Loading...
HomeMy WebLinkAbout1989-01-19 Minutes• MINUTES OF A QUARTERLY MEETING OF THE FAYETTEVILLE POLICE PENSION & RELIEF FUND BOARD OF TRUSTEES A quarterly meeting of the Police Pension and Relief Fund Board was held on Thursday, January 19, 1989 at 2:00 p.m. in Room 326 of City Hall. PRESENT: Members: Chairman Pennington, Treasurer Linebaugh, Eldon Roberts, Hollis Spencer, Rick Hoyt, and James Mashburn. Others: Suzanne McWethy, City Clerk and Mike Kirkland of Shearson -Lehman ABSENT: Jerry Friend The meeting was called to order by the Chairman with six members present. MINUTES It was moved, seconded and unanimous to approve the Minutes of the November 7, 1988 meeting. It was moved seconded and unanimous to approve the Minutes of the October 20, 1988 meeting. NEW BUSINESS Michael Kirkland, speaking on behalf of Shearson Lehman Brothers, reported that Oppenheimer Capital (Money Manager) received approvai.-to.trade the account as of Monday. He said the value as of that date was $2,252,516.04. He said Oppenheimer had made some trades today and the Board would get confirmations on those trades. In answer to a question from Dr. Mashburn, Kirkland said no new investments had been made yet. Kirkland reported to the Board on some of the details regarding the transfer of the accounts from A. G. Edwards and Merrill Lynch. Kirkland said the equities were probably up $5,000 in the last three or four days. He said copies of the monthly statements would be sent to every Board member. Linebaugh said he had asked Kirkland to give the Board a comparison of RNC to Oppenheimer for the benefit of the Fire Pension Board. Kirkland, referring to a ten-year scattergram of balanced managers, said Oppenheimer was No. 2 and RNC was No. 3. He said, however, that RNC took about twice as much risk to achieve about the same amount of return. Referring to a five-year scattergram of balanced managers, Oppenheimer was No. 2 and RNC was No. 6, again taking more risk for less return. Referring to a 10 -year scattergram of equity managers, Oppenheimer was No. 1 and RNC was No. 2, again taking more risk than the S&P for less return. He said on a five-year scattergram of equity managers, Oppenheimer was No. 1 and RNC was No. 5. Linebaugh said the reason he asked Kirkland to get those reports was because at Fire Pension Board meetings for the last four of five months requests have been of Merrill Lynch and RNC to provide scattergrams and they had not done so. te *it OTHER BUSINESS Eldon Roberts reported that Chief Watson, Captain Foster and himself were all eligible to ro*'re, but that no requests for retirement have been made. Linebaugh reported we had received the actuarial valuation. He said the unfunded liabilities have gotten worse. He said we were making improvements even though unfunded liabilities are going up. He said the report shows we went from having assets of $979,000 up to $3,300,000 in a ten-year period. He said we were $80- 90,000 per year away from being actuarily sound. Linebaugh said if the State law changes or additional contributions can be received from the City the fund will be in good shape. He said there was a Bill pending which would allow cities to contributed more than employees. Mashburn said if the fund becomes actuarily sound he would like to see some benefit increases for those who have had no cost -of -living increase over all these years. Roberts said there was a Bill being presented by an association of retired police officers which would require all police officers retiring to receive at least 50% of what the newest patrolman earns. He said in our pension plan it would increase our payout by $43,000 per year, if the Bill passed. He said increases would be assured every year as new patrolmen's salaries went up. ADJOURNMENT There being no further business, the meeting adjourned at 2:45 p.m.