HomeMy WebLinkAbout1991-04-25 Minutes•
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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, April 25, 1991, at 1:30 p.m. in Room
362 of City Hall, 113 W. Mountain, Fayetteville, Arkansas.
PRESENT: City Manager Scott Linebaugh, Chief Mickey Jackson,
Firemen John Dill and Pete Reagan, Finance Director
Ben Mayes, and City Clerk Sherry Thomas.
ABSENT:
CALL TO ORDER
The meeting was
MINUTES
Mike Bonaduce
called to order by City Manager Scott Linebaugh.
Reagan, seconded by Dill, made a motion to approve the minutes of
the March 28, February 28, February 8, January 31, January 11,
1991, and December 27, 1990 meetings. The motion passed by a
unanimous vote.
PENSION LIST
Linebaugh stated that there were no changes in the list and a copy
could be obtained if anyone so desired. Reagan, seconded by Dill,
made a motion to approve the pension list. The motion passed
unanimously.
OLD BUSINESS
Dill asked if there has been any news on the status of the Skelton
appeal. Linebaugh stated there had been none, but he would request
a status report from City Attorney Jerry Rose.
NEW BUSINESS
Fire Chief Mickey Jackson stated that he had received a letter from
Roxbury dated April 11, which basically was a three page
explanation on their current investment strategy. This was read to
the board.
Jackson stated that an annual report from the ML Lee fund had been
received, and a proxy vote was enclosed. He stated he had received
a letter from the ML Lee Acquisition Fund which he read to the
board concerning income tax liabilities and exemptions. They show
the Fayetteville Fire Department as having an investment income of
$10,097.93 and investment expenses of $13,022.97. Jackson stated
that the appropriate forms had been obtained and would be forwarded
to Richard Yada of Merrell Lynch for him to handle. Mayes stated
Yada had handled those forms last year.
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April 25, 1991
Jackson distributed a financial report to all those present that
Merrell Lynch had faxed for this meeting.
LETTER OF LIABILITIES
Ben Mayes stated that every other year an actuary report is done,
and on the off years an update is done. This update outlines
exposure in the City's financial statements itself. In looking at
this, it goes through and talks about a statement of credited
projected benefits. This is an actuarial estimation of the total
present value future benefits. At the end of 1990, there was
$7,485,673.00, and at the end of 1989 there was $7,170,000.
Projected benefits had increased $315,000. During the same time
period assets went up almost $400,000.
Jackson stated that he had received a portfolio summary from
Roxbury on April 8, 1991. This was passed around for the board to
view.
ACT 770
Reagan stated that this came out of Texarkana and sets a
proportionate representation between active and retired members.
The board composition is the same, except for the Fire Chief, and
he is not a member of the fund, rather the Assistant Chief is now
a member. There are four positions for active and retired members.
It goes on to say that if the number of active members equals 50
percent of the total of retired members and active members
combined, then the board shall be comprised of two active members
and two retired members.
Linebaugh stated that volunteers and retired members were not
defined in this report. This report will be sent to Jerry Rose for
review. Currently, Fayetteville has 24 active and 59 retired
members. This Act contained no emergency clause, so would be
effective 60 days from March 26 (60 days after it is signed into
law).
Reagan reported that the Act stated that retired and active members
should be elected by secret ballot and mailed each year. Linebaugh
stated two elections would have to be held in May, one for the
retired and one for active members.
This report will be sent to City Attorney Jerry Rose for thorough
review for him to advise the Board when compliance with the act
needs to take place and when the act goes into effect.
Dill stated he felt the Board should plan on going ahead and
electing an additional retiree.
• Linebaugh stated his only concern was that if this was done and it
turned out to be in contradiction with the law, anything the Board
April 25, 1991
might do could be subjected to being challenged in court.
Dill suggested complying with the new act unless the City Attorney
indicates this should not be done.
TIME CHANGE
Linebaugh asked the board if a time change could be considered for
future meetings since the time for this meeting conflicts with the
United Fund meeting which Llnebaugh needs to attend. He stated
that Thursday mornings would be fine.
It was agreed to change the meetings to 11:00 a.m. on the last
Thursday of each month.
ADJOURNMENT
The meeting was adjourned at 2:10 p.m.