HomeMy WebLinkAbout1999-03-25 Minutes•
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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 earned 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
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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 fund as 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.
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