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Home My WebLink About2001-04-26 - Agendas - FinalFIRE PENSION AND RELIEF FUND BOARD AGENDA APRIL 26, 2001 A meeting of the Fayetteville Fire Pension and Relief Fund Board will be held on April 26, 2001 at 11:00 a m in Room 326 of the City Administration Building located at 113 West Mountain, Fayetteville, Arkansas. 1. Approval of the minutes 2. Approval of the Pension List 3. Investment Report 4. Board Election: Three nominees: Ron Wood Eugene Warford Robert Johnson 5. Other Business • • MINUTES OF A MEETING OF THE FAYETTEVILLE FIRE PENSION AND RELIEF FUND BOARD MARCH 29, 2001 A meeting of the Fayetteville Firemen Pension and Relief Fund Board was held on March 29, 2001 at 11:00 a.m. in Room 326 of the City Administration Building located at 113 West Mountain Street, Fayetteville, Arkansas PRESENT: Mayor Coody, Marion Doss, Pete Reagan, Danny Farrar, Ronnie Wood, John Dill and City Clerk Heather Woodruff. MINUTES Mr. Reagan moved to approve the minutes. Mr. Dill seconded the motion. Motion carried unanimously. PENSION LIST Ms. Woodruff stated Mr. Roy Skelton had been removed. Kathy Skelton was still listed on the list. The list would need to be amended to include his two daughters. Mr. Reagan moved to approve the pension list with the removal of Kathy Skelton and the addition of Roy's two daughters. Mr. Doss seconded the motion. The motion carried unanimously. ROYSKELTON Mr. Kit Williams, Interim City Attorney, presented a memo with his interpretation on whether or not Ms. Skelton would be entitled to any of the pension rights (see Exhibit A attached hereto and made a part of). He felt the law was very clear that she would not be entitled. Once she was divorced from him, she can no longer be considered his spouse. The law was clear that when a retired member dies, only his spouse or his children (if they were minors) could inherit the pension. In his opinion she did not meet the definition of a spouse, therefore, she could not receive pension benefits. Mr. Doss asked Mr. Williams to interpret what he believed to be the children's benefit. Mr. Williams replied the statute stated that the children would receive the entire amount that he received as long as they were full-time students up to the age of twenty-three. Once they reached twenty-three their benefits would end. If they were full-time students they would have to provide documentation to the Board every semester. The child would also have to certify that they were not married. If they were to marry they would lose their benefits: Mr. Doss stated Mr. Skelton had retired on disability at 65% of his salary. After they divorced, his Fire Pension Minutes March 29, 2001 Page 2 ex-wife received $417.00. The way he read the law, it looked like the 65% should go to the children. Mr. Williams stated quoted from the statute, "if there is no eligible spouse at the time of the members death, then the total sums shall be paid to his children." The children would receive what the spouse would have taken Unless, they turn nineteen or until the children have completed high school, which ever comes first. If they enrolled in higher education then their benefit would continue. Mr. Reagan moved to pay (upon satisfactory proof of all the elements required by statute) the children of Roy Skelton his pension benefits. Mr. Farrar seconded the motion. Ms. Woodruff asked if they wanted to divide the 65% in half and send each child a check. Mr. Williams stated that when one the children became disqualified, the other would receive the full 65%.... The motion carried unanimously. INVESTMENT REPORT Mr. Richard Yada, Merrill Lynch, stated normally when the Fed's dropped interest rates twice in a row the market would go up about 12% over the next twelve months. If they dropped it three times the market would be up 21% after twelve months. There was a slowing economy and interest rates were suppose to help that. Normally, an interest rate cut would affect the economy about nine months later. He thought that they were about down to a normal market. Through February the S&P was down 6%. The NASDQ was down 12%. They had sent money back to the checking account. Approximately $35,000 in February and $35,000 in March. NCPERS Mr. Reagan stated they hid not paid their dues to the organization. They had joined the organization in 1998. The dues were $100. Mr. Reagan moved to join the organization again. Mr. Farrar seconded the motion. The motion carried unanimously. Meeting adjourned. a a) ro d 0 C r0 0 a a° Okil CO Cki t bg a o 3 10 q . 0 s py AA �� Z