HomeMy WebLinkAbout2003-06-26 - Agendas - Final•
Firemen's Pension And Relief Fund
Agenda
June 26, 2003
A meeting of the Fayetteville Firemen's Pension and Relief Fund will be held at 11:00
a.m. on June 26, 2003 in Room 326 of the City Administration Building.
Report from Attorneys Chuck Stutte and Mark L. Martin
1. Approval of the minutes:
• May 29, 2003
2. Approval of the pension list:
• July, 2003 Pension List
3. Investment Report:
4. Old Business:
• NCPERS membership
5. New Business:
• Insurance premium check
• Marsha Farthing Pension Plan Memo
• LOPFI Plan
• Skelton Letter on Enrollment
• Senate Bill 43
• House Bill 1061, 1122, 1218, 1223, 1226, 1228, 1239, 1254
• Larry Freedle's Drop Payment
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Fire Pension Minutes
May 29, 2003
Page 1 of 2
MINUTES OF A MEETING
OF THE
FIRE PENSION BOARD OF TRUSTEES
May 29, 2003
A meeting of the Fayetteville Fire Pension Board was held on May 29; 2003 at 11:00
a.m. in Room 326 of the City Administration Building located at 113 West Mountain
Street, Fayetteville, Arkansas.
PRESENT: Mayor Coody, Doss, Reagan, Farrar, Johnson, Wood, Treasurer
Sondra Smith, City Attorney Kit Williams, Elaine Longer and Kim Cooper with
Longer Investments, Attorneys Chuck Stutte.
Mayor Coody called the meeting to order
Approval of the minutes:
Danny Farrar moved to approve the minutes of the April 24, 2003 meeting and the
revised March 27, 2003 minutes. Ronnie Wood seconded. Motion carred unanimously.
Approval of the Pension List:
Pete Reagan moved to approve the June, 2003 Pension List, Ronnie Wood seconded.
Motion carried unanimously.
Investment Report:
Longer Investment gave a summary of the Investment Report dated May 29, 2003.
Old Business:
Report from Attorneys Chuck Stutte and Mark L. Martin:
The attorneys were present and gave an update on their progress in the lawsuit.
Election Results:
Sondra Smith reported the results of the election of officers. Pete Reagan, Ronnie Wood
and Robert Johnson will continue to serve on the board. Mr. Reagan will have a term
end date of 05/31/04 and Mr. Wood and Mr. Johnson will have a term end date of
05/31/05.
Kelly Skelton Schooling:
Sondra Smith stated that she has received proof of enrollment on Kelly Skelton and that
she has sent her a letter stating the board did not approve her enrollment to the school of'
massage.
Burl Skelton Death Certificate:
We received a copy of the death certificate on Burl Skelton.
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i
Fire Pension Minutes
May 29, 2003
Page 2of2
Parking Permits for Board Member:
Parking permits for the Board has been taken care of. They should all have a current
permit.
Authorized Signature Form — Longer Investments:
A signed copy of the form has been received from Longer Investments.
New Business:
NCPRES Membership:
Pete Reagan moved to become members in NCPERS with a cost of $100.00. Danny
Farrar seconded. The Motion carried unanimously.
Meeting Adjourned at 11:55 PM.
•
AA. a
FIREMEN'S RELIEF AND PENSION
JULY 2003
THE FOLLOWING ARE THE OBLIGATIONS OF THE FIREMEN'S RELIEF FUND FOR THE
H OF JULY 2003. YOU ARE HEREBY INSTRUCTED TO ISSUE CHECKS TO THE
5, IN THE AMOUNTS SHOWN, AND FOR THE PURPOSE SO STATED.
•
DATE OF REGULAR Year To Date
MO BENEFIT REG BENEFIT FED. TAX ST. TAX NET
EMP# RETIREMENT NAME
•
79 11/99 ARMSTRONG (DILL), PAMELA 1,658.91 9,953.46
74 3/86 BAIRD, JULIA 1,849.16 . 9,894.96
2 3/75 BLACKARD, PAUL 55.00 - 330.00
63 5/72 BOLAIN, ANN - 55.00 330.00
68 7/99 BONADUCE, MICHAEL 2,735.14. 16,410.84
44 9/86 BOUDREY, BETTY MRS. 2,267.18 13,603.08
45 9/86 BOUDREY, HOWARD 1,911.99 11,471.94
49 7/88 BOUDREY, JACK : 1507.82 9,046.92
4 6/67 CARL, FLOYD JR 55.00 330.00
5 5172 CASELMAN, ARTHUR 75.00 450.00
57. 5/90 CATE, ROY 1,637.10 9,822.60
6 4/68 CHRISTIE, ARNOLD 55.00 330.00
84 03/01 CIRCT CLRK WA CO 0.00
85 03/01 CIRCT CLRK WA CO 0.00
8 10/76 COUNTS, WAYNE 55.00 33000,
61 6/66 DAVIS, BEULAH F. 377.50 2,265.00
78. 11/99 DILL,GARY JOHN 1,658.92 9,953.52
11 2/76 FARRAR,ALONZO 914.10 5,484.60
5/84 FRALEY, JOSEPH G. 1,618.08 9,708.48
5/03 FREEDLE, LARRY 3,492.86 6,985.72
92 03/02 GAGE,TOMMY 2,376.34 14,258.04
34 6/79 HARRIS, JAMES E. 55.00 330.00
70 11/99 - HARRIS, MARY RUTH . 55.00. 330.00
93 06/02 JENKINS, JOHN . 3,273.93 19,643.58
86 07/01 JOHNSON,ROBERT 2,812.68 16,875.96
64 4/95 JORDAN, CHARLIE 2,081.90 12,491.40
76 5/88 JUDY, JAN 1,507 82 9,046.92
37 3/84 KING, ARNOLD D. 1,393.18 8,359.08
54 5/89 KING, ARVIL 1,566.00 9,396.00
12 • 3/60 LANE, HOPE MRS 55.00 330.00
13 10/67 LAYER, MERLIN 417.50 2.505.00
14 7/74 LEE, HAROLD 55.00 330.00
51 10/88 LEWIS, CHARLES 1,507.82 9,048.92
55 12/89 LEWIS, ROGER (DECEASED) 0.00
40 9/85 LOGUE, PAUL D. 2,624.88 15,749.28
50 9/88 MASON, LARRY 1,492.83 8,956.98
39 4/85 MC ARTHUR, RONALD A 1,604.92 9,629.52
35 2/82 MC CHRISTIAN, DWAYNE 55.00 330.00
15 4/77 MC WHORTER, CHARLES 1 221 26 7,327.56
29 8/81. MILLER, DONALD 1,193.41 7,160.46
73 2/00 MILLER,KENNETH 2,910.17 17,481.02
42 2188 MOORE, JAMES H. 55.00 330.00
17 2/66 MORRIS, WIL.KIE MRS. (DECEASED) 55.00
16 4/64 MORRIS, WILLIAM H. 70.00 420.00
62 1088 MORRISON, ELIENE 80.00 480.00
48 7/88 MULLENS, DENNIS W. . . 2,005.35 12,032.10
58 9/90 OSBURN, EDWARD 2,248.33 13,489.98
46 5/88 OSBURN, TROY 1,738.46 10,430.76
81 02101 PHILLIPS,LARRY 2,530.45 15,182.70
53 2/89 POAGE, LARRY . 2,147.56 12,885.36
22 4/73 REED, JOE 55.00 330.00
30 3/81 SCHADER, EARVEL 1,268.40 7,610.40
41 9/85 SCHADER, TROY 1,395.58 8,373.48
82 03/01 SKELTON,KELLY 1,114.17 6,885.02
83 03/01 SKELTON, KIMBERLY 1,114.17 6,685.02
23 4/71 SKELTON, LAWRENCE BURL (DECEASED) 3,482.00
66 8/98 SKELTON, PAULINE 390.00 2,340.00
36 5/76 SPRINGSTON, CARL 737.78 4,426.68
90 03/02 STOUT, IMOGENE W. 702.65 4,215.90
25 2/75 STOUT, ORVILLE (DECEASED)
165 12/02 TATE, RALPH _ 3,356.83 20,140.98
300.00 100.00 1,258.91
350.00 145.00 1,154.16
55.00
55.00
475.38 2,25916
300.00 50.00 1,917.18
1,911.99 .
287.68 50.00 1,170.14
55.00
75.00
1 637 10
55.00
0.00
0.00
55.00
377.50
100.00 1,558.92
75.00 839.10
200.00 15.00 1,403.08
500.00 100.00. 2,892.86
226.00 50.00 2,100.34
55.00
55.00
700.00 . 200.00 2,373.93
500.00 100.00 2,212.66
2,081.90
200.00 50.00 1,257.82
240.00 • 100.00 1,053.18
130.00 1,438.00
55.00
417.50
55.00
75.00 25.00 1,407.82
0.00
325.00 75.00 2,224.88
78.16 1,414.87
150.00 50.00 1,404.92
55.00
150.00 1,071.26
125.00 25.00 1,043.41
325.00 75.00 2,510.17
55.00
0.00
70.00
80.00
2,005.35
160.00 2,088.33
200.00 38.00 1,500.46
2,530.45
300.00 ,100.00 1,747:56
55.00
1,268.40
57.00 1,338.58
125.00 25.00 964.17
125.00 25.00 964.17
0.00
390.00
70.00 17.00 650.78
702.65
0.00
300.00 100.00 2,956.83
•
•
DATE OF
EMP# RETIREMENT NAME
26
27
71
28
59
88
52
3/66
3/71
1/00
7/68
5/91
01/02
9/88
DROP DATE
02/01/99
05/01/99
04/01/00
07/01/00
01/01/01
03/01/03
03/01/03
03/01/03
04/01/03
TUNE, BILLIE SUE
TUNE, MILDRED MRS.
WARFORD,THOMAS
WATTS, DONALD
WATTS, WAYNE (DECEASED)
WOOD,RONNIE D
WRIGHT, RANDALL
DROP EMPLOYEES
LEDBETTER, DENNIS
BACHMAN, EDDIE
NAPIER,LONNIE
REAGAN,PETE
DOSS,MARION
MAHAN, MARSHALL
PIERCE, JOEY
SHACKLEFORD, GLEN
O'NEAL TEDDY
REGULAR Year To Date
MO BENEFIT REG BENEFIT FED. TAX ST. TAX NET
80.00 480.00
80.00 480.00
2,290.35 13,742.10 300.00
400.00 2,400.00
2,816.02 16,896.12
1,54782 9,286.92
78,262.30 459,139.36
800.00
200.00
8,449.22
200.00
25.00
1,740.00
80.00
60.00
1,990.35
400.00
0.00
1,816.02
1,322.82
68,073.08
NEW BENEFITS
3 45540
2,396.34
3,219.73
3,235.68
4,920.63
3,73129
3,337.69
3,337.69
3,771.29
WE, THE UNDERSIGNED, DO SOLEMNLY SWEAR THAT THE ABOVE OBLIGATIONS ARE
JUST AND CORRECT; THAT NO PART THEREOF HAS BEEN PREVIOUSLY PAID; THAT
THE PENSION PAYMENTS SO CHARGED ARE IN ACCORDANCE WITH THE ACTIONS OF
THE BOARD OF TRUSTEES OF THE FIREMEN'S RELIEF AND PENSION FUND; THAT
THE SERVICES OR SUPPLIES FURNISHED, AS THE CASE MAY BE, WERE ACTUALLY
RENDERED OR FURNISHED; AND THAT THE CHARGES MADE THEREFORE DO NOT
EXCEED THE AMOUNT ALLOWED BY LAW OR THE CUSTOMARY CHARGE FOR SIMILAR
SERVICES OR SUPPLIES
SET'ARY' CHAIRMAN AND PRESIDENT
ACKNOWLEDGEMENT
STATE OF ARKANSAS )
COUNTY OF WASHINGTON)
SWORN TO AND SUBSCRIBED BEFORE ME THIS DAY OF , 2003.
NOTARY PUBLIC
MY COMMISSION EXPIRES :
68109810593500
YTD
459,139.36
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The Voice for Public Pensions
National Conference On Public Employee
Retirement Systems
Application for Fund
Step #1- Address and Contact Information
Membership
Step #2 — Classification
Name of Organization:
Address of Organization:
(Please include suite/room number)
City: State: Zip:
Telephone: Fax:
Email:
Individual to whom mail should be sent:
Address (if different from above) where mail should be sent:
Address:
City:
Telephone (if different):
State:
Fax (if different):
Zip:
Step #4 — General Questions
Please answer all of the following questions:
1. Number of trustees on your board
2. Are your trustees elected or appointed
3. Current market value of your fund
4. Number of plan participants/members
Step #6 — Membership Payment
ID Credit Card
❑ American Express 0 Visa 0 MasterCard
Credit Card #
Expiration Date:
Name (as it appears on the card):
Total amount charged: $
Mail to the NCPERS address listed below
or fax to (202) 624-1439
❑ Check
Make check payable to NCPERS and mail to:
NCPERS
P.O. Box 79819
Baltimore, MD 21279-0819
Step #5 — Dues Structure
Check the appropriate
classifications:
❑ State
❑ County
❑ Fire
❑ Local
❑ Protective
❑ Police
❑ Education
❑ Other
Step #3 — Organization Type
Check
Type:
0
❑
0
only one Organization
Retirement System
Employee Association
Union Representing
active/retired
employees
Other
Organization
Members
Amount
Dues
Check
appropriate
amount
the
1 —4,500
$100.00
4,501 — 10,500
$200.00
10,501 — 16,500
$300.00
16,501 and over
$400.00
Legislative
Retirement
Commission
$200.00
Step #7 — Authorized signature and Date
Application is hereby made for fund membership in the
name of the above organization, subject to the
Constitution and By -Laws of the National Conference
On Public Employee Retirement Systems.
Signature.
Date:
NCPERS strongly suggests that you make a copy of
this notice before returning it with payment
FAYETTEVI LLE
1HE CITY OF FAYETTEVIIIE, ARKANSAS
•
DEPARTMENTAL CORRESPONDENCE
•
To: The Firemen's Pension and Relief Fund Board, and,/
The Policemen's Pension and Relief Fund Board
From: Marsha Farthing, Accounting Manager
Thru: Stephen Davis, Finance and Internal Service Direct
Subject: Pension Plans
Date: June 12, 2003
Background
The City of Fayetteville has two closed pension plans, the Policemen's Pension and
Relief Fund (Police Pension) and the Firemen's Pension and Relief Funds (Fire Pension).
By state law the plans were closed in 1983 and all police officers and fire fighters hired
since 1983 are enrolled in the Arkansas Local Police and Fire Retirement System
(LOPFI). The old pension plans are supported by a .4 City millage, state insurance tax
tumback, member contributions (6% of gross salary), City contributions (12% of gross
salary) and investment earnings. In addition to these sources, the Police Pension Fund
receives revenue from fines and forfeitures from the District Court. Currently, the Police
Pension has three active members and Fire Pension has eleven active members, nine of
which have elected to participate in the DROP Plan. In general, the annual retirement
benefit for the police and fire personnel in these plans is 90% of the member's highest
salary at their retirement date.
Each pension plans is controlled by an individual, independent board of trustees that has
fiduciary responsibilities to the beneficiaries. The Boards are comprised of a
combination of retired and active or all retired members as directed by state law, plus the
City Clerk and the Mayor. The City performs all administrative duties for the pension
plans including but not limited to record keeping for the funds, writing of the monthly
pension checks, accounting for the tax withholding for the members, reconciling bank
accounts and recording all investment transactions from their investment manager. Both
pension funds manage their own investments and are currently using Longer Investments
as their investment manager. The City also completes annual reports for the State
•
Pension Review Board which are used for the biennial actuarial reports required by the
state.
The last two actuarial reports for the pension funds indicated that the funds were
actuarially unsound and that the City and the Boards should consider increasing the
actuarial contributions to the funds to cover any deficits. These reports indicate the
unfunded actuarial accrued liability at 4.5 million for the Police Pension and 4.3 million
for the Fire Pension.
Discussion
There are several contributing factors that have led to the decline in the actuarial
soundness of these pension funds. Base benefits for members are set by state law at 50%
of the highest salary year during their service time In the late 90's both pension plans
followed the provisions of the law to increase their retirement benefits to 90% of salary.
When the increases were implemented the funds were actuarially sound and the State
Pension Review Board approved the increases at the time. This has greatly increased the
pension's expenses. Additionally, .over the past few years, most members in these plans
have become eligible for retirement. When active members retire revenues to the funds
decrease and correspondingly pension benefits paid to retired members increase. There
are currently very few active members contributing to the plans. Along those same lines,
the insurance tumback received from the state is allocated to the old pension plans and
the new pension plans based on the ratio of members in each plan. Membership in
LOPFI is steadily growing, while the closed pension plans are decreasing in size.
Therefore, the old plans receive less turnback each year when compared to the previous
year. Finally and most definitely a major factor in the declining portfolios of the old
pension plans is the decline over the past few years of the financial markets in which they
are invested.
On a more positive note, the fast Arkansas Legislature passed House Bill 1244 that will
be of benefit to the City's old pension plans. The distribution method of the state
insurance tumback has been changed. In the past the turnback was allocated based on the
area and population of the location. The new formula divides the money on a needs basis
based on the actuarial cost of the old plan. The feedback the City is receiving is that our
pension plans will receive an increase in tumback this year, perhaps as much as double
last year's
The Pension Boards have three approaches that can be taken in response to the current
fiscal condition of the pension funds.
1. Do nothing with the expectation that the plans investments in the financial
markets will rebound enough to make the funds whole again. Even if the
financial markets were to return to the 1990's level, it is uncertain if the funds
would be sound. If the markets grow slower than anticipated than there is the risk
of the funds becoming insolvent in which case they would need to seek assistance
from the Arkansas Fire and Police Pension Guarantee Fund. The local pension
•
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must be receiving one mill in property taxes to apply for assistance from this
fund.
2. Increase contributions to the plans to make up deficits by either increasing the
property tax millage or increasing the City's contribution to the plans. Increasing
property taxes would require a public vote Increasing the City's contribution
would require City Council approval and would add expenses to General Fund
that would take away from current services.
3. Combine the old plans with the open retirement plan for police and fire, the
LOPFI plan. Act 364 of 1981 allows the responsibility and liability for the
administration of the old pension plans to be assigned to LOPFI This is only a
change in administration of the plans and the benefits will remain the same. The
unfunded liability in the plans will be amortized over 30 years This means that
the percentage the City currently pays for the active LOPFI members through
payroll will be increased to cover the unfunded part of the old plans.. The
percentage increase is determined after an actuarial survey has been completed on
the old plans. The City will continue to receive the revenues for the old plans,
(i.e. property taxes, state insurance turnback). These revenues hopefully will
offset the increase in the contributions required by LOPFI. Attached is a copy of
the process required by LOPFI to assign the plans to them.
The auditors of the City have recommended that the City investigate the benefits and
costs of merging the Plans with LOPFI, therefore the City has requested an actuarial
study for each pension plan for the year ended December 31, 2002. The cost will be
$2,000 for each pension plan and we would request the pension funds to reimburse the
City for half of the cost of the analysis.
Also under State Law 24-11-406 and 24-11-804 plans with fewer than four active
members may be designated as inactive by the employer. Both of the City's plans meet
• the criteria to be deemed a small fund with three active members in the Police Pension
and two active members in the Fire Pension. The administration of the fund can be
assigned to LOPFI by the City Council.
One other thing needs to be clarified LOPFI is not administered by the state
government. LOPFI is a statewide retirement plan for police officers and firefighters and
was established as a non-profit entity under ACT 362 of 1981 as a fiduciary for political
subdivisions and their employees who are its participants. The plan is administered by a
five member Board of Trustees all of which are appointed by the Governor. The Board
of Trustees has appointed day to day operations of the plan with an Executive Director,
currently Cathryn Hinshaw.
From an accounting standpoint, the City has not yet reached the point where a liability for
the unfunded contributions to the plans has been booked. But if no action is taken to
stabilize the pension funds, within the next year or two the City will have to book the
unfunded liabilities of each of these pension plans.
Recommendation
Staff is recommending combining the police and fire pension plans with LOPFI in 2003.
This action will secure the benefits for the retirees and secure the City's future financial
obligation to the plans to a manageable level.
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FAYETTEVILLE
•
THE CRY OF FAYETTEVILLE, ARKANSAS
•
To: The Firemen's Pension and Relief Fund Board, and
The Policemen's Pension and Relief Fund Board
From: Marsha Farthing, Accounting Manager 2
Thru: Stephen Davis, Finance and Internal Services Directo
Subject: Police and Fire Pension and Relief Funds
Date: June 17, 2003
Please find attached a letter from the Arkansas Local Police and Fire Retirement System
explaining the steps required to move the administration of the pension funds to LOPFI
and an example of a resolution and an ordinance to present to City Council. Also
attached is a copy of the state law governing the administration of small funds.
In my first memo I stated that a major factor in the decline of the pension portfolios was
due to the decline of the financial markets in which they are invested. However the
Police Pension Fund, over the past several years, has exceeded the actuarial rate of return
assumption and has been invested in accordance with the plan's adopted investment
policy.
113 WEST MOUNTAIN 12701 479-S21-7700
FAX 479-675-8257
3UL-08-2002 MON 03:54 PM AR LOCAL POLICE & FIRE FAX N0. 5016821751
P. 02
LOPFI
ARKANSAS LOCAL POLICE & FIRE RETIREMENT SYSTEM
To: Interested Public Employers and Local Boards of
Trustees
From: Arkansas Local Police and Fire Retirement System
Re: Procedure for Administrative Conversion of Local
Funds to LOPFI
Date: February, 2002
P.O. Box 34164
LITTLE Rock, ARKANSAS 72203
TELEPHONE. (501)682-1745
FAA: (501)682-1751
emaitinfo@lopli-prb.com
websile: www.lopfi-prb.com
Police and Fire Pension
Act 364 of 1981, as amended, allows the responsibility and liability for
administration of a local police or fire pension fund to be assigned to the
Arkansas Local Police and Fire Retirement System (LOPFI). The procedure for
making such an administrative conversion is discussed below. PLEASE NOTE that
this is only a change in administration. THE CONDITIONS FOR RETIREMENT UNDER
THE LOCAL PENSION FUND WILL REMAIN THE SAME. And, under most conditions, the
benefits payable from the fund will remain the same. The exceptions are the
benefits that are only payable upon the pension fund being "actuarially sound",
i.e., the $350/month base benefit for paid police and fire plans and $50/month
base for volunteer; and for fire pension funds, the co -equal spouse benefit.
`Procedure For Administrative Conversion of Local Pension Plans to LOPFI
1. A majority of the trustees of a local pension board shall adopt and sign a
resolution requesting the local governing body (City Council; Board of
Directors; or Board of Commissioners) to pass an ordinance transferring the
administration of the local pension fund to the Board of Trustees of the
Arkansas Local Police and Fire Retirement System (LOPFI).
2. When the resolution is filed with the LOPFI office, LOPFI will cause an
actuarial valuation to be performed, which will set the first year's employer
contribution rate for both the local plan and the LOPFI covered employees Of the
affected department. The LOPFI Board will assess the cost of the actuarial work
back to the locality. For plans with 5 or fewer participants, the fee is $500,
adding $40 for each additional participant up to 30, at which time the fee is
$1,500. Checks should be made payable to, "Gabriel, Roeder, Smith, 6 Co.".
3. After reviewing the actuary's employer cost report, the local governing
body may adopt an ordinance authorizing the presiding officer of the political
subdivision to sign a contract for administrative services from LOPFI for the
local pension fund. The secretary of the governing body shall certify the
ordinance as correct.
•
4. Pursuant to the ordinance, the LOPFI Board of Trustees will make a
determination whether to take fiduciary responsibility for the plan.
5. LOPFI administration shall become effective the first day of the month
following the elapse of 60 days from the adoption of the ordinance, or later i
agreed upon by both the locality and LOPFI. All records must be received from
the local plan by the LOPFI office no later than 20 working days prior to our
beginning administration on the first of the next month.
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'JUL18-2002 MON 03:54 PM AR LOCAL POLICE & FIRE
FAX NO. 5016821751 P. 03
FORM OF RESOLUTION
BY WHICH A LOCAL BOARD OF TRUSTEES MAY REQUEST THAT A
POLITICAL SUBDIVISION OF THE STATE OF ARKANSAS ELECT RETIREMENT
COVERAGE FOR ALL OF ITS ELIGIBLE EMPLOYEES UNDER LOPFI; WHEN IT HAS
A PLAN THAT IS SIMILAR IN PURPOSE.
Whereas, the BOARD OF TRUSTEES OF THE
is now providing, or will provide in the future, retirement
coverage for some of its eligible employees under
RK[NSAS
tSe
LOCAL POLICE AND FIRE RETIREMENT SYSTEM (LOPFI) pursuant
authority of Act 364, Acts of Arkansas, 1981, as amended,
and including Act 655, Acts of Arkansas, 1983;
and
Whereas, the BOARD OF TRUSTEES of the
now desires to provide retirement coverage for all of its employees
including pension and relief fund participants under the ARKANSAS
LOCAL POLICE AND FIRE RETIREMENT SYSTEM, pursuant to the authority
of Act 364, Act of Arkansas, 1981, as amended, and including Act
655, Acts of Arkansas, 1983, so long as such retirement coverage
for Relief Fund participants shall mean the administration of that
fund only, and not a.change in the benefit program;
and
Whereas, the BOARD OF TRUSTEES of the
has received and reviewed the latest report of the
PENSION AND RELIEF FUND from the Retirement System's Actuary which
states the annual computed employer rate, unfunded liabilities,
fund assets and annual revenues;
and
Whereas, the LOPFI System has said it shall administer the Pension
and Relief Fund at an annual cost not to exceed 1/2 of 1% of active
members pays plus 1% of average annual Relief Fund assets;
and
Whereas, the BOARD OF TRUSTEES of the
hereby mutually agree that it is in the best interest of the Relief
Fund itself, Relief Fund participants and the BOARD OF TRUSTEES to
have the Fund administered by LOPFI;
BE IT RESOLVED, that the BOARD OAND
TRUSTEES
RELIEF FUND,behalf
of hereby elects
thePENSIONelects
to provide for the administration of its retirement coverage for
all of its Relief Fund participants under the ARKANSAS LOCAL POLICE
AND FIRE RETIREMENT SYSTEM (LOPFI).
'JUL-D8-2002 MON 03:55 PM AR LOCAL POLICE & FIRE FAX NO. 5016821751 P. 04
BE IT FURTHER RESOLVED that the BOARD OF TRUSTEES of the
PENSION AND RELIEF FUND mutually
understand that any such agreement to administer the "Relief Fund"
by LOPFI shall be entered into by and with the
as the employer for the
(City or Improvement District)
PENSION AND RELIEF FUND participants and LOPFI; and that any such
agreement shall cause this BOARD OF TRUSTEES to be dissolved.
The parties hereto, mutually understand and agree that this
contract is made and entered into in keeping with and pursuant to
authority of Act 364, Acts of Arkansas of 1981, as amended,
including Act 655, Acts of Arkansas, 1983, and Act 927, Acts of
Arkansas of 1985.
BE IT FURTHER RESOLVED that the BOARD OF TRUSTEES of the
PENSION AND RELIEF FUND hereby directs the
, a political subdivision of the State of
Arkansas, to act as its agent henceforth.
CERTIFICATION
We hereby certify that the above resolution represents the desires
of this BOARD. Passed and approved this day of
20
Chairman
Signed:
Sec/Treasurer
Member
Member
Member
Member
Member
•
•
•
•
JUL=0872002 MON 03:55 PM AR LOCAL POLICE & FIRE
ORDINANCE N0.
FAX NO. 5016821751 P. 05
ORDINANCE ELECTING COVERAGE FOR ELIGIBLE MEMBERS OF THE
SION AND RELIEF FUND UNDER LOPFI AND AUTHORIZING THE CHIEF
ADMINISTRATIVE OFFICER TO ENTER INTO AN AGREEMENT WITH LOPFI.
WHEREAS, the Board of Trustees of the
Pension and Relief Fund has elected to have its eligible members covered
under the Arkansas Local Police and Fire Retirement System (LOPFI) as
stated by Resolution. dated , 20 , and that
WHEREAS, said Board of Trustees has by said Resolution requested the
City of , Arkansas to act as agent for the
administration of its retirement coverage for all its Relief Fund
participants under LOPFI.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
ARKANSAS:
SECTION 1. That if accepted by the Arkansas Local Police and Fire
Retirement system (LOPFI), the administration of the retirement program
coverage for all Pension and Relief Fund
participants shall be transferred to the Arkansas Local Police and Fire
Retirement System (LOPFI) pursuant to the authority of Act 364, Acts of
Arkansas, 1981, as amended, and including other acts of the State
Legislature, provided that such retirement coverage for said Relief Fund
participants shall mean the administration of that fund only and not a
change in the Relief Fund's benefit program.
• SECTION 2. The Chief Administrative Officer is hereby authorized to
enter into an agreement with the Arkansas Local Police and Fire Retirement
System (LOPFI) to administer the Pension and Relief Fund
as stated in Section l hereof.
SECTION 3. It is the intent of the City Council and it is hereby
ordained that the provisions of this Ordinance shall be codified into the
Code of Ordinances of , Arkansas, and the sections
thereof may be renumbered and relettered as necessary to accomplish such
intention.
SECTION 4. That due to the need to consolidate the Pension
and Relief Fund with the Arkansas Local Police and Fire Retirement System (LOPFI),
an emergency is hereby declared to exist and this ordinance shall be in full force
from and after the date of its passage and approval.
PASSED:
ATTEST:
DATE
CITY CLERK
APPROVED:
CHIEF ADMINISTRATOR
24-11-406
RETIREMENT AND PENSIONS
(iii) If there are no active members of the pension
fund, all four (4) employee members shall be elected
from and by the retired membership of the pension
fund;
(B) The board shall select one (1) of the police
members as secretary of the board to serve for a
period of two (2) years or until his successor is elected
and qualified;
(C) However, if no retirant is available to serve on
the board, all four (4) employee positions shall be
held by active members of the pension fund and shall
all be elected by secret ballot by the active members
of the pension fund for two-year terms as provided
above.
(D) The, board shall have the power to make all
rules and regulations needful for its guidance to
implement the provisions regarding board composi-
tion;
(4) The six (6) members provided for in subdivisions
(1)-(3) of this subsection shall elect one (1) more mem-
ber who shall be a reputable physician and who shall
represent the board of trustees in the examination o -
any member of the department upon a claim of disabil-
ity;
(5) The number of active members or retired mem-
bers to serve on the board shall be determined by the
proportionate number of active members to retired
members:
(A) When the number of active members equals
seventy-five percent (75%) of the total of retired
members and active members, the board shall be
comprised of three (3) active members and one (1)
retired member.
(B) When the number of active members equals
fifty percent (50%) of the total of retired members
and active members. the board shall be comprised of
two (2) active members and two (2) retired members.
(C) When the number of retired members equals
• seventy-five percent (75%) of the total of retired
members and active members, the board shall be
comprised of one (1) active member and three (3)
retire8 members.
(b) The police officer members and the physician
representative of the board shall serve for a period of
two (2) years or until their successors are elected and
qualified.
(c) The board' shall have the absolute control and
management of the funds provided for in this subchap-
ter and of all moneys donated, paid, or assessed for the
relief or pension of disabled, superannuated. and re-
tired members of the police department, their surviving
spouses and minor children, or dependent parents
solely dependent upon members for their support.
(d)(1) The board shall make all necessary rules and
regulations for its government and the discharge of its
duties and shall hear and decide all applications for
relief or pension under this subchapter.
(2) All decisions upon applications shall be final and
conclusive and not subject to review or reversal except
by the board.
(3) The board shall cause to be kept a record of all its
meetings and proceedings.
1190
History. Acts 1937, No. 250.0 3.4: Pope's Dig., §§ 9858, 9859; Act
a
1985, No. 390, 1: A.S.A. 1947. §§ 19-1803, 19.1804: Acts 1987, No,
405, § 2; 1991, No. 365, § 1.
Amendments. The 1991 amendment rewrote lari3RA1; and added
(a X51.
CASE NOTES
ANALYSIS
Action against pension board.
Hearing on pension claim.
Action Against Pension Board.
If the circuit court's unappealed dismissal of mandamus suit was
based on subsection ldl precluding judicial review of board's decision,
the dismissal would not be res judicata as to the police officer's civil
rights suit in the federal courts. Hirrill v. Merriweather. 629 F.2d 490
18th Cir. 1980).
Hearing on Pension Claim.
Police officer was entitled to have his pension claim considered by a
body of reasonable and fair-minded persons who were able and willing
to give the claim fair consideration and to grant it if meritorious. Hirrill
v.-Merriweather. 629 F.2d 490 (8th Cir. 19801.
4-11-406. Administration of small funds by Ar-
kansas Local Police and Fire Retirement Sys-
tem. -
(a) In those local police pension and relief funds
which cover fewer than four (4) active members a local
board of trustees may no longer exist, and the fund
be designated as inactive by the employer.
(b) Administrative responsibility for the fund shall
be assigned to the Arkansas Local Police and Fire
Retirement System, as allowed by §§ 24-10-301 and
24-10-302 and as provided in the following procedure:
(1)(A) The actuary under contract to the system
shall compute the retirement reserve for vested and
active members and for eligible beneficiaries of the
inactive fund. After receiving the report of the actu-
ary, the employer shall transfer the computed re-
serve to the system to be held in an account desig-
nated as the retirement reserve for the inactive fund
and from which the system shall pay eligible benefi-
ciaries.
(B) The retirement reserve and any additional
employer contributions shall include such amounts
as are necessary to provide administrative expenses
for the system, but such expenses shall not exceed a
total of one-half of one percent (0.5%) of active
member payroll, if any, plus one percent (1%) of
annual reserve assets.
(2) Any excess assets of the fund remaining after the
retirement reserve is created shall be transferred to an
account designated by the employer, to be used solely
for the purpose of making payments to the system for
employee coverage administered under the system and
•
- for no other purpose.
(3) 1f a former member of the local pension fund
returns to service in which the employee would have
again become a member of the local fund, the
service credit may be purchased by the employer f
employee under the system, and the purchase c
shall be amortized in the same manner as other service
credit purchases are amortized under the system.
IMSIIINgi
J
Peres Dig..** 9858, 9.
*1803. 19-1804; Acts 1
it rewrote tae3XA); and ed
ES
missal or mandamus suit wp
cial review of board's decie'
1 as to ;he police o(riceri r.",-
r.?la mweather. 629 F2d 4'.
pension claim considered by'
ons who were able and wi8iq�''
r rant it if meritorious. Hirtill
19801.
its
f small funds by Ar=ts
e Retirement Sys.
'vision and relief funds
active members, a local
exist, and the fund may
yer.
the fund shall
!Ir Police and Fire
1 by §§ 24-10-301 and
ie following procedure:
mtract to the system
reserve for vested and
)le beneficiaries of the
the report of the actu-
3fer the computed re -
I in an account desig(
•e for the inactive fund
all pay eligible benefi-
and any additional
include such amount's
ministrative expenses
uses shall not exceed a
:ent (0.5%) of active
one percent (1%) of
id remaining after the
11 be transferred to an
yer, to be used solely
nits to the system for
tinder the system and
e.local pension fund
amployee would have
local• fund, the past
y th mployer for the
urchase costs
s other service
oder the system.
1191 LOCAL POLICE & FIRE PENSION & RELIEF FUNDS.
(4)(A) No benefit amendments shall be made in
benefits payable from the inactive fund under the
administration of the system.
(B) Should the law mandate an increase in bene-
fits to retired members or their beneficiaries, the
increases shall be payable from the retirement re-
serve of the inactive fund.
(C) No prorating of benefits shall be allowed in
inactive funds under the administration of the sys-
tem.
(D) If the retirement reserve of an inactive fund
shall become inadequate to pay full benefits to eligi-
ble recipients, the system shall require of the em-
ployer, and the employer shall remit, such
actuarially computed amounts as are necessary to
• pay full benefits to current and future eligible recip-
ients.
(5)(A) Once a fund becomes inactive and a retire-
ment reserve is created as required by this section,
the employer may continue to collect such millages,
fines, fees, state insurance tax turnback, and other
revenues as allowed by law for the support of police
retirement ' programs.
(B) The revenues shall be deposited locally in an
account designated by the employer solely for mak-
ing payments to the system and shall be used for no
other purpose.
(6)(A) All employer contributions for inactive funds
• shall be made in such amounts, and in such manner,
form, and frequency, as the Board of Trustees of the
Arkansas Local Police and Fire Retirement System
shall require.
(B) The pension records of inactive funds, and
other materials and reports as may be required by
the board to administer the inactive funds, shall be
provided to the Local Police and Fire Retirement
System in such manner as the board shall require.
History. Acts 1937. Nu. 250. § 4: Pope's Dig.. * 9859: Acts 1985. No.
927, § 1: A.S.A. 1947.* 19-1804.
24.11-407. List of retired police officers.
(a) There shall be kept in the office of the board of
trustees by the secretary a book known as the list of
retired police officers.
(b) This book shall give the•full and complete history
and record of action of the board of trustees in retiring
any and all persons under this subchapter.
(c) The record shall .give the name, date of joining
the department, date of retirement and reason thereof,
and the date and • finding of the physician of each
examination made'of disabled members of the depart-
mentretired under the provisions of this subchapter.
History. Acts 1937, No. 250, * t2; Pope's Dig.. * 9867: A.S.A. 1947.
4 19-1812.
24-111408. Treasurer as custodian of fund.
(a) The treasurer shall be thecustodianof the pen-
sion fund and shall keep his books and accounts con-
cerning the funds in such manner as may be prescribed
by the board.
"4-11-4'10
(b) The books and accounts shall be subject to the
inspection of any member of the board.
(c)(1) The treasurer shall, within ten (10) days after
his selection, execute a bond to the board of trustees
with good and sufficient securities, in such penal sum
as the board shall direct, conditioned for the faithful
performance of the duties of his office and that, on the
expiration or retirement of his term of office, he shall
surrender and deliver to his successor all unexpended
moneys and all property which may have come into his
hands as treasurer of the fund.
(2) The bond shall be filed in the office of the board of
trustees and, in case of a breach of the bond, suit may
be brought on the bond in the name of the board or in
the name of any person or persons injured by the
breach.
History. Acts 1937, No. 250. § 17; Pope's Dig.. § 9872: A.S.A. 1947.
¢ 19-1817.
A.C.R.C. Notes. The operation of subseddon lel of this section was
suspended by adoption ofa self-insured fidelity bond program for public
officers, officials and employees, effective July 20. 1987, pursuant to
§ 21.2-701 et seq. The subsection may again become effective upon
cessation of coverage under that program. See * 21-2-703.
2411-409. Deposit of moneys.
The board shall. deposit all moneys in the bank
selected as the, fiscal agent of the city in which it is
located, but only if the moneys draw the same rate of
interest as the city receives on its deposits: otherwise.
the board shall make its own selection of the bank. •
History. Acts 1937, No. 250. ¢ 14; Pope's Dig., ¢ 9869; A.S.A. 1947.
§ 19-1814.
24-11-410. Investment.
(a) The board of trustees shall have the power to
draw sums from its treasury, only upon warrants
signed by the chairman and countersigned by the
policemen's pension and relief fund, to invest in the
name of the board of trustees of the policemen's pension
and relief fund in interest-bearing bonds of the United
States, of the State of Arkansas, or of the city in which
the board is located, in a local government joint invest-
ment trust pursuant to § 19-8-301 et seq., in' the
Arkansas Local Police and Fire Retirement System, or
in savings and loan associations duly established and
authorized to do business in this state.
(b) All securities shall be deposited with the trea-
surer of the board of trustees of the pension and relief
fund and shall be subject to the order of the board.
(c)(1) In those pension and relief funds in which
assets exceed five hundred thousand dollars
($500,000), the board of trustees may employan invest-
ment advisor as defined in § 24-10-402(a)(1)(B) to
invest the assets subject to the terms, conditions,
limitations, and restrictions imposed by law upon the
Arkansas Local Police and Fire Retirement System, as
provided by §§ 24-10-401 — 24-10-411.
(2) Investments shall 'not be limited to interest-
bearing bonds.
�t�
LOPFI •
ARKANSAS LOCAL POLICE & FIRE RETIREMENT SYSTEM
P.O. Box 34164
LITTLE ROCK, ARKANSAS 72203
TELEPHONE: (501) 682 - 1745
FAx: (501) 682 - 1751
email: into@lopfi-prb.com
website: www.lopfi-prb.com
To: Public Employers and Local Boards of Trustees
From: Arkansas Local Police and Fire Retirement System
Re: Procedure for Administrative Conversion of Local Pension Funds to LOPFI
Date: January 2003
Act 364 of 1981, as amended, allows the responsibility and liability for administration of a local
police or fire pension fund to be assigned to the Arkansas Local Police and Fire Retirement
System (LOPFI). The procedure for making such an administrative conversion is discussed
below. Please note this is only a change in administration THE CONDITIONS FOR
RETIREMENT UNDER THE LOCAL PENSION FUND REMAIN THE SAME. And,
under most conditions, the benefits payable from the fund will remain the same. The exceptions
are for those funds not currently paying the minimum benefits. Upon conversion to LOPFI
administration the benefits will be raised to the minimum amounts as allowed by law i.e. the
$350/month base benefit for paid police and fire plans and $50/month base for volunteer; and for
fire pension funds, the co -equal spouse benefit.
Procedure for Administrative Conversion of Local Pension Plans to LOPFI
1. A majority of trustees of the local pension board shall adopt and sign a resolution requesting
the local governing body (City Council. Board of Directors; or Board of Commissioners) to pass
an ordinance transferring the administration of the local pension fund to the Board of Trustees of
the Arkansas Local Police and Fire Retirement System (LOPFI).
2. When the resolution is filed with LOPFI, an actuarial valuation will be performed to
determine the first year's employer contribution rate for both the local plan and LOPFI covered
employees of the affected department. LOPFI will assess the cost of the actuarial work back to
the locality. For plans with 5 or fewer participants, the fee is $500, adding $40 for each
additional participant up to 30 or more, at which time the fee is $1,500. Checks should be
made payable to "Gabriel, Roeder, Smith, & Co." for the actuarial fee.
3. After reviewing the actuarial valuation, the local governing body may adopt an ordinance
authorizing the presiding officer of the political subdivision to sign a contract transferring
administrative responsibilities from the local pension fund board to LOPFI. The secretary of the
governing body shall certify the ordinance as correct.
•
•
•
•
Administrative Conversion Memo
January 2003
Page 2 of 2
4. Pursuant to the ordinance, the LOPFI Board of Trustees will make a determination whether to
accept fiduciary responsibility for the plan.
5. Upon approval of the LOPFI Board, LOPFI administration shall become effective the first
day of the month following the elapse of 60 days from the adoption of the ordinance, or later if
agreed upon by both the locality and LOPFI. All records must be received from the local plan by
LOPFI no later than 20 working days prior to the start of LOPFI administration.
Should you have further questions feel free to contact Cathyrn E Hinshaw at 501-682-1745 or
by email at chinshaw(n�lopfi-prb.com.
1
FORM OF RESOLUTION
BY WHICH A LOCAL BOARD OF TRUSTEES MAY REQUEST\THAT A
POLITICAL SUBDIVISION OF THE STATE OF ARKANSAS ELECT RETIREMENT
COVERAGE FOR ALL OF ITS ELIGIBLE EMPLOYEES UNDER LOPFI; WHEN IT HAS
A PLAN THAT IS SIMILAR IN PURPOSE.
Whereas, the BOARD OF TRUSTEES OF THE
is now providing, or will provide in the future, retirement
coverage for some of its eligible employees under the ARKANSAS
LOCAL POLICE AND FIRE RETIREMENT SYSTEM (LOPFI) pursuant to the
authority of Act 364, Acts of Arkansas, 1981, as amended,
and including Act 655, Acts of Arkansas, 1983;
and
Whereas, the BOARD OF TRUSTEES of the
now desires to provide retirement coverage for all of its employees
including pension and relief fund participants under the ARKANSAS
LOCAL POLICE AND FIRE RETIREMENT SYSTEM, pursuant to the authority
of Act 364, Act of Arkansas, 1981, as amended, and including Act
655, Acts of Arkansas, 1983, so long as such retirement coverage
for Relief Fund participants shall mean the administration of that
fund only, and not a change in the benefit program;
and
Whereas, the BOARD OF TRUSTEES of the
has received and reviewed the latest report of the
PENSION AND RELIEF FUND from the Retirement System's Actuary which
states the annual computed employer rate, unfunded liabilities,
fund assets and annual revenues;
and
Whereas, the LOPFI System has said it shall administer the Pension
and Relief Fund at an annual cost not to exceed 1/2 of 1% of active
members pays plus 1% of average annual Relief Fund assets;
and
Whereas, the BOARD OF TRUSTEES of the
hereby mutually agree that it is in the best interest of the Relief
Fund itself, Relief Fund participants and the BOARD OF TRUSTEES to
have the Fund administered by LOPFI;
BE IT RESOLVED, that the BOARD OF TRUSTEES on behalf of the
PENSION AND RELIEF FUND, hereby elects
to provide for the administration of its retirement coverage for
all of its Relief Fund participants under the ARKANSAS. LOCAL POLICE
AND FIRE RETIREMENT SYSTEM (LOPFI).
•
r'
BE IT FURTHER RESOLVED that the BOARD OF TRUSTEES of the
PENSION. AND RELIEF FUND Mutually
understand that any such agreement to administer the "Relief Fund"
• by LOPFI shall be entered into byand with. the
as the employer for the
(City or Improvement District)
PENSION AND RELIEF FUND participants and LOPFI; and that any such
agreement shall cause this BOARD OF TRUSTEES to be dissolved.
The parties hereto, mutually understand and agree that this
contract is made and entered into in keeping with'and pursuant to
authority of Act 364, Acts of Arkansas of 1981, as amended,
including Act 655, Acts of Arkansas, 1983, and Act 927, Acts of
Arkansas of 1985.
BE IT .FURTHER RESOLVED that the BOARD OF TRUSTEES of the
PENSION AND RELIEF FUND hereby directs the
, a political subdivision of the State of
Arkansas, to act as its agent henceforth.
CERTIFICATION
We hereby certify that the above resolution represents the desires
of this BOARD. Passed and approved this day of
• 20
Chairman
Signed:
Sec/Treasurer.
Member.
Member
Member
Member
Member
ORDINANCE NO.
\N ORDINANCE ELECTING COVERAGE FOR ELIGIBLE MEMBERS OF THEN
?ENSIGN AND RELIEF FUND UNDER LOPFI AND AUTHORIZING THE CHIEF
1DMINISTRATIVE OFFICER TO ENTER INTO AN AGREEMENT WITH LOPFI.
WHEREAS, the Board of Trustees of the
?ension and Relief Fund has elected to have its eligible members covered
ander the Arkansas Local Police and Fire Retirement System (LOPFI) as
;tated by Resolution dated , 20 , and that
WHEREAS, said Board of Trustees has by said Resolution requested the
:ity of , Arkansas to act as agent for the
administration of its retirement coverage for .all its Relief Fund
;articipants under LOPFI.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
, ARKANSAS.
SECTION 1. That if accepted by the Arkansas Local Police and Fire
etirement system (LOPFI), the administration of the retirement program
'overage for all Pension and Relief Fund
participants shall be transferred to the Arkansas Local Police and Fire
etirement System (LOPFI) pursuant to the authority of Act 364, Acts of
skansas, 1981, as amended, and including other acts of the State
Legislature, provided that such retirement coverage for said Relief Fund
articipants shall mean the administration of that fund only and not a
'hange in the Relief Fund's benefit program.
SECTION 2. The Chief Administrative Officer is hereby authorized to
;er into an agreement with the Arkansas Local Police and Fire Retirement
ystem (LOPFI) to administer the Pension and Relief Fund
s stated in Section 1 hereof.
SECTION 3. It is the intent of the City Council and it is hereby
rdained that the provisions of this Ordinance shall be codified into the
'ode of Ordinances of , Arkansas, and the sections
hereof may be renumbered and relettered as necessary to accomplish such
ntention.
•
•
•
SECTION 4. That due to the need to consolidate the Pension
nd Relief Fund with the Arkansas Local Police and Fire Retirement System (LOPFI),
n emergency is hereby declared to exist and this ordinance shall be in full force
rom and after the date of its passage and approval.
ASSED:
.TTEST:
DATE
CITY CLERK
APPROVED:
CHIEF ADMINISTRATOR
•
•
1. If the pension plan remains locally controlled
and continues to lose money, is anyone charged
by law to make up the short fall? Or would
benefits eventually have to be reduced?
If the local plan joins LOPFI:
•
Benefits --- Can they be reduced?
Can they be increased?
Guaranteed to stay the same?
3 COLA - Cost of Living Adjustment 3% to be
same as LOPFI retirees.. When is the time to
discuss the COLA?
4 Widows' Benefits - We currently pay 50% of
retired officers' salary to widows. Can the
widows' benefits be increased? If so, how?
State Supplement - Does the $50.00 monthly
State supplement continue being paid?
Additional Benefits at Age 60 - Does this
benefit of 1.25% salarytimes number of years
over 25 stay the same?
What time of the month does LOPFI mail benefits
to the retired members?
Withholdings - Does the retiree still have the
option of having taxes (both State and Federal)
withheld from retirement check in any amount
desired?
9. Explain (4) (A) of AR Code 24-11-406.
10. 'Funeral Expense - We currently contribute
$200.00 to help pay funeral expenses of a
deceased police officer. Will this remain in
place?
11. State Code 24-11-406 - Is this the State Code
that provides for small funds to be
administered by LOPFI'
12. What does LOPFI stand to gain by administering
the smaller plans?
13. Will retirees have a contact person in the City
or will all questions, change of addresses,
changes in withholdings, etc., have to be
directed to LOPFI offices in Little Rock?
14. What does LOPFI charge?
15. Does employee contribution stay the same?
•
•
ell
•
FAYETTEVILLE
THE CITY OF FAYETTEVILLE, ARKANSAS
June 24, 2003
Ms. Kimberly Skelton
896 Blazing Star Dr.
Fayetteville, Arkansas 72704
Dear Kimberly,
State law allows children of deceased pensioners to continue to receive pension benefits until
they reach the age of nineteen or graduate from high school, which ever comes first. The law
also allows them to continue to receive benefits if they are a full time student enrolled in an
institution of higher learning after completing high school. The benefits will continue as long as
they are enrolled as a full time student until they reach the age of twenty-three or get married.
You must provide Proof of Enrollment each semester.
Please provide Proof of Enrollment from an institution of higher learning by the beginning of the
fall session which clearly states the following information:
1. Number of hours you are enrolled.
2. Number of hours the institution considers full-time.
3. The length of the term.
Please keep in mind that you will be required to submit verification each semester. If we do not
receive the necessary enrollment information by the beginning of each semester of school, your
pension benefits will cease. If you have any questions, please feel free to call the City Clerk's Office
at 575-8323.
Sincerely,
am4wAsa'
Sondra Smith
City Clerk
113 WEST MOUNTAIN 72701 479 521-7700
. FAX 479-575-9257
FAYETTEVILLE
• THE CITY OF FAYETTEVILLE, ARKANSAS
•
•
June 24, 2003
Ms. Kelly Skelton
1211 N Oakland # 1
Fayetteville, AR 72703
Dear Kelly,
State law allows children of deceased pensioners to continue to receive pension benefits until
they reach the age of mneteen or graduate from high school, which ever comes first. The law
also allows them to continue to receive benefits if they are a full time student enrolled m an
institution of higher learning after completing high school. The benefits will continue as long as
they are enrolled as a full time student until they reach the age of twenty-three or get married.
You must provide Proof of Enrollment each semester.
Please provide Proof of Enrollment from an institution of higher learning by the beginning of the
fall session which clearly states the following information:
1. Number of hours you are enrolled.
2. Number of hours the institution considers full-time.
3. The length of the term.
Please keep in mind that you will be required to submit verification each semester. If we do not
receive the necessary enrollment mformation by the beginning of each semester of school, your
pension benefits will cease. If you have any questions, please feel free to call the City Clerk's Office
at 575-8323.
Sincerely,
Sondra Smith
City Clerk
113 WEST MOUNTAIN 72701 479.521.7700
FAX 479-575-9257
•
Stricken language would be deleted from and underlined language would be added to the law as it existed
prior to this session of the General Assembly.
1 State of Arkansas
84th General Assembly
Regular Session, 2003
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By: Senator T. Smith
A Bill
Act 1278 of 2003
SENATE BILL 43
For An Act To.Ee Entitled
ARKANSAS CODE § 24-11-820 IS AMENDED TO ALLOW THE
FIREMEN'S RELIEF AND PENSION FUND TO PAY BENEFITS
TO THE SPOUSE OF MEMBERS WHO MARRY AFTER
RETIREMENT; TO ALLOW SPOUSES TO CONTINUE TO
RECEIVE BENEFITS AFTER REMARRIAGE IN CERTAIN
CASES; AND FOR OTHER PURPOSES.
.Subtitle ,. _:.:.:,;,. ,, .
TO ALLOW :THE:iFIREMEN' S RELIEF:'AND:'
PENSION FUNDTOPAY'BENEFITSTO THE.'
-:'SPOUSE •OF-MEMBERS:'WHO MARRY. AFTER'cl
RETIREMENTAND,; TO'?ALLOW:. S.POUS ES::: TO?.
CONTINUE TO RECEIVE BENEFITS AFTER
REMARRIAGE, IN CERTAIN CASES.
RECEIl'ED
MAY 1 5 2003
CITY OF FAYETi EVILLE
CITY CLERK'S OFFICE
BE IT ENACTED BY
THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
SECTION 1. Arkansas Code § 24-11-820(b)(4) and (5), pertaining to
retirement benefits after death of active or retired member of a firefighter,
is amended to read as follows:
(4) If any spouse or child shall marry, then the peroon so
marrying shall thereafter receive no further pension from thc funds provided
for thc operations of thio act he or she shall thereafter receive no further
33 pension under this subchapter, except if he or she is a surviving spouse of a
34 fire fighter who is killed while in the official performance of his or her
35 duties, then that surviving spouse's benefits may be restored to the spouse
36 whose benefits had been terminated before or after August 1, 1997; upon his
11222002KAS 1004.V JF056
1 or her application to and approval by the board of trustees.
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4 from the fundo that surviving spouse may
5 subchapter if he or she has been married
(5) If any retired fire fighter shall marry after his
retirement, the opoucc, or that opouoc'o children, &hall not receive benefit&
be entitled to a pension under this
to the firefighter for a period of
trustees for the fund decides to
if thepension fund will be
or her
SB43
6 at least five (5) years, if the board of
7 extend this benefit for its members, and
8 actuarially sound as determined by the actuary for the Arkansas Fire and
9 Police Pension Review Board after this benefit increase is extended to
10 members.
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APPROVED: 4/14/2003
2 11222002KAS1004.VJF056
Stricken language would be deleted from and underlined language would be added to the law as it existed
prior to this session of the General Assembly.
1 State of Arkansas As En rossed: 113/11/03
2 84th General Assembly Bill Act 602 of 2003
3 Regular Session, 2003 HOUSE BILL 1061
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5 By: Representative Mathis
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16 Subtitle :
17 TO AUTHORIZE'MEMBERS OF FIREMENS't
S18 PENSION FUNDS TO PURCHASE SERVICE CREDIT
.19. FOR ACTIVE-DUTY;SERVICE IN; THE MILITARY.
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22 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
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25 amended to add an additional section to read as follows:
26 24-11-834. Credited service - Purchase of military service.
27 (a) Any full -paid fire fighter who is or was a member of the firemen's•
28 pension and relief fund established by this subchapter is entitled to
29 purchase credited service for a period not to exceed two (2) years for
30 service rendered while on active duty in the armed forces of the United
31 States.
32 (b) The member may purchase the credited service for military service,
33 if the person:
34 (1) Served on active duty in the armed forces before the
35 member's employment covered by the firemen's pension and relief fund;
36 (2) Received an honorable discharge from the armed forces;
RECEIVEr
For An Act To Be Entitled MAY 1 5 2003
AN ACT TO AMEND ARKANSAS CODE TITLE 24, CHAPTER
11, SUBCHAPTER 8, TO ADD AN ADDITIONAL SECTION TO
PROVIDE THAT MEMBERS OF FIREMENS' PENSION AND
RELIEF FUNDS MAY PURCHASE SERVICE CREDIT FOR
ACTIVE -DUTY SERVICE IN THE MILITARY; AND FOR
OTHER PURPOSES.
CITY OF FAYETity ...
CITY CLERK'S ()FRC'
SECTION 1. Arkansas Code Title 24, Chapter 11, Subchapter
8, is
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01092003 EAN 163 8. V JF 114
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As Engrossed:113/11/03 HB1061
L (3) Is not receiving federal military service retirement pay
2 based upon nineteen (19) or more years of active duty. However, disability
3 federal retirement pay shall not disqualify a member from purchasing credit;
4 and
5 (4) Does one (1) of the following:
6 (A) If the person has participated in the firemen's
7 pension and relief fund for at least eighteen (18) years, the person •
8 contributes to the member's deposit account a sum of money equal to the
9 amount of the combined employee and employer contribution made to the system
10 based upon the contributions for the last month of the employee's eighteenth
11 year of service, multiplied by the number of months of military service the
12 member is eligible for and desires to purchase under this section, plus
13 interest on the amount at the rate of six percent (6%) per annum from the
14 date of elikibility to purchase the service to the date of purchase; or
15 (B) If the person has participated in the firemen's
16 pension and relief fund for. at -least twenty •.(:20)L years, the .person • .. _
17 contributes to the member's': deposit'acdount a sum of';inoney equal;to the t..t.nc
18 amountof the combined'employee'and employertobntrih3tion;made tO3the;systema
19based upon contributions a t-,the`timei'thier:person first becafner:a memberabfrtheo:.
20% retirement system, multiplied by the number 'o£-moinths of mi°iitartr ervicetthe
21 member is eligible for and desires to purchase under this section, plus
22 interest on the amount at the rate of six percent (6%) per annum from:the
23 date of eligibility to purchase the service to the date of purchase.
24 (c) A member who purchases credited service under this section shall
25 not be entitled to receive retirement benefits until the date on which the
26 member has twenty (20) years of actual service or would have had twenty (20)
27 years of actual service under the fund if the member had continued
28 employment.
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30 /s/ Mathis
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APPROVED: 3/24/2003
2 01092003EAN1638.VJF114