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HomeMy WebLinkAbout1990-05-31 Minutes• • MINUTES OF A MEETING OF THE FIRE PENSION BOARD A meeting of the Fayetteville Fire Pension and Relief Fund Board of Trustees was held on Thursday, May 31, 1990, at 1:30 p.m. in Room 326 of City Hall. PRESENT: Fire Chief Mickey Jackson, City Manager Scott Linebaugh, Firemen Pete Reagan, Mike Bonaduce, John Dill, Retiree Darrell Judy, Accounting Supervisor Ben Mayes, City Clerk Sherry Thomas, and Richard Yada of Merrill Lynch. CALL TO ORDER The meeting was called to order by Scott Linebaugh. PENSION LIST Secretary Sherry Thomas noted the addition of Roy Cate to the list and stated the date of his retirement was May 3 of this year, with the amount of payment shown being the payment for May and June. Dill, seconded by Reagan, made a motion to approve the pension list. The motion passed unanimously. OLD BUSINESS SKELTON RETIREMENT It was asked if there had been any information or decision about Roy Skelton's retirement, and Linebaugh stated that there was no news. PAY INCREASES Mayes explained a report he had drawn up relating to pay scale for active, retired -full paid and retired -part paid firemen. The report demonstrated proposed pay raises and benefits for 1990 to 2005 and how they affected annual benefits. This included retiring active employees after 20 years of service and increasing salaries 5% per year. There was discussion about the actuarial study just released which showed the pension fund was not actuarially sound. Based on this information, the consensus was that the fund could not afford a benefit increase. Reagan, seconded by Dill, made a motion to table the pay increase subject indefinitely. The motion passed unanimously. COPIES OF MINUTES It was requested that five copies of the meeting minutes be made to • be handed out to station personnel. • • Richard Yada the balanced an original portfolio as the year. May 31, 1990 INVESTMENTS gave his report on the financial portfolio. He stated account managed by New Mexico Capital Management had investment base of $1,647,585, and the value of the of May 30, 1990 was $2,174,979, which was up 4.4% for Roxbury Capital Stock Account was reported stable at approximately 55% invested. The portfolio is down 1/2% for the year, but Roxbury is up 6.68% from the time they began management with a total of $611,979. The income portfolio is still paying a 10% rate of return. There was a purchase of some bonds when interest rates went up some months ago. Current asset allocations consists of: Stock portfolio at 28.2% Bonds at 26.8% Cash at 45% Yada read an article from Financial World dated May 15, 1990, describing a poll taken of several chief financial officers of various corporations stating that Merrill Lynch was rated the best overall pension fund manager, best pension fund service, second- best fixed-income and best in equity research. The same survey taken at various institutions and large banks rated Merrill Lynch best at order execution. ADJOURNMENT The meeting was adjourned at 2:19 p.m.