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HomeMy WebLinkAbout1983-04-22 Minutes• • • 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: • "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." -az -13 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.