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
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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
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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.
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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.
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January 12, 1984
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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.