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HomeMy WebLinkAbout1987-04-30 Minutes• • • 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 • • 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.