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HomeMy WebLinkAbout1996-10-31 Minutes• • MINUTES OF A MEETING,OF THE FIRE PENSION BOARD A meeting of the Fayetteville Firemen's Pension and Relief Board was held on Thursday, October 31, 1996, at 11:00 a.m., in room 326, of the City Administration Building, 113 W. Mountain, Fayetteville, Arkansas. PRESENT: Mayor Doss, Paul Hanna, Pete Reagan, Darrell Judy, Marion Ron Wood, and City Clerk/Treasurer Traci ABESENT: Howard Boudrey CALL TO ORDER Mayor Hanna called the meeting to order. MINUTES Reagan moved to approve the minutes of the September 26, 1996, meeting. Wood seconded. The motion passed unanimously. PENSION LIST Paul reported no changes. Reagan moved to seconded. The motion passed unanimously. OLD BUSINESS BENEFIT INCREASE REQUEST approve. Doss Doss referred to a letter about the request for the increase. The gist of the letter was that the method they used had failed. He stated they did not use the cash-flow method, as had been requested, and had billed for the normal method. He had called them about it, and they will do it for an additional $850. He had not been aware it would cost more. There was discussion as to whose mistake this was. Reagan moved to spend the additional $850 for this. Doss seconded. The motion passed unanimously. Reagan offered to write the actuary a letter to find out what instructions they had received. • t October 31, 1996 INSURANCE TURNBACK CHECK - LOSS OF INTEREST Reagan referred to a letter he'd written to Arnold Feller, Chairman, Pension Review Board, regarding the loss of interest due to delays in notification. He stated he would like to ask Mr. Feller to proceed in trying to recoup some of the interest lost. Reagan moved to do this. Doss seconded. Doss stated the reason they didn't do it, was our board's noncompliance. Reagan stated he'd attended the July 11 meeting and had received a variance. He read page 11 of the PRB minutes which showed that Fayetteville Fire was not to be penalized and would receive the money, as they were making an effort to come into compliance. He also had a copy of a memo sent from Kathryn Hinshaw requesting the release of the funds two months after the July 11 meeting. The vote on the motion was unanimous. Later in the meeting, Ben Mayes stated the interest lost would depend on the rate used. If it'd been in the investment manager's hands, he'd have earned 10%. The board should look at having Merrill Lynch give an estimate of what they lost based on the other earnings. He would ask the City Attorney if there is a rate commonly used in Arkansas to award penalties; but the board could begin by asking for what they truly feel was lost, then negotiate down if necessary. Mayes reported, after conferring with City Attorney Rose, that the Arkansas judgement interest rate is 10%. NEW BUSINESS INSURANCE TURNBACK CHECK - INVESTMENT Reagan referred to a memo from Ben Mayes dated October 11wwhich referred to the State insurance turnback. He understood that Mayes was recommending transferring $140,000 of the $146,000. Reagan also questioned the numbers for the November and December employee and employer contributions, which were lower than October. Mayes stated there may have been three payrolls in October. Mayes confirmed he was recommending the $140,000 transfer. We try to keep three months, at the most, of benefit payments easily available. The motion to do this is recorded below. • October 31, 1996 INVESTMENT REPORT Curtis Williams, Merrill Lynch, gave the report. Each account has grown this year. Both equity accounts are under -performing the equity indexes. The cautious view of the market is costing performance. The income account has a positive rate of return thus far this year. We are outperforming the indexes on the fixed income account. Reagan asked for the global investments to be shown on the report as part of the income account. Williams replied this $5,643 on the initial the second commitment is difficult to do initially. We are up global transaction. We are down $1,887 on and are up $4,443 on the third commitment. We are in the process of making the fourth one. They will be tracked separately. He would talk to Richard Yada about getting these on the report. Reagan asked if the recommendation was to put $140,000 of the insurance turnback into fixed income. Williams responded it was. It would be consistent with the asset allocation. Reagan moved to move the $140,000 of the $146,000 to Merrill Lynch for the income account. Wood seconded. The motion passed unanimously. ADJOURNMENT The meeting adjourned at 11:40 a.m. •