HomeMy WebLinkAbout1997-02-27 MinutesMINUTES OF A MEETING OF THE FIRE PENSION BOARD
A meeting of the Fayetteville Firemen's Pension and Relief Board
was held on Thursday, February 27, 1997, at 11:00 a.m., in room
326, of the City Administration Building, 113 W. Mountain,
Fayetteville, Arkansas.
PRESENT: Pete Reagan, Marion Doss, Ron Wood, Darrell Judy, Howard
Boudrey, and City Clerk/Treasurer Traci Paul
ABSENT: Mayor Fred Hanna
CALL TO ORDER
Pete Reagan called the meeting to order.
MINUTES
Doss, seconded by Boudrey, moved to approve the minutes of the
January 30, 1997 meeting. The motion passed unanimously.
PENSION LIST
Paul stated there are no changes on the March pension list.
Accounting will send out regular checks on March 15 and
supplemental checks to cover back pay to January 1, 1997 at the end
of March. April pension checks will include the benefit increase.
In answer to a question from Reagan, Paul stated both Marilyn
Cramer and Richard Yada are on the list to receive minutes of Fire
Pension Board meetings.
Boudrey, seconded by Doss, moved to approve the March pension list.
The motion passed unanimously.
INVESTMENT REPORT
Richard Yada, Merrill Lynch, distributed copies of the portfolio
performance from December 31, 1996 to January 31, 1997.
Yada stated there are not many changes from the year-end report.
New Mexico is up a little. The decision to go with a growth
manager with Keystone continues to pay off. At the end of 1996,
Keystone was up almost 18%. So far this month, Keystone is up 5%
as compared to New Mexico's 1%.
Yada reviewed the figures in the performance report.
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February 27, 1997
Yada stated as long as the market keeps going, the stock funds
should continue to do well. Interest rates may go up to get the
stock market down. The economy will continue to grow slow. If the
economy slows, they can't raise interest rates. If the economy
slows down, the bond portfolio should pick up. If the feds lower
rates it will help both bonds and stocks.
Yada explained he would need to review
benefit increase on the portfolio.
Yada mentioned the possibility of Andrew
seminar.
the effects of the latest
Baldassarre giving another
In answer to a question from Reagan regarding the foreign stock
market, Yada stated the Dow is doing excellent. We have the Dow,
United Kingdom, Hong Kong and Japan. The United Kingdom has been
down but has started to move up. Hong Kong is up a little. Hong
Kong will probably be the next big move. Japan is killing us. We
are basically even because the Japan index has lost everything that
Hong Kong, Japan and Dow have done. Japan is pretty close to the
bottom and should start moving up.
Reagan asked if the asset allocation needed to be changed due to
the benefit increase.
• Yada stated there will not be any major changes because of the
increase.
OLD BUSINESS
Pension Affidavits
Judy stated he spoke with Floyd Carl about his pension affidavit.
He explained that he and Paul are taking care of the situation.
In answer to a question from Reagan, Paul stated the only affidavit
that is still out is Floyd Carl. Everyone else has turned theirs
in.
Roger and Marvie Lewis
In answer to a question from Doss, Reagan explained that Roger
Lewis asked him to visit with Jerry Rose. Reagan stated Jerry Rose
has given his opinion of the situation through a letter that will
be filed with the minutes. Rose suggested that Roger Lewis seek
legal counsel and that the City continue to divide the amount paid.
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February 27, 1997
Reagan explained that he visited with another attorney who stated
it would take some time to review some court cases and make a
determination. The case would have to go before Judge Butt for
clarification.
Reagan recommended that Roger Lewis' benefit increase be held until
the situation has been resolved.
Boudrey, seconded by Wood, made a motion to hold Roger Lewis'
benefit increase until the Judge advises the Board on how to pay
out the increase. The motion passed unanimously.
Pension Review Board / Benefit Increase
Reagan stated he attended a Pension Review Board meeting on
February 13, 1997 in Little Rock. The benefit increase was adopted
unanimously. A copy of the minutes of the meetingwill be
forwarded to the Board.
Pension Review Board / Insurance Turnback Delay
Reagan stated he presented four letters to the Board asking that we
receive our loss of interest earnings in the amount of $2,763.74
for the 89 day delay in receiving the insurance turnback check.
The Pension Review Board did not feel the delay was 89 days. We
received our check 89 days after the July 11 meeting but they say
the checks actually went out August 14.
Reagan asked Paul to research the date the City received the Police
turnback check.
Reagan stated they asked for an attorney general's opinion as to
whose fault it was. Cathyrn Hinshaw wrote a synopsis of the
problems that we had. In her synopsis she states that after the
July 11 meeting she picked up the phone and called the insurance
commissioner's office and told them to go ahead and release
Fayetteville's funds. There is no paper trail to back that up.
Now it is down to whether the insurance commissioner's office is
going to pay the difference or whether PRB is. This issue may have
to go through the State Claims Commission.
Reagan stated he asked for a copy of the letter requesting the
Attorney General's opinion but has not received it yet.
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•
NEW BUSINESS
February 27, 1997
DROP Plan Discussion
Reagan stated Accounting Manager Marilyn
placed on the agenda for the next meeting.
In answer to a question from Paul, Reagan
questions regarding DROP interest.
•
Cramer has asked to be
stated Marilyn has some
Reagan stated the Board needs to take action on the people that are
signed up on DROP now. Fifteen percent of their pay increases will
need to go into DROP. They may need to sign a new form for the
650. We could probably make the changes and send it to them. They
can initial the change and send the forms back.
As far as the interest rate that they receive on the account it is
my understanding that the actuary has to determine the rate of
return as presented by the auditor. That should happen some time
in June or July.
Doss distributed a letter from Osborn, Carreiro & Associates, Inc.
dated December 20, 1996. Doss stated no one was on the plan in
1995. He expressed his concern about the delay in sending the
letter out.
Reagan stated simple interest should 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
percentage points below the regular return of investment of the
portfolio of the fund but no less than the actuarial assumed
interest rate as certified by the actuary for the fund.
Reagan stated Marilyn needs some clarification on that and how it
needs to be done.
Yada asked if the Board had a letter from the actuary regarding
what everything looks like after the increase.
Board members explained that they did not have one.
Reagan explained he only had a letter from Cathyrn Hinshaw.
In answer to a question from Reagan, Doss stated he had a copy of
a letter from Osborn, Carreiro & Associates, Inc. and a copy of a
letter from Cathyrn Hinshaw dated December 10.
There being no further business, the meeting adjourned at 11:35.
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