announced that Gary Watts has resigned from the employment
of the Fire Department and has requested a refund of his contributions to the
Fire Pension Fund. The amount of his contributions is $651.09.
Richard Baird moved that $651.09 be refunded to Gary Watts. Larry Poage seconded
the motion which passed unanimously.
Treasurer Pat Tobin reported that Morton and Company cannot perform the actuary
study for the Fire Pension Fund due to lack of tools and tables. Fire Chief
McWhorter said the Fund may need something in writing to prove to the state
legislators that Fire Pension Funds do need money to encourage the legislators
to adopt legislation favorable to Fire Pension Funds. Chairman Grimes stated
that he felt that an actuary study every ten years or so would be wise and
suggested that the Board get some quotations from other firms capable of per-
forming such a study.
Fire Chief McWhorter asked the secretary to write a letter to Jack Davis, Fire
Chief at Little Rock, Arkansas, asking him to recommend a firm in Little Rock
who has performed an actuary study for the Little Rock Fire Pension Fund.
There being no further business, Fire Chief McWhorter moved the meeting be
adjourned. Bill Boudrey seconded the motion. The motion passed unanimously
whereupon Chairman Grimes declared the meeting adjourned.
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Chairman