HomeMy WebLinkAbout2001-01-05 - Agendas - FinalFIRE PENSION AND RELIEF FUND BOARD
AGENDA
January 5, 2001
The Fayetteville Fire Pension and Relief Fund Board will be held on January 5, 2001 at 11:00
a.m. in Room 313 of the City Administration Building located at 113 West Mountain Street.
1. Approval of the minutes
2. Approval of the pension list
3. Benefit increase
FAYET'TEVILLE
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,
eag,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 Memll 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 carried 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 IRA would be one
check. The other amount would be wntten 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 hun
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 Mernll 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 mcrease.
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 dgetannZele 30 ZcOO t7 iit,S0.-1
filed in my office on the SS day of onal'QH7t3
Wi:r - y hand and
seal thisac:
He her Woodru f, City Clerk/Treasurer
t
•
FIRE PENSION AND RELIEF FUND BOARD
Resolution 1-00
It is hereby resolved by the Board of Trustees of the City of Fayetteville Fire Pension and Relief
Fund to increase benefits.
The Board of Trustees further proposes that acturarial services be secured through the Office of
the Arkansas Fire and Police Pension Review Board and that a cash flow study be preformed.
The Board hereby agrees to pay such charges and fees as are required by the Pension Review
Board to cover the cost of such actuarial services and cash flow study.
Whereas, the City of Fayetteville Fire Pension Board of Trustees met on November 30,
2000 and adopted a resolution to increase benefits of present and future retirants and
surviving spouses to ninety-five percent (95%) of base salary at time of retirement.
Whereas, it is not feasible for the fund to support this increase, the Board resolves to
increase benefits of current and future retirants, excluding spouses, to ninety-five percent
(95%) of base salary at time of retirement.
3. Whereas, pursuant to Act 397 of 1983, the Fayetteville Fire Pension Fund is required to
pay surviving spouses of deceased firefighters respectively, an amount equal to the
monthly pension benefit being received by the retired firefighters at the time of their
deaths; regardless of whether a spouse is currently receiving a benefit or will receive it in
the future; provided, it shall not be less than sixty-five percent (65%) of base salary at
time of retirement.
4. Whereas, the benefit to the dependent children of deceased firefighters, it the child is
under nineteen (19) years of age, unmarried, and not yet completed high school, shall be
$125.00 per month, pursuant to State law;
Therefore, the Board of Trustees passes and approves this resolution and refers it to the
Executive Director of the Arkansas Fire and Police Pension Review Board for certification of the
appropriate action to be taken by this Board.
Date: January 5 2001
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