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Home My WebLink About1999-08-26 - Agendas - Final• FAYETTEVILLE THE CITY OF FAYETTEVILLE, ARKANSAS • FIRE PENSION AGENDA AUGUST 26, 1999 A meeting of the Fayetteville Fire Pension and Relief Fund will be held on August 26, 1999 at 11:00 a.m. in Room 326 of the City Administration Building located at 113 West Mountain Street, Fayetteville, Arkansas. 1. Approval of the minutes 2. Approval of the Pension List 3. . Investment Report 4. Other Business 113 WEST MOUNTAIN 72701 501 521-7700 FAX 501575-8257 • MINUTES OF A MEETING OF THE FAYETTEVILLE FIRE PENSION AND RELIEF FUND JULY 29, 1999 A meeting of the Fayetteville Fire Pension and Relief Fund Board was held on July 29, 1999 at 11:00 a.m. in Room 326 of the City Administration Building located at 113 West Mountain Street, Fayetteville, Arkansas. PRESENT: Ron Wood, Pete Reagan, Darrell Judy, and Heather Woodruff. ABSENT: Mayor Hanna and Marion Doss. APPROVAL OF THE MINUTES Mr. Wood moved to approve the minutes of the last meeting. Mr. Judy seconded the motion. Upon roll call the motion carried unanimously. PENSION LIST Mr. Wood moved to approve the corrected pension list. Mr. Judy seconded the motion. Upon roll call the motion carried unanimously. • INVESTMENT REPORT Mr. Yada explained the investment report. He stated the income account was pretty static because of interest rates moving up. They were still collecting interest. The value of the bonds would go down as the interest went up. Mr. Reagan asked with the interest rates going up should they move their money out of the bonds and into other accounts. Mr. Yada replied they were looking at asset allocations. They may make a shift. They would be able to make a recommendation to the board in the next couple of months. ANTI-TRUST Mr. Reagan stated there was a letter from Ms. Cramer in the Accounting addressing NASDAQ litigation. Mr. Yada explained there was a lawsuit filed regarding the trading NASDAQ. Preprinting forms should have been sent out. The Board agreed to submit the preprinted forms as proof of claims for the City's Fire Pension fund. • The meeting adjourned at 11:30 a.m. • • Fayetteville Fire Dept. and Relief Fund Portfolio Performance 12 / 31 / 98 - 7 / 31 / 99 MLAM Private Portfolio Group (started 12/1/98) Income Account 12/31/97 4,647,115 4,897,115 12/31/98 4,565,099 5,339,191 Ashland Asset Mgmt. 1,561,424 2,085,712 11,106,027 11,990,002. 3 Month Tsy. Bills MIA w/ Dividend Reinvest S&P 500 Index w/ Dividend Reinvest Long Term Tsy. Bonds High Grade Coip. Bonds C.P I. (June) MLAM Private Portfolio Group Income Account Ashland Asset Mgmt. May -96 DOW Sep -96 DOW 12/31/97 12/31/98 + 5.33 + 5.23 + 24.87 +18.12 + 33.36 +.28.59 + 15.38 + 13.78 + 13.42 + 10.47 +1.7 +1.55 + 16.97 -2.16 + 6.38 + .01 + 30.8 + 34.78 Orig. Investment $75,000 S75,000 12/31/98 $109,600 $112,942 7/31/99 4,744,527 5,256,153 2,223,676 12,224,356 7/31/99 +2.66 +17.10 +8.85 +1.40 +4.07 -1.05 +7.17 7/31/99 $112,018 $125,009 Cam-) ) o2 - GJ.e ;i.e CL 10�I0'd LSZBSLSiest 01 'cot 822 10S HDNA1 11Ide1314 ad 90:11 66,92 wow (S Fayetteville Firemen's Pension and Relief Fund Deferred Retirement Option Plan (DROP) Distribution. Election Form To be completed by Employee with regard to the distribution of his DROP account balance. lil;CAAAe\ 6nA)Anstce C SAI qct Member Name (please p Int) Retirement Date Please select option A, B, or C: A. The Fayetteville Firemen's Pension and Relief Fund is directed to make full payment to me, the member, less 20% federal withholding tax. I understand that the entire amount of distribution from my DROP account will be reported to the Internal Revenue Service. B • Signature of Member Date The FayettevilleFjfemerl's Pension and Relief Fund is directed to mail my full distribution to: ry� I ij c� t R R (Name of Annuity Provider) for c eposft. I understand that the entire amount of distribution from my DROP account will be reported to the Inter al Revenue Service. SernaCiaa Signature of Daq The Fayetteville Firemen's Pension and Relief Fund is di cted to mail $ (fill in the amount) of my distribution to (Name of Annuity Provider) for deposit. The remainder will be paid directly to me, the member, less 20% Federal withholding tax. I understand that the entire amount of distribution from my DROP account will be reported to the Internal Revenue Service. Signature of Member Date (To be completed by the Annuity Provider if option B or C is selected) In accordance with the above authorization of the depositor, we agree to deposit the forthcoming distribution amount from the Fayetteville Firemen's Pension and Relief Fund in the following account: Type of Account (fill in the blank) I(we) certify that the account is a qualified account, as defined by the Internal Revenue Service, to receive distributions, from the Fayetteville Firemen's Pension and Relief Fund, on which the income tax may be deferred. Annuity Provider Authorized Signature Malting Address Date City State Zip Telephone Number liketurn to: Firemen's Pension and Relief Fund City of Fayetteville 113 West Mountain Fayetteville, AR 72701 Page 1 of 2 The following is an excerpt from the original DROP Member Election Form: IMPORTANT NOTICE Attorneys for the Fayetteville Firemen's Pension and Relief Fund Board of Trustees has advised that there may be serious potential tax consequences as a result of participating in the Deferred Retirement Option Plan (DROP, A.C.A. &24-11-830) as follows: An application for a letter of determination as to the tax deferral status of the Firemen's Pension and Relief Fund Plan and Trust has never been filed with the IRS. Also, no determination request has been made for the Deferred Retirement Option Plan (DROP), an amendment to the pension and relief fund plan and trust. Reliance on another State's qualification is not permitted. An adverse ruling on the tax deferred status of the plan could have serious detrimental tax consequences to each participant. DROP distributions will be treated as ordinary income in the year constructive receipt occurs and rollover into an otherwise qualified plan, IRA, or other investment may not be possible. By not acting to formally tax qualify the plan, an array of possible options for the DROP participants may not be available. We strongly urge you to seek advice from a competent tax accountant and/or an attomey before participating in the DROP program. You assume the risk of such adverse tax consequences if you elect to participate. 0understand that the Fayetteville Firemen's Pension and Relief Fund has no liability for any adverse tax consequences which may accrue to me as a participant in the DROP plan. drRAL.Q...4 • Member Signature a q Date Page 2 of 2 Fayetteville Fire Dept. and Relief Fund Portfolio Performance 12/31/98 - 8/31/99 12/31/97 12/31./98 8/31/99 MLAM Private Portfolio Group 4,647,115 (started 12/1/98) Income Account 4,897,115 4,565,099 4,651,520 j 5,339,191 5,133,112 Ashland Asset Mgmt. • 3 Month Tsy. Bills 1,561,424 11,106,027 2,085,712 11,990,002 12/31/97 12/31/98 DJIA w/ Dividend Reinvest +533 +5.23 + 24.87 +18.12 S&P 500 Index w/ Dividend Reinvest Long Term Tsy. Bonds + 33.36 + 28.59 + 15.38 + 13.78 2,254,982 12,039,615 !High Grade Corp: Bonds + 1142 + 10.47 C.P.I. (July) + 1.7 + 1.55 +1.71 MLAM Private Portfolio Group + 16.97 - 2.16 +2.03 } Income Account + 6.38 + .01 -1.74 !Ashland Asset Mgmt. + 30.8 + 34.78 +8.68 1 8/31/99 +3.07 +19.23 +8.30 _ -8.12 • -7.67 . -' Orig. Investment 1 12/31/98 May -96 DOW $75,000 Epp -96 DOW $109,600 8/31/99 $114,4271 $75,000 $112,942 $122,424