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HomeMy WebLinkAbout1998-10-29 MinutesMINUTES OF • POLICE PENSION BOARD • A meeting of the Fayetteville Police Pension and Relief Board was held on Thursday, October 29, 1998, at 1:00 p.m. in Room 326 of the City Administration Building, 113 W. Mountain, Fayetteville, Arkansas PRESENT: Eldon Roberts, Dr. James Mashburn, Randy Bradley, Jerry Friend, Hollis Spencer, Marilyn Cramcr (Accounting), and M.D. (for City Clerk/Treasurer Heather Woodruff). CONSENT AGENDA Approval of Minutes from September 18, 1998, meeting - Eldon Roberts noted a correction to be made under the section titled, "To Add Increased Benefits To The Next Check". In every instance where "Merrill Lynch" occurs, it should be changed to read, "the actuarial firm in Little Rock which holds the state contract". A motion was made by Jerry Friend to approve the Minutes as amended. The motion was approved by Hollis Spencer. Upon roll call the motion carried unanimously. The Pension List was approved. OLD BUSINESS Eldon Roberts stated that he had had some pressure from employees to adopt the DROP PLAN, but he had some reservations about it. Only 12 actives would be able to benefit from it. He commented that the Fire Dept Pension Plan has adopted it and proceded to discuss the pros and cons of their experiences with it. Spencer Hollis stated that he had heard it adversely affects the pension plan. Mr. Roberts said he could contact Kathryn Henshaw and ask her to point out the negatives and positives of the plan. There was some concern that some cost might be incurred if a detailed, written response was requested. Mr. Roberts stated that he would attempt to get the information at no cost. It was determined that more information was needed before the DROP PLAN could be acted upon. A motion was made by Randy Bradley that Mr. Roberts write a letter to the actuaries in Little Rock, asking for an actuarial opinion with a written explanation, in simple terms, of the pros and cons of the DROP PLAN The motion was seconded by Dr. Mashburn. Upon roll the ' motion carried unopposed. Mr. Roberts agreed to request the information and present it at the next Board meeting or as soon thereafter as it is available. • • Marilyn Cramer requested that, if the Board decides to adopt the DROP PLAN, she and her staff be able to review it before the decision is finalized. She would like to investigate the tax implications. Mr. Roberts assured her that she would be notified. NEW BUSINESS Elaine Longer and Kim Cooper from Longer Investments Inc. were present to provide a Police Pension Fund investment report. Ms. Longer commented that restructuring of the Police Fund portfolio was 75% complete. She also discussed various stock companies which_had been selected for investment. Ms. Cooper contrasted the management fees of this company with those of other investment management company fees. Ms. Longer and Ms Cooper presented a detailed review of the investment portfolio. They distributed printed documentation of the details provided in their report. Mr. Roberts inquired if the tax millage funds had reached the investment pot. He continued that Kevin Crosson might know. • Ms. Longer responded that they have not received it and have also not received the state insurance turnback funds. • Mr. Roberts expressed concern that an excessive amount of money was being held in City accounts and was not realizing the earnings it could if placed in the proper investment accounts. This was followed by extensive discussion of how the matter should be handled to achieve the greatest possible earnings and still not place the monthly retirement checks at risk for insufficient funds. A number of suggestions were debated before a plan of action was agreed upon. Ms. Longer assured the Board that, should the City fund fall short at any time, a transfer of funds could be made from Longer Investments on a same day or next day basis. Jerry Friend made a motion that Longer Investments contact the City and arrange for an immediate transfer of funds in excess of $100,000.00 to the investment account, and on the 15th day of each following month, amounts in excess of $100,000.00 would be automatically swept into the investment account. The motion was seconded by Hollis Spencer. Upon roll the motion carried unopposed. Elaine Longer stated that her "contact" in the City Accounting Department is Emma Badgley. She agreed to contact Ms. Badgley to establish a procedure to accomplish this. The meeting adjourned at 2:20 p.m.