HomeMy WebLinkAbout1999-04-29 MinutesFire Pension Meeting
April 29, 1999
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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 Morris, 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 carred 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.
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April 29, 1999
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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 returned 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.
Mr. Wood stated he would be interested in serving again.
OTHER BUSINESS
Mr. Reagan introduced Mr. Bonaduce.
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April 29, 1999
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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.
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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 lust 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.
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Mr. Reagan thought they would have an opinion from the city attorney by their next meeting.
Meeting adjourned at 11:40 p.m.