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HomeMy WebLinkAbout1988-03-08 Minutes• • • MINUTES OF A POLICE PENSION BOARD MEETING A special meeting of the Police Pension & Relief Fund Board of Trustees was held on Thursday, March 8, 1988 at 4:00 p.m. in Room 326 of City Hall, 113 West Mountain Street, Fayetteville, Arkansas. PRESENT: Pension Board members James Mashburn, Hollis and Rick Hoyt, Jr. McWethy and Accounting CALL TO ORDER James Pennington, Scott Linebaugh, Dr. Spencer, Eldon Roberts, Mike Mitchell Also present were City Clerk Suzanne Supervisor Zelda Parson. Chairman Pennington called the meeting to order at 4:10 p.m. MINUTES Eldon Roberts commented that, since the last "if either of the officers were injured draw disability because they don't have discovered there might be some provisions retirement if they were injured off the job service. eeting, when he stated that e job they couldn't retire and years service right now", he whereby they could receive and didn't have five years With that clarification, it was moved by Hoyt; seconded by Mitchell and unanimous, to approve the minutes of the January 21 meeting. OLD BUSINESS PENSION BENEFITS FOR RE -HIRED OFFICERS Roberts said the Board had been under the assumption that officers, upon re- hire, who didn't have five years and became injured off the job, were not eligible for retirement. He said after looking into the law a little closer, he now believes an officer who became disabled due to an accident outside the job could still draw pension if he didn't have five years under the pension plan, under certain circumstances. Roberts read from the Municipal League Handbook: "...the Board of Trustees, by a majority vote of the members and with the approval of the physician of said board, shall have the power to retire from service in the department any member thereof who has become • • Police Pension Board Minutes March 8, 1988 Page 2 disabled, when it has been certified to the Board of Trustees in writing by the physician on said board that such member, because of disability, is incapacitated, either mentally or physically, from the performance of his duties as a member of said department, provided that no member shall be retired because of disability from natural causes unless he has served in said department for a period of five years." Linebaugh said the City Attorney's opinion agrees but states that, in order to be eligible for benefits, an officer would have to repay any withdrawn funds according to rules set by the pension board. The Board discussed the fact that it was up to the Board to adopt rules and regulations regarding the payback of funds which were withdrawn. Linebaugh said the Fire Pension Board adopted a rule that the payback must be done within one year. He reminded the Board any rule they adopt should apply to everyone, not just an individual case. Roberts asked what the Board would do if, after adopting the one-year rule, an officer refuses to pay back the funds. Dr. Mashburn said the rule should state that, if the payback is not made within one year, the officer is no longer a member of the plan, or would lose previouscredt•...Pennington said most plans include a rule whereby you either buy back your previous credit or you start all over again. Mashburn said he thought the Board should not be in the lending business. Spencer agreed, commenting that the payback should be made at the time of rehire. Mitchell agreed, commenting that one year was too long a period of time. Mashburn suggested an officer be given sixty days from the date of rehire, in the event an officer may have been unemployed at the time of rehire. Hoyt asked how the Board should handle the case of the two officers who have already been rehired (John Brown and Mark Hanna). Roberts pointed out that Officer John Brown has been back at work about two years already. Mitchell said a policy could be adopted but an exception could be made for Brown and Hanna. Hoyt asked if an officer would be fired who does not pay within the time limit set up. It was decided the officer would not be fired, but would lose his previous time towards retirement. Linebaugh pointed out there is still a question on the loss of time because of the rule that states "no member shall be retired because of disability from natural causes unless he has served in the department for a period of five years." Linebaugh said, according to that rule, an officer could still count his previous time and retire due to disability. Roberts said he • • • Police Pension Board Minutes March 8, 1988 Page 3 didn't see how previous time could be counted if the officer hadn't paid the funds back. Pennington said there was a question about whether the five years must be consecutive years. Linebaugh said he would get an opinion from McCord on this issue because a good case could be made for an officer to retire whether or not he had paid back withdrawn funds. He said he thought the Board should still set a policy today. The Board set the following general policy for officers who are rehired: It was moved by Hoyt and seconded by Roberts, that rehires to the Police Department on the old pension plan be given thirty days to pay back their credit plus interest to become members of the plan in good standing, from the date of hire. The motion passed unanimously. The Board set the following policy as an exception for Mark Hanna and John Brown: It was moved by Hoyt that John Brown and Mark Hanna be given one year from March 8, 1988 to pay back the money they owe plus interest -.;to be members in good standing, or they lose all previous time. The motion was seconded by Mitchell and passed, unanimously. INVESTMENTS Linebaugh reported one investment, in the amount of $70,000, was made after receiving four quotes on February 29, 1988. He said it was awarded to the Bank of Fayetteville (investment information was distributed to the Board). REQUEST TO RETIRE FROM RICKMAN Eldon Roberts introduced a request for retirement from Sgt. Loren G. Rickman, who has been employed since October 24, 1967. Roberts reported Rickman's 20 years of service were completed as of October 24, 1987. He said Rickman wishes to retire on March 10, 1988. Roberts said a letter was received from Rickman's doctor which was forwarded to Dr. Mashburn. Roberts said he thought there would be no ramifications from Rickman retiring for medical reasons, in spite of the fact that he served the required 20 years to retire on a regular basis. He said Rickman told him he was striving to set the stage for a social security disability. Dr. Mashburn read the letter from Rickman's doctor aloud to the Board. Dr. Mashburn said he should have asked Rickman to visit his office prior to this meeting, as this has been his past procedure. He said, if it met with the • • Police Pension Board Minutes March 8, 1988 Page 4 Board's approval, he thought it would be alright to provisionally accept the retirement on the basis of the doctor's letter, provided that after he has seen Rickman, that is confirmed. Linebaugh asked Dr. Mashburn if he would consider Rickman's disability a permanent disability. Linebaugh said the City was getting strong questions and criticism from members of the City Board about some past retirements due to disability, specifically medical retirements where the individuals are now working for the County Sheriff. Linebaugh said the questions being asked were whether the individuals were permanently disabled before they were given medical retirement.. Dr. Mashburn moved to recommend approval of Rickman's request, on the basis of his consultation with the Fayetteville Diagnostic Clinic, because he feels Rickman would be eligible for retirement because of medical disability. Mashburn said he would like to examine Rickman himself to be more aware personally of his condition and if, after he sees Rickman, he still feels the same, the Board's action today would be in effect. He said if, for any reason, he doesn't feel the same, the Board can call another meeting. Mitchell seconded the motion. Linebaugh said he agreed with the medical retirement if Rickman is permanently disabled but said, if he is not, he thought the request should be brought back before the Board. Dr. Mashburn said if there were any questions about past medical retirements for which he recommended approval, he would like to visit with Linebaugh after the meeting. The motion passed unanimously. Eldon Roberts said he would see Rickman in the morning and it was decided that Roberts would notify Rickman to contact Dr. Mashburn for an appointment. Zelda Parson, Accounting Supervisor, told the Board she had calculated Rickman's retirement benefit to be $1,069.19 per month. Mike Mitchell raised the question of Rickman's gun. Roberts said the Board's past practice has been to give retiring officers their gun if they had served twenty years. It was agreed Rickman would be given his gun. Hoyt asked if City Board members were openly criticizing actions of the Police Pension Board. Linebaugh said he didn't think City Board members were openly criticizing. He said David Preston was retired by the Police Pension Board on a medical (psychiatric) disability and he was subsequently hired by Washington County as a sheriff's deputy. Mitchell said he thought • • Police Pension Board Minutes March 8, 1988 Page 5 it was a problem for Washington County. Hoyt said he would hate to see the criticism the City of Fayetteville would take if it rehired an officer who some other doctor certified as okay and the officer later caused problems. Roberts commented that, at the time Preston was retired, a current City Board member was a member of the Police Pension Board and was in favor of the retirement. Dr. Mashburn commented that, if the City retires an officer who is certified as medically disabled, and someone else hires him, it's not the City's liability if anything goes wrong with that officer. Linebaugh said he thought the criticism was more directed towards Washington County but concern was expressed that the Police Pension Board be sure it is not retiring anyone for medical reasons who is not totally disabled. INVESTMENT REPORT Roberts reported that the Board's of March 4 is worth $461,625. He Lynch as of March 8 is worth $449 ADJOURNMENT $500,000 investment with A.G. Edwards as said the $500,000 investment with Merrill - ,541. With no further business before the Board, the meeting adjourned at 5:00 p.m.