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HomeMy WebLinkAbout2000-11-30 MinutesFAYETTEVILLE •THE CITY OF FAYETTEVILLE, ARKANSAS • January 9, 2001 Arkansas Local Police and Fire Pension Review Board Cathyrn Hinshaw, Executive Director #1 Union National Plaza 124 W. Capitol, Suite 940 Little Rock, AR 72201 Re: Fayetteville Fire Pension Benefit Increase Dear Ms. Hinshaw: On November 30, 2000, the Fayetteville Fire Pension and Relief Fund Board voted unanimously to request a cash flow study be conducted on their pension fund for the purpose of a benefit increase. I have enclosed copies of the minutes from the November meeting and the resolution approving such action. If more information is needed, please contact my office at 501-575-8323. Thank you for once again for your assistance. Sincerely, _g aean eather Woodruff City Clerk 113 WEST MOUNTAIN 72701 501 521-7700 FAX 501 575-8257 • MINUTES OF A MEETING OF THE FAYETTEVILLE FIRE PENSION AND RELIEF FUND BOARD NOVEMBER 30, 2000 A meeting of the Fayetteville Fire Pension and Relief Fund Board was held on November 30, 2000 at 11:00 a.m. in Room 313 of the City Administration Building located at 113 West Mountain Street, Fayetteville, Arkansas. PRESENT: Marion Doss, Pete Reagan, Ronnie Wood, John Dill, Danny Farrar, City Clerk Heather Woodruff, and Richard Yada with Merrill Lynch. ABSENT: Mayor Fred Hanna MINUTES Mr. Reagan moved to approve the minutes. Mr. Dill seconded the motion. Upon roll call the motion carried unanimously. PENSION LIST Mr: Doss stated Mrs. Dearing had passed away and had been removed from the pension list. A correction needed to be made to the list. Marion Doss needed to be removed from the Drop List on the December list. His name would appear on the January list. Mr. Reagan moved to approve the pension list. Mr. Dill seconded the motion. Upon roll call the motion carried unanimously. INVESTMENT REPORT Mr. Yada presented the investment report thru the end of October. The market had been very volitile. Private Portfolio Group was still up 1.9% for the year. Mercury Group which was started in May was down 1.88% Ashland Account was down 4.22% through the end of October. If they looked at what they had done for the last three years, it could be forgiven some. Technology had pulled them down. Income Account was up 6.05% for the year. This year they had sent back $242,000 to the checking account. With the market down like it is, their goal was not to loose as much as the market. Their diversification was working now. Their Income Account was up while their aggressive accounts, that had done well for three years, was down this year. They were ahead for the year, even though the market was down. This year had not been a good year for the market. DROP/MARION DOSS Mr. Reagan moved to approve the application for Drop affective January 1, 2001. Mr. Wood seconded the motion. Upon roll call the motion carred unanimously. INSURANCE TURNBACK The item was tabled until after the discussion on John Dill. • • • • OTHER BUSINESS • Mr. Doss explained Mr. Dill was wanted to start drawing a pension check. Ms. Cramer, Accounting Manager, had explained to him that what he would have received as a retirement check has gone into his Drop Account. • Mr. Dill stated he was going to have to have that money separated out. Mr. Doss stated it was his understanding that the part he wanted to go into an ]RA would be one check. The other amount would be written to him. The only thing that they would withhold " from that would be Federal Income Tax. Any retirement was taxed. Mr. Reagan stated they did not withhold tax unless he asked them too. That was his full retirement check. He is authorized to receive that from the day he was terminated until today. There would be no tax taken out of it, unless he asked for it to be taken out of it. Mr. Doss stated what he had been told was that it would depend on the amount of money they would draw. When they filled out the W-4, they would round it to an even dollar amount and would withhold for Federal Income tax. Mr. Reagan stated it was Mr. Dills decision to deduct. They did not do it automatically. Mr. Dill stated he needed the amount from November of last year to now totally separated. He asked if he had fill out a form. Mr. Reagan stated he would have to apply for his drop money. He did not have to apply for him pension because he was terminated. Mr. Dill stated he did not mind the taxes being withheld, but he had to have them separated. • Mr. Reagan stated they needed to approve the payment of his pension that had not been paid to him since termination and bring him to date, and remove him from the Drop List. Or they needed to approve the transfer of funds from the Drop account to John Dill or whoever was his designee was And place his name on the pension list. Mr. Reagan moved to take John Dill off the Drop List and place him on the Retirement List. And approve his back pay from November 8, 1999 to present. Danny Farrar seconded the motion. Upon roll call the motion carried unanimously. INSURANCE TURNBACK Mr. Reagan moved to transfer an amount of money to be determined by Marilyn Cramer, Accounting Manager, so that there was enough money to pay John Dills back pay and the amount of money left was to be transferred to Merrill Lynch. Mr. Wood seconded the motion. Upon roll call the motion carried unanimously. BENEFIT INCREASE Mr. Reagan stated he had been approached by several retirees about a benefit increase for all member of the fund. They had looked at several different ones. They had an application form from the Pension Review Board for asking for and acquiring an actuarial review of their fund. They would need a resolution which would increase the benefits for retiree. They were allowed to submit two proposals. The first proposal would be for a 95% of base salary at time of retirement including widows. The second proposals would read 95% of base salary excluding widows. Those widows would remain at 65% of base salary status. Mr. Doss asked if they had considered for the second proposal to have it 85% with widow benefits. Mr. Reagan stated there had been a lot of discussion on it. Basically, what he heard was to go for it and is if their fund will allow it. If not then they would address widows benefit at the next benefit increase. Mr. Doss stated he really liked leaving the spousal benefits the same, if at all possible. The reason for that was because of the deaths that they had in the last few years. It had been good to be able to tell people that their retirement was going to stay the same. Mr. Reagan stated that was why they wanted it to be their first proposal. He noted the total of the cash flow analysis is $1,975.00. He stated they needed to approve that expenditure. Mr. Reagan moved to approve the expenditure of $1,975.00 for the study. Mr. Dill seconded the motion. Upon roll call the motion carried unanimously. Mr Reagan moved to have an actuary done for a benefit increase. The first request would be for a 95% of base salary at time of retirement, including widows. The second request would be for 95% of base salary excluding widows. Those widows would remain at 65% of base salary status. Mr. Wood seconded the motion. Upon roll call the motion carried unanimously. Meeting Adjourned. • • CERTIFICATE OF RECORD State of Arkansas ss. City of Fayetteville i I, Heather Woodruff, City Clerk/Treasurer for the City of Fayetteville, do hereby certify that the foregoing instrum nt is a true and correct copy, of the original .f%,,gtle 341 ZOOo /-7/2-6 / .YO.✓ filed in my office on the at2 day of ryriisherra Ih4:n y hand and seal thic_v2c • • _Aild.2mrc,jt221 He ner Woodruff. City Clerk/Treasurer