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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 Chairman do," Sec./Treasurer Member Member e" ///.40 4741IN Member fyjn i or do ago ,40/ber Member Member Member Member •It.