HomeMy WebLinkAbout2000-04-27 - Agendas - Final•
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FIRE PENSION AND RELIEF FUND
AGENDA
APRIL 27, 2000
A meeting of the Fayetteville Fire Pension and Relief Fund Board will be held on April 27, 2000,
at 11:00 a.m. in Room 326 of the City Administration Building located at 113 West Mountain
Street, Fayetteville, Arkansas.
Approval of the minutes
Approval of the Pension List
Investment Report
Discussion of Election' of Officers for 2000.
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MINUTES OF A MEETING
OF THE
FAYETTEVILLE FIRE PENSION AND RELIEF FUND BOARD
MARCH 30, 2000
A meeting of the Fayetteville Fire Pension and Relief Fund Board was held on March 30, 2000 at
11:00 a.m. in Room 326 of the City Administration Building located at 113 West Mountain
Street, Fayetteville, Arkansas.
Present: Mayor Hanna, Pete Reagan, Marson Doss, Darrell Judy, Ron Wood,
Administrative Services Director John Maguire, and Deputy City Clerk Gina
Roberts.
Absent: John Dill.
MINUTES
Mr. Pete Reagan moved to approve the minutes. Mr. Marion Doss seconded the motion. Upon
roll call the motion carried unanimously.
PENSION LIST
Mayor Hanna noted a correction needed to be made on the Pension List. Mr. Lonnie Napier
needed to be added to the Drop Employee List. Mr. Reagan moved to approve the list as
amended. Mr. Judy seconded the motion. Upon roll call the motion carried unanimously.
INVESTMENT REPORT
Mr. Richard Yada, Merrill Lynch, presented the investment report for 12/99 to 2/29/00. The
Private Portfolio Group was down 1.55% for the year. The portfolio had approximately 40%
fixed income. As interest rates continued to go up the fix income would hold down a little. The
Income Account was up almost 1% for the year Ashland was down 8.10% for the year
Compared to the Dow Jones, which was down 11.7% during the same time period. The S&P
500 was down 6.83%. The Private Portfolio Group was a mixture of stocks and bonds and was
down 2%. Treasuries for the long term were up 4.95% for the year. The bond portion was up
and the stock portion was down. The Income Account up almost 1% was predominately a bond
account, so it was up. In the month of March they had paid out two drop participants a total of
$177,000 from the account.
Mr. Reagan asked when the money from the Insurance Turnback was going into the account. He
noted they were late receiving the money and questioned when the money had been transferred
from their account to Merrill Lynch.
Mr. Maguire stated it had been transferred out of the pension account.
• Mr. Maguire asked on the Ashland Fund how did they get paid. Were they paid on their
transaction fees only?
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Mr. Yada stated they were paid an annual fee of .7%. They were paid quarterly.
Mr. Reagan asked about the change moving from Private Portfolio to Mercury. Had the
transaction happened yet?
Mr. Yada stated they had just received the final paper work yesterday. And the process should
be starting today. They were going to be moving half the account to Mercury from the Private
Portfolio Group. In reference to questions from the last meeting on Investment Policy, in 1998
Merrill Lynch had wanted to know if the Private Portfolio Group had the authority to manage the
account on a discretionary basis. He presented a letter from Mr. Rose and a management
agreement.
Mr. Yada noted the short term interest rates were higher than the thirty year interest rates.
Normally the thirty year interest rates were higher. Usually when this happened the interest rates
were going to come down.
Mr. Maguire asked, even thought the contract was unsigned, this was the contract?
Mr. Yada stated Merrill Lynch had signed it in August 1998 This was when they changed
money managers from New Mexico Capitol Management to Private Portfolio Group.
• Mr. Maguire stated in trying to get his hand around the fees RCMA booklet the contract had
been torn out and a sheet in it that specified the fees in it. Which fee basis were they on?
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Mr. Yada stated the RCMA was an account which all these accounts had to go into. It was called
a retirement cash management account. It was in a rap fee account. Normally, the Income and
Ashland account would have an annual fee of $150 per year, plus transaction fees.
Mr. Maguire clarified the transaction fees were still involved and not the amount. Inside
Ashland, were there transaction fees?
Mr. Yada replied Ashland traded through a desk in New York. Their standard commission rate
was the standard minus 40% discount. He thought they were doing some transactions lately.
OTHER BUSINESS
Mr. Doss asked if a statement had been sent out on the Drop Account yet. He had spoken with
Accounting and they would be preparing a statement on the Drop Account for the individuals.
Mr. Reagan stated he thought elections would be held next month.
Meeting adjourned at 11:30 a.m.
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FA YEflE MLLE
LEGAL DEPARTMENT
CITY ATTORNEY DIVISION
DEPARTMENTAL CORRESPONDENCE
Fite
JERRY E. ROSE, Cm ATTORNEY
LAGAYLE D.MCCARTY, ASST. CITY ATTORNEY
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To: Firemen's Pension and Relief Fund Board of Trustees
Heather Woodruff, City Clerk
From: Jerry E Rose, City Attomey
Date: May 2, 2000 �y
Re: Death benefits upon divorce.
This memo is in response to the following request for an opinion:
Under A.C.A. §24-11-820, If a fireman is married at the time of his retirement but,
after retirement, becomes divorced, would the former or ex-wife still receive a
widow's or death benefit?
A.C.A.§24-11-820(a)(1) states in pertinent part as follows:
"Whenever ... any retired member shalldie, leaving a spouse ..., then, upon
satisfactory proof of those facts made to it, the board of trustees shall order and direct
... that a monthly pension shall be paid for Life to the spouse..."
The plain and clear language of the statute requires the retired member to die and leave a
spouse. Hone is divorced one no longer has a spouse. Accordingly it would be my opinion that a
former or ex-wife receives no widows or death benefit under the circumstances you describe.
If I may provide you anything further, you have only to ask.
/cbp
Attachment(s)