Loading...
HomeMy WebLinkAbout1999-05-27 - Agendas - Final• • • FIRE PENSION AND RELIEF .FUND MAY 27, 1999 AGENDA A regular meeting of the Fayetteville Fire Pension and Relief Fund will meet on Thursday, May 27, 1999 at 11:00 a.m. in Room 326 of the City Administration Building located at 113 West Mountain Street, Fayetteville, Arkansas. 1. Election Results and Appointment of new Board members. 2. Approval of the minutes 3. Approval of the pension list 4. Investment report 5. Old Business a. Payment of Drop Accounts New Business • • Fire Pension Meeting April 29, 1999 Page 1 MINUTES OF A MEETING OF THE FAYETTEVILLE FIRE PENSION AND RELIEF BOARD APRIL 29, 1999 A meeting of the Fayetteville Fire Pension and Relief Fund Board was held on Thursday, April 29, 1999 at 11:00 a.m. in Room 326 of the City Administration Building. PRESENT: Marion Doss, Ron Wood, Bill Moms, Pete Reagan, Heather Woodruff. ABSENT: Mayor Hanna and Darrell Judy (funeral). MINUTES Mr. Doss moved to approve the minutes as amended. Mr. Bill Morris seconded the motion. Upon roll call the motion carried unanimously. PENSION LIST: Mr. Morris moved to approve the pension list. Mr. Wood seconded the motion. Upon roll call the motion carried unanimously. INVESTMENT REPORT Mr. Richard Yada, Meryl Lynch, gave a report on all the funds investments and the reasons behind diversification. OLD BUSINESS There was no old business. NEW BUSINESS Drop application for Ron Wood Mr. Wood stated everything was correct to the best of his knowledge. Mr. Reagan moved to approve the drop application. Mr. Doss seconded the motion. Upon roll call the motion carried unanimously. Drop application for Eddie Bauchman. Mr. Reagan moved to approve the drop application for Eddie Bauchman. Mr. Doss seconded the motion. • • Fire Pension Meeting April 29, 1999 Page 2 Mr. Doss noted Mr. Bauchman had not signed one of the pages. Mr. Reagan asked Ms. Woodruff to have Mr. Bauchman sign the form. Upon roll call the motion carried unanimously. DISCUSSION OF BOARD MEMBERS/ACTIVE AND RETIRED Mr. Reagan there were eleven active members on the drop plan and thirty-one full paid retirees. There currently ten active members in the department for a total of fifty-two firemen. Mr. Doss stated the percentage of retirees to active members had changed and they would need three retired or drop members and one active member on the board. Mr. Reagan was still active. Mr Wood had been active, however he was now on the drop plan. Mr. Wood's active position will be replaced with a retiree position. Mr. Wood could be reelected now that he was on the drop plan. Anyone who was retired or on the drop voted as retired members. Mr. Reagan stated the upcoming election will be for two retiree positions on the Fire Pension Board. Mr. Doss suggested Position 1 would be for Ron Wood current seat. Position 2 would be for the seat Bill Morris currently occupied. Both of the men could be reelected or anyone else. Mr. Reagan asked for all to be placed in writing. All nominations must be received by 5:00 on May 13. The ballots would then be sent out the next day and be retumed by the 26 of May. Results would be given out during their next meeting on May 27. Mr. Doss stated he could place a ballot box for the people on Drop at the Central Fire Station, if that would be okay with the board. Mr. Reagan stated the board would accept a nomination from a fax, but not a phone call. Mr. Doss stated members only were allowed to vote and not beneficiaries. Mr. Reagan clarified that the ballots would be counted at 4:OOp.m. on May 26 to give the new members notification of the meeting on May 27. He explained when the ratio of the firemen reached 75% retirees to active. The retirees shall hold three positions on the board. In response to questions from Mr. Reagan, Mr. Morris stated he had served two years on the Board. He thought that was enough. He had learned what he had set out to do as far as getting volunteers any more money from the pension board. He felt they had not been keeping up with what the other towns. He did not feel that he needed to serve any more. • • Fire Pension Meeting April 29, 1999 Page 3 Mr. Wood stated he would be interested in serving again. OTHER BUSINESS Mr. Reagan introduced Mr. Bonaduce. Mr. Bonaduce stated he had been informed that his drop account would be paid out as a regular salary, with federal and state taxes withheld. He asked for the board to clarify how it would be paid. It was Ms. Crammer's, accounting, understanding that the drop plan would be paid as earned income. 27% federal and 7% state taxes withheld. F Mr. Doss asked if his accrued vacation and sick leave would be a separate check. He assumed it would be. Mr. Reagan stated Ms. Crammer was under the understanding the was considered earned income, which it was not. Once the money was received by the pension board as pension funds they could only be distributed through this board. That was a federal statue. Where she was getting her information on the distribution of drop accounts. Ms Crammer was under the understanding that they did not have a letter of determination. Which was a letter stating the pension fund and drop account were in compliance with the IRS rules and regulations. They did not have that on the drop plan or on the entire fund throughout the state. No pension board in the State of Arkansas that had an old fire or police fund had a letter of determination from the IRS. Mr. Yada stated he had call the Little Rock Finance Department. They were treating it just like a pension plan and making the check out to the individual and the institution they wanted to roll it over to. There were no IRS approved pension plan. What Little Rock had done when the drop was first introduced was to model it after the Oklahoma plan which did have an IRS determination. He thought if they followed the Oklahoma plan then they should not have any problems. Mr. Reagan thought the key to the issue was the fact that this was pension money and not earned income. Mr. Yada stated the city was going to calculate the drop as earned income, which he did not think was the intent of the drop program. He thought Mr. Bonaduce could roll the money into a RIA, then he could take money out. Mr. Doss thought most of the firemen who participated in the drop thought they would pay taxes on the money when they used it. • Mr. Yada thought the city attorney would have to give an opinion. Fire Pension Meeting April 29, 1999 Page 4 Mr. Reagan thought they would have an opinion from the city attorney by their next meeting. Meeting adjourned at 11:40 p.m. Fayetteville Fire Dept. and Relief Fund Portfolio Performance 12/31/98 T 4/30/99 MLAM Private Portfolio Groupe (started 12/1/98) [Ashland Asse Mgnit: 12/31/97 12/31/98 4/30/99 • -- '4 -- . 4;647,115 9,565,099 ",853,878F] 1,561'424 2,085,712• 11,106,027 11,990,002 2,204,375 .i 12,430,263 12/31/97 12/31/98 4/30/99 +1..2111„ +'28.59 ' +9.06 + 15.38 +.13.78 -4.24 +10:47 -2.86 + 1.55 +.067 S&P 500 Index w/ Dividen_ d Reinves Long Term Tsy: Bonds }High Grade"Corp.;Bonds' C.P I (March) + 1.7 IMLAM Private Portfolio Giou ncome Account Ashland Asset Mgmt. 1-6.97 , +6.11 +1.00 +5.69 3 Orig. Investment 12/31/98 ILVIay =96 DOW $75;000. $109,600 r,;,; 4/30/99 $119,531 =$75,000 $112,942 , .: $130,836 i FAYETTEVILLE • THE CITY OF FAYETTEVILLE, ARKANSAS • • TO: Fire Pension Retirees FROM: Heather Woodruff, City Clerk/Treasurer DATE: May 3, 1999 SUBJECT: FIRE PENSION BOARD ELECTION The Firemen's Pension and Relief Fund Board of Trustees is now accepting nominations for two retired members positions. These positions have a two-year term beginning in May of 1999 and ending in May of 2001. These positions are currently held by Ron Wood, who is willing to serve again, and by Bill Morris, who is not interested in being re-elected. Nominations must be put in writing and sent to: City of Fayetteville City Clerk 113 W. Mountain Street Fayetteville, AR 72701 Or sent by fax to (501) 575-8257. ALL NOMINATIONS MUST BE RECEIVED BY MAY 13, 1999 AT 5:00 P.M. If you have any questions, please call: Heather Woodruff or Theresa Johnson 501-575-8323 113 WEST MOUNTAIN 72701 501 521-7700 FAX 501 575-8257 FAYETTEVI LLE • THE CITU OF FAVETTEVILLE, ARKANSAS • • TO: Fire Pension Retirees FROM: Heather Woodruff, City Clerk / Treasurer DATE: May 14, 1999 SUBJECT: FIRE PENSION BOARD ELECTION The Firemen's Pension and Relief Fund Board of Trustees has finished accepting nominations for the two retired members' positions For Position 1, we received a nomination for Ron Wood, who is currently serving on the Board. For Position 2, we received two nominations: for Howard Boudrey and for John Dill. Unfortunately, Howard Boudrey has contacted the City Clerk's office to have his name removed from the selection process. Therefore, we have two nominations for the Firemen's Pension Board. Because Ron Wood and John Dill are running uncontested for the two open positions, they will be accepted as the new members at the next Firemen's Pension Board meeting, May 27, 1999 at 11:00 a.m. in Room 326. Please call me or Theresa Johnson if you have any questions at 575-8323. 113 WEST MOUNTAIN 72701 501-521-7700 FAX 501-575-8257 • 05-04-1999 f AY ETTEVit tE ei FIRE !d 0 DEPT. -71 I.11N oTIn Illi 04:07PM FROM FRYETTEUILLE FIREDEPT TO "' 5758257 P.01 FAY E'F'i'EVILLE THE CITY OF FAYETTEYILLE. ARKANSAS FIRE DIVISION Nominations should be made for position #1 and position #2.. • Those eligble are any retired Fayetteville Firefighter or any active Fayetteville Firefighter currently signed up on the DROP program. Members on DROP are listed below. Ed Bachman Nike Bonaduce John Dill Larry Freedle Tommy Gage Robert Johnson Dennis Ledbetter Kenneth Miller Ralph Tate Jr. Gene Warford Ron Wood 30.9 W. CENTER STREET 72/01.5913 Post-ir Fax Note' .7671 ._ Dal c.S z or pages i t/ To , _ frt. Ams„/Dept/ ` t.prFro Co. Phone n Pgone a --- Fax #5.--7 3;7_5-7 Fax l 15- ye ! ,