HomeMy WebLinkAbout1997-05-29 MinutesMINUTES OF A MEETING OF THE FIRE PENSION BOARD
A meeting of the Fayetteville Firemen's Pension and Relief Board was held on Thursday,
May 29, 1997, 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, Ron Wood, Darrell Judy, and City
Clerk/Treasurer Traci Paul
ABSENT: Howard Boudrey
CALL TO ORDER
Mayor Hanna called the meeting to order.
MINUTES -
Reagan, seconded by Judy, moved to approve the minutes of the April 24, 1997 meeting. The
motion passed unanimously.
PENSION LIST
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Paul reported there were revisions to the April pension list and the May pension list. The June
pension list includes the benefit increases and the requested corrections.
Reagan, seconded by Doss, made a motion to approve the pension list. The motion passed
unanimously.
INVESTMENT REPORT
Richard Yada, Merrill Lynch, distributed and reviewed the Portfolio Performance Report dated
December 31, 1.996 through May 27, 1997.
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Yada stated overall, the portfolio is on track and things are looking good. Yada stated the
valuation as of May 27 is $10,046,665. He explained he did not anticipate going over the $10
million mark until the first part of 1998. Yada stated we have had two good years. The asset
allocation is doing well.
Reagan expressed some concern about New Mexico and asked Yada to explain to the Board the
reason New Mexico is staying down.
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May 29, 1997
Yada stated it is the style of the management. New Mexico is a value style where as Keystone
is growth style. The S & P 500 or the Dow has a certain rate of return and sometimes the value
style will outperform the S & P and sometimes the growth style will. The last two years, the
growth style has been in favor. Yada explained that he was not concemed with New Mexico's
underperformance.
Yada stated there has not been a major correction in six years. This portfolio is conservatively
positioned. Stocks make up about 45%.
In response to a question from Mayor Hanna, Yada explained the asset allocation is set up so that
over time it will get us to where we want to be. The Board briefly discussed the asset allocation.
In answertoa question from Reagan regarding the overseas markets, Yada referred to the
Portfolio Performance Report. Yada stated there were three different investments made. One
each in January of 1996, May of 1996, and September of 1996. Yada reviewed the numbers
listed 011 the report. Yada stated if it wasn't for Japan, those things would be doing better. In
the last two weeks, Japan has made a big move Analysts feel that Japan is where the most
opportunity is right now.
OLD BUSINESS
Roger and Marvie Lewis
Reagan stated he spoke with Roger Lewis. Reagan reported that Lewis's attorney advised against
pursuing the situation. Reagan stated he asked Lewis to contact Traci Paul.
Paul stated she spoke with Lewis who stated he was not going to pursue any changes in his
retirement. Paul reported that Lewis stated Marvie Lewis should be entitled to half of his benefit
increase. His notification to the City was the phone conversation. He was not planning on
submitting a written response.
In answer to a question from Mayor Hanna, Reagan stated the Board needs to release the funds
for Lewis' increase
Paul stated Lewis has not been given his increase yet.
Reagan, seconded by Doss, made a motion to accept Lewis' verbal statement to leave the
benefit distribution as it is and to release the funds for his increase with half of the increase
going to Marvie Lewis. The motion passed unanimously.
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May 29, 1997
NEW BUSINESS
DROP Application
Mayor Hanna stated a DROP Application has been submitted by Mike Bonaduce.
In answer to a question from Reagan, Paul stated the numbers on the application came from
Accounting.
Reagan, seconded by. Wood, made a motion to approve Mike Bonaduce's DROP
Application. The motion passed unanimously
Twenty Year Certificates
Paul stated she had twenty year certificates for Mike Bonaduce and Gary John Dill. Paul asked
each Board member to sign the certificates.
There being no further business, the meeting adjoumed at 11:35 a.m.
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