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HomeMy WebLinkAbout1994-10-19 - Agendas - Final FAYETTEVI LLE *E CIT/ OF FAYETTEVILLE, ARKANSAS TRACI PAUL, CITY CLERK TO : Polimen ' s Pension Board Members FROM : Traci Paul , City Clerk TP DATE : October 19 , 1994 SUBJECT : Next Meeting Attached is a copy of the minutes from the July 21 , 1994 , meeting and an agenda for the next meeting . The next meeting will be on Thursday , October 27 , 1994 , at 2 : 30 p . m . , in room 326 of City Hall . • Attachment c : Mayor Fred Hanna Glyndon Bunton Eldon Roberts Dr . James Mashburn Clint Hutchens Jerry Friend Hollis Spencer 113WESTMOUNTAIN 72701 501575.8323 AGENDA POLICEMEN ' S PENSION AND RELIEF BOARD October 27 , 1994 2 : 30 p . m . City Hall Room 326 1 . Approval of the minutes of the July 21 , 1994 meeting 2 . Old Business 3 . New Business A . ELAINE I.AO " (:rE1? B. MjKE: KIIZKLgn1D 4 . Adjournment 5 MINUTES OF A POLICE PENSION , BOARD MEETING A meeting of the Police Pension Board was held on July 21 , 1994 , at 2 : 30 p . m . in Room 326 of the City Administration Building , 113 W . Mountain , Fayetteville , Arkansas , PRESENT : Eldon Roberts , Jerry Friend , Hollis Spencer , Clint Hutchens , Dr , James Mashburn , Mayor Fred Hanna , Deputy City Clerk Lois Day , City Treasurer Glyndon Bunton , and Administrative Services Director Ben Mayes . ABSENT : City Clerk Sherry Thomas CALL TO ORDER The meeting was called to order by Mayor Hanna , MINUTES Roberts stated the Mayor called the meeting to order and not him . With this change , Roberts , seconded by Mashburn , made a motion to approve the minutes . The motion passed unanimously . OLD BUSINESS • ELECTIONS Roberts stated Jerry Friend was reelected for a two year term , May of 1996 , to the Pension Board . NEW BUSINESS LONGER INVESTMENTS REPORT Longer stated the interest rates on short term maturities have been going up . Part of the reason is because the Federal Reserve keeps tightening credit . This keeps applying pressure to the stock market on the favorable side of the market . With interest rates rising , we have been keeping cash reserves to be able to take advantage of that . We have added quite a bit on the income side of the portfolio , and have built in a lot of flexibility . The overall income yield on the portfolio is about 4 . 6% on market value and about 4 . 75 % on book value . Government notes and bonds make up about 40% of the portfolio . The stock portfolio report shows about 73 % of it is in equities . We have purchased 2 and 3 year treasuries that are easily convertible to cash . The overall market value of the stock part of • the portfolio is $1 . 906 million with a yield of 3 . 4 % on the market value . The S &P yield for the same time was 2 . 4 $ . July 21 , 1994 • Longer stated the stock portfolio consists of 14 . 28 in large capital growth stocks and 16 . 48 in small capital growth stocks . Corporate bonds represent about 318 of the total bond portfolio . Treasuries represent . about 578 , and the average yield is 6 . 88 on market value . The weighted average maturity of this bond portfolio is about 6 . 8 years . The bond portfolio is down about 4 . 18 . But , the interest is still coming in . The stock account is down 6 . 78 year to date , and the bonds are down 4 . 18 . The combined account is off 5 . 6 $ on market value . The income brought in during the rest of the year will help offset that decline . The account is still having a positive return of 4 . 68 . There are about $85 , 000 of realized gains . The S &P 500 is off about 2 . 78 , and the over the counter index is down about 7 . 48 . From inception to date , the equity account is 39 . 28 , with an average annual return of 9 . 88 . The bonds have had an annual return of about 9 . 98 . The total account is about a 32 . 28 , with an average annual return of 8 . 08 . These figures are net of all expenses . About 548 of the total portfolio on the equity side is small to medium capitalization companies . • Bunton stated he had heard concrete was being rationed . He asked if there were any investments in that market . Longer stated she did not believe there were any in this portfolio . The total portfolio annual income is $ 140 , 137 , or 4 . 68 . The cash flow for the account has improved . The management fees year to date have been $ 15 , 519 . 36 , custody fees have been $2 , 818 . 50 , commissions are $8 , 270 . 72 making a total expense of $26 , 608 . 72 . She stated earnings growth have been great this year . Volatility will continue in the bond market until the Federal Reserve tightening loosens . She stated the dollar decline is inflationary . Dr . Mashburn stated he understood as long as the fund was getting a 5 -68 return , the fundwould be financially sound . So he feels the fund is earning sufficiently . Longer stated that was correct if you only want to meet your expectations . However , if you want to try and get more money for the retirees , investments need to be made to earn greater than that required . Ben Mayes stated the account was at 488 funded , and it is supposed to be 558 as of December 31 , 1993 . The actuarial allowed 758 of • the market value to be used instead of cost . July 21 , 1994 Friend asked if the law that stated the pension funds could not invest in companies doing business in South African has been changed . Longer stated she was not aware of any change . However , this is not causing any problems at this time . Mayes stated there was a new Investment Advisor Agreement that needs to be signed . Friend , seconded by Bunton , made a motion to authorize the Mayor to sign this agreement . The motion passed unanimously . DEAN WITTER INVESTMENT REPORT Mike Kirkland stated the cash account has $92 , 151 in the money fund . There is $ 180 , 000 in CD ' s earning 8 . 025% . The S&P 500 is down about 3 . 4 % for the year . The portfolio is down about 43 . So , it is doing about the same as the markets . He stated there are a lot of good companies in the portfolio . Several of them are more growth oriented companies . The TCW account is valued at $ 1 , 503 , 964 . Roberts asked Kirkland to check into the law regarding investments in South African affiliated stocks . • Kirkland stated they feel short term interest rates will go higher . They feel this will be a positive to the stock market . Kirkland stated the Madison account is down 1 . 2 % for the year . There have been three consecutive down markets in the bond market . This has not happened in quite a while . However , the other comparable indices are down 2 -3 -4 times more . So , they feel Madison ' s strategies have worked to keep the decline less than the norm this quarter . Kirkland stated he feels they have done a pretty good job holding the values . Regarding inflation , it is thought interest rates going up will help this . The longest maturity Madison has is 10 years . The average maturity on the portfolio is about 3 -4 years , so it is pretty conservative duration wise . ACTUARY REPORT Mayes stated the actuary report states the fund is at 48 % sound , and it is supposed to be 55 % sound . Roberts stated the fund is actually losing ground because in 1991 , the fund was only 4 % away from the required percentage . He asked what has contributed to make the fund go down hill . • Mayes stated the active member contribution is declining . There v C i July 21 , 1994 w, are more retirees . And third , the valuation of assets has increased significantly over the last two years , but the fund ' s actuarial liability has gone up . Dr . Mashburn asked how many active people were contributing . Roberts stated there are 16 active police employees on this plan . Dr . Mashburn stated he feels the pension board should just continue as is with the investments that it currently has and ride out the storm . Mayor Hanna stated if the pension _ funds get into a real jam , he feels the citizens would vote to increase the millage allocation to the police and fire pension funds . He feels the City has a place in the tax structure , and the schools are asking for 4 mills at this election . He feels this request by the school will set a precedent by special interest groups to get a millage increase election before the people . ADJOURNMENT The meeting adjourned at 4 : 27 p . m . • z y • October 14 , 1994 Board of Trustees Police Pension & Relief Fund Fayetteville , Arkansas 72701 Dear Members ; Recently I discovered that I should be entitled to additional benefits e regards to t_ hc pension that I ' m currently receiving . from the rolice Pension by buying two y _ ars of my military time ( USMC from May 60 to May 64 ; DD- 214 included ) . This is reference Arkansas Code 24 - 11 - 418 ( as amended in 1991 ) particular ( 3 ) ( B ) . I began career with the Fayetteville Police Department June 19 , 1967 and was a member of the local Police Pension until my retirement on January 29 , 1986 ( a total of 18 years and 7 months ) . In addition I purchased ( as required by the Police Pension Board of Trustees ) 1 year and 5 months of deputy sheriff ' s time . This constitutes " participation into the system for at least twenty years " . itrequest the Police Pension Board of Trustees determine that I do in fact qualify as having twenty years participation ; what my eligibility date should be ( 6 - 19 - 87 ; the date I would have had twenty years under the system or 7 - 13 - 91 ; the date amended Arkansas Code 24 - 11 - 418 became effective ) ; what my cost to buy the military time would be ; and the amount I would receive from the pension system . I do appreciate your consideration and efforts reference this matter and am eagerly awaiting your reply . Si cerelyy,�, err S"u �ies 303 Sandra Fayetteville , AR 72704 LLCIND: larn N/A to the iuwr WIm,e WMA r« ear .,jeNhee L LASTRNAME - FIRST NAME - MIDDLE NAME 2. SERVICENUMBER 3.. GRADE. RATE OR RANK b. DATE OF RANK INR, M«A. SURLES Jer Otho 1 201 Veer) DEPARTMENT. COMPONENT AND S. PLACE OF BIRTH ICi1rad 03 w C C 1 BRANCH OR CLASS °yaRS•) DAY MONTH YEAR US Ja r{An T] c C/ T DATE 4fRIM LdVwL1rM Pocahontas Randol Arkansas Barth 7 .. RACE b. SEX ,- COLORHAIR d. OLOREYES r. HEIGHT ). WEIGHT S. U.S. CITIZEN 9. MARITALSTATUS Cauc Male Brown Brown n 1 ®YES pryo sa n .l @ 10a HIGHEST CIVILIAN EDUCATION LEVEL It, MAJOR COURSE OR FIELD �"6+ ATTAINED r Aced 11 • TYPE OF TRANSFER OR DISCHARGE b. STATION OR INSTALLATION AT WHICH EFFECTED oa 2.1ARII� CORPS RESER Carl e jeune , C a REASON AND AUTHORITY vt the 202 Expiration Of. F Lj st1I=t aEFFEC DAY MONTH YEAR Para a h 1 2 $ b CORPER9MAN TIVEDATE 30 May 64 abf, 12. LAST DUTY ASSIGNMENT ANO MAJOR COMMAND HO�_,y ar M 1ya CHApACTER OF SERVICE ' b. TypE OF CERTIFICATE g 2dBn 10thMer 2dMarDiv FIS' CamLewUN C. ISSUED HONORABLE D 1<. SELECTIVE SERVICE NUMBER IS. SELECTIVE SEpVICE LOCAL BOARD NUMBER, CITY, COUNTY-.AND STATE IS. DATEINDUCTED = �< 7 - - -'¢ DAY MONTH YEAR y ;`< N AP tic ble Not Available N ',MO 1]. DISTRICT OR AREA COMMAND TO WHICH RESERVIST TRANSFERRED N(Th. ATTT {Lr ]•e 8th Marine Cor s Reserve and Recruitment District IS. TERM INAL DATE OF IB. CURRENT AC TIVESERVICEOTHER THAN BY INDUCTION RESERVE OBLIGATION r, SOURCE OFENTRY \ TERM OF r DAY MONTH YEAp [� SERVICE DATC OF ENTRY i 1� yy ENLISTEDIIbA /MIepM) Q ENLISTED(F 3aale ) O REENLISTEP (Trrr) DAY - MONTH YEAR 0 1'la 66 0 OTHER: 20. PRIOR REGUUR ENl15TYFNTS 21. GRADE RATE OR RANK AT TIME OF 22. PLACEOF ENTRY INTOCURgENT ACTIVE SERV CE (Cy�i.VbY.u; None ENTRY INTO CURRENT ACTIVE SERV IC Private E-1 ) Little Rock, Pulaski Arkansas 23. HOME OF RECORD AT TIME OF ENTRY INTO ACTIVE SERVICE (StI MD, Cy, Crary III Suu) y���.yy JJ((�� .,}., .y 24. STATEMENT OF SERV ICE YEARS MONTHS DAYS AWLLU@77!„ Pocahontas a ( 1 ) NETSERVICE THIS PERIOD 0 M ry� Ran h Ar CREDITABLE 00 00 +66lldUM h D Arkansas RELATED EOPP ABASIC (2) OTHER SERVICE � - 00 00 27 a SPECIALTY NUMBER AND \ RELATED CIVILIAN OCCUPATION W TITLE AND D. 0. T. NUMBER L, PURPOSES ( 3 )TOTAL IUar 111_+Oar (ill 0 00 00 . 0-61820 \ TOTAL ACTIVE OSRVICE 0 .OD 00 . 1 Flditad r Dia tcher Radio a FOREIGNAND/ORSEASERVICE OZ O 1 B. OECOgATIONS, MEDALS. BAOGfiS, COMMENDATONS• CITATIONS AND CAMPAIGN RIBBONS AWARDED OR AUTSIORIZED Good Conduct Medal (1st Award) SharpeShooters Rifle Marksmanship Badge, Markeman Pistol Marksmanship Badge 27. WOUNDS RECEIVED AS A RESULT OF ACTION WITH ENEMY FORCES IPlrer rad drr V Yaul,•1 ' None 20. SERVICE SCHOOLS OR COLLEGES. COLLEGE TRAINING COURSES AMO/OR SCHOOL OR COURSE POST-CIMOUATE COURSES SUCCESSFULLY COMPLETED 20. OTHER SERVICE TRAINING DATES (TII Ts) MAJOR COURSES COURSES SUCCESSFULLY bIt - - COMPLETED DivScol CamPea 6Jan61-SFebbl bul - F1dR,adOprCrs F1dRadEquipment Ip V1. 30 a GOVERNMENT LIFE INSURANCE IN FORCE \ AMOUNT OF ALLOTMENT a MONTH ALLOTMENT G []YES ENID DISCONTINUED Not A cable Not A cable SI VA BENEFIT6 PREVIOUSLY APPLI fiOFOR MpI qp) A No ne VA CLAIM NUMBER of A licable 32. REMARK6 Recommended For Reenlistment Lump-Sum Leave Settlement for 5 Days Q Social Security Number 4291111,70. 84.71 S Good Conduct Medal Period Commences 301fay63 Time lost Current Tour Of Active Duty None i < 33. PERMANENT ADDRESS FOR AILING PURPOSESAFTER TRANSFER OR {, GNATURE OF PERSO EING TRAN F REO DISCHARGED DISCHARGE (SI«N, MD. C1ry,C«MS aad Sl:u) RouteJ{2 Poca o t a Randol h Arkansas 54 TYPED NAME, GRADE ANO TITLE OF AUTHORIZING OFFICER G F ICER AU 12 SIGN He At FURTADO Ca DFORM 2 REPLACES EOITION OF I JUL a2, ARMED FORCES OF T E UNITED STATES 1 NOV $3 14 WHICH IS OBSOLETE, REPORT OF TRANSFER OR DISCHARGE i — - d 24-11-418. Credited service — Purchase for military service by past or present members generally. 'R (a) Any person who is or was a member of the policemen's pension and relief fund, as established by this subchapter, and who was not • receiving benefits under the system on June 17, 1981, shall be entitled to purchase credited service in the system for a period not to exceed two (2) years for service rendered by the member while on active duty in the armed forces of the United States prior to the member's employ- ment covered by the policemen's pension and relief fund, as established by this subchapter, but only if: (1) The person received an honorable discharge from the armed forces; (2) He is not receiving federal military service retirement pay based upon nineteen (19) or more years of active duty; however, disability . federal retirement pay shall not disqualify a member from purchasing credit; and (3) He does one of the following: (A) If he has participated in the policemen's pension and relief fund for at least eighteen (18) years, he contributes to the member's deposit account a sum of money equal to the amount of the combined t employee and employer contribution made by or on behalf of the 3 member to the system based upon the contributions for the last month of the employee's eighteenth year of service, multiplied by the . . .number of months of military service the member is eligible for. and desires to purchase under this section with interest thereon at the rate of six percent (6%) per annum from the date of eligibility to d. .; purchase the service to the date of purchase; or i. (E) If he has participated in the policemen's pension and relief a fund for at least twenty (20) years, he contributes to the member's 3, deposit account a sum of money equal to the amount of the combined employee and employer contribution made by or on behalf of the member to the system based upon contributions at the time he first became a member of the retirement system, multiplied by the num- her of months of military service the member is eligible for and desires to purchase under this section with interest thereon at the rate of six percent (6%) per annum from the date of eligibility to purchase the service to the date of purchase. I (b) A member , who purchases credited service in the system as au- thorized in this section shall not be entitled to receive retirement bene- fits under the system until the date on which he or she has twenty (20) years of actual service under the system or would have had twenty (20) years of actual service under the system if the member had continued his or her employment. (c) When a member purchases credited service as authorized in this I section and terminates employment before his or her twentieth anni- versary as a member of the system, that portion of the insurance pre- mium tax returned to the employing city for credit to policeman pen- sion funds which was previously credited to the policemen's pension and relief fund for the position held by the member shall continue to be credited to that fund until the date on which the member would have been a member of the system for twenty (20) years had he or she continued employment. I • History. Acts 1981, No. 514, § 1; Amendments. The 1991 amendment I A.S.A. 1947, § 19-1828; Acts 1987, No. rewrote (a)(3) and deleted former (a)(4). 811, § 1; 1991, No. 371, § 1.