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HomeMy WebLinkAbout1984-01-12 Minutes• MINUTES OF A POLICE PENSION FUND BOARD MEETING A meeting of the Fayetteville Police Pension Fund Board was held on Thursday, January 12, 1984 at `3:00 P.M. at the Fayetteville Chamber of Commerce. MEMBERS PRESENT: Chairman Ron Bumpass, Dan Epperley, James Mashburn, Eldon Roberts, Scott Linebaugh STAFF PRESENT: Suzanne Kennedy ABSENT: None CALL TO ORDER The meeting was called to order by Chairman Ron Bumpass. APPLICATION FOR PENSION: LARRY McCAWLEY The first item of business introduced by Linebaugh was an application for pension submitted by Larry McCawley who has 19 years of service with the Police Department and one year of service with the Fire Depart- ment. Linebaugh stated McCawley has paid into the Pension Fund for his Fire Department time. Bumpass, seconded by Mashburn, made a motion to approve the application for retirement. The motion passed, 4-0. SURVIVOR BENEFITS: MRS. PEARL WATTS Linebaugh explained that, per Arkansas statutes, survivor benefits for Mrs. Pearl Watts should be $250 per month, a change from the retirement benefit of $249.10 being received by retired Police Chief Pearl Watts. Bumpass, seconded by Roberts, made a motion to approve the change. The motion passed, 4-0. APPLICATION FOR PENSION: FORREST LAWSON • Linebaugh introduced a request for retirement submitted by Officer Forrest Lawson. Linebaugh stated Lawson had not yet submitted a formal application but wishes to retire on April 22, 1984, having 15 years of service with the Police Department and five years of volunteer fire department time which he wishes to use to make a total of 20 years. Eldon Roberts noted that this Board had approved the use of volunteer fire department time for Wayne Stout to retire (Stout having had 18 years of service with the Police Department plus two years of volunteer fire department time). Roberts noted there will only be two current • Police Pension Fund Board January 12, 1984 Page Two officers, Bayles and Lawson, who will be able to use volunteer fire department time. Dan Epperley stated he remembered a time when the only fire fighters the City had were volunteers. Epperley said he believed in the past that being able to use this time to retire was considered an inducement towards retaining employees. He stated also that it was his feeling, since this Board approved retirement for Wayne Stout, it has set a precedent which must be followed for subsequent requests. He stated, in his opinion, the Board has no choice but to approve this request. Eldon Roberts stated police officers wishing to retire using fire department time are required to pay 4% of their current salary for a year multiplied by the number of years of service, into the pension fund. Ron Bumpass noted the City Attorney's opinion dated March 10, 1983, states "... the question of whether a police officer should be allowed a credit for time served in either such capacity is a policy decision to be made by the Board of Trustees of the Fayetteville Policemen's Pension and Relief Fund." Bumpass asked, and it was confirmed, that Lawson's time with the volunteer fire department was on a "part -paid" basis. Mashburn read from the City Attorney's opinion which states "At the same time, the Board of Trustees could reasonably determine that the practice of allowing a credit for time so served should be discontinued as of a specified date because allowing such a credit, at least for time served as a deputy sheriff, has an adverse impact on the actuarial soundness of the pension fund." Mashburn suggested the Board could approve such retirement for Officers Lawson and Bayles but at the same time the Board could stipulate that henceforth it would not look with favor on any further requests of this type. Eldon Roberts pointed out the Board has already made a policy decision ("the Sunset Rule") which takes care of officers who have accumulated Washington County Sheriff's Office time towards retirement. Ron Bumpass read from the City Attorney's Opinion dated August 2, 1982 which states, "The prerequisite for pension benefits upon voluntary retirement from the police department ...is "faithful service in the department for a period of not less than 20 years"...a proper construction of this statute would exclude service as a volunteer fireman." Eldon Roberts noted there are firemen who draw retirement from the Fire Pension Fund solely on the basis of their part -paid volunteer fire department time. Scott Linebaugh stated there is only one volunteer fireman left on the Fire Department rolls. s • • • • Police Pension Fund Board January 12, 1984 Page Three Bumpass asked if it had ever been projected what the actuarial soundness of the Fund would be if everyone utilized this type of excess time. Linebaugh stated there would be no question that it would make some difference but the fact remains they would be paying into the fund, which makes the situation similar to being employed for five more years. Linebaugh noted that the Fund, as it exists now, still is not expected to become actuarily sound for several more years. There was some discussion regarding the benefits to the Fund of allowing Lawson's retirement now versus paying out his salary for five more years. Roberts asked what justification the Board would use should it decide to deny the request. Bumpass suggested the possibility of the Board approving only two of the five years time requested. After further discussion, Dan Epperley, seconded by Mashburn, made a motion to accept Officer Forrest Lawson's application for retirement using his five years volunteer fire department time with the City of Fayetteville as part of his 20 years service for which he will pay the correct dollar figure required into the Fund; also, that this be approved for Officer Don Bayles if and when he applies for retirement; and that it is the opinion of the Board that it not accept any future applications by police officers for retirement using any volunteer fire department time from the City of Fayetteville. The motion passed, 4-0. BENEFICIARIES MONTHLY CHECK LIST Scott Linebaugh referred to the Beneficiaries monthly check list which was included in the agenda as an informational item. POLICE PENSION INVESTMENTS: 1983 Linebaugh introduced consideration of retroactive approval for investments made in 1983 following procedures approved by State law and the Police Pension Board. Linebaugh briefly went over the material included with the agenda. Epperley asked for the current average earning rate and Linebaugh stated investments are currently averaging rates from the upper 9% to 10%. Ron Bumpass, seconded by Roberts, made a motion to approve the investments retroactively for 1983. The motion passed, 4-0. • ter Police Pension Fund Board January 12, 1984 Page Four POLICE PENSION FINANCIAL STATEMENT Linebaugh referred to the Police Pension Financial Statement as of December 31, 1983, included in the agenda as an informational item. Linebaugh explained this Statement does not reflect accrued interest and a more formal Statement would be forthcoming. Linebaugh went over the Statement briefly. OTHER BUSINESS Pensions Under $250.00 Eldon Roberts referred to the Pension List appearing at VIa in the agenda and stated there are some police officers receiving pensions of less than $250 per month. Roberts stated a Bill has gone before the State Legislature which would have required that all retired police officers receive at least $250 per month pension benefits but that the Bill did not accomplish the needed results because of an error in its wording. Roberts stated he has calculated it would cost around $247 per month to raise the pensions of all those officers receiving less than $250 per month. It was decided that Scott Linebaugh would prepare a letter to be signed by the Board Chairman, addressed to Katherine Hinshaw, Executive Director of the Arkansas Police and Fire Pension Fund Boards, stating this Board would be in favor of the passage of such a Bill. ADJOURNMENT With no further business, the meeting adjourned at 4:15 P.M.