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HomeMy WebLinkAbout1993-02-25 Minutes• 1 MINUTES OF A MEETING OF THE FIRE PENSION BOARD A meeting of the Fayetteville Firemen's Pension and Relief Board was held on Thursday, February 25, 1993, at 11:00 a.m. in Room 326 of the City Administration Building, 113 W. Mountain, Fayetteville, Arkansas. PRESENT: Marion Doss, Pete Reagan, Retirees Richard Baird and Darrell Judy, Mayor Fred Hanna, City Clerk Sherry Thomas, Administrative Services Director Ben Mayes, and City Treasurer Glyndon Bunton. ABSENT: Danny Farrar CALL TO ORDER Mayor Hanna called the meeting to order. OLD BUSINESS PROXY AND MERRILL LYNCH CONTRACT Baird asked what the proxy was that was discussed at the last meeting. Doss stated it was a document sent to the Pension Board to vote for one of the people on the board of the money manager company. These proxies have customarily been given to Merrill Lynch to handle, and this one was sent to Richard Yada. Baird asked about the contract with Merrill Lynch. Doss stated Yada has not yet supplied a copy to the Pension Board. Baird, seconded by Judy, made a motion to write Merrill Lynch requesting a copy of the contract. In addition, the letter should request the representative from Merrill Lynch attend the next regularly scheduled Fire Pension Board meeting and explain the investment position as well as the fiduciary responsibility of the board. The motion passed by a unanimous vote. ROY SKELTON Marion Doss explained to the Mayor that the Pension Board had asked Mr. Skelton to take another doctors examination because he has retired from the Fire Department on a line of duty disability basis receiving 65% of his base salary. Mr. Skelton chose to sue rather than take the examination because he did not feel he should have to take one since he worked over 20 years. The attorneys in the case have filed their briefs, and we are now in the waiting stage. City Clerk Thomas stated Arvle King had called and would be mailing the results of his medical examination. • • • February 25, 1993 MINUTES Doss, seconded by Baird, made a motion to approve the minutes of the January 28, 1993 Pension Board meeting. The motion passed unanimously. PENSION LIST Thomas reported there were two changes to the Pension List because of the deaths of Letha Brown and Gladys Cole. Baird asked if the pensioners withdrew from the fund at least the amount they paid in. Mayor Hanna asked if there was a system to check this for each of the pensioners. Baird stated if the Mayor's statement was a motion, he would second the motion for some type of procedure. He expressed his concern that the Pension Board could get into some real predicaments if the retiring firemen left an ex-wife and a current wife, a combination of natural children, step -children, and or/adoptive children, etc. Mayor Hanna stated the Board could ask City Attorney Jerry Rose about these questions for the next meeting. Mayor Hanna asked that there be a standard type agenda prepared for these meetings. City Treasurer Glyndon Bunton asked if these types of questions had been addressed by any other board. Mayor Hanna stated the state statutes probably cover these types of situations. Thomas stated she would draft a memo to the City Attorney asking him to research these beneficiary questions. Bunton asked how long a fire fighter had to work before he was fully vested. Doss stated 20 years. Thomas stated the family of Gladys Cole had returned her check. However, since it is only for $45, Thomas asked if the Pension Board wanted to return the entire check to her estate. Doss, seconded by Judy, made a motion to approve the pension list with the above changes and return Mrs. Cole's check to her estate. The motion passed by a unanimous vote. OTHER BUSINESS February 25, 1993 RELIEF PORTION OF THE PENSION FUND Richard Baird asked what the "relief" portion of the Firemen's Pension and Relief Fund covers. He stated he had nothing in his records defining this. He stated 5 of the full time retirees are receiving under $500 per month pension, and there are 8 part-time retirees or their beneficiaries receiving less than $50 per month. He asked under the "relief" portion of the fund, could the minimums for these two categories be raised. Mayor Hanna stated those are small amounts for volunteers. He feels the City Attorney should be asked about the Board's liability to these people. Baird stated this would increase the pension amount paid out monthly by $631. Ben Mayes stated the pension fund had to be actuarially sound before an increase can be given. Baird stated that may be true, but he would like the City Attorney to look into this. Mayor Hanna stated this could leave the door open for the people who did not get a raise to complain. Pete Reagan stated before increases could be given, the pension fund would have to pay for a special actuary report. The Pension Board had previously stated at the time of the last increase that everyone would get an increase the next time increases were given. He stated the Pension Board did not guarantee active firefighters a raise. Some retirees are now drawing 100% of what they retired at. He would like to go on record opposing any increase at this time. Baird stated every time a current fire fighter gets a raise in salary, he automatically gets an increase in the amount of pension he will be receiving. Reagan stated those people were paying in 3% of their salaries, and the current fire fighters pay 6% of their salaries to the pension fund. The City is matching the fire fighters contributions. The Pension Board is trying to "build the pot" to be able to give another increase later on. Doss stated he felt the "relief" portion of the fund was to be used as a temporary measure for specific reasons. He agreed there needed to be some research on this. Baird stated he would just like to know what the rules are. • • • February 25, 1993 PENSION AFFIDAVITS Thomas stated she had received all of the pension affidavits returned except for Dwayne McChristian and Madge Murphy. She needs the Fire Pension Board's permission to send a letter withholding the pension checks from these people until they file their forms. Reagan, seconded by Doss, made a motion such a motion. The motion passed by a unanimous vote. PENSION BOARD ELECTION Reagan stated there was a retiree and an active fire fighter position coming up for election in May on the Fire Pension Board. Thomas stated she would pull last year's file and put together a letter for the retirees. ADJOURNMENT The meeting adjourned at 11:56 a.m.