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HomeMy WebLinkAbout2000-08-31 Minutes• MINUTES OF A MEETING OF THE FIRE PENSION AND RELIEF FUND BOARD • AUGUST 31, 2000 A meeting of the Fayetteville Fire Pension and Relief Fund Board was held on August 31, 2000 at 11:00 a.m. in Room 313 of the City Administration Building located at 113 West Mountain Street, Fayetteville, Arkansas. APPROVAL OF THE MINUTES Mr. Pete Regan moved to approve the minutes. Mr. Ronnie Wood seconded the motion. Upon roll call the motion carried unanimously. PENSION LIST - Ms. Woodruff stated $340.00 was now being deducted from Roy •Skelton's pension check. The deduction was ordered by the court. Mr. Reagan stated he did not believe it was the board's responsibility to do that. The added the State Statute stated that only the beneficiaries of the plan received payment. Mayor Hanna suggested that the ask Mr. Rose, City Attorney to get an Attorney General's 'opinion. Mr. Reagan stated it was putting the burden on the Board, when the burden was on the retiree to pay it. Mayor Hanna suggested that they ask Mr. Rose for a legal opinion on the legality of the pension board paying directly from the fund. They needed to make sure that they were not violating a State Statute. Mr. Reagan moved to approve the pension list. Mr. Darrell Judy seconded the motion. Upon roll call the motion carried unanimously. INVESTMENT REPORT Mr. Richard Yada, Merrill Lynch, stated they were a little below where they were at the end of June. They had just gone over the thirteen million dollar mark by two thousand dollars on June 30, 2000. July they were down a little bit. The Private Portfolio Group was a t $2,864,000. They were up 6.92% this year Which was good compared to the Dow which was down 7.68%. The S&P 500 was down 2%. The Private Portfolio Group was out preforming the market. Mercury Group was at $2,334,273. They were up 4% for the year They were also out preforming the stock market. Income Account was at $5,222,308. For the year they were up 4.41%. The value of that would be higher, but they had transferred $25,000 in the month of July to their checking account to pay expenses. They were holding their own. The Bond market was • • Fire Pension Minutes August 31, 2000 Page 2 up. Ashland was the only one struggling right now. $2,503,992. They were down 5.67%. The total as of yesterday was $13,233,000. The equity market was going up. They were at 55.3% in equities. Their investment policy called for 50% equity. They had talked about increasing the equity portion of their portfolio for about the last year. They had temporarily approved the asset allocation last week. He would like to change the investment policy to a maximum 60% equity. It did not mean they were going to get their, but they would like to have that flexibility. The alternative would be to sell some of their equity and to put it into fixed income. He did not believe that would be good for the long term. His recommendation would be to increase the equity portion from 50% to a maximum of 60%. Mr. Reagan moved to change their asset allocation from 50% on the equity side to a maximum of 60%. Mr. Ronnie Wood seconded the motion. Upon roll call the motion carried unanimously. Mr. Yada stated they had discussed with Mr. Maguire the reduction of fees. They were looking to see where they could reduce their fees without reducing the amount of services, performance and the quality of managers that they have. Mr. Reagan stated he would like to see a graph or chart of the per year total costs have been to • the fund since their beginning in 1986. • Mr. Yada asked if we had received our actuary yet. Ms Woodruff stated Catherine Hinshaw had not received them yet, but thought they we should receive our copy the middle of next week. WAYNE WATTS Mayor Hanna stated there was a request from Mr. Wayne Watts attorney requesting Ms. Jeanne Kay Watts be paid directly from the pension fund. Mr. Reagan explained Mr. Watts was unable to take care of his affairs and his sister Ms. Jan Judy was having to take care of things. Mr. Reagan moved to deduct $272.50 per month from Mr. Wayne Watts pension check and to pay Ms. Jeanne Kay Watts directly. Meeting adjourned at 11:30 a.m.