HomeMy WebLinkAbout1995-08-09 MinutesMINUTES OF A POLICE PENSION BOARD MEETING
A special meeting of the Police Pension Board was held on August
9, 1995, at 2:30 p.m. in room 326 of the City Administration
Building, 113 West Mountain, Fayetteville, Arkansas.
PRESENT: Mayor Fred Hanna, Eldon Roberts, Randy Bradley, Hollis
Spencer, Dr. James Mashburn, City Clerk/Treasurer Traci
Paul, and Administrative Services Director Ben Mayes.
ABSENT: Jerry Friend
CALL TO ORDER
The meeting was called to order by Mayor Hanna.
BENEFIT INCREASES
Roberts explained that in a letter from the Pension Review Board,
the Fayetteville pension fund is noted as being eligible for
benefit increases.
Roberts stated the Pension Review Board changed the definition of
actuarial soundness, which made Fayetteville's fund actuarially
sound. Act 1197 of 1993 required everyone on the pension plan to
draw a minimum of $350 once the pension plan was actuarially
sound. Nine people are eligible for an increase. An additional
• $681.72 will be paid out per month.
Mashburn, seconded by Spencer, made a motion to increase the
minimum benefit amount to $350 per month effective August 1,
1995. The motion passed unanimously.
The Board discussed possible future benefit increases. Roberts
stated it would cost approximately $40,400 per year to raise
everyone to 55% of salary. Any benefit increase would have to be
approved by the actuary. If the plan cannot support the
requested increase, it will be denied.
PHYSICIAN MEMBER ELECTION
Mayor Hanna stated Dr. Mashburn was the only applicant for the
physician position on the Board.
In answer to a question from Mayor Hanna, Paul stated the
appointment does not have to be approved by the City Council.
The other members of the Pension Board elect the physician
member.
Spencer, seconded by Roberts, made a motion to re -appoint Dr.
Mashburn to serve another two year term on the Pension Board.
The motion passed unanimously.
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Mashburn explained that he feels privileged to serve on the
Pension Board.
OTHER BUSINESS
GUARANTEE FUND
Paul explained that she received a letter in the mail regarding a
guarantee fund.
Roberts stated the State has set aside $3 million to help finance
plans that are insolvent. A form is being mailed to every police
and fire pension system in the state. Cities are not qualified
for the funds if they are not collecting one full mill.
Fayetteville does not qualify.
ADJOURNMENT
The meeting adjourned at 3:15 p.m.