HomeMy WebLinkAbout1995-05-10 Minutes•
MINUTES OF A POLICE PENSION BOARD MEETING
A special meeting of the Police Pension Board was held on May 10,
1995, at 2:30 p.m. in room 313 of the City Administration
Building, 113 West Mountain, Fayetteville, Arkansas.
PRESENT: Mayor Fred Hanna, Eldon Roberts, Randy Bradley, Hollis
Spencer, Jerry Friend, Dr. James Mashburn, City
Clerk/Treasurer Traci Paul, and Administrative Services
Director Ben Mayes.
CALL TO ORDER
The meeting was called to order by Eldon Roberts.
GERALD BRADLEY RETIREMENT
Roberts explained that. Assistant Police Chief Gerald Bradley will
be retiring voluntarily and has submitted his application for
pension purposes. Roberts stated the application has been
reviewed and has been found to be fair and accurate. Bradley has
been in the Department 22 years and has purchased two years of
military time. The military time will increase his benefit by
$40.00 a month. Bradley's total retirement benefit is $2,345.47
per month.
Board members discussed their appreciation for Bradley's
dedication and loyalty.
Mashburn arrived.
Roberts restated the details of Bradley's retirement.
Mashburn, seconded by Hollis, made a motion to retire Gerald
Bradley with appreciation and a special thank you from the Board.
The motion passed unanimously.
PENSION BENEFITS
Roberts distributed a list of monthly benefits. The pension
benefits total $410,692 per year. Currently, there are 44
retired members and 15 active members on the old plan.
Mashburn expressed concern that some of the older members of the
plan were not receiving very much money compared to recently
retired members.
Bradley asked if the lower amounts had been raised once.
Roberts stated that the minimum was raised to $250.00.
Mashburn asked if there was a chance for another raise in the
future.
May 10, 1995
Roberts explained that he attended a pension board meeting in
Little Rock. Roberts stated the pension board in Little Rock
asked the actuary if the actuarial soundness term could be looked
at and redefined. A board rule was passed in 1985 that spells
out the requirements to meet actuarial soundness. Because of a
recent change in the law regarding insurance turnback money,
there is an additional source of income that should be
considered.
The actuary has reviewed the information and has come up with a
new method. Under the new method, the two police plans that
would become actuarial sound are Fayetteville and Russellville.
There is a public meeting scheduled for July 18 to allow for
discussion on changing the board rule. There will also be a
Pension Review Board meeting to possibly adopt the new actuarial
soundness definition.
Act 1197, passed in 1993, raised the monthly payment on actuarial
sound police and fire pension plans to a minimum of $350.00. As
soon as Fayetteville's plan becomes actuarial sound, each person
who receives less than 350.00 will need a benefit raise. Raising
benefits to $350.00 will cost $681.72 per month. Then the Board
can discuss a possible benefit increase for all the retired
people. A benefit increase would need to go through the board in
Little Rock and would be reviewed by the actuary.
The Board discussed the issue and decided that the information
should not be forwarded to retirees. Mashburn stated an
announcement should be made only after a decision has been made.
Mayor Hanna pointed out that the people receiving below $350.00
have been collecting it a very long time. Their benefits were
paid as a percentage of a much smaller salary.
Spencer explained that he will have been drawing his small
pension amount for 20 years in July.
Mayor Hanna suggested, if the opportunity presents itself,
giving each person a one or two percent increase rather than
bringing each person up to a certain amount.
Roberts stated benefit increases are always a percent of salary.
In answer to a question from Mayor Hanna, Roberts stated the half
mill that goes to retirement plans goes to the old plan.
The Board discussed possible future benefit increases and the
amount of caution that must be taken before increases are
requested.
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May 10, 1995
Mayor Hanna suggested the Board review, at the next meeting, how
much money is received from the half mill and the amount of money
made from investments in the past five years.
Friend arrived.
In answer to a question from Mayor Hanna, Roberts stated there
are 15 active employees on the plan.
Roberts suggested the Board give benefit increases as soon as it
is safe to do so. He stated the plan should not have millions of
dollars in it when there are only two people left on the plan.
Friend expressed concern about the benefit rules for first and
second wives.
ADJOURNMENT
The meeting adjourned at approximately 3:'15 p.m.