HomeMy WebLinkAbout1996-10-31 Minutes•
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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.
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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.
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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.
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