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Home My WebLink About1990-06-28 Minutes• • • • • MINUTES OF A MEETING OF THE FIRE PENSION BOARD A meeting of the Fayetteville Firemen's Pension and Relief Fund Board of Trustees was held on Thursday, June 28, 1990, at 1:45 p.m. in Room 326 of City Hall. PRESENT: Fire Chief Mickey Jackson, City Manager Scott Linebaugh, Firemen Pete Reagan and Michael Bonaduce, Finance Director Ben Mayes, and Secretary Sherry Thomas. ABSENT: Fireman John Dill and retiree Darrell Judy CALL TO ORDER The meeting was called to order by City Manager Linebaugh. j4IINUTES Reagan stated that the April 26 minutes showed Dill as absent but also showed him as making motions and asked that be corrected. With this correction, Reagan, seconded by Jackson, made a motion to approve the minutes of the April 26, 1990 and May 31, 1990 minutes. The motion was adopted unanimously. PENSION LIST There were no changes in the pension list. Reagan, seconded by Bonaduce, made a motion to approve the pension list for July. OLD BUSINESS Mayes stated he had discussed the actuary study with Catherine Henshaw to try and find out why the pension fund had taken such a drastic turn as is now considered not actuarially sound. Since the last study two years ago, 10 people have retired. Henshaw stated that the pension fund should recover its soundness as a result of the city's contribution and the earnings on the $5 million in assets. She stated she would review the 1987 study and find out why it did not indicate that the fund would be in this position. Jackson asked if the poor performance of the portfolio was a large factor in the fund becoming unsound. Mayes stated the interest earnings were the largest revenue source for the fund. In 1989 the fund earned about 15%, and the average market earning was 20%. Jackson stated there were 6 people that would be eligible to retire in the near future which would diminish the contributions to the fund and increase the benefits being paid out. There was discussion regarding whether or not the City could increase its contributions to the pension fund without legislative approval. The opinion of the previous city attorney was that legislative approval was needed; however, this is not the current opinion nor the opinion of Catherine Henshaw. Linebaugh stated he would ask Jerry Rose, the City • June 28, 1990 Attorney, to look into this and determine if the city's contribution could be increased at the discretion of the city. Linebaugh stated he would be interested in seeing why and where the 1987 and the 1989 actuaries differ. He stated he would like to see something from both Catherine Henshaw and Richard Yada of Merrill Lynch comparing the two studies. Mayes distributed a copy of the investment standings supplied by Merrill Lynch since they were unable to be at the meeting today. It showed the following: Acct. #563-96345 Acct. #563-96356 (New Mexico) Acct. #563-96347 (Roxbury) TOTAL ASSETS $2,135,432 market value 2,152,530 market value 604,986 market value $4,892,948 There was not additional explanation of the accounts; however, it was pointed out that the values have dropped considerably since the last report. Mayes stated he would contact Richard Yada and get additional information to present to the pension board members. j1EW BUSINESS Roy Skelton Retirement Linebaugh stated that Lamar Pettus, attorney for Skelton, had asked for and received a jury trial to hear the case which is scheduled for January 1991. ADJOURNMENT There being no further discussion, the meeting adjourned at 2:00 p.m.