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HomeMy WebLinkAbout1991-05-30 Minutesi • • 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 30, 1991, at 11:00 a.m. in Room 362 of City Hall. PRESENT: Firemen Danny Farrar and Pete Reagan, Retirees Richard Baird and Darrell Judy, City Manager Scott Linebaugh, City Attorney Jerry Rose, Finance Director Ben Mayes, and City Clerk Sherry Thomas. CALL TO ORDER The meeting was called to order by City Manager Scott Linebaugh. OLD BUSINESS ROY SKELTON Amber Trumbo, an attorney representing the Fire Pension Board, addressed the Board stating that she recommended the Pension Board drop the Skelton appeal due to the lack of evidence that the appeal would prevail. She stated that it was Dr. Baker's firm opinion that Mr. Skelton's mental problem was caused by job related stress, and the City had no medical evidence in the record to combat his opinion. The statute pertaining to in-line duty benefits gives the Board the right to have Mr. Skelton examined by any doctor or psychiatrist of their choosing. Since that wasn't done and the trial is over, it's too late to do this. In addition, this may set a bad precedent for future firefighters who become disabled. The City does have the right to have Mr. Skelton undergo additional examinations in the future to determine whether he is still disabled as a result of his job. If evidence is obtained to the contrary, then his disability portion of his retirement benefits can be terminated pending a ruling. Trumbo suggested the Board may want to consider challenging the statute in the legislature or amend it so that if there is additional new evidence (change in circumstances or facts) presented in the future that demonstrates that a disability is no longer work related, then a decision could be reversed. Reagan reported that the portion of the statute regarding future medical exams of retired disabled firefighter had been changed to read that the same could be ordered a minimum of once every six months. Amber Trumbo stated that there was nothing in the statute that makes a distinction between service connected disability and normal disability. Trumbo suggested that they should look into arguing a change in the statute to possibly show that in the Skelton case, based on new evidence, a redetermination as to whether a mental disability is job-related and could later be redetermined based on factors causing stress once the person has retired. May 30, 1991 Baird inquired as to how this applies since Mr. Skelton has worked in excess of 20 years service and wouldn't be returning to work. Rose stated the only thing that would change is the amount of retirement Skelton is receiving. Trumbo stated that this is not a case for setting precedents. Normally you have trauma with in-line disability, but in Roy Skelton's case, he claims mental disability due to harassment on the job. Jerry Rose suggested that the Fire Pension Board try to get the law changed and not make the review a de novo review. As an attorney, he stated that he would rather go into court defending the Board's decision and whether it was justified, rather than retry the case from scratch. Reagan made a motion, seconded by Judy, to drop the appeal. Upon roll call, the motion passed unanimously. Reagan requested that Jerry Rose provide him with his opinion on how to re -word the statute to include the de novo review to present • to the state body in July. In addition, he requested City Manager Linebaugh's opinion on what could be done so that in the event of another "Roy Skelton" type case, the same mistakes were not made. Jerry Rose suggested that the best route to take would be to get the law changed to define "mental disability". City Manager Scott Linebaugh requested that the question of requiring regular medical examinations on firefighters drawing disability be put on the agenda for the next meeting. PENSION LIST Linebaugh asked whether there were any changes in the Pension List, and City Clerk Sherry Thomas reported two changes to the list: 1) Wayne Watts will be added with a monthly pension of $921.17 with 21 years of service; 2) Roy Skelton's pension will change to be 65% rather than 50% of his annual salary. The old pension amount was $1264.63, and the new monthly pension will be $1626.02. A check will be given to Skelton paying him back pay for the additional 15% from his date of retirement which was February 15, 1990. (A copy of the computations is attached.) Reagan, seconded by Farrar, made a motion to approve the pension list with the two changes. • Upon roll call, the motion passed unanimously. NEW BUSINESS May 30, 1991 INVESTMENTS Richard Yada of Merrill Lynch addressed the Board with the current stock portfolio recap. New Mexico Capital Management portfolio showed an original investment of $1 million on 12/6/85 with an added $647,585.00 on 4/23/87, showing $2,244,877.00 as of the end of April, 1991. Roxbury portfolio showed $566,115.00 at the beginning of 1991 and was at $637,134 at the end of April 1991, up 12.54% for the year. The equity account portfolio with Roxbury shows a total of $570,657.00, started in 1986 with two different contributions. Income account portfolio began the year at $2,565,153.00 and at the end of April 1991 was at $2,515,648.00, with withdrawals in January through March to pay benefits. He reported that they were keeping up with the various indexes. Yada presented the stock equity statement for Roxbury which started the month at $638,020.00 and ended the month at $637,134.00 - down $886.00. He showed the income account starting the month with $2,508,962.00 and ending the month of April 1991 at $2,515,648.00, with $10,000 being withdrawn for benefit payments. Yada reported the range of stocks at 25% to 30%, bonds at 15.75%. With a target of 35% stocks, 40% bonds, 15% cash and 2% other categories, current stocks are at 34.06% or the total portfolio of $5,568,560.00 at the end of April, bonds are heavy at 52.95%, cash at 9.75% and other category at 2.6%. He stated that they have received about 30% of their money back on the M. L. Lee fund. Reagan inquired about the comprehensive report on the accounts that was supposed to be available and expressed his concern that one had not been received for over a year. ADJOURNMENT The meeting was adjourned at 12:12 p.m.