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HomeMy WebLinkAbout1991-04-25 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, 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. • 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.