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Home My WebLink About1996-05-10 - Agendas - FinalFAYETTEVI LLE THE CITY OF FAYETTEVILLE, ARKANSAS TRACI PAUL, CITY CLERK TO: Firemen's Pension Board Members FROM: Traci Paul, City Clerk/Treasurer T!' DATE: May 10, 1996 SUBJECT: Firemen's Pension Board Meeting The next Firemen's Pension Board meeting is Thursday, May 30, 1996, at 11:00 a.m., in room 326 of City Hall. Attached, please find a copy of the agenda for the upcoming meeting, the minutes from the April 25 meeting, and the pension list for June, 1996. Attachments - • 113 WEST MOUNTAIN 72701 501 575-8323 • AGENDA FIREMEN'S PENSION AND RELIEF BOARD May 30, 1996 11:00 a.m. City Hall Room 326 1. Approval of the minutes of April 25, 1996. 2. Approval of Pension List for June 1996. 3. Old Business 4. New Business - NOMINEES - ,J , JZOSE - MEMO - ACT 33 4 - bleo)' AP A. Investment Report, Merrill Lynch 5. Adjournment MINUTES OF A MEETING OF THE FIRE PENSION BOARD A meeting of the Fayetteville Firemen's Pension and Relief Board was held on Thursday, April 25, 1996, at 11:00 a.m., in room 326 of the City Administration Building, 113 W. Mountain, Fayetteville, Arkansas. PRESENT: Mayor Fred.Hanna, Pete Reagan, Marion Doss, Howard Boudrey, Darrell Judy, and City Clerk/Treasurer Traci Paul ABSENT: Ron Wood CALL TO ORDER Mayor Hanna called the meeting to order. MINUTES Reagan, seconded by Doss, moved to approve the minutes of the March 28, 1996 regular meeting. The motion passed unanimously. PENSION LIST Paul reported no changes in the pension list. Reagan, seconded by Boudrey, moved to approve the May pension list. The motion passed unanimously. OLD BUSINESS DROP Reagan stated he had the answers to the questions from Marilyn Cramer. He would meet with her to go over them. Retirement Information Reagan reported that he is working to create a document on the computer that will show all the retirees, their dates of service, their monthly salaries, raises, and proposed 65% amount of retirement and the difference it will cost the fund. This should be ready for the next meeting. A resolution should also be ready regarding the proposed raises. Reagan thanked the City Clerk and her microfilm clerk, Gina Roberts, for their help with the computer data sheet. NEW BUSINESS Investment Report Paul stated Richard Yada would not be present but he did send a report. • • April 25, 1996 DROP Rules & Regulations Reagan read Article 9 of the disclaimer and pointed out a mistake. It reads, ". . .deferred compensation plan. . and should read, "deferred pension plan." Reagan moved to take "deferred compensation" out and put in "deferred pension." Doss seconded. Mayor Hanna suggested sending this change to City Attorney Rose to review. The motion passed unanimously. Mayor Hanna asked Paul to send this change to the City Attorney. Board Terms to Expire Paul informed the Board that Reagan's and Judy's terms on the Board would expire May 1, 1996. Notices of an election will be sent out. There being no further business, Mayor Hanna adjourned the meeting at 11:20 a.m. FIREMEN'S RELIEF AND PENSION FUND JUNE 1996 TRACI PAUL TREASURER • THE FOLLOWING ARE THE OBLIGATIONS OF THE FIREMEN'S RELIEF FUND FOR THE MONTH OF JUNE 1996. YOU ARE HEREBY INSTRUCTED TO ISSUE CHECKS TO THE PAYEES, IN THE AMOUNTS SHOWN, AND FOR THE PURPOSE SO STATED. EMP# NAME 43 BAIRD, RICHARD H. 2 BLACKARD, PAUL 63 BOLAIN, ANN 44 BOUDREY, BETTY MRS. 45 BOUDREY, HOWARD 49 BOUDREY, JACK 4 CARL, FLOYD JR 5 CASELMAN, ARTHUR 57 CATE, ROY 6 CHRISTIE, ARNOLD 7 COLE EVERETT 8 COUNTS, WAYNE 61 DAVIS, BEULAH F. 10 DEARING, EMMA MRS. 11 FARRAR, ALONZO 38 FRALEY JOSEPH G. 33 HARRIS, BILL C. 34 HARRIS, JAMES E. 64 JORDAN, CHARLIE 47 JUDY, DARRELL 37 KING, ARNOLD D. 54 KING, ARVIL 12 LANE, HOPE MRS 13 LAYER, MERLIN 14 LEE, HAROLD 51 LEWIS, CHARLES 60 LEWIS, MARVIE 55 LEWIS, ROGER 40 LOGUE, PAUL D. 50 MASON, LARRY 39 MC ARTHUR, RONALD A. 35 MC CHRISTIAN, DWAYNE 15 MC WHORTER, CHARLES 29 MILLER, DONALD 42 MOORE, JAMES H. 17 MORRIS, WILKIE MRS. 16 MORRIS, WILLIAM H. 62 MORRISON, ELIENE 48 MULLENS, DENNIS W. 58 OSBURN, EDWARD 46 OSBURN, TROY 53 POAGE, LARRY 20 POLLY, GRACE A. MRS. 22 REED, JOE 30 SCHADER, EARVEL 41 SCHADER, TROY 23 SKELTON, BURL L. 24 SKELTON, LEE 56 SKELTON, ROY 36 SPRINGSTON, CARL 25 STOUT, ORVILLE 27 TUNE, MILDRED MRS. GROSS FED. TAX ST. TAX NET 916.20 55.00 55.00 1,266.21 1,066.66 837 68 50.00 75.00 909.50 50.00 375.00 55.00 377.50 50.00 707.84 953.38 55.00 55.00 1,192.17 837 68 828.42 1,131.00 50.00 417.50 55.00 837.68 439.16 439.17 1,469.38 829.35 891.62 55.00 885.14 863.01 55.00 50.00 60.00 70.00 1,114.11 1,284.63 965.81 1,201.98 50.00 55.00 915.78 783.74 692.50 390.00 1,626.02 609.88 590.36 70.00 100.00 816.20 55.00 55.00 180.00 1,086.21 1,066.66 287.68 50.00 500.00 50.00 75.00 909.50 50.00 32.50 342.50 55.00 377 50 50.00 707.84 100.00 10.00 843.38 55.00 55.00 1,192.17 837.68 100.00 10.00 718.42 130.00 1,001.00 50.00 417.50 55.00 837 68 439.16 439.17 175.00 20.00 1,274.38 29.35 800.00 100.00 791.62 30.00 25.00 50.00 835.14 125.00 738.01 55.00 50.00 60.00 70.00 1,114.11 160.00 1,124.63 65.81 900 00 200.00 30.00 971.98 50.00 55.00 915.78 20.00 763.74 42.50 650.00 390.00 126.02 50.00 1,450.00 609.88 50.00 540.36 70.00 26 TUNE, BILLIE SUE 28 WATTS, DONALD 59 WATTS, WAYNE 52 WRIGHT, RANDALL 70.00 400.00 921.17 877.68 96.17 150.00 70.00 400.00 825.00 727.68 31,984.91 2,350.03 170.00 29,464.88 WE, THE UNDERSIGNED, DO SOLEMNLY SWEAR THAT THE ABOVE OBLIGATIONS ARE JUST AND CORRECT; THAT NO PART THEREOF HAS BEEN PREVIOUSLY PAID; THAT THE PENSION PAYMENTS SO CHARGED ARE IN ACCORDANCE WITH THE ACTIONS OF THE BOARD OF TRUSTEES OF THE FIREMEN'S RELIEF AND PENSION FUND; THAT THE SERVICES OR SUPPLIES FURNISHED, AS THE CASE MAY BE, WERE ACTUALLY RENDERED OR FURNISHED; AND THAT THE CHARGES MADE THEREFORE DO NOT EXCEED THE AMOUNT ALLOWED BY LAW OR THE CUSTOMARY CHARGE FOR SIMILAR SERVICES OR SUPPLIES. efiLaCk4/ SECRETARY CHAIRMAN PRESIDENT 411- if 4 4*J ACKNOWLEDGEMENT STATE OF ARKANSAS ) COUNTY OF WASHINGTON) )SS • SWORN TO AND SUBSCRIBED BEFORE ME THIS 3p/bAY OF Su/1 e , 1996. • IS. i/0L ARY PUBL C P MY COMMISSION EXPIRES:3 -/-aOoJ' ,``,ttttttttlhIIIs$/ / Nt• 4 L tiEr .S OMM� •• • • * fOTARp '_. .a •ham ?•; Pt/ BLit `��I�01U NSill I ��w°�`• FAYETTEVILLE FIRE DEPT PENSION AND RELIEF FUND PORTFOLIO PERFORMANCE 12/31/95 TO 04/30/96 NM CAPITAL MANAGEMENT INCOME ACCOUNT KEYSTONE ASSET MGT 3 - MONTHS TREASURY BILLS DJIA W/DIV REINVESTED S & P 500 W/DIV REINVEST LONG TERM TREASURY BONDS H IGH GRADE CORP BONDS CPI NM CAPITAL (time wtd) INCOME ACCOUNT KEYSTONE ASSET MGMT W ITHDRAWALS: 03/13/96 04/12/96 P ,% 2 $16, 000 10,000 12/31/95 $3,8911670 3,848,643 1,018,776 12/31/95 ca/9/9 G' (iG teAS 4G n + 5.46 +35.53 +34.94 +27.63 +23.51 + 2.67 + 15.68 + 15.61 + 1.88 04/30/96 $4,160,667 3,802,245 1,091,811 96.4 04/30/96 tAV s�E(� + 1.66 + 9.65 + 6. 97 - 8. 63 - 5.96 + 1.43 + 6. 30 - 1.92 + 6. 34 -.Soon 7.5 r2& O Q o 96,6 7 ,000 • 7S Z iroceitrO } NM CAPITAL MANAGEMENT, INC. Page 1 ENT : FAYETTPP - CITY OF FAYETTEVILLE FIRE PENSION AND RELIEF FUND REPORTING PERIOD: 01/01/96 TO 04/30/96 IIIIIAGER: NTSC CASH AND EQUIVALENTS EQUITIES GOV'T/CORP BONDS ACCRUED INCOME TOTAL PORTFOLIO COMPOSITION MARKET % OF VALUE TOTAL $156,379.86 2,809,201.91 1,161,175.00 35,394.33 $4,162,151.10 3.8 67.5 27.9 0.9 STATEMENT OF CHANGES PORTFOLIO MARKET VALUE AT 01/01/96: DEPOSITS WITHDRAWALS INCOME EARNED CAPITAL APPRECIATION 100.0 PORTFOLIO MARKET VALUE AT 04/30/96: $3,943,291.48 9,785.51 (19,571.29) 46,663.59 181,981.81 $4,162,151.10 THE FOLLOWING RETURNS ARE SHOWN GROSS OF MANAGEMENT FEES: TOTAL PORTFOLIO CASH AND EQUIVALENTS EQUITIES ACT/CORP BONDS IIIPARATIVE INDICES BALANCED INDEX - 1 (60/35/5) US T BILLS S&P500 TOTAL RETURN GOVT/CORP INTERMEDIATE BOND CONSUMER PRICE INDEX 01/01/96 TO 04/30/96 5.8% 1.2% 8.4% 0.0% 4.0% 1.8% 7.0% -1.2% 1.8% CUMULATIVE YEAR-TO-DATE PAST TWELVE MONTHS SINCE INCEPTION 5.8% 91.2L 15.0% 105.4% 1.2% 8.4%-ltuct 0.0% 4.0% 1.8% 7.0% -1.2% 1.8% INVESTMENT EARNINGS (APPRECIATION + INCOME) SINCE INCEPTION DATE 01/18/90: 4.1% 18.4% 8.4% 20.7% 5.9% 30.2% 7.8% 2.9% $2,341,869.66 35.2% 131.4% 70.5% 103.4%. 39.0% 132.7% 63.0% 23.9% ANNUALIZED SINCE INCEPTION 12.1% NOTE: THE COMPARATIVE INDICES SHOW RETURNS FOR THE ENTIRE INDICATED PERIODS. THESE MAY NOT BE DIRECTLY COMPARABLE TO YOUR RETURNS FOR SEPARATE SEGMENTS OF THE PORTFOLIO (CASH, EQUITIES, ETC) IF YOU DID NOT OWN THE SEGMENT FOR THE ENTIRE INDICATED PERIOD. THESE SEGMENT RETURNS ARE SUPPLEMENTAL INFORMATION TO THE TOTAL PORTFOLIO RETURN. • 4.9% 14.3% 8.9% 12.0% 5.4% 14.4% 8.1% 3.5% NM CAPITAL MANAGEMENT, INC. -E PRINTED: 05/22/96 Portfolio Overview APPRAISAL DATE: 05/20/96 OUNT ID: FAYETTPP PRICING DATE: 05/20/96 ACCOUNT NAME: CITY OF FAYETTEVILLE FIRE PENSION AND RELIEF FUND USER DEFINE CODES: NNPXDDIN - BXDXXXTX CURRENT ASSET CHANGE ACCRUED COST VALUE MIX TARGET % TO TARGET YIELD INCOME BASIS Cash and Equivalents 258,819 6.1% 5.0% -47,146 4.8% 0 258,819 Fixed Income 1,166,843 27.6% 30.0% 103,192 7.8% 5,365 1,140,272 Equities 2,807,788 66.3% 65.0% -56,046 2.0% 4,306 2,642,979 TOTAL PORTFOLIO 4,233,450 100.0% • STOCK AVERAGES 9,671 4,042,070 FIXED INCOME AVERAGES PERFORMANCE TO 05/20/96 EXCL TOTAL CASH 8 EOUIV SINCE RETURN P/E 36.22 YTM 6.04% 01/18/90 108.89% BETA 0.00 DUR 2.14 12/31/95 7.63% ERNGR 0.00% COUP 8.10% 12/31/95 7.63% DIVGR 0.00% MAT 2.33 03/31/96 3.42% MDY (AAA ) 04/30/96 1.71% S8P (AAA ) illIE PRINTED: 05/22/96 SHARES / FACE VALUE • DESCRIPTION NM CAPITAL MANAGEMENT, INC. Page 1 Client Appraisal FAYETTPP - CITY OF FAYETTEVILLE FIRE PENSION AND RELIEF FUND Cash and Equivalents MONEY MARKET FUNDS 260 066 87 MONEY MARKET FUND 320,000 100,000 100,000 100,000 500,000 Fixed Income GOVERNMENT ISSUES US TREAS 8.500% 05/15/97 FNMA 9.550% 09/10/97 FNMA 9.150% 04/10/98 US TREAS 5.250% 07/31/98 US TREAS 7.875% 11/15/99 TOTAL GOVERNMENT ISSUES Equities COMMON STOCKS Capital Goods - Industrial 2,000 HARNISCHFEGER INDUSTRY 5,700 4,200 4,700 7,800 5,300 Capital Goods - Technology ANTEC CORP Consumer Durables ARVIN INDS INC BROWN GROUP INC CROSS (A.T.) COMPANY OUTBOARD MARINE CORP TOTAL Consumer Durables Consumer Non -Durables 5,000 ACX TECHNOLOGIES INC 1,900 AMERICAN GREETINGS 8,069 ARCHER DANIELS MIDLAND 6,700 COORS ADOLPH 9,500 DELTA WOODSIDE 7,200 GIBSON GREETINGS INC 3,600 GREAT ATLANTIC & PAC TEA CO 6,400 HANSON PLC SPONSORED ADR 1,900 MORRISON FRESH COOKING INC 4,500 RUBY TUESDAY INC 8,800 RUSS BERRIE & CO INC 6,500 SAVANNAH FOODS & INDUSTRIES 2,533 TOTAL Consumer Non -Durables Services MORRISON HEALTH CARE INC UNIT COST TOTAL MARKET COST PRICE 1.00 260,066.87 100.85 99.34 99.34 101.25 103.52 322,722.20 99,343.75 99,343.75 101,254.85 517,606.92 1,140,271.47 MARKET VALUE PRICING DATE: 05/21/96 DATE OF APPRAISAL: 05/22/96 % OF % OF ASSET PORTFOLIO CLASS 1.00 260,066.87 102.66 104.59 105.03 98.34 104.88 20.34 40,682.94 37.25 16.57 94,420.50 17.25 21.46 29.60 14.56 18.44 17.12 27.57 13.40 19.19 12.46 17.20 20.50 18.73 5.95 16.43 15.24 12.45 16.00 90,145.20 139,120.49 113,561.55 97,710.92 440,538.16 85,600.00 52,373.50 108,110.88 128,577.51 118,362.05 123,874.85 73,785.12 119,894.04 11,306.07 73,928.62 134,116.70 80,895.00 1,110,824.34 24.00 17.00 15.63 20.00 21.75 27.13 19.50 17.94 5.63 13.88 36.00 14.63 5.75 21.38 15.88 12.63 40,535.48 14.50 328,500.16 104,593.80 105,031.30 98,343.80 524,375.00 ESTIMATED ANNUAL CUR INCOME YLD 6.1 100.0 12,535 4.8 7.8 2.5 2.5 2.3 12.4 28.3 9.0 9.0 8.5 45.2 27,200 9,550 9,150 5,250 39,375 8.3 9.1 8.7 5.3 7.5 1,160,844.06 27.4 100.0 90,525 7.8 74,500.00 98,325.00 100,800.00 79,900.00 121,875.00 106,000.00 408,575.00 108,750.00 51,537.50 157,345.50 120,181.25 53,437.50 99,900.00 129,600.00 93,600.00 10,925.00 96,187.50 139,700.00 82,062.50 1.8 2.7 800 1.1 2.3 3.5 0 0.0 2.4 1.9 2.9 2.5 3.6 2.8 4.3 3.8 3,192 4,700 4,992 2,120 3.2 5.9 4.1 2.0 9.6 14.5 15,004 3.7 2.6 1.2 3.7 2.8 1.3 2.4 3.1 2.2 0.3 2.3 3.3 1.9 3.9 1.8 5.6 4.3 1.9 3.6 4.6 3.3 0.4 3.4 5.0 2.9 0 0.0 1,216 2.4 1,614 1.0 3,350 2.8 0 0.0 0 0.0 720 0.6 6,355 6.8 171 1.6 3,312 3.4 5,280 3.8 650 0.8 1,143,226.75 27.0 40.7 22 668 2.0 36,728.50 0.9 1.3 519 1:4 4111E PRINTED: 05/22/96 SHARES / FACE VALUE • 2,700 8,800 16 000 DESCRIPTION NM CAPITAL MANAGEMENT, INC. Page 2 Client Appraisal FAYETTPP - CITY OF FAYETTEVILLE FIRE PENSION AND RELIEF FUND Energy COOPER CAMERON CORP DESTEC ENERGY INC PARKER DRILLING CO TOTAL Energy Finance 1,000 CASTLE 8 COOKE INC 11,800 5,700 7,200 4,200 Basic Industry CALGON CARBON CORP PH GLATFELTER CO HORSHAM CORP JAMES RIVER CORP VA TOTAL Basic Industry Transportation 4,500 AAR CORP 5,300 OVERSEAS SHIPHOLDING GROUP • TOTAL Transportation TOTAL COMMON STOCKS ACCRUED INTEREST ACCRUED DIVIDEND TOTAL PORTFOLIO UNIT COST TOTAL MARKET COST PRICE 31.81 85,873.50 45.00 14.40 126,736.00 13.63 6.06 96,964.85 7.38 15.66 11.70 18.06 13.84 21.10 309,574.35 15,660.00 17.50 138,046.70 102,962.85 99,648.00 88,623.56 429,281.11 12.25 18.25 15.00 26.13 13.28 59,741.97 23.00 19.19 101,716.70 19.00 161,458.67 2,642,975.55 MARKET VALUE 121,500.00 119,900.00 118,000.00 PRICING DATE: 05/21/96 DATE OF APPRAISAL: 05/22/96 % OF % OF ASSET PORTFOLIO CLASS 2.9 2.8 2.8 4.3 4.3 4.2 359,400.00 8.5 12.8 17,500.00 0.4 0.6 144,550.00 104,025.00 108,000.00 109,725.00 3.4 5.1 2.5 3.7 2.5 3.8 2.6 3.9 ESTIMATED ANNUAL CUR INCOME YLD 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 3,776 3,990 504 2,520 2.6 3.8 0.5 2.3 466,300.00 11.0 16.6 10,790 2.3 103,500.00 2.4 3.7 2,160 2.1 100,700.00 2.4 3.6 3,180 3.2 204,200.00 4.8 7.3 5,340 2.6 2,808,755.25 66.3 100.0 55,121 2.0 5,859.26 0.1 3,058.45 0.1 4,043,313.89 4,238,583.89 100.0 100.0 158,181 3.7 os • • • DATE PRINTED: 05/22/96 Cash and Equivalents MONEY MARKET FUNDS Fixed Income GOVERNMENT ISSUES Equities COMMON STOCKS ACCRUED INTEREST ACCRUED DIVIDEND TOTAL PORTFOLIO NM CAPITAL MANAGEMENT, INC. Portfolio Summary FAYETTPP - CITY OF FAYETTEVILLE FIRE PENSION MARKET VALUE 260,066.87 1,160 844 06 2,808,755.25 5,859.26 3,058.45 4,238,583.89 PRICING DATE: 05/21/96 DATE OF APPRAISAL: 05/22/96 AND RELIEF FUND ESTIMATED X OF ANNUAL PORTFOLIO INCOME YIELD 6.1 27.4 66.3 0.1 0.1 100.0 12,535 90,525 55,121 4.8 7.8 2.0 158,181 3.7 ., • NM CAPITAL MANAGEMENT, INC. DATE PRINTED: 05/22/96 Common Stock Summary PRICING DATE: 05/21/96 DATE OF APPRAISAL: 05/22/96 FAYETTPP - CITY OF FAYETTEVIILE FIRE PENSION AND RELIEF FUND X OF X OF MARKET COMMON TOTAL COMMON STOCKS VALUE STOCKS PORTFOLIO Capital Goods Industrial Capital Goods - Technology Consumer Durables Consumer Non -Durables Services Energy Finance Basic Industry Transportation TOTAL COMMON STOCK 74,500.00 98,325.00 408,575.00 1,143,226.75 36,728.50 359,400.00 17,500.00 466,300.00 204,200.00 2 808 755 25 2.7 3.5 14.5 40.7 1.3 12.8 0.6 16.6 7.3 1.8 2.3 9.6 27.0 0.9 8.5 0.4 11.0 4.8 100.0 66.3 • MEI JIM GUY TUCKER GOVERNOR COPY STATE OF ARKANSAS OFFICE OF EMERGENCY SERVICES P.O. 130X 758 CONWAY, ARKANSAS 72033 (501) 329-5601 / 374.1201 FAX (501) 327-8047 TO: Ms. Traci Paul, Treasurer City of Fayetteville, Washington County FROM: Office of Fire Services DATE: May 24, 1996 SUBJECT: Insurance Premium Funds JOE DILLARD DIRECTOR Act 833 of 1991, provided insurance premium turn back funds to fire departments and enclosed are the following checks: $ 7,984.30 Fayetteville Fire Dept. • I am pleased that you are participating in this program and I know this money will make Arkansas a safer place in which to live. • These funds are subject to audit and are to be used in accordance with Act 833 of 1991. Please sign this receipt, retain a copy for your files and return the original to this office. Office of Fire Services Office of Emergency Services P.O. Box 758 Conway, AR 72033 Attachment Fire Department's Authonzed Representative Date AN EQUAL OPPORTUNITY EMPLOYER • FAYETTEVILLE THE CITY OF FAYETTEVILLE, ARKANSAS TRACI PAUL, CITY CLERK • TO: Fire Pension Retirees FROM: Traci Paul, City Clerk/Treasurer Th DATE: May 10, 1996 SUBJECT: FIRE PENSION BOARD ELECTION There is a retired member position up for election on the Firemen's Pension Board. This position has a two year term beginning in May of 1996 and ending May 1, 1998. The position is currently being held by Darrell Judy who is seeking re-election. The Board is accepting nominations for a retired member to serve this term Please submit any nominations to the City Clerk's Office by Friday, May 24. If you have any questions, please feel free to call. Thanks 113 WEST MOUNTAIN 72701 501 575-8323 FAYET TE' `1 LLE TNE•u Of OF FAYETTEVILLE, ARKANSAS TRACI PAUL, CITY CLERK • TO: Fire Pension Retirees FROM: Traci Paul, City Clerk/Treasurer Tr DATE: May 10, 1996 SUBJECT: FIRE PENSION BOARD ELECTION There is a retired member position up for election on the Firemen's Pension Board. This position has a two year term beginning in May of 1996 and ending May 1, 1998. The position is currently being held by Darrell Judy who is seeking re-election. The Board is accepting nominations for a retired member to serve this term. Please submit any nominations to the City Clerk's Office by Friday, May 24. If you have any questions, please feel free to call -Thanks. Jrn ctj _ r%, -6 _Aytrvwc-uer xey _e 6'k unnyc.ioe G«r zc L 4,, Est/ 113 WEST MOUNTAIN 72701 501 5754323 • • .mow ,fr-yvt U s e aced. • FAYET T E\T I I JIJI�J THE Y OF FAYETTEVILLE, ARKANSAS TRACI PAUL, CITY CLERK TO: Fire Pension Retirees FROM: Traci Paul, City Clerk/Treasurer TI0 DATE: May 10, 1996 SUBJECT: FIRE PENSION BOARD ELECTION There is a retired member position up for election on the Firemen's Pension Board. This position has a two year term beginning in May of 1996 and ending May 1, 1998. The position is currently being held by Darrell Judy who is seeking re-election. The Board is accepting nominations for a retired member to serve this term. Please submitriday any nominations to the City Clerk's Office by • `FMay 24: IfIf you haveany questions, please feel free to/Call. 'Thanks ..ez ;tom eta . efsrati Mert--w®! 71Ao c. Cryr 72-11/P L esir 6,._ 113 WEST MOUNTAIN 72701 501 575.8323 • gut -Q. 4J FAYET EVI I E THE TV OF FAYETTEVILLE, ARKANSAS RECEIVED NAY 13 1996 CITY CLERK'S OFFICE TRACI PAUL, CITY CLERK TO: Fire Pension Retirees FROM: Traci Paul, City Clerk/Treasurer TIo DATE: May 10, 1996 SUBJECT: FIRE PENSION BOARD ELECTION There is a retired member position up for election on the Firemen's Pension Board. This position has a two year term beginning in May of 1996 and ending May 1, 1998. The position is currently being held by Darrell Judy who is seeking re-election. The Board is accepting nominations for a retired member e_to serve this term. Please submit any nominations to the City Clerk's_Office by "Fria-57%3-247`If you�h`ave any questions, please feel free to call_Thanks. DoulAvt- P2i (21 rE0r po G utycoA) A)0 LeJdi • 113 WEST MOUNTAIN 72701 501 575-8323 05-31-1996 03:10PM FROM FRYETTEUILLE FIREDEPT FAYETTEVI LLE TO 5750257 P.01 THE CT' OF FAYETlEYa1E. ARKANSAS FIRE DEPARTMENT MEMO TO : FAYETTEVILLE FIREMAN'S PENSION FUND MEMBERS FM: PETE REAGAN, PENSION BOARD MEMBER ce DT: 5/11/96 • RF: ELECTION OF PENSION BOARD MEMBER • AS PER ACA : 24-11-801. IT IS TIME TO ELECT A MEMBER TO REPRESENT THE ACTIVE MEMBERS ON THE FAYE 11 bVILLE FIREMAN PENSION AND RELIEF FUND BOARD OF TRUSTEES ANYONE WISHING TO RUN FOR THIS POSITION SHOULD SUBMIT THEIR NAME IN WRITING TO ASST. CHIEF DOSS BY FRIDAY, MAY 17 1996 AT 1700 hrs. xm w. couTER STREET 72701-5013 Post -it' Fax Nate 7671 Dales pages -30 T nA i /»01. From t- /F�9C 7 / ColoePis e�K �i Co Phone # Phone ar— Fax # Fax art x,05-31-1996 03:10PM FROM FAYETTEVILLE FIREDEPT TO 5750257 P.02 <s7s- 01171 TO : ASST_ CHIEF DOSS , FFD PENSION BOARD MEMBER FM : GENE WARFORD, ENGINEER , FFD DT: 5lTIP96 RF : FFD PENSION BOARD MEMBER ELECTION I WOULD LIKE TO PLACE THE NAME OF PETE REAGAN, A CAPTAIN AND CURRENT BOARD MEMBER OF THE FAYETTEVII FIREMAN'S PENSION AND RELIEF FUND, INTO NOMINATION FOR THE OPEN BOARD POSI'T'ION. 91Aft°1 • aJ2964&0( FAYETTEVI LLE • ditimitovienieverseeiswisinnattlr THE CITY OF FAYETTEVILLE, ARKANSAS TRACI PAUL, CITY CLERK TO: Jerry Rose, City Attorney 9' t'M FROM: Traci Paul, City Clerk/Treasurer TI. DATE: May 10, 1996 SUBJECT: AMENDMENT TO DROP RULES :& REGULATIONS Please find attached a copy of the minutes from the April 25 Firemen's Pension. Board meeting and a copy of the Fayetteville Firemen's Pension and Relief Fund Rules and Regulations for Fayetteville Firemen's DROP. As requested by Mayor Hanna, please review the noted change in the DROP Rules & Regulations. Thank you. • 113 WEST MOUNTAIN 72701 501 575-8323 tr. MINUTES OF A MEETING OF THE FIRE PENSION BOARD A meeting of the Fayetteville Firemen's Pension and Relief Board was held on Thursday, April 25, 1996, at 11:00 a.m., in room 326 of the City Administration Building, 113 W. Mountain, Fayetteville, Arkansas. PRESENT: Mayor Fred Hanna, Pete Reagan, Marion Doss, Howard Boudrey, Darrell Judy, and City Clerk/Treasurer Traci Paul ABSENT: Ron Wood CALL TO ORDER Mayor Hanna called the meeting to order. MINUTES Reagan, seconded by Doss, moved to approve the minutes of the March 28, 1996 regular meeting. The motion passed unanimously. PENSION LIST Paul reported no changes in the pension list. • Reagan, seconded by Boudrey, moved to approve the May pension list. The motion passed unanimously. OLD BUSINESS DROP Reagan stated he had the answers to the questions from Marilyn Cramer. He would meet with her to go over them. Retirement Information Reagan reported that he is working to create a document on the computer that will show all the retirees, their dates of service, their monthly salaries, raises, and proposed 65% amount of retirement and the difference it will cost the fund. This should be ready for the next meeting. A resolution should also be ready regarding the proposed raises. Reagan thanked the City Clerk and her microfilm clerk, Gina Roberts, for their help with the computer data sheet. NEW BUSINESS Investment Report Paul stated Richard Yada would not be present but he did send a report. • • April 25, 1996 CDROP Rules & Requlations� Reagan read Article 9 of the disclaimer and pointed out a mistake. It reads, ". . .deferred compensation plan. . and should read, "deferred pension plan." Reagan moved to take "deferred compensation" out and put in "deferred pension." Doss seconded. CMayor._Hanna_suggested,send:ng_Ehis_change_ _to-Cit_y-Attorney-Rose, to_review7 The motion passed unanimously. cayorHanria"asked_Paulito_senCth s,_change_to he'"C ty Attorney71 Board Terms to Expire Paul informed the Board that Reagan's and Judy's terms on the Board would expire May 1, 1996. Notices of an election will be sent out. There being no further business, Mayor Hanna adjourned the meeting at 11:20 a.m. • • FAYETTEVILLE FIREMEN'S PENSION AND RELIEF FUND RULES AND REGULATIONS FOR FAYE1TEVILLE FIREMEN'S DEFERRED RETIREMENT OPTION PLAN - (DROP) ARTICLE I Purpose The purpose of these rules and regulations is to implement and administer the Deferred Retirement Option Plan (DROP), authorized by Act 1004 of 1993, and adopted by Resolution of the Board of Trustees on January These rules and regulations are promulgated under the authority of Ark. Code Ann. §24-11-803(a)(3), 1992. ARTICLE II Effective Date The effective date of the DROP shall be January 25, 1996. ARTICLE III Administration The plan shall be administered by the staff of the Board of Trustees of the Fayetteville Firemen's Pension and Relief Fund (the "Fund"). 1 ARTICLE IV Employee Election and Application Process Section 4.01. Service Requirement: Applicants for DROP must have a minimum of twenty (20) years accredited service with the Fayetteville Firemen's Pension and Relief Fund on or within sixty (60) days succeeding the date of application for participation in DROP. Section 4.02. Application: Applications for participation in DROP must be received at the Fund office at least thirty (30) days prior to the effective date of participation. Application must be made on forms provided by the Fund. Participants will be notified in writing of the conditions of participation in DROP. A copy of these rules and regulations will constitute written notification. Participation in DROP is contingent upon completion of all applications and forms required by the Fund. If married, spousal signature is required. ARTICLE V. Contnbutions to DROP Account Section 5.01. DROP Credit: Each participant's DROP account shall be credited with the following items dunng the tern of DROP. (a) DROP Payments: • The DROP account is credited at the end of each month of DROP with the DROP payments. The amount of the DROP payment is equal to the pension benefit the participant would have received if they had elected service retirement on the first day of the participant's DROP. This amount shall not change during participation in DROP regardless 2 • of interim salary increases, except under the limited circumstances • • descnbed in Section 6.03. (b) Employer Contributions: One-half (1) of the employer matching contributions are credited to the DROP account. (c) Interest: Simple interest shall be credited to individual DROP account balances of the member on an annual basis, based upon an average annual balance computed on the date the member began participation. Said account shall earn interest at a rate of two (2) percentage points below the rate of return of the investment portfolio of the Fund but no less than the actuarial assumed interest rate as certified by the actuary for the Fund. Section 5.02. Employee Contribution: The participant continues to make the required employee contributions during DROP. These employee contributions are credited to the Fund and not the individual's DROP account. ARTICLE VI. Conclusion of Drop Section 6.01. Time of Conclusion of Drop: The DROP period will conclude at the date of termination of employment which shall be no later than five (5) years after the date that the individual member began participation in DROP. Termination of employment means leaving the employment of the department for any reason. Section 6.02. Notification of Termination: At least thirty (30) days prior to termination of employment, the participant must select a payment method and notify the Fund administrator of that selection. Section 6,03. Distnbution of DROP Account: At the conclusion of the DROP period, the DROP account will be distributed. Distribution options are descnbed in Article VII of these Rules and Regulations. Section 6.04. Retirement Benefit: The monthly benefit received by the member after the DROP period concludes is the retirement benefit as calculated at the date the member began DROP. The monthly benefit does not change after the DROP period. The same monthly amount is now paid to the individual member instead of into the DROP account. The retirement benefit at the end of the DROP period: (a) Does not change with increases in salary during DROP; (b) Does not change with extra service during DROP; and, (c) Is the same amount as was being credited, monthly, to the DROP account. There are two (2) exceptions: (a) Age sixty (60) longevity bonus pursuant to A.C.A. §24-11-826 (based on having over twenty-five (25) years of service earned before the DROP period) starts at age sixty (60); and, (b) Any retiree raises granted to all retirees, or overall benefit increases, shall also be given to persons on DROP. 4 • • Section 6.05. Line of Duty Disability Benefits: If a member of the Fire Department who has elected DROP becomes disabled in the line of duty during the DROP penod, and if he is otherwise entitled to disability retirement, he may elect a disability retirement based upon current salary upon approval by the Board of Trustees. If such disabled member elects to receive a disability retirement based upon current salary, he shall forfeit his accumulated DROP account and shall, instead, be considered a disability pensioner who never went on DROP. Section 6.06 Death Benefits: If a member of the Fire Department dies dunng the period of participation in the DROP, a lump sum payable equal to the balance of the DROP account will be paid to either a designated beneficiary or to the decedent's estate. The widow's benefits will be paid pursuant to existing law. ARTICLE VII Distribution of DROP Account Section 7.01. Method of Distribution: A member who has DROP may elect to receive his or her DROP account in either a lump sum, a true annuity, or a combination thereof as described below: (a) Lump Sum: A lump sum amount equal to the accumulation of the DROP account as defined in Article V of this Rule, as of the date DROP concludes. (b) Tnie Annuity: A true annuity which is chosen based on the participant's own research and investigation. If this method of distnbution is selected, the member shall notify, in wntmg, the 5 • Board of .Trustees of the insurance company selected by the applicant to furnish the annuity. The Board shall authorize the staff to forward the lump sum in the DROP account to said insurance company. The Fund shall not be subject to any fees or charges by any annuity provider. (c) A combination of lump sum and annuity: The member may select to apportion his distribution between a lump sum and an annuity. Section 7.02. Release of Liability: The payment of the balance of the participant's account to an annuity provider, to the participant, or to a combination thereof pursuant to written authonzation by the participant shall constitute a full release of the Fund, its Board of Trustees, its agents and employees. ARTICLE VIII Reporting Requirements Section 8.01 Annual Reports: Each member who has elected DROP will receive an annual report of the amount of their DROP account within sixty (60) days following the crediting of interest to the member's account. • • • ARTICLE IX Disclaimer of Liability for Tax Consequences The Fayetteville Firemen's Pension and Relief Fund Board of Trustees (the 'Board") assumes no responsibility for any adverse tax consequences which may accrue to a participant in DROP. The Board has been provided with a copy of a private letter ruling from the Internal Revenue Service making a favorable determination of the application of the Oklahoma Police Pension and Retirement Board's submission of a plan very similar to the Fayetteville plan. The Board has instituted this plan in reliance on that letter. No independent ruling or opinion has been obtained. Participants in the plan are encouraged to seek advice from their own tax advisors pnor to enrolling for participation in this plan. If the Internal Revenue Service rEnls, OrJ determines that Fayetteville Firemen's DROP is not a qualified, deferred_cempeasatien plan, a participant may have liability for not only the tax due on the funds deposited in their DROP account, but also substantial penalties and interest may be applicable. The Fayetteville Firemen's Pension and Relief Fund assumes no habihty for such adverse consequences. 7