HomeMy WebLinkAbout1983-04-22 Minutes•
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MINUTES OF A POLICE PENSION FUND BOARD MEETING
A meeting of the Police Pension Fund Board was held at 2:30 p.m., on
Friday, April 22, 1983, in Room 209, Continuing Education Center, Fayetteville,
Arkansas.
PRESENT: Chairman Ron Bumpass, Dan Epperley, Eldon Roberts, Chief Bob Jones,
Scott Linebaugh, Gene Phillips, Dr. James Mashburn, Ernest Lancaster, and
Olivia Kelly.
ABSENT: None
CALL TO ORDER
Chairman Ron Bumpass called the meeting to order at 2:30 p.m., and referred
to the Agenda presented to the members of the matters to be discussed. The
Committee determined to consider the Agenda items in order of presentation.
DAVID PRESTON/MEDICAL RETIREMENT
Dr. James Mashburn stated that he had contacted, by letter, Dr. Stephen P.
Nichols, Clinical Psychologist, Ozark Guidance Center, in an attempt to elicit
Dr. Nichols' professional opinion concerning the retirement of Officer Preston
because of the question of his ability to function in the role of police
officer. Dr. Mashburn presented the written response to the members of the
Board. He then read certain excerpts from the letter of Dr. Nichols, dated
April 7, 1983, and addressed to Dr. James Mashburn, regarding the Mental Status
Examination completed on David Preston and the results of Dr. Nichols' findings.
They are in part: "Mr. Preston is currently suffering from significant
depression and this depression may very well be of a chronic nature. His
ability to cope with hisdepressidn in any ;productive way is made more difficult
by the existence of what I consider to be a mixed personality disorder with
paranoid and sociopathic features. 'I strongly question his ability to function
in the role of a police officer without further risk to his own emotional well
being and to the well being of those around him. While I am doubtful that he
would act out any of his suicidal or homocidal thoughts, there is a distinct
possibility that he could display violent outbursts toward either fellow
officers or citizens. In my opinion, it would be better for all parties concerned
if Mr. Preston were to receive some form of early retirement. Prognosis for a
substantial recovery from his depression is guarded given his current circum-
stances."
Dr. Mashburn stated that he felt the condition of Officer Preston may
place the Police Chief and the Police Department in a precarious position. He
felt that the Board should give its full support to this early retirement of
Officer Preston.
Dr. Mashburn, seconded by Mr. Bumpass, made a motion to retire Officer
David Preston, due to the evidence of total and permanent disability to perform
his position on the Fayetteville Police Force. Upon roll call, the motion
was passed unanimously.
It was determined that notice would be given to Officer Preston by Police
Chief Jones, and that the date of retirement would be effective April 25, 1983.
Scott Linebaugh stated that Officer Preston would go off the payroll of the
City of Fayetteville, effective April 25, 1983.
Page Two
PAUL WOOD/RETIREMENT
• In conjunction with the intention of Paul Wood to retire voluntarily from
the Police Department, Chairman Bumpass presented an executed Affidavit, signed
• by Messrs. Earvel Schader, Lloyd Stockburger, and D.M. Patton, in which they
affirm that Officer Wood completed service as an employee of the Washington
County Sheriff's Department. In this affidavit these individuals affirm that
Paul Wood was a full-time Deputy Sheriff for the Washington County Sheriff's
Department from April 1, 1962 through December 31, 1962.'
Chairman Bumpass stated that investigation had been made of payroll records
in order to document the time he had worked for the County. At that time, it
was determined that Mr. Wood was receiving his payroll checks from a different
fund than the normal County Treasurer's Fund. Mr. Bumpass stated that Officer
Wood had been employed by the County during a time when payroll was handled on
a "warrant" system, and those records are only kept for a period of three
years. This period of employment with the County was nineteen years ago. They
then investigated the Social Security records, but Officer Wood was also
working at Campbell Soup at that time, and no definite records could be obtained
from Social Security for that period of time.
In discussion, the Board determined that Officer Wood had met the require-
ments for retirement to their satisfaction, in light of the evidence presented
in the signed Affidavit. The Board determined that those signators of the
Affidavit were well known to the members of the Board and they relied on their
integrity in this matter.
On the basis of this information, Dr. James Mashburn, seconded by Mr. Dan
IS Epperley, made a motion to grant this retirement of Officer Paul Wood, effective
May 1, 1983. Upon roll call, the motion passed unanimously. The original copy
of the Affidavit is on file with the City Clerk and will be maintained with
the minutes of this meeting.,
POLICY DECISION/SUNSET RULE OF USING COUNTY SHERIFF'S TIME TOWARD RETIREMENT
Chairman Bumpass stated that there is statutory authority to allow a
policeman to take law enforcement time with the County Sheriff's Office and
apply it to the time accumulated with the Fayetteville Police Department. There
are several legal opinions which point out that it is most likely that these
statutes are unconstitutional because they are "special legislation."
The Board members then addressed the questions of whether to discontinue
allowing the use of County Sheriff's time toward their 20 year retirement time.
It was also discussed that a certain date could be set beyond which a police
officer would be allowed to use the County Sheriff time. It was pointed out
that with County Sheriff's time there is a "no contribution" requirement.
• Chief Jones submitted a list of Officers who are currently employed by the
Fayetteville Police Department and who have accumulated Washington County
Sheriff's Office time. They are Paul Wood, R.D. Arnold, J.O. Surles, Randy
Bradley, Gerald Bradley, Dennis Taylor, Mary Mueller, and Timothy Helder.
•
Page Three
There was concern by some members of the Board that those who have not
contributed to the Police Pension Fund are taking advantage of the officers who
al have contributed to the Police Pension Fund. However, Mr. Epperley pointed out
that a precedent has been set in that a number of officers who have retired
• have used their County Sheriff's Office time toward that retirement.
There was discussion of setting a cut off period for those eligible to use
Washington County Sheriff's Office time as being the date of the hiring of Chief
Jones as Police Chief, September 1, 1979. It was felt that any officers working
for the Police Department prior to the Chief's tenure would be honored of their
time accumulated with the Washington's County Sheriff's Office. Mr. Epperley stated
that in discussions with Chief Jones, the Chief had stated that he had not promised
anyone the use of County time towards retirement.:.
Chief Jones stated that the list he had submitted of accumulated timewith
the Washington County Sheriff's Office and the Fayetteville Police Department had
been compiled by taking personal interviews with these officers and by utilizing
Personnel records.
Police Chief Jones referred to Arkansas Statute 19-1809, which pertains to
voluntary retirement. He added that in a letter dated August 2, 1982, City
Attorney McCord stated that he would be in favor of amending the statute with
regard to contributions to be paid by those members of the Police Department who
have transferred from other departments, such as Washington County Sheriff's Office.
• Dr. Mashburn pointed out that there_would be ten years of unfunded time in
the Police Pension Fund if those officers on the list submitted by Chief Jones
1111 were permitted to utilize their accumulated County time.
The Board would refer this matter to the City Attorney to obtain his opinion
on a possible amendment to the statute to provide that anyone hired after
September 1, 1979, the time the current Police Chief was hired, who had accumulated
County time, will not be able to use this time as part of the 20 years service with
the Fayetteville Police Department.
Dr. Mashburn, seconded by Mr. Epperley, made a motion to adopt a Resolution
which stated, in effect:
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"Any officer of the Fayetteville Police Department will be permitted to use
the time accumulated in service with the Washington County Sheriff's Office, plus
the time in service to the Fayetteville Police Department equaling 20 years of
service, but the officer must contribute to the Police Pension Fund. The rate
of contribution will be based on the percentage of officer's salary he is
contributing to the Police Pension Fund at the time he is eligible for retirement.
"Be it further resolved that the granting of retirement, based on time
accumulated with the Washington County Sheriff's Office, will be granted to those
officers who were hired prior to September 1, 1979, provided additional contri-
butions are made to the Police Pension Fund as previously mentioned above.
"Any officer hired after September 1, 1979, who has accumulated County
service time, will not be permitted to use that time as part of their 20 years of
service with the Fayetteville Police Department."
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Page Four
Upon roll call, this motion passed unanimously. It was determined
that a copy of this Resolution would be provided to the City Attorney for
his opinion.
POLICY DECISION
The .Boarddiscussed the question of whether or not all those who are on
Disability Retirement must certify, every six months, as to their disability.
Also included in this is the question of whether or not they have to be put
back on the Police Force if they are no longer disabled. City Attorney McCord
has requested an Attorney General's opinion on this, but it has not been received.
Ark. Stat. Ann. Sec. 19-1810 provides, in part, as follows: "If any
member be retired because of any disability it shall be the duty of said member
to have an examination made of himself by the physician on the Board of Trustees
at least once every six months, and if he shall have recovered from such
disability, it shall be the duty of the Board of Trustees to stop payment of
said pension and place such member back in service on the Police Department and
the time of his retirement shall be considered as continuous service in such
department."
In discussion, several members of the Board expressed their concern that
a policeman, after being recertified and deemed fit for duty, after a disability,
may choose to come back to the Police Force for a short period of time, and then
retire at a higher salary.
Dr. Mashburn, seconded by Chairman Bumpass, made a motion to table this
discussion, pending receipt of the Attorney General's Opinion. Upon roll
call, the motion passed unanimously.
INVESTMENTS
DISCUSSION OF SALE OF POLICE PENSION BONDS
Scott Linebaugh made a recommendation to sell the Police Pension Bonds
invested in Illinois Power, Ohio Bell, and Philadelphia Electric, in that they
are showing a loss. Mr. Linebaugh stated that the figures presented to the
Board were prepared by Mr. B.A. Conrad of A.G. Edwards.
In discussion, the Board felt that they should seek a written interpre-
tation of the stability of these companies and their future outlook. There
was some concern that Illinois Power was filing bankruptcy. Mr. Linebaugh was
directed to seek this information from Mr. Conrad and report those findings
to the Board by letter. The Board would make a decision -on whether to sell
these bonds, or whether to hold them to maturity, based on the written review
from A.G. Edwards.
• Dr. Mashburn referred to the "prudent man" ruling and asked that this
be investigated by Mr. Conrad as well.
•
Page Five
REAFFIRMATION OF INVESTMENTS MADE SINCE THE PREVIOUS MEETING
Mr. Linebaugh circulated a listing ofinvestments made for the Police
Pension Fund since the previous meeting. Chairman Bumpass, seconded by Dr.
Mashburn, made a motion to reaffirm these investments. Upon roll call, the
motion passed unanimously.
Mr. Linebaugh stated that the Financial Statements of the Police Pension
Fund have been forwarded to the accountants. He added that the Police Pension
Fund has not reached actuarial soundness.
ADJOURNMENT
There being no further discussion, the meeting adjourned at 4:10 p.m.