HomeMy WebLinkAbout1974-12-02 Minutes0
MINUTES OF A MEETING OF THE FIREMEN'S "_. ;.
PENSION AND RELIEF BOARD
December 2, 1974
The regular monthly meeting of the Firemen's Pension and Relief Board was
held December 2, 1974 at 4:45 p.m. in the Fayetteville City Manager's
Office.
Present: Donald L. Grimes, Chairman; Pat Tobin, Treasurer; Darlene West-
brook, Secretary; and Fire Pension Board members Charles McWhorter,
Larry Poage, Don Miller, and RonaldMcArthur.
Absent: N. D. McChristian
The meeting was called to order by Chairman Grimes,and,following roll call
the minutes of the November 4, 1974 meeting were considered for approval.
There being no corrections or additions necessary, Charles McWhorter moved
that the minutes be approved as submitted. The motion was seconded by Larry
Poage and was passed unanimously by the Board.
Charles McWhorter then moved that the December pension list be approved and
the motion was seconded by Don Miller. The Board voted unanimously to
approve the list.
The Board then acknowledged receipt of a letter from Mr. Al Eason, Jr.;
President of First Federal Savings and Loan Association, which stated that
if the pension and relief fund records could identify the amount of money
each fireman has in the fund, each member's investment would be insured
up to $40,000. Mr. Tobin said it would not be difficult to determine the
amount each fireman had invested to the fund and assured the Board that
the pension funds would be adequately insured for some time. Chairman
Grimes requested that the correspondence from Mr. Eason be made a part
of the record.
Mr. Tobin then reported that he had been in contact with Dr. Bob Hall in
regard to the proposed study and evaluation of the pension fund. Mr. Tobin
said that a census of dependents would probably be conducted in order to
provide Dr. Hall with information on which he can base his outline of costs
for the study.
There being no further business, Charles McWhorter, seconded by Larry Poage,
moved that the meeting be adjourned. The motion was unanimously approved
by the Board after which Chairman Grimes declared the meeting adjourned.
APPROVED:
ATTEST:
X D it P J AI 1z,Mi1.Qd.t c—
Secretary
first federal savings ../..Z.
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4 FIRST FEDERAL BUILDING • PHONE 521.3424
BRANCH - NORTHWEST ARKANSAS PLAZA • PHONE 521.3534
FAYETTEVILLE, ARKANSAS 72701
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November 29, 1974
Mr. Pat Tobin
City of Fayetteville
Mountain Street
Fayetteville, Arkansas 72701
Dear Pat:
I am enclosing letter that I have received from the Federal
Home Loan Bank Board regarding the city's pension accounts.
I can say it a little plainer than the government.What they
are saying is if your records can identify the amount each fireman
or policeman has in the fund then each member is insured to $40,000.
If you need any additional information, please let me know.
Yours very truly,
First Federal Savings and
Loan Association
APEJ:sl
Enclosure
A. P. Eason, Jr., President
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Orf•1C■ 01
SUPERVISORY AGENT
FEDERAL HOME LOAN BANK BOARD
1400 TOW111 •OILOIHO
LITTLE ROCK, ARKANSAS
72201
November 27, 1974
FHLBB No. 5724
Mr. A. P. Eason, Jr., President
First Federal Savings and Loan Association
P. O. Box 4217
Fayetteville, Arkansas 72701
Dear Mr. Eason:
In keeping with your telephone inquiry of this date, set forth below
are excerpts from opinions pertaining to insurance coverage of pension
trusts, rendered on February 18, 1971 and January 23, 1968, re-
spectively, by the Office of the General Counsel of the Federal Home
Loan Bank Board:
1. "While the Federal Home Loan Bank Board does not
have regulations specifically covering insurance
coverage of pension plan trust accounts, the regu-
lations relating to insurance of trust accounts
(564.2(c) and 564.10) are applicable.
Thus, the interest of each plan participant which is
indefeasibly vested would be insured up to $20,000.
All interests that are not so vested are insured in
the aggregate up to $20,000. An interest is not
considered indefeasibly vested if it is subject to
contingencies other than those covered by the present
worth tables (564.2(c))."
2. "Also, other problems of some concern to us are re-
moved if the plan is qualified within the meaning of
the Internal Revenue Code. The interest of each
beneficiary must be disclosed upon the records of
the insured institution in which the funds are invested
or upon the records of the fiduciary charged with the
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FEDERALrHOME LOAN BANK BOARD
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Page #2
First FS&LA
Fayetteville, Arkansas
November 27, 1974
administration of the funds, and said records must be
maintained in good faith and in the regular course
of business. Pension funds have been treated for
insurance purposes in many respects as multiple
beneficiary trusts and as such are governed largely
by Section 401(b) of the National Housing Act and
Section 561.2 of the Rules and Regulations for
Insurance of Accounts . "
In the event you have any questions after the foregoing and Section
564.2 of the Insurance Regulations have been reviewed, we will be pleased
to have you contact us.
Very truly yours,
Mary Duke Peters
Supervisory Agent
P.S. As you of course know, effective today the amount of insurance referred
to above has been increased to $40,000.
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