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Home My WebLink About1999-04-29 - Agendas - FinalFAYETTEVILLE °THE CITY OF FAYETTEVILLE. ARKANSAS FIRE PENSION AND RELIEF FUND APRIL 29, 1999 AGENDA A regular meeting of the Fire Pension and Relief Fund will meet on Thursday, April 29, 1999 at 11:00 a.m. in Room 326 of the City Administration Building. 1. Approval of the minutes 2. Approval of the pension list 3. Investment report 4. Old business 1. Pension nominees 2. Voting members • 5. New Business 1. Drop application- Ron.Wood 2. Drop application- Eddie Bachman • 113 WEST MOUNTAIN 72701 501 521-7700 FAX 501 575-8257 • • • • • • • FIRE PENSION AND RELIEF BOARD MARCH 25, 1999 MINUTES A meeting of the Fayetteville Fire Pension and Relief Fund was held on March 25, 1999 at 11:00 a.m. in Room 326 of the City Administration Building located at 113 West Mountain Street. PRESENT: Mayor Hanna, Marion Doss, Bill Morris, Darrell Judy, Ron Wood, and Heather Woodruff. • ABSENT: Pete Reagan. APPROVAL OF THE MINUTES Mr. Doss moved to approve the minutes. Mr. Wood seconded the motion. Upon roll call the motion carried unanimously. PENSION LIST • Mr. Morris moved to approve the pension list. Mr. Doss seconded the motion. Upon roll call the motion carried unanimously. INVESTMENT REPORT Investment report was distributed NEW BUSINESS Drop Plan Provisions: Mr. Doss introduced information on a bill which would be introduced to the Senate regarding the Drop Plan which would extend the participation period to ten years Calculation of Annuities In response to questions regarding the calculation of annuities for the pension board Ms. Marilyn Crammer attended the meeting. Ms. Crammer explained the plan which had been adopted by the board had provisions for a lump sum annuity. The annuity was chosen by the individual. Neither the Board nor the City had the expertise to do the calculations. Mr. Doss referred to the rules and regulation, which stated the annuity was chosen by the individual and the city was not responsible for those calculations. He explained the particular situation of one firemen. • In response from questions, Mr. Doss explained the basic functions of the Drop Plan. The interest eamed by the drop plan was calculated on the percentage the retirement fund made over the year. Mayor Hanna expressed concern about the liability of the drop plan. He did not believe the plan • • had as much money as they thought they did. Ms Crammer added the proposed bill before the Senate might have a negative effect on the soundness of the pension plan. Mr. Doss noted the contributions would still be going into the fundus long as the fireman was working. Ms. Crammer explained before the drop plan the fund had no liabilities. Now with the drop plan there were liabilities which devalued the plan. Mr. Doss noted the pension fund was a closed fund. Mr. Judy stated the fund was going to start going down because of the number of people retiring. Nominations for Pension Board Mr. Morris expressed concern about the volunteers getting more money. Mr. Doss asked Ms. Woodruff to send letters to all the retirees. He questioned if the ration of retirees to active members needed to be changed. Discussion of proxies Ms. Woodruff asked the Board would like to vote of the proxies she had received in the mail. Mr. Doss and Mayor Hanna suggested she turn them over to their Meryl Lynch representative. Meeting adjourned at 11:45 a.m. • • • • • Boards and Commissions March I, 1999 FIREMEN'S PENSION AND RELIEF FUND BOARD OF TRUSTEES Bill Morris 2212 Lawson Street Fayetteville, AR 72703 I-1)442-7136 First term/ replaced Boudrey 7/31/97 to 5/1/99 Ron Wood Rt. 5 Box 256 Fayetteville, AR 72701 1-I) 442-5925 P) 444-4879 Third term 7/27/95 to 5/1/99 Darrell Judy 202 W. Maple Fayetteville, AR 72701 • H)52!-4194 Third term 5/1/96 to 5/1/09 • Pete Reagan 1015 Lake Sequoyah Drive Fayetteville, AR 72701 H)521-7542 W)442-7001 Sixth term 5/11/96 to 5/1/00 Marion Doss 1125 Cato Springs Road Fayetteville, AR 72701 521-8898 Replaced Jackson 5/31/91 to Indef; 18 Heather Woodruff P.O. Box 293 Fayetteville, AR 72702 H) 444-7338 W) 575-8323 Replaced Smith 2/17/98 to Indef. Mayor Fred Hanna 41 E. 29th Cr. Fayetteville, AR 72701 H)443-4980 W) 575-8330 Replaced Linebaugh • 11/10/92 to Indef. • od ofarmed to empt ith n��and the �doi • • LOCAL POLICE & FIRE PENSION & RELIEF HINDS dtrtment shall elect the active mem- by secret written ballot in May of each member or members to be chosen in It`� . y� y,, members shall elect the retired mem- by secret written ballot in May of each asember or members to be chosen in by a method to be determined by the trustees shall serve two-year terms. of active members or retired mem- the board shall be' determined by the "number of active members to retired ,(.0 ant System, ally. •'ac ant. if insurance ,f uuu raaq f lnsun we cosy menera' council, pendia" resi.i 'd to segs, number of active members equals coot (75%) or the total of retired mem- members, the board shall be comprised members and one (1) retired member. *.number of active members equals filly tx(the total of retired members and active toted shall be comprised of two (2) active two (2) retired members. .isn number of retired members equals --at (75%) of the total of retired mem- *. tubers, the board shall be comprised Ntpmtwr and three (3) retired members. yar, when no retirant is available to da board, all four (4) employee positions by ttetivo members of the pension fund all hp elected for two-year terms as pro- tlon (n) of this section. pf, when no active member is available t(tp /ward, all four (4) positions shall be trwi members of the pension fund and elpclv4 for two-year terms as provided in (ti) of this election. board shall have the power to make all rules neetllul. for its guidance to implement s _ regarding board composition. • •': ;. -f executive in the cities, incorporated -" • 1.-"1:::.;11. -: protection districts shall be the chairman; ;^''►own clerk or recorder or clerk of the fire tract shall be ex officio secretary; and the 2 Aro protection district treasurer shall be urer of the board of trustees during his fort" of office as the official 'of the city,, su Y";town, or fire protection district. • to _ + `Y -•tory and treasurer of each board of "'fl1'roppo�rt annually,.at the same time annual _ ' •1 tared as clerk, recorder, or treasurer, the of the firemen's relief and pensionfund, ace—ipts and disbursements on account Complete list of all beneficiaries of the amount paid each beneficiary.- :en trihutie !'J story raatda.A laity atlpmoms. h of active N ed outside cion o(payMe y`_ 4 }_i: . - •• dints upon hogi ndia .a fit ;:kt& Meer , re it'flat. -.-: .1. for certain Is '83.'. y.i(.,. �-i. returning ""`J� spouse beer eat op ant option Idu,1; im taxes." p 24.11420,.;D,-1 trustee,• a,. '4' �' ideas of eve Ihed in a eat$ -otection'djatri hapten. shell we, who1 ict Ot. to board - if the fire !et rahkin� member: arta • retirejIdalltal ,,,��( J!'fu created. remene` ben flan f 24-11-803 24-11.802. Board of trustees — Proceedings. a) or by amajority Meetings of called the board may be of the members in amanner estab- lished by the board. (b) It shall issue orders signed by the president and secretary to the persons entitled thereto for the amount of money ordered paid to the persons from the fund by the board, which order shall state for what purpose the payment is made. (c) ft shall keep a record of its proceedings, which record shall be a public record. (d)(I) At each meeting, it shall send to the treasurer of the city or town a written or printed list of all persons entitled to payment from the fund provided for in this subchapter. (2) This list shall state the amount of the payment and for what granted and shall be certified to and signed by the president and secretary of the board and attested under oath. (e)(1) The treasurer of the city or town shall there. upon enter a copy of the list upon the book to be kept for that purpose, which book shall be known as "The Firemen's Relief and Pension Fund Book". (2) The board shall direct payment of the amounts named therein to the persons entitled thereto out of those funds. (0 A majority of all the members of the board shall constitute it quorum and shall have the power to transact business. (g)(1) No money belonging to the fund shall ever be disbursed for any purpose without n vote of a majority of all the members of the board of trustees, which shall be taken by the "yeas" and "nays". (2) The vote of each member so voting shall be entered upon the proceedings of the board. History. Acts 1921, No. 491.4 3; Pope's Dig., 4 77:19; Acts 1981, No. 7,4 1; A.S.A. 1947,4 19.2203; Acts 1993, No. 201, 3 1; 1995, No. 514, 4 4-6, Amendments. The 1993 amendment, in (11), substituted "may" for hall," deleted "of each year" following "month," and added `but shall minor per year': and 1995 amendment rewrote (a)` changes. and repealedThenuation (hi and (i). 4-11-803. Board of trustees — Powers. (a) In addition to the other powers granted in this bchapter, the board of trustees shall have the power . (1)(A) Compel witnesses to attend and testify before it upon -alt matters connected with the operation of this act and in the same manner as provided by law •for the taking of testimony before' a notary public. (B) Its president or any member of the board may administer oaths to the witnesses;'' " (2)(A) Provide for the payment from the fund of all its necessary expenses and printing. • shall(B) Hower, bepaid compensation to anymember of the boa d }for any duties performed under this act; 3) Make all rules and regulations needful for its dance in conformity with the provisions of this act. b) The board 'shall have the power to accept and burse, according to the provisions of this act, any I, No. 491.44 1, 2; Pope's Dig., 44 7737, 7738; Acts I: 1057, No. 326, 44 1, 2; 1968 (1st Ex. Sess.). No. 24, , 977, 4 2; A.S.A. 1947, 44 19-2201, 19.2202; Acts 'di 1080, No. 527, 4 1; 1991, No. 770, 4 1. TI6,1091 amendment rewrote this section, -• act ;Arts 1921, No. 491, codified as 44 24.11-801 tai 11400, 24.11.810, 24.11.813 — 24.11-815, 24.11.818 • dis • #4a v „ 24-11-435 • RETIRE JIENT AND PEN•4S (1) Forfeit eighty percent (807c) if termination occurs in the sixth year of participation; (2) Forfeit sixty percent (607x) if termination occurs in the seventh year of participation; (3) Forfeit forty percent (40%) if termination occurs in the eighth year of participation; and (4) Forfeit twenty percent (20%) if termination oc- curs in the ninth year of participation. History. Acte 1993, Nu. 757, § 1; 1995, No. 961,.4 1; 1997. No. 492, 4 1. A.C.A.C. Notes. References to 'this subchapter' in 41 24.11-101 - 24.11.431 may not apply to this section which was enacted subse- gaently. Amendments. The L995 amendment redesignated farmer Ib) aa to X2); redesigns ted the fiat sentence oriel as (bX 11; added (bx21; added the subdivision designations in :di and Iex?I, and added (h) and fi). The 1997 amendment inserted "as certified by the actuary under contract with the Arkansas Fire and Polite Pension Review Board in accordance with generally accepted actuarial practices and 4 24-11- 207' in les2sA1. 24-11-435. Buy-out option. (a)(1) Any city of the first class which has a local police pension and relief fund which covers only retired members, no longer accepts new members, and has over four hundred percent (400%) of its retired life liabilities covered by assets may use those funds to buy out the beneficiaries or otherwise assure that the beneficiaries will receive all benefits to which entitled under the plan. (2) Thereafter, the city may, by ordinance, dissolve the police retirement plan and transfer all surplus funds to the city treasury to be used solely for capital improvements oC the city. (b) All turnback funds from insurance premium taxes or other sources which the municipal police retirement plan or the city previously received to help fund the retirement plan shall thereafter be remitted to thecityto be used for retirement benefits for uniformed and nonuniformed employees. History. Acts 1995, No. 1012, § 1. A.C.R.C.-Notes. References Lo "this subchapter• in 44 24.11-401 - 24.11-434 may not apply Lo this section which was enacted subsea fluently. 24-11-436. Credit for military service. (a) In the event an active member of a policemen's pensior. and relief fund entered or enters the armed forces of the United States during any period of volun- tary or compulsory military service, the armed service actually served by him shall be credited him as service under this section, but only if he again becomes an employee within a period of one (1) year from and after honorable termination of the armed service actually served by him and he returns to the system the amount, if any, he may have withdrawn therefrom, together with regular interest from the date of with- drawal to the date of repayment. (b) In any case of doubt as to the period of armed service to be so credited, the board shall have the final newer to determine the period. (c) During the period of armed service and member's return as an employee, his contra the system shall be suspended, and any withdrawn shall remain on the books to his History. Ana 1995. No. 1290, 4 1. SUBCHAPTER 8 - 1'IRE:Ev's RELIEF AND Funs SECTi°V. 24.11-801. Board of trustees - Members. 24-11.802. Board of trustees - Proceedings. 24.11-803. Board of trustees - Powers. 24.11.804. Administration of small funds by Arkansas Fire Retirement System. Investment. 24.11.805 24-11.806. Payments generally. 24-11-807, Minimum payments generally - Proration a� -'^:ti ciency of fund - Supplemental pensions 24.11.809. Appropriations of insurance premium tax gan."„re.• Q•' 24-11.810. Appropriations of insurance premium tax ment. .. .a♦ ,�'-s. 24-11.811. A r :/t•'� ' ppnpne bane of insurance premium tea munity property owners' associations. 21':`. 24.11-812. Tax levy by city council. - '?(-:+y,k-4 , 24-11813. Clerk's report to pension review board. >T fi 24.11 : i 814. Subjection of fund to legal process. ,; 1,;%t;* 7t, 24-11-815. Appeals. ,,, rG-Y?$r 24.11.816. Membership - Contributions. 24-I1-817. Credit for military servicn. 24.11.819. llc nen Lel - Voluntary retirement. 24.11819. Benefits - Disability retirement. .1 1 24.11.820. Benefits - Death of active or retired member ph, while employed outside deportment. 24-11-821. Benefits - Cessation of payments. 24.11.822. Benefits - Payments upon death of retirant or - 2411.823. Increase in benefits for certain persons retired d 1 ' 24.11.825. Pensions for volunteer fire fighters. 24.11826. Additional benefits fur certain fire fighters hind January 1, 1983. , 24.11-827. Retired member returning to active status.:!. 24.11.82229. Increase in surviving spouse benefits. 24-11-830. Deferred retirement option plan. . 24.11.831. Insurance premium taxes. 24-11-832. Applicability of 4 24-11-820. permanent disability. 24.11.824. Fire protection districts. 1.1141 24.11-801. Board of trustees - Memtierti; 3 • -,4'4 (a) The board of trustees of every firemen* and relief fund established in a city, incorporated or duly qualified fire protection district pureuaat: provisions of this subchapter shall be compoaeda following: -,;d (1) The chief executive, who shall serve ati of the board; (2) The city or district clerk or recorder„who serve as secretary of the board; (3) The fire chief, or, if the fire chief is nota m of the fund, the highest ranking member of, department who is a member and who is;wj serve; and (4) Four (4) active or retired members of the fund. -:".a ' (b) The board thus created shall provide: disbursement of the firemen's relief and pen'si and shall designate its beneficiaries as directed act. ee r r • • Name: Eddie Bachman Emp No. 74 DOH: 01/03/78 Yrs Service 21 Hourly Rate: Hours Base: EMT Pay Annual Salary General Fire Pension 9.595 3248 $20.00 26 Date: 03/11/99 520.0000 31,164.5600 31,684.5600 65.000%Annual Salary 20,594.9640 1/12 Monthly Benefit 1,716.2470 Rounded to nearest cent 1,716.25 Additional Yrs Beyond: 1 5 Max at: $20.00 Drop Amount • 20.00 1,736.25 Prepared by (Accounting and Audit Division) (Fi ed by epartment) Approved by (Drop Applicant) • Mu it • l FAYETTEVILLE FIREMEN'S PENSION AND RELIEF FUND DEFERRED RETIREMENT OPTION PLAN (DROP) MEMBER FT FCITON FORM (Beneficiary Designation) r1�1 eticiat ivoie `/3 /-fYV( - 7 s6 Member SSN - . DOB /37/4/ e:f/IS /L cL7onf; ra,,.,,;„�-1c., gk '?3c) Address City State Zip Spouse Years of Service SSN DOB Date of Employment Witness Date DESIGNATION OF BENEFICIARY I hereby designate the following beneficiary to receive any benefits from the DROP plan if I die prior to my termination of employment: p_ [[ Name Relationship 4A ,14, Signature of Member Date Please select one of the following (if spouse is not selected as beneficiary): I certify that to the best of my knowledge, the above-named member is single or that his spouse cannot be located. Signature of Plan Representative/Notary Date I certify that I have agreed with my spouse on the selection of the above-named beneficiary or beneficiaries. I understand that if I am not named beneficiary, I will not be entitled to benefits under the Plan. Si ature of Spouse Date I certify that I have witnessed the above spouse's signature. Signature of Plan Representative/Notary Date • • • • • FAYE'ITEVIT T F FIREMEN'S PENSION AND RELIEF FUND DEFERRED RETIREMENT OPTION PLAN (DROP) . : MEMBER FT POTION FORM • I hereby elect the DROP 'as my retirement benefit option from the pension plan in place of normal retirement benefit. I understand that in electing DROP, 1 have agreed to the following statements: • • 1. The amount of the DROP payments will •• e $ 473/,: ZE per month. ;This amount includes ,ail _service and age 60.bonuses that I have earned to this date. This amount is the same as if I retired,taday. • ' �•. 'lord . " 2 . I understand that the Monthly benefit that I will receive at the end of the DROP period is the exact same amount stated in Item 1, regardless of any pay • raises I receive or, extra years`of •service I may work. - 44 1. , - •• - : 3:1that'the-endthe period I will have the option to receive the DROP account as a lump sum or convert the DROP. account to a monthly annuity account or any other method of payment as provided for, in the; current Rules and Regulations of DROP. 4. I understand that the DROP .account will remain in the pension fund until withdrawn in accordance with the Rules and Regulations of the DROP plan.` I do not have the ability to withdraw from the DROP account until the time of my. departure./ / Q ._ 5. I have elected to begin the DROP on 9 9 0.54// 9 • DROP will end at the earlier of' when I resign or zElou' OS/O//pc (5 years from the above date, unless authorizations to participate in DROP shall•be specifically extended by the Arkansas Statutes). 6. I understand that neither the pension fund nor the Department has given any tax advice concerning the way the DROP account is taxed. I have, or will consult, my own tax advisor for this information. 7. I have read the Rules and Regulations pertaining to DROP. "Two exceptions to these rules: Age 60 bonuses (for members with over 25 years of service when they go on to DROP) begin at age 60 whether still on DROP or not; raises given to retirees are also given to DROP participants. ti 4 Member Signature Date nit)'A/20nnot Spo} a Signature Date • Plan Representative Date • • • Name: Emp No. DOH: Yrs Service: 4 • - General Fire Pension Ronnie Wood 77 08/07/78 20 Hourly Rate: Hours Base: EMT Pay Annual Salary 11.56 3248 $20.00 65.000%Annual Salary 1/12 Monthly Benefit Rounded to nearest cent • 0 0.0000 37,546.8800 Additional Yrs Beyond: 0 5 Max at: $20.00 DROP Amount 24,405.4720 2,033.7893 2,033.79 0.00 2,033.79 /Lug( Date: 12/14/98 2nd: 03/23/99 Prepared by (Accounting and Audit Div ion) lai � / Viewed by 3 e Department) A 7.✓ Approved by (Drop Applicant) • • FAYEI IEVILLE FIREMEN'S PENSION AND RELIEF FUND DEFERRED RETIREMENT OPTION PLAN (DROP) MEMBER ELECTION FORM I hereby elect the DROP as my retirement benefit option from the pension plan in place of normal .retirement benefit. I understand that in electing DROP, I have agreed to the following statements: 1. The amount of the DROP payments will be $ a2Q 33,7'per month. This amount includes all service and age 60 bonuses that I have earned to this date. This amount is the same as if I retired today. 2. I understand that the monthly benefit that I will receive at the end of the DROP period is the exact same amount stated in Item 1, regardless of any pay raises I receive or extra years of service I may work. 3. I understand that at the end of the DROP period I will have the option to receive the DROP account as a lump sum or convert the DROP account to a monthly annuity account or any other method of payment as provided for in the current Rules and Regulations of DROP. 4. I understand that the DROP account will remain m the pension fund until withdrawn in accordance with the Rules and Regulations of the DROP plan. I do not have the ability to withdraw from the DROP account until the time of my departure. 5. I have elected to begin the DROP on f),Ay j / Q ? . DROP will end at the earlier of when I resign or %A)/ l ) p D 4/ , (5 years from the above date, unless authorizations to participate in DROP shall be specifically extended by the Arkansas Statutes). 6. I understand that neither the pension fund nor the Department has given any tax advice concerning the way the DROP account is taxed. I have, or will consult, my own tax advisor for this information. 7. I have read the Rules and Regulations pertaining to DROP. *Two exceptions to these rules: Age 60 bonuses (for members with over 23 years of service when they go on to DROP) begin at age 60 whether still on DROP or not; raises given to retirees are also given to DROP participants. nue Member Signature Date Spouse Signature Date Plan Representative Date • • • 1 • • • • FAYEI IEVILLE FIREMEN'S PENSION AND RELIEF FUND DEFERRED RETIREMENT OPTIONPLAN (DROP) MEMBER ELECTION FORM (Beneficiary Designation) olUitl/E /4/n0D Member 4'29'-01/•o?S `} 1/49-45-S I SSN DOB /2.7S./Ate' SEDe/n VfN ,ED FAY //sV/LLE /7X/C11NS.44 5 7-270 / Address City State Zip AeeN.,O/! Won /9 430 — OV -_57)77 6Az e015-1 Spouse SSN DOB 0(90 1--7-7Sc Years of Service Date of Employment Witness Date DESIGNATION OF BENEFICIARY I hereby designate the following beneficiary to receive any benefits from the DROP plan if I die prior to my termination of employment: ,5/eEn310/9 /2)O DO 61/11-- Name ,//FfName Relationship yo? 6/9 Signature of Member Da Please select one of the following (if spouse is not selected as beneficiary): I certify that to the best of my knowledge, the above-named member is single or that his spouse cannot be located. Signature of Plan Representative/Notary Date I certify that I have agreed with my spouse on the selection of the above-named beneficiary or beneficiaries. I understand that if I am not named beneficiary, I will not be entitled to benefits under the Plan. Signature of Spouse Date I certify that I have witnessed the above spouse's signature. Signature of Plan Representative/Notary Date • • Fayetteville Fire Dept. and Relief Fund Portfolio Performance 12/31/98 - 3/31/99 12/31/97 12/31/98 3/31/99 [MLAM Private Portfolio Group (started 12/1/98) 4,647;115 4,565,099. 4,708,721 ' [Income Account 4,897,115 5,339,191 rAshland Asset Mgmt. 1,561,424 11,106,027 12/31/97 2,085,712 5,298,861 11,990,002 12/31/98 2,185,304 �1 12,192,886 3/31/99 F3 Month Tsy. Bills + 5.33 + 5.23 DJ1A w/ Dividend Reinvest + 24.87 + 18.12 +1.06 +7.01 S&P 500 Index w/ Dividend Reinvest + 33.36 + 28.59 Long Term Tsy. Bonds + 15.38 + 13.78 High Grade Corp. Bonds C.P.I. (Feb.) + 13.42 + 10.47 + 1.7 + 1.55 +4.97 - 4.53 - 2.891 +0.37 MLAM Private Portfolio Group i + 16.97 - 2.16 +3.15. Income Account + 6.38 + .01 -0.70 Ashland Asset Mgmt. . ,. • + 30.8 + 34:78 +4.77 Orig Investment 12/31/98 3/31/99 '1 IMay -96 DOW $75,000 ';Sep -96 DOW $109,600 $107,127 $75,000 S112,942 $115,5727 • • MAY 0 3 1999 Merrill Lynch FINANCE REP�3i April 29, 1999 City of Fayetteville Fire Pension & Relief Fund Attn: Ms. Heather Woodruff 113 West Mountain Street Fayetteville, AR 72701-6069 Re: ML #563-96346 / MLAM #086-593-00 • Tony D. Boykin, CFA Vice President Merrill Lynch Asset Management Princeton Services, Inc. General Partner 5910 N. Central Expressway Premier Place, Suite 980 Dallas, Texas 75206 214 750 2186 Dear Ms. Woodruff: Enclosed is your Quarterly Portfolio Summary. As you will note, on March 31, 1999, your portfolio asset allocation was 15% cash equivalents, 35% bonds and 50% common stocks and had a market value -of $4,685,907.97. The U.S. economy remains on a strong growth path with few imbalances. Strength is emanating primarily from consumption, housing, and business spending on information processing equipment. Retailing is strong in such sectors as autos, building materials and furniture as well as in apparel and general merchandise. Housing starts are running at a rate of 1.8 million units with existing home sales at a 5.0 million rate, both at record levels. Business productivity in 1998 was up 2.4% with unit labor costs rising only 1.9%. The productivity in manufacturing was 4.2% in.1998 with unit labor costs rising 0.2%. These are excellent results for the 8`h year of a business cycle. The only drag on the economy comes from the trade sector with exports declining. This is a result of the weak business conditions in much of the world and not a function of a poor competitive position in U.S. corporations. We expect the trade picture to remain weak until business conditions improve in Asia, Europe, and Latin America. Ona near-term basis business conditions could weaken if consumer psychology were to change because of uncertainties related to the NATO war against Serbia or if there was a significant decline in the stock market. However, it is our view that with inventories under good control and the inventory/sales ratio of 1.37 at a historical low that business conditions will remain healthy. The outlook for manufacturing has improved with the National Association of Purchasing Management Survey at 52.4 for February versus a recent low of 45.3 in December Any number above 50 represents expansion of manufacturing. The combination of full employment and real wage gains against a background of tame inflation (+1.5-2.0%) should result in another strong economic year in 1999. 1110 Merrill Lynch April 29, 1999 City of Fayetteville Fire Pension & Relief Fund Page 2 While the bond market has backed up during the first quarter with Long-term bond yields currently at 5.5%, the stock market has moved ahead. Looking ahead the bond market should receive support from an estimated paydown of Federal debt of about $120 billion during the second quarter. For the fiscal year ending in September we expect a Federal surplus of approximately $100 billion which compares to the surplus of $70 billion in fiscal 1998. Corporate earnings are expected to advance by 7.0% with the general economy growing by 3.0%. Inflation is expected to remain moderate with the consumer price index rising by 2.0%. The combination of corporate management attitudes towards growing profits, restructuring and merger activity, and an intelligent monetary policy in controlling inflation should keep the economy healthy in its 9'" year of economic growth during 1999. As always, please call Richard Yada, Gilbert Weisbecker or me at (214) 750-2186 if you have any questions pertaining to your portfolio. Sincerely, Tony D. Boykin Vice President TDB/cm Enclosure cc: Mr. Richard Yada Mr. Gilbert Weisbecker •1 • AS OF: 0313 0 :a a d 0 L. .1 O O M1f. MI le) beel h M11h e M e • e 0000 V he ht t - 1C M ‘O Q 7 10th 1D fel 00.y.rti -Tic 00 OC 00 0 0000C LO b e M1 h CO C 000000C OO b 07Oti VI C . lf� '+ 16 O: N h h M1N N P-IMPNN OC OC M M0 M OV+OC OC. 00. e H r! 0000, h btiNOQV C M M M1 N C - M M1 b b 0C eelO h 1-I O 0 00 0 WI0If en Vret/ IC 1f V O 0 00 0 o<bM1eb� h h h O = 1-1 0 I-.LCv CC 0'CR M e 'R 000 N e-. PhGIC 0 M M 70 M 0 OCM1fnM1 N I --Vi N Pee 0•. N0 a 0 O '+ .-I1 l ti e b 1l1 b 00 OO rt N N N - OC OC b b M N 011.0 P tn V1 00 0. O r! e1pO NOe OC •-• C- V/ 0� O tri . Vi R C tri C N o< O. • rl 01 eel M e P :° 0 0 00 n M M OPO N N Ill V1 M O' • .+ be � le t-- e 1.641.309.00 000.x00 q -v,0 ' Oe0 N O M e P Oda tt tq - t- OOCb„+M 0.1 2.332.787.81 C 0 C 0 - 0 P 01 00 b et N en 0 e P O - r; bt? O NOC N0CC t` 0 n lie N H N 1f1 Q 00 - 1%1 1p R C .b+ 0 0 c2: 0 t- M M Go00 NV N PO H H 07 O veilN N tiN _ Cash Balance Money Market Instr • uivalent ltd J•-• O • V i CO Fd 1.628.988.00 V: Bond Holdin 1/) 0 Ili V+ VI 1U1 N lei h'ONN 01re; M rm. w M t 01 e 0 O I/1 0 O e b el00 en en N N M h N M 2.054.441.15 Total Portfolio • CODE 7107 (12-98) J 1 AS OF: 03/31/ 0 0 W F C▪ O o a rn 0 010 E V r 0 US DOLLAR ON ON NO M ON 0 N 00 NO r b b ten V 'O h 00 0 0 0 0 ✓ 0 0 0 o GO Lin o o t- n n _in h M r C` 00 M N M N o O 0 0 0 o V1 !tel 4 o o 0o h N N N N 0 0 r 0 0 9 M W >D N b %D 10 .-+ N o o 0 0 o o a o O o wi r 00 01 O\ in M ' 0 • lO l 0 O N R M Vl M H O \0 M Irl o V M 0 O 00 rl Vl Ca! N 0 v rri o o 0 o 0 0 1-0 o N p N ON N 0 N O1n0t/0 O o A0-0an0 0 0 0 lin 00 00 0o a .-i Q M E ‘O Q at o0 el r o MQV10� .-4 vi o 0 r; - . ,n 0 trl U UzRp T 1 y O 0tt 0 y y h 00 G No 'O 'o u_ =7 Od0 N In rOy O _ EE d Gr - E .2 d = .. zo c o=U U CODE 7107 (12-98) AS OF: 03/31/99 a E y G ,a eal L a M In O 11 M N o 0 0 o o e o -i o a r 7 O N ‘0 in 0 In O 00 o o C CO R o N . O1 i cn t- y o 0 0 v O v in v N OO 0\ O .0.:. C 0 r- N N O0O r M 'et N ma G 0 G 00 Cao o 9t0N . 4 �O ON pO tM Basic Industry '0 O b O R O o O O in O tO N O -- in ON 7 OO N • V .a o . O 9-1 .r 1 r1/41 CO el 1/40 N N Y1 O \0 --; -. V' lh ri V9 � .ci o oc to 01 P4 00 ol O< 0 '7 a0 7 N N N M -.. O o O O o o in in N 0 00 ▪ 4m.1 M in .-. 0 h en 0 O 0 VI P . Immo O 0 a' 0 0 0 y0 5L. e W g C OD 01 10. a CWU0 U oo a 00 CI L 0'O `tJ o00 5a F-1 voi W (0 7 C'-' G 5 L U 7 a VU Z 0 O • • CODE 7107 (12-98) M AS OF: 03/31/99 O e iJ E" 0 0 • 0 O 00 7 0 kti in M co !b (hj o W y a Ca. o• x 0 co013 a 0 'r rn 0 o o o t- 6 O O O O O O 0 O O O O O co O O In GO N O l� 00 r- b O O \o S 0 O N 7 01 N 0 . 0 0 0 W el 0 V • r 0 b V\0 O 00 M N 0 GO 00 V' 00 in 7 O. M O' O O In o O o o H co in et N N V1 b 00 in M Vi 4-4 • O F Cyclic Cnsmr Gds&Svc 0 h N 00 00 r- VI 0 ri O r1 N O O O O 0Q 0' O O c M O 01 N n N amo Immo o o 0 o O O O O in O O vi N In in' N T CO O' 0 N \O O\ 0 01 0 rn 01 0 N_ N h n M O .O O. - Co h an ✓ N 1` ON an C OM. r h M b T D a V1 ✓ 00 00 h N W o U o !n a o cm 0 0 0 0 x U 1.O g Ohio O E w 00' VO g04iN d d d O0 •0 d 71. e ° x Ca 0 m J 0 w O • M AS OF: 03/31/ o R 4— De o u O on on v) 7r. 7 N M r O M vet 0 N 0000 r — N 0 0 0 0 0 o 0 O 0 0 C 0 0 0 0 0 0 o O 0 0 0 m6 7 o O_ N 00 7 N0 eV O N 00 N Vl O O OC N enen VVI GO GO 00 N O Vt V+ 0 vi sal 0 N N. 7 7 IN rn e1 VI O N M M 7 Ca S. M CO 0 of 000 rel. N V! O 0 — N — N — b N NO CO 1t) O N 0 00 0 ON GO Or 7 - b .+ 10 — — M — Vr ti o 11 0 0 0 0 0 0 o 0 — oo a r V, It; o vi vi o M M V1 Vl 0 M 7 O.. V \0 0 M 00 .ti r - N ON- N 00 — T r 00 r \O r N N 0 V1 r son IN en 00 Cl M Ol GO 7 V 7 0+ Ilosp Spply/Med Dvicc 7 CO IN vl r M r cc O: M on enGO N N //1 vol N lel 0 N M M en vii 0 b � O O N 1 ^ O. onto I-- N 71- D 0 r OC CO .. 00 r b r 7-1 N g. 0 h V] .0 EL 0 ° - o 0 W p V 7.7 0 Ell i U G d ›" o u xo=ir.3 Cs Oa �o fla �N�v 7co? cos UN L U— (.1 V1 N O— co t) uim m ow d RCl z R RQ m x �m at V, Credit Senstve&Fincl CODE 7107 (12-98) • • AS OF: 03/31/99 0 O e r N O N O O • O O en M eel tn le) in a ‘p MI OC V' V M oN v a - N tn N N h r-;?. M Q '1 \O to a M M V 7 a N N in Vi .n v1 O O 00 O 0 •'� -� M in V GC 00 N N N CO N M M N tV 1 O O 0 o a a a 0 N N N o — — a M 7 N O N N M o o o v N M V o aro •n — 0o 0 M \0 o O O In in in 0 N N 0 M `G 000 h a a0 00 r 0 — M U o0 N OO 040 4. Ca 44, S� 4-0 iEo re N u s 0 �w Ca Oil Services W � as 0 Q as O 2.332.787.81 2.054.441.15 Common. Stock IIId 4.685.633.81 4.394.966.15 Total Securities • Total Portfolio Note: This appraisal reflects our records regarding assets under management, and is not a report of physical custody of the assets, which is to be provided by the custodian. CODE 7107 (12-98) • • • • Merrill Lynch Asset • ti toe i`v It) MAY1��ttO t3 1999�9D9T Manage MCE Fee Computation Sheet Client Copy For Page 1 of 1 MLAM Account: 08659300 CITY OF FAYETTEVILLE FIRE PENSION & RELIEF FU Manager Nbr : 259 Valuation Date: 03/31/1999 Billing Period: 04/01/1999 To 06/30/1999 Cycle: QTR-MAR/SUN/SEP/DEC Total Portfolio Value $ Total Value of Securities Excluded from Billing $ Net Portfolio Value Subject to Billing $ COMPUTATION Amount For First Amount For Next Amount For Next Amount For Next : $ Amount For Next : $ 250,000 X 2.500000 = 250,000 X 2.25000°s = 500,000 X 1.500005s = 2,000,000 X 1.25000% _ 1,685,907 X 0.85000°s = 4,685,907.97 0.00 4,685,907.97 6,250.00 5,625.00 7,500.00 25,000.00 14,330.21 Annual Fee 58,705.21 Discount 11,741.04 Annual Fee net of Discount 46,964.17 Periodic Fee (Quarterly) This amount has been charged to your ML brokerage account 11,741.04 Money Fund Rebate This amount has been credited to your ML brokerage account PLEASE REVIEW. THE CUSTODIAN WILL NOT VERIFY THE ACCURACY OF FEE CALCULATIONS AS THIS IS YOUR RESPONSIBILITY. IF YOU DISAGREE WITH THIS CALCULATION, PLEASE LET US KNOW AS SOON AS POSSIBLE. PLEASE RETAIN THIS COPY FOR YOUR RECORDS. THIS FEE HAS BEEN DEDUCTED FROM YOUR ML BROKERAGE ACCOUNT. 1,869.04 CA • • • E DwARO L. WRIGHT 09031 D771 ROBERT S. LINDSEY 11913,9011 RONALD A MAY ISAAC A SCOTT JR JAMES M. MOODY JOHN G. LRE DOROON S. RATHER. JR, TEARY L. MATHEWS DAVID M. POWELL ROCCP A, CLeSGOW C. DOUGLAS BU[ORO, IR P ATRICK J. GDS: ALSTON JENNINGS. at JOHN A TISDALE ▪ ATHLYN GRAVES M. SAMUEL JONES III JOHN WILLIAM SPIVEY in LEE J. MULOROW WENDELL L GRJFFER N. M. NORTON. JR. EDGAR J. TYLER CHARLES C. PRICE CHAPEL: T COLEMAN JAMES J. GLOVER EDWIN L. LOWTMER. in. BEVERLY BASSETT SCHAFFER CHARLES L SCHLUMBEPCER SAMMYC L. TAYLOR ,.WALTER E. MAY WRIGHT, LINDSEY & JENNINGS ATTORNEYS AT LAW 2200 WORTNCN DANK BUILDING 200 WEST CAPITOL AVENUE LITTLE ROCK, ARKANSAS 72201.3699 1501) 971.0808 [AT I3011 376.0.442 OF COUNSEL ALSTON JENNINGS GEORGE E. LUSK, JP ANNA MIRAI GIDSON GREGORY T, JONES N KCITM MOPRSON OETTIMA C. OROWNSTEM WALTER MCSPADOEN ROGER O Rowe NANCY BELLNOUSE MAY JOHN D. DAVIS JUDY 61MMONS HENRY KIMBERLY *000 TUCKER MARK L. PRIOR RAY F, COX. JA. MARRY 5. HORST. JP, TROY A. PRICE PATRICIA SIEVERS LEWALLEN JAMES M. MOODY. JR, KATHAVN A, PPTOR J MARK DAVIS KEVIN W. KENNEDY KAREN J GARNETT MARK A. ROGERS M. TODD *000 R. GREGORY ACLIN FRED M. PERKINS 111 WRUAM STUART JACKSON MICHAEL D. OAPNES STEPHEN R. LANCASTER SAW ANDREW WOOD JUDY M, ROBINSON BETSY MEACMAM To: The Board of Trustees of the Little Rock Policemen's Pension and Relief Fund From: Date: Re: Wright, Lindsey & Jennings - John R. Tisdale March 15, 1994 Deferred Retirement Option Plan At your request, we have reviewed certain background material relating to the proposed Deferred Retirement Option Plan (DROP) recently adopted by the Board. Specifically, we have reviewed the provisions of Act 757 of the 1993 Arkansas General Assembly and the provisions of A.C.A. SS 24-11-401, et sea. which deal with local police pension funds. We have also reviewed a copy of the determination letter from the Internal Revenue Service (IRS) to the Oklahoma Police Pension and Retirement Board relating to a similar DROP program as well as the provisions of the Internal Revenue Code relating to qualified defined benefit plans. The Little Rock Policemen's Pension and Relief Fund does not have a written plan document (other than the DROP provisions), relying instead on the statutory provisions (A.C.A. SS 24-11-401 et sea.,) for the contents of its plan. Nevertheless, under the provisions of Internal Revenue Code § 414(d), the Little Rock Policemen's Pension and Relief Fund should qualify as a "governmental plan." A governmental plan is not presently required to comply with many of the provisions of the Employment Retirement Income Security Act of 1974 (ERISA). A governmental plan is not required to obtain a determination letter from the Internal Revenue Service that it is a qualified plan for purposes of ERISA. Governmental plans can, however, apply for and receive (generally with less problem than a private plan) a determination letter from the IRS that the plan is formulated and established as a qualified plan. Rcnf RPR 28 '99 14:52 5012445446 PRGE.001 4. • WRIGHT, LINDSEY 6 JENNINQS • March 15, 1994 Page 2 • • In order to obtain such a determination from the IRS, you must have and submit complete written plan documents. • • The Little Rock Policemen's Pension and Relief Fund has never sought or obtained a determination letter from the IRS that it is a qualified plan under ERISA. It is not possible to submit only the DROP portion of your plan (which is in writing) to the IRS for a determination letter without submitting your entire plan. Although (from a purely legal standpoint) you cannot rely on the determination letter from the IRS to the Oklahoma Board concerning the qualification of its DROP program, you can take comfort from it. Your DROP program, as well as the state legislation that authorizes it, is modeled on (but is not identical to) the Oklahoma program and legislation. Thus, assuming that you are operating your DROP in accordance with the written provisions, the IRS should not reach a conclusion with respect to your DROP program that is different from its conclusion with respect to the Oklahoma program. Q:g g2251.D27-I Rcnf RPR 28 '99 14:52 • 1 • • • 5012445446. PAGE .002 internal nevenue service District Director 1100 COMMERCE STREET DALLAS, TX 75242 Date: APR 27 1989 • OKLAHOMA POLICE PENSION AND RETIREMENT BOARD 201 NW 63RD STREET SUITE 135 OKLAHOMA CITY, OK 73116 • Employer Identification Number: 73-1039862 File Folder Number: 730012234 Person to Contact: EP TECHNICAL ASSISTOR - 16 Contact Telephone Number: (214) 767-1204 Plan Name: OKLAHOMA POLICE, PENSION AND RETIREMENT SYSTEM Plan Number: 001 Dear Applicant: Based on the information supplied, we have made a favorable determination 'on your application identified above. Please keep this letter in your perma- nent records. Continued qualification of the plan will depend on its effect in operation under its present form. (See section 1.401-i(b)(3) of the Income Tax Regula- tions.) The status of the plan in operation will be reviewed periodically. The enclosed document describes the impact of Notice 86-13 and some events that could occur after you receive this letter that would automatically nullify it without specific notice from us The document also explains how operation of the plan may affect a favorable determination letter, and contains informa- tion about filing requirements. This letter relates only to the status of your plan under the Internal Revenue Code. It is not a determination regarding the effect of other Federal or local statutes. This determination is subject to your adoption of the propozed amendments submitted in your or your representative's letter dated Dec. 30, 1988. The proposed amendments should be adopted on or before the date prescribed by the regulations under Code section 401(b). This determination letter is applicable for the amendment(s) adopted on Dec. 30, 1988. This determination letter is applicable for the plan adopted on June 25, 1980. The form of the plan satisfies those requirements of the Tax Reform Act of 1986 and the other laws, regulations, revenue rulings, and notices listed in section 4.01 of Rev. Proc. 88-42, 1988-35 I.R.B. 27 that are effective for plan years beginning before 1989. We have sent a copy of this letter to your- representative as indicated in the power of attorney. Rcn( RPR 28 '99 14:53 Letter 835(DO/CG) 5012445446 PRGE.003 • FA11 L& 11 11 LE V 11 L L J& LEGAL DEPARTMENT CITY ATTORNEY DIVISION DEPARTMENTAL CORRESPONDENCE JERRY E. ROSE, CITY ATTORNEY LAGAYIE D.MCCARTY, ASST. CITY ATTORNEY • • To: Heather Woodruff, City Clerk From: Jerry E Rose, City Attorney Date: Apnl 12, 1999 Re: Fire Relief and Pension Fund I have had a number of the Firemen's Pension & Relief Fund Board ask whether or not money may be legally spent on sending Board members to vanous meetings and conferences that have to do with various matters regarding pension funds. Section 24-11-805(a)(1) of the Arkansas Code Annotated provides as follows: "24-11-805. Investment. (a)(1) All moneys provided for the fund by this act shall be paid over to and received by the treasurer of the city or town for the sole use and benefit of the firemen's relief and pension fund, and the fund shall be used for no other purpose. " This rather narrow requirement for how money from the fund is to be spent is the only guidance that I have. The question that must be asked when determining if the conference or meeting meets §24-11-805 requirements would seem to be what use or benefit is the Fayetteville firemen's relief pension fund receiving as a result of the meeting or conference. This would be unique to each event but I would think national legislation or more generalized national concerns would not qualify while more specific seminars on our fund investments may qualify. I am certainly not an expert in these matters and I would expect some written determination from the Board that the particular meeting or conference benefitted our fund and how it did so. /cbp I hope this is some help. If I may provide anything further just let me know. 1