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FIRE PENSION AND RELIEF FUND
AGENDA
NOVEMBER 30, 2000
A meeting of the Fayetteville Fire Pension and Relief Fund Board will be held on November 30,
2000 at 11:00 a.m. in Room 313 of the City Administration Building located at 113 West
Mountain.
1. Approval of the minutes
2. Approval of the pension list
3. Investment Report
4. Drop: Marion Doss
5. Insurance Tum Back
6. Other business
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MINUTES OF A MEETING
OF THE
FIRE PENSION AND RELIEF FUND BOARD
OCTOBER 26, 2000
A meeting of the Fire Pension and Relief Fund Board was held on October 26, 2000 at 11:00
a.m. in Room 313 of the City Administration Building.
PRESENT: Marion Doss, Ron Wood, Pete Reagan, Mr. Richard Yada, Deputy City Clerk Gina
Roberts and Administrative Services Director John Maguire.
ABSENT: Mayor Fred Hanna, City Clerk Heather Woodruff, and John Dill.
INVESTMENT REPORT
Mr. Richard Yada gave the investment report. The Merrill Lynch Private Portfolio group was a
domestic account. It was at $2,750,000. It was up 2.91% for the year. Dow Jones was down
6.31%. The -S&P 500 Index was down 1.41%. Even though the Merrill Lynch account was not
up a lot it was still out preforming the others. The Private Portfolio, global, was at $2,242,000
was down one tenth of one percent. They were also still out preforming the Dow Jones and the
S&P 500. The Income Account was at $5,290,341. The interest rates had quit raising and come
down some: The Bond Portfolio has moved up. The twig Terin Treasuries and High Grade
Corporate Bonds, the thirty year treasuries were up 12.51%. They had very few long term
treasuries, most of theirs were short term. They were not at the 12.51%, but they were up 6.73%.
Compared to high grade corporate bonds were preforming about average. Ashland was at
$2,521,631 were down 5.01% for the year.
So far this year, they had sent back to the checking account $242,000. Their monthly payout was
near $45,000 per month.
Mr. Yada reviewed the actuarial valuation for 1999. The account was actuarially sound.
In response to questions regarding the donations, Mr. Maguire stated $600 came from Mrs. Stout.
$1,092 came from Prior Class Action Litigation settlement.
Mr. Reagan asked Mr. Yada for his opinion on Ashland, Mr. Yada stated they had some
excellent returns over the last three years. Three down quarters was not a cause for concern.
They were still maintaining their investment discipline. If they were changing things, he would
be concerned. They were 30% Technology.
MINUTES
Mr. Reagan moved to approve the minutes with typo corrections. Mr. Wood seconded the
motion. Upon roll call the motion carred unanimously.
• PENSION LIST
Mr. Reagan moved to approve the pension list. Mr. Wood seconded the motion. Upon roll call
the motion carried unanimously.
BOARD VACANCY
Mr. Doss stated Danny Farrar had been nominated to replace Pete Reagan as an active member
on the board. (Pete Regan was pointed to Darrell Judy's retired position at the last meeting).
Mr. Reagan mo_v_ed to accept the nomination of Mr Danny Farrar as an active member
representative. Mr. Wood seconded the motion. Upon roll call the motion carried unanimously.
OTHER BUSINESS
Mr. Doss asked to get an opinion Mr. Rose, City Attorney, if he signed up for Drop if he could
still serve on the Board as the highest ranking member of the department.
Meeting adjourned at 11:55 a.m.
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FAYETTEVILLE FIREMEN'S PENSION AND RELIEF FUND
DEFERRED RETIREMENT OPTION PLAN (DROP)
MEMBER ELECTION FORM (Beneficiary Designation)
Marion Homer Doss
Member
552-56-4604 5/20/42
SSN DOB
1125 Cato Springs Rd. Fayetteville Arkansas 72701
Address City State
Mary Kathleen Doss 444-60-1408 9/28/61
Spouse SSN DOBAd /
int 35 5/4/65 �A / /.r _Si
Years of Service Date of Employment fitness Y' Date
Zip
DESIGNATION OF BENEFICIARY
I hereby designate the following beneficiary to receive any benefits from the DROP plan if I die
prior to my termination of employment:
Mary Kathleen Doss Wife
Name Relationship
Date
Signature of Member
Please select one of the following (if spouse is not selected as beneficiary):
I certify that to the best of my knowledge, the above-named member
is single or that his spouse cannot be located.
Signature of Plan Representative/Notary Date
I certify that I have agreed with my spouse on the selection of the
above-named beneficiary or beneficiaries I understand that if I am not named
beneficiary, I will not be entitled to benefits under the Plan.
Signature of Spouse Date
I certify that I have witnessed the above spouse's signature.
Signature of Plan Representative/Notary Date
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FAYETTEVILLE FIREMEN'S PENSION AND RELIEF FUND
DEFERRED RETIREMENT OPTION PLAN (DROP)
MEMBER FJ FCTION FORM
I hereby elect the DROP as my retirement benefit option from the pension plan in place of
normal retirement benefit. I understand that m electing DROP, I have agreed to the following
statements:
1-. The amount of the DROP payments will be $ 3581.56 per month. This
amount includes all service and age 60 bonuses that I have earned to this date.
This amount is the same as if I retired today.
2. I understand that the monthly benefit that I will receive at the end of the
DROP period is the exact same amount stated m Item 1, regardless of any pay
raises I receive or extra years of service I may work.
3. I understand that at the end of the DROP period I will have the option to
receive the DROP account as a lump sum or convert the DROP account to a
monthly annuity account or any other method of payment as provided for in the
current Rules and Regulations of DROP.
4. I understand that the DROP account will remain in the pension fund until
withdrawn in accordance with the Rules and Regulations of the DROP plan. I do
not have the ability to withdraw from the DROP account until the time of my
departure.
5. I have elected to begin the DROP on January 1, 2001 . DROP will
end at the earlier of when I resign or January 1, 2006 , (5 years from
the above date, unless authorizations to participate in DROP shall be specifically
extended by the Arkansas Statutes).
6. I understand that neither the pension fund nor the Department has given any
tax advice concerning the way the DROP account is taxed. I have, or will
consult, my own tax advisor for this information.
7. I have read the Rules and Regulations pertaining to DROP.
'Two exceptions to these rules: Age 60 bonuses (for members with over 25 years of service when they go on to DROP)
begin at age 60 whe still on DROP or not; raises given to retirees are also given to DROP participants.
Member Signature
Date
I1-9-oO
Spouse Signature Date
Plan Representative Date
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:FAYETTEVILLE
THE CITY OF FAYETTEVILLE, ARKANSAS
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DEPARTMENTAL CORRESPONDENCE
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To: Mayor Fred Hanna and
Fir-e—Pen-son--Br-d—En �aers
From: John Magui trative Services Director
Subject: State Insurance Tur sack
Date: October 3, 2000
The City received $267,133.52 in State Insurance Turnback funds on
September 281 2000. The funds were divided -between the Firemen's'
Pension and Relief Fund and LOPFI as follows:
Plan participants:
Active Retired Total
Firemen's Pension and
Relief Fund 21 53 74
LOPFI 63 63
Total participants 137
Funds received $267,133.52 divided by 137 = $1,949.8797
Firemen's Pension and Relief Fund
LOPFI
Total
$1,949.8797 x 74=$144,291.10
$1,949.8797 x 63=$122,842.42
$267 133.52
The Firemen's Pension and Relief Fund portion of the funds are
currently in the regular checking account. A cash flow projection
indicates a balance of approximately $150,000.00 will be available
for transfer to the money manager at the Pension Board's direction.
Please discuss this at the October 26, 2000 Pension Board meeting.
City of Fayetteville
Fire Pension Fund
Cash Flow Projection - City held funds only
•0/01/2000 - 01/31/2000
Cash on hand beginning of month
1FPcash
October November December January
2000 2000 2000 2001
159,272 6,009 40,696 8,808
Receipts:
Property Taxes 30,000 108,000 1,500 . 1,500
Employee Contribution 3,320 3,320 3,320 3,320
Employer Contribution 6,640 6,640 6,640 6,640
Interest -Checking 200 150 75 25
State Insurance Turnback
Total Receipts 40,160 118,110 11,535 11,485
Total Cash Available 199,432 124,119 52,231 20,293
Expenditures:
Pension payments (43,423) (43,423) (43,423) (43,423)
-Total Cash expended (43,423) (43,423) (43,423) (43,423)
•transfers (to)/from Money Manager (150,000) (40,000) 25,000
Cash balance end of month 6,009 40,696 8,808 1,870
Note: Does not take into consideration
any potential retirements and/or
pension withdrawals.
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y4 ARKANSAS FIRE & POLICE PENSION REVIEW BOARD
October 3, 2000
RECEIVEL.
- OCT 0 5 2000
ACCTG. DEP
P.O. DRAWER 34164
LI17LE ROCK, ARKANSAS 72203
TELEPHONE: (501) 682 - 1745
FAX: (501) 682 - 1751
email: info@lopli-prb.com
website: www.lopli-prb.com
Dear Sir -or -Madam:
The 82nd General Assemblyof the state of Arkansas passed Acts 1570 and 1288 in
1999. These Acts provide fr a new method of distributing the insurance
premium tax turnback funds for the police and fire districts who provide pension
coverage through LOPFI and/or a closed local plan. Distribution of the pension
funds will now be based on a formula, which will use land area in square miles
and total population. A component of this 1e&islation designates the University
of Arkansas at Little Rock (UALR) Geographic Information Systems (GIS)
Laboratory to map the boundaries of the state's 253 fire and 141 police districts
that provide pension coverage and to provide the land_,area and population totals
for each district.
Sarah Breshears, Phyllis Smith, and their staff from UALR will be contacting all
participating districts to obtain the legal descriptions of the boundaries. The
process might include a personal visit and a visual inventory or measurement of
the boundaries. The law requires that a local official (mayor, police chief, fire
chief, or county fire coordinator) certify the boundaries. Upon completion of this
certification, you will receive maps depicting your district s boundaries. Please
note that the law provided the funding to pay for this process, so there is no
direct cost for this mapping to your department..
This legislation was written to correct inequities in the distribution of funds. We
believe it is a worthwhile endeavor and the end result will be a more accurate
allocation of insurance premium tax turnback funds. We encourage you to
cooperate fully with the UALR researchers.
Sincerely,
Cathyrn Hinshaw, Executive Director
Arkansas Fire and Police Pension
Pension Review Board
Richard Drilling,
Arkansas Department
of Finance & Administration
RECEIVED
OCT 0 6 2000
CITY OF FAYETTEVILLE
CITY CLERK'S OFFICE
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October 3, 2000
ARKANSAS FIRE & POLICE PENSION REVIEW BOARD
RECEIVEL.
OCT 05 2000
ACCTG. DEP'
P.O. DRAWER 34164
LITTLE ROCK, ARKANSAS 72203
TELEPHONE: (501) 682 - 1745
FAX: (501) 682 - 1751
email: into@lopli-prb.com
website: www.lopli-prb.com
Dear Sir or Madam:
The 82nd General Assembly of the state of Arkansas passed Acts 1570 and 1288 in
1999. These Acts provide for a new method of distributing the insurance
premium tax turnback funds for the police and fire districts who provide pension
coverage through LOPFI and/or a closed local plan. Distribution of the pension
funds will now be based on a formula, which will use land area in square miles
and total population. A component of this legislation designates the University
of Arkansas at Little Rock (UALR) Geographic Information Systems (GIS)
Laboratory to map the boundaries of the. state's 253 fire and 141 police districts
that provide pension coverage and to provide the land area and population totals
for each district.
Sarah Breshears, Phyllis Smith, and their staff from UALR will be contacting all
participatmg districts to obtain the legal descriptions of the boundaries. The
process might include a personal visit and a visual inventory or measurement of
the boundaries. The law requires that a local official (mayor, police chief, fire
chief, or county fire coordinator) certify the boundaries. Upon completion of this
• certification, you will receive maps depicting your districts boundaries. Please
note that the law provided the funding to pay for this process, so there is no
direct cost for this mapping to your department.
This legislation was written to correct inequities in the distribution of funds. We
believe it is a worthwhile endeavor and the end result will be a more accurate
allocation of insurance premium tax turnback funds. We encourage you to
cooperate fully with the UALR researchers.
Sincerely,
Cathyrn Hinshaw Executive Director
Arkansas Fire and Police Pension
Pension Review Board
Richard Drilling,
Arkansas Department
of Finance & Administration
RECEIVED
OCT 0 6 2000
CITY OF FAYETTEVILLE
CITY CLERK'S OFFICE
MERCURY
Mercury Asset Management Advisors
800 Scudders Mill Road
Finance -Section 1B
P.O. Box 9011
Princeton, New Jersey
08543-6988 .
Account Title: CITY OF FAYETTEVILLE PENSION AND RELIEF FUND U/A 06/18/1986
CITY OF FAYETTEVILLE
ATTN: MS. HEATHER WOODRUFF
113 WEST MOUNTAIN STREET
FAYETTEVILLE, AR 72701-6069
Custodian Number
56305L79
Invoice Period
10/01/2000 - 12/31/2000
Portfolio Summary Appraisal as of September 30, 2000
Cash & Cash Equivalent Market Value
Equity Market Value
Total Portfolio Market Value
Invoice Number
660592
Invoice Date
10/16/2000
$81,290.91
$2,156,203.41
$2,237,494.32
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Investment Management Fee Summary
Portfolio Market Value Subject to Management Fee $2,237,494.32
Total Invoice Period Fee $5,164.13
Invoice Period Fee Deducted From ML Brokerage Account
5,164.13)
Total Amount Due $0.00
Money Fund Rebate Credited to your ML Brokerage Account $74.19
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Please retain this copy for your records. Please review this information. it is the client's responsibility to
verity the accuracy of each billing and the custodian will not determine whether the fee is properly
calculated. Should you have any questions regarding this fee computation please contact your
Portfolio Manager or Client Service Associate.
RECEIVED
NOV 01 2000
EYILLE
CITY CLERK'S OFFICE
MERCURY
SET MANAGEMENT
Custodian Number
56305L79
Invoice Period
10/01/2000 - 12/31/2000
Invoice Number
660592
Invoice Date
10/16/2000
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Total Portfolio Market Value
Portfolio Market Value Subject to Management Fee
Computation Based on Combined Total Portfolio Market Value
$2,237,494.32
$2,237,494.32
$4,956,027.20
Rate Schedule
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Fee allocable to account 56305L79
Discount 25.00%
Total Invoice Period Fee
Investment Management Fee Detail
Market Value
$250,000.00
250, 000.00
500, 000.00
2,000,000.00
1,956.02720
$4,956,027.20
Rate % Period
2.50000
225000
1.50000
1.25000
0.85000
45.15
1/4
1/4
1/4
1/4
1/4
Fee Amount
$1,562.50
1,406.25
1,875.00
6,250.00
4,156.56
$15,250.31
$6,885.51
(1,721.38)
$5,164.13
RECEIVED
NOV 01 2000
CITY OF FAYET .. •SLE
CITY CLERKS (.? FICE
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