HomeMy WebLinkAbout1987-04-30 Minutes•
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MINUTES OF A POLICE PENSION BOARD MEETING
A meeting of the Policemen's Pension & Relief Fund Board was held
on Thursday, April 30, 1987 at 4:00 p.m: in Room 326 of City Hall.
PRESENT: BOARD MEMBERS: Spencer, Roberts,
Mashburn, and Linebaugh; Kay Nash
Chief Gerald Bradley.
ABSENT: City Clerk Suzenne Kennedy
CALL TO ORDER
Hoyt, Mitchell,
and Asst. Police
The meeting was called to order by Treasurer Scott Linebaugh.
MINUTES
It was moved by Hoyt, seconded by Spencer and passed unanimously,
to approve the minutes of the January 22 meeting.
REPORT OF INVESTMENT FROM MERRILL LYNCH
Roberts requested that Curtis Williams of Merrill Lynch report on
the investments made with his firm and on the legislative session.
Williams stated that Rep. Dawson's bill died in committee and
noted that there were a couple of actions taken which deal with
the Fire Department rather than the Police Department. He stated
that the Fire Chief's Association got a bill through that gives a
1 1/4% raise for each year after 25 years up to 75% of the pay.
That bill also caps firefighters' pay at 75% and does not effect
the police department. He noted that this bill was passed under
emergency legislation and is already in effect. He further noted
that there is another bill to go into effect under the 90 day rule
which will supercede this bill and remove the cap. Roberts asked
if there was any age requirement under this bill. Williams
answered the age requirement was 62 years old.
Richard Yada of Merrill Lynch reviewed areport by RNC Capital
Management on the Fayetteville Police Pension Fund. He pointed
out that there are 18 different issues in the portfolio, the
average position size is 5.04% of the total of $500,000. He
stated the largest position, International Business Machines makes
up 7.49%. He noted that all but one are paying dividends and the
yield on the portfolio is 2.9%. He said that 90% is invested in
stocks and 10% is in money market funds. He reviewed the Diver-
sification of Assets section pointing out the different areas the
assets are diversified into including consumer, basic goods,
energy, financial etc. He noted that the market value of the
portfolio at the end of March was $536,638.52 and further noted
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Police Pension Board
Minutes
April 30, 1987
that since then the market has been up and down. He stated that
he ran an analysis before this meeting and the market was up 40
points and the police pension portfolio was at $540,000.00.
Mitchell asked what the minimum percentage increase was set at.
Williams answered they want the minimum net return on average per
year to be 18%. Mitchell asked whether the pension plan is making
more money now than it was before it was contracted with A.G.
Edwards and Merrill Lynch. Linebaugh stated it is earning a
higher interest than before but the market has gone done.
Mitchell asked whether the plan has done equally as well this year
as it did last year. Williams answered yes.
Mitchell questioned whether at year end, will the money made from
investments be reinvested or will it be put back in the pension
fund? Williams said that decision is up to the police department.
Linebaugh stated that the only way to take money out is to cash
one of the stocks.
ADJOURNMENT
There being no other business before the Board, it was moved,
seconded and unanimously approved to adjourn the meeting at 4:50
p.m.