HomeMy WebLinkAbout1999-04-15 - Agendas - Final i
' FAYETTEVILLE
THE CITY OF FAYETTEVILLE, ARKANSAS
POLICE PENSION AGENDA
APRIL 15, 1999
A meeting of the Fayetteville Police Pension And Relief Board will be held on Thursday, April
15, 1999 at 1 :00 p.m. in room 326 of the City Administration Building.
The following items will be discussed:
1 . Approval of the minutes from February 4, 1999.
2. Approval of the Pension List.
3 . Approval of Kenneth Martin' s application for Pension.
• 4. Old Business
5 . Investment report.
6. Other Business.
113 WEST MOUNTAIN 72701 501521-7700
FAX 501575-8257
•y
• MINUTES OF
POLICE PENSION AND RELIEF FUND
MEETING
JANUARY 21, 1999
A meeting of the Police Pension and Relief Fund Board was held on January 21 , 1999 at 1 :00
p.m. in room 326 of the City Administration Building, 113 West Mountain Street, Fayetteville,
Arkansas.
PRESENT: Randy Bradley, Dr. Mashburn, Hollis Spencer, Eldon Roberts, Jerry Friend, Mayor
Hanna, and City Clerk Heather Woodruff
MINUTES
Mr. Spencer moved to approve the minutes of the last pension meeting. Dr. Mashburn seconded
the motion. Upon roll the motion carried unanimously.
PENSION LIST
Dr. Mashburn moved to approve the pension. Mr. Spencer seconded the motion. Upon roll call
the motion carried unanimously.
OLD BUSINESS
Mayor Hanna stated in the last meeting they had discussed the potential of implementing the
DROP Plan. He asked if they had received any additional information.
Mr. Roberts stated he had written a letter on November 4, 1998 and mailed to the actuary in
Little Rock asking them to explain how the DROP Plan would affect them, but he had not
received a reply.
Mayor Hanna stated the item would be left on the table, until they had received more
information.
•
• NEW BUSINESS
FUNERAL BENEFITS FOR DWAYNE STOUT
In response from questions, Mr. Roberts stated the benefits were $200.
Mr. Friend moved to pay Ms. Stout $200 in funeral benefits. Mr. Roberts seconded the motion.
Upon roll call the motion carried unanimously.
BENEFIT INCREASE PROPOSAL
Mr. Roberts stated the Funds balance at the end of the year was approximately $ 10,088,576.06
for 1998 the year end total for 1997 had been $9,126,448.56. They had earned nearly one million
dollars this year. He added he was in favor of proposing another benefit increase. He asked the
other members opinion.
Mr. Bradley asked if the actuary used the same figure for two year.
Mr. Roberts thought the actuaries would use the last year end figures in their calculations.
Mr. Spencer thought if the money was there, then they need to ask for it.
• In response to questions from Dr. Mashburn, Mr. Roberts stated the retirees were drawing 55%
with the exception of officers which were drawing in excess of 100% of salary and widows.
Dr. Mashburn asked if the 10 million year end, figure would be the one used in the calculations.
Mr. Roberts moved to apply for a 65% or 60% benefit increase with the exception of spouses and
retiree drawing more than 100% of their salary; contingent on the method of calculation.
Dr. Mashburn questioned why they did not include spouses.
Mr. Roberts explained when they applied for their last benefit increase they had several options.
They had opted to leave the spouse out because it would cost the fund less and they would have a
better chance of getting the benefit increase through. The spouses had received several raises in
the past. Mr. Friend seconded the motion.
Dr. Mashburn clarified that they were only voting to apply for a benefit increase.
Mr. Roberts stated he would call to see if they would use the new year end figure to calculate,
before they sent their request in.
Upon roll the motion carried unanimously.
• 2
r_
S yL
FINANCIAL REPORT
Ms. Elaine Longer gave of summary of the accounts. She stated they had purchased some large
cap stocks AT&T, Compact, Disney, and Lowes. She added the bonds in the fund needed to stay
as bonds. The funds largest holdings were TYCO, AT&T, and Mobil, which had been acquired
by Exxon.
She discussed the breakdown of the portfolio and their plans for the coming year.
Meeting adjourned at 2 :00 p.m.
Post-it® Fax Note 7671 Date # of 0.
To
From S
" GoJDept. co i rr
21
Phone If -f Paxhone # S 8'32 I
Fax # 4q 4j _ � /G Fax T
. POLICE PENSION AND RELIEF FUND
MINUTES
FEBRUARY 4, 1999
A special Police Pension and Relief Fund Board meeting was held at 1 :00 p.m. on February 4,
1999, in the City Administration Building located at 113 West Mountain Street, Fayetteville,
Arkansas.
PRESENT: Mayor Hanna, Eldon Roberts, Hollis Spencer, Dr. Mashburn, Randy Bradley, and
Heather Woodruff.
ABSENT: Jerry Friend
Mayor Hanna called the meeting to order. He stated the only business on the agenda was a
resolution authorizing the expenditure of $ 1 ,825.00 to the Arkansas Local Police and Fire
Pension Fund for a Cash Flow Projection Evaluation to be conducted on the Police Pension
Fund.
Mr. Eldon Roberts stated the board had authorized to send a benefit increase proposal to Little
Rock. He suggested the board apply for a benefit increase, using the cash flow projection
evaluation method. He had been assured that the actuary would use year end numbers for 1998
to use in this calculation. He explained using this method, the Pension Board would not decide
• what the increase would be. In this study the review board would tell the board what the pension
plan could withstand. The board would then have the option to grant less than the recommended
amount. He reiterated the benefit increase would be non-spousal and would exclude any
members receiving more than 100% of salary.
Mayor Hanna read the resolution.
Mr. Spencer moved to approve the resolution. Dr. Mashburn seconded the motion. Upon roll
call the motion carried unanimously.
Meeting adjourned at 1 :20 p.m.
e.
• y APPLICATION FOR PENSION PURPOSES E c r
DATE_ 3 - 15 - 19 MAR 16 1999
Board of Trustees
Police Pension and Relief Fund
Fayetteville , Arkansas
Gentlemen : / l
it zd, 1AIEts� �ajQ�>N have been employed by the Police Department of
the city of Fayetteville , Arkansas from
I hereby request all of the benefits'" due me from the police Pension and
Relief Fund as of
My beneficiary is A441JF_ �L�/Wdj2t"W
My reasons for retirement are �!1/I7{Q��tf� j3y�d745l&UyielC l3/rlo�/fl /Y/i�. �SfPy�CF ,
Signature
orn to before me this _ U day of Tn
1n U B G Notary Public 0� _I n 2 �I` qew
� � i • \ aOCJ�
My cbi[uris38r ,ecpires : , day of
r:°
City Treasurer ' s Office
The monthly salary of the above applicant for pension purposes is :
r $
Computation of Retirement Benefits
o
one-half of applicant ' s salary - - - - - - - - - - - - - - - - - - = - - - - - - - - - - - $
Additional benefits per Arkansas Act 396 of 1987 - - - - - - - - - - - - $
Total Retirement benefits ' - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - $
City Treasurer
Subscribed and sworn to before me this day of , 19_
Notary Public
My commission expires : day of , 19_
General Police Pension
• Date: 03/11 /99
Name: Kenneth Martin
Emp No. 61
f� � C � tl 'v' d �i
DoH : 04/04/77 MAR 16 1999
Yrs Service: 23 F11MCE WIZ
Hourly Rate: 18.402
Hours Base: 2232
Education Pay 600. 0000
Annual Salary 413073. 2640
41 ;673. 2640
55.000%Annual Salary 22,920.2952 ? r
• 1 /12 Monthly Benefit 11910.0246
Rounded to nearest cent 1 , 910.02
MSA Additional Yrs Beyond : 3 w 0
5 Max at: $20. 00 60. 00
Monthly Retirement Benefit ' 1 ;970;02;
Prepared by
ting and A Di ision)
viewed by
( olice Department)
•
Approved by
.s
THIS IS AN IMPORTANT RECORD
SAFEGUARD IT.:
< I. LAST NAMEFUt�SyI �NAMIEJ.II�DDLn NAME 2 SERVICE NUMBER . . . •+: . .
� -4•'•j Ya21T+TC11[3 RAY 1 SOCALiL SEWRlfY N.V�Mq�9yE•R
< 4 54
DEPARTMENT, COMPONENT ANO BRANCH OR CLASS 430 90 —^
���ry }�� T.,�. Sc GRADE RATE OR RANK - DAV MpITH YEAR
O ARM AVS 111E SG GRADE
" &'S RANK 11 Feb 70
). U. S. CITIZEN B. PUCE OF BIRTH JDi a Sb r CbunyYy
® YES Q NO �t3 ` "�' 9 DATE DAY MONTH YEAR
II33L6Lii 3SiI11 /LC NR1
BIRTH 24 1. Q
�Iy lOn SELECTSERVICE
SELECTIVE NUMBER • SELECTIVE SERVICE LOCAL BOARD NUMBER. CITY,.COUNTY. STATE AND ZIP CODE Aug'6
U
DATE wDUCTED
a DAY MONTH YEAR
:]:;1 iFB. 39 IBS 71, & mtain View, AR 72560 Zk P 68 .
d lln TYPE OF TRANSFER OR DISCHARGE I. STATION OR wSTALLATION AT WHICH EFFECTED
O
g Transferred to TSAR ( Seelb ) Fort Hood Texas
" DAY MONTH YEAR
pF: {LJA155�Tpp}p. _ OATCE� 25 �II1
� Zr 13n CHARACTER OF SERVICE \ 70
TYPE OF CEMR ATE ISSUED
<G 14~p5_T-R]L,�IJ1cARW1aF�ilCO^M�1MNV�sD Oa—R CORFSIT�OVWHgH RESERVIST TRANSFERRED H � ' I
Transferred to TSAR Control USAAC St Innis MD 63= _.
16. RHINAL DATE RESERVE/ D. CURRENT ACTIVE SERVICE OTHER THAN BY INW u
VMT69 OBUGKI
ATN TERM OF c
MONTH YEAR S'.%1RCE OF ENTRY: Y�VICE DATE OF IDsFFRV
1 NLISTED Writ B..S.eemq ENLISTED U'rb SN.ir) REENLISTED DAY MONTH YEAR
. � OTHen V11 _ n,
S PRIOR REGULAR ENVSTMENTS 19. GRADE. RATE OR RANK NA
AT TIME OF 20. PLACE OF ENTRY INTO CURRENT ACTIVE SEn Jh;E (O'p Me Ayy) 1W
=NY wT° CURRENT qC ESVC lrJj y� D_ —'_ =moi` FI
H - M littl.Q Rook Arkansas
21. HOME OF RECORD ATTIME OF ENTRY INTO ACTIVE SERVICE
AISewi RD{/A,��G}p�O�mrp,9by.Tui/ IIP Ce�dr[1�(� STATEMENT OF SEtNICE YEARS McF pgyy
3.D0 \^��`^�•e� ALT 7GOiV 4 (1) NET SERVICE THIS PERIODIT
CREDITABLE ' G
PURPOSES Y (2! OTHER SERVICE 0 . . 0 0
2 SPECIALTY NUMB}ERR & TITLE \ REIO. ATNUM NUMBER OCCVPATgN AND S Uin1 Lv
` 131" M W2�' _ ATOTK ACTIVE SERVICE � 2 -i.. .
Itrfantrymaa - 1 - C 0 I 2 c
A FOREIGN AND/OR BEA SERVICE '.�`"$F,11AD� A 1'
M DECORATIONS, MEDALS, BADGES, COMMENDATgNS. CITATIONS AND CAMPggN RIBBONS AWgpDED OR gVMORIZED V {l Ji
29
National Defense Service Medalj. Vietnam Service Medal w/2 Bronze Service 3taral
Republic of Vietnam Campaign Medal,& Arses Ccmmea�tion Medalj Air Medal,
Combat Ihfaz►tryman Badgej Sharpshooter (Rifle) .
?S T AND TRAINING COMPLETED
Drone
2Ea NON-PAY PERIODS TIME LOST 11>wcftLv > DAYS ACCRUED LEAVE PAID 2)a INSURANCE IN FORCE \ AMOUNT OF ALLOTMENT 117r7�
��}}�—_�_
)2V `moo [1� YES NONA
< 28. VA CUIMyyN��UMBER ! MppSE(NICEMEN'S GROUP LffE INSURANCE COVERAGE
C. KA w SIGODD ❑SS.DDD ❑ "HE .
30. REMARKS -
12 Yearn School Blood Groups: ^ 0 Pbs ^ 4mar6g
. . Ihelusive dates of service in Vietnam . dm+issg .Cnrresst period of services
Its 23as To ante or -return to college, university, .or equivalent educatioml
institution.
Item 26bs Z=W9 'heave 7 daya from 24mar thru 30mar70,
U3l. PERMANE I ADDRESS FOR MAIUNG PURPOSES AFTER TRANSFER OR DISCHARGE 32 SIGNATURE OF PERSON BEING TRANSFERRED OR DIKHARGED
., (Sa SID, C1p. Ca ' !i✓tWF LDO )
F Alco, (Stone ) Arkaasaa 72610
S1 TYPED NAME, GRADE AND TITLE OF AUTHORIDNG OFFICER 91. SIGNATURE OF O E AUTHORIZED TO SqN
j �/�,
EE�� ` M1T;HA8I:8: KRDWH, lWi FA, Act Asst AG '�/1 .
.uD.Fi1FO1U1D,_ 214- 4�.'.FBSvSg.L IOUS EBF °MVHE11 AN6� , 1�' GPO 1869451-112
ARMED FORCES OF THE UNIT D STATES
. -_'REPORT OF TRANSFER:OR'DISCHARGE -, -2.. ....
FAYETTEVILLE
THE CITY OF FAYETTEVILLE, ARKANSAS
DEPARTMENTAL CORRESPONDENCE
To: Kenneth Martina/
Through: Kevin Crosson, Administrative Services Directo�Qj ,
From: Marilyn J. Cramer, Accounting ManageCe
Date: March 11 , 1999
MAR 161999
Subject: Purchase of Military Service Years FII NCE D'
The cost to purchase thirteen months of military service credit, if that credit is purchased on
March 15 , 1999, is computed as follows:
Monthly salary April- 4. 1977 $ 640.00
• Employee contribution rate in April 1977 4.0 %
Employer contribution rate in April 1977 -0-
Number of months of service to purchase 13
Contribution: $ 640.00 * 4.0% * 13 = $ 332 . 80
Interest: $ 332. 80 * 6.0% * 710/365 = 38 .84
Total $ 371 . 64
The check should be made payable to the Police Pension Fund.
Responsibility for certification of eligible military service rests /with the Pension Board .
Please call (x298) if you have any questions. 5Ec7 oil
•
CITY OF FAYETTEVILLE
113 WEST MOUNTAIN STREET
FAYETTEVILLE FAYETTEVILLE, AR 72701
DATE: 3/17/1999 RECEIPT NO.: 990063622
RECEIPT DESCRIPTION
Misc Recpt Martin- Pur Military ( 13 Mo ) UARK Federal Credit Union $ 371 . 64
Thank You!
RECEIVED FROM TOTAL
Martin-Pur Military (13 Mo) AMOUNT $ 371.64
ACCTG
ORECEIVED BY.-
DUPLICATE
LOCAL POLICE & FIRE PENSION & RELIEF FUNDS 24-11-418
j
' n
g benefits from the 24-11-418. Credited service — Purchase for
except for payinmlli-
'` tary service by past or present members goner- fl t
_,tmrol deleted -city' preceding -ardi any.
WTI }f
_ (a) Any person who is or was a member of the
Y01ES - - _ - policemen's pension and relief fund, as established by
this subchapter, and who was not receiving benefits
ud the initial exemption, did not under the system on June 17, 1981, shall be entitled to
it dealt with police pension and purchase credited service in the system for a period not
aaop���a�referthe red
WAc 01937,and to exceed two (2) years for service rendered by the
and
softh
rce
•1pP�4t . 1 ! #(Af
nsubsequent acts
active member while on in the eoamendeded 424-tnoth;s Unted States priorto the member's employment cov
shhowed
t
that it did not regard the ered by the policemen's pension and relief fund, as
been previously repealed when it established by this subchapter, but only if:
tt 14 br Am 1987, No. 690. Board of (1) The person received an honorable discharge from
�kS Ark. 58.5. 750 S.W2d 950 0988).
Ces, 45Ark.App. 102, 872S.W.2d74 the armed forces;
(2) He is not receiving federal military service retire-
ment pay based upon nineteen ( 19) or more years of
derived from sale of confis• active duty; however, disability federal retirement pay
shall not disqualify a member from purchasing credit;
�.
and
t (} 1 5
� + �tpaa, 'tho proceeds derived from the (3) He does one of the following: ( t It ,l t
required by the (A) If he has participated in the policemen's pen-
goods which are 4f
fold if they were confiscated by sion and relief fund for at least eighteen ( 18) years,
riff or Arkansas he contributes to the member's deposit account a sum
or by the she
the city, shall be deposited in the of money equal to the amount of the combined
sion and retirement fund. employee and employer contribution made by or on I ( Afi.
behalf of the member to the system based upon the l 1 t
f 445 L A,S.A. 1947, 4 191802.2. contributions for the last month of the employee's f i
N eighteenth year of service, multiplied by the number t� t
of months of military service the member is eligible 1 ' t i';. i t1
{ ° i� CAINfrrh9 for and desires to purchase under this section with j }
Al ' interest thereon at the rate of six percent (6%) per I
^
of a 'ieal by imputation of this passion in annum from the date of eligibility to purchase the iii} , I � i t ; .
4rfMa thn ,tnlxml personal property results from service to the date of purchase; or
�gl Mvd kl controls and the proceeds under P
_ the refolture sales must be distributed into f� If he has participated in the policemen's pen-
def' uKuIesY. SLodoIo, 328Ark.
en•def'husuIesv. Stodolo, 328Ark. 194, 942 sion and relief fund for at least twenty (20) years, he 1
- �- , ;,,y,, •. ?, , .
contributes to the member's deposit account a sum of
money equal to the amount of the combined employee f
Wit' and employer contribution made by or on behalf of t }i
flop where fund insufficient.
ufficient money
should not be s
the member to the system based upon contributions §
at the time. he first became a member of the retire- 99 ((
each person a full amount to which inept system, multiplied by the number of months of
the beneficiaries shell be pard by military service the member is eligible for and de-
�Uad avuilublo among them. sires to purchase under this section with interest
w
• . thereon at the rate of six percent (69D) per annum h ,t �.
Na. 25a, 4 u: Popes Dig.. 4 9866; A.S.A. 1947, •.from the date of eligibility to purchase the service to
Mr , _ the date of purchase. �Ill !•t n ,
(b) A member who purchases credited service in the
action of fund to legal process.
system as authorized in this section shall not be enti-
of the pension and relief fund shall, at tied to receive retirement benefits under the system f
nt act to seizure or levy .under any until the date on which he or she has twenty (20) years l ■
` -
or -for the payment of any claim or of actual service under the system or would have had
jel wt any disabled member or the surviv- twenty (20) years of actual service under the system if w
ditpatident parent, or child of a deceased or. the member had continued his or her employment. ,
bf 4li.; "k i I I 4 ,-I, (c) When a member . purchases credited service as i
'&hall be securely held and distributed authorized in ,this section and terminates employment
of pensioning the persons mentioned in before his or her twentieth anniversary as a member of
sand for no other person or purpose • the system, that portion of the insurance premium tax
, - returned to the employing city for credit to policemen's
x.41 y�1 , ,,, , t , - pension : funds which was previously credited to the s
UrTr No. 250,4 16 popes Dig 4 9871 ASA 1947, policemen's pension and relief fund for the position held
by the member shall continue to be credited to that
1
s• 24- 11-419 - RETIREMENT ANT PENSIONS
fund until the date on which the
have
- " f been a member of the system fortwenty b(20) yeadrs had a co) Acopy of the explanation ' ,
y copy of the actuarial yat.
he or she continued employment. action taken by the exp
tiv
with the circuit clerk and the
t " History. Acta 1981, No. 514, § I; A.SA. 1947, § 19-1828; Acts 1987, and city in which the pob
No. 811, § 1; 1991, No. 371. § 1. fund is located.
Amendments. The 1991 amendment rewrote (a)(3) and deleted 3rd
former (a)(4). (f)( 1) A member of any petit' .
R desires to purchase credited <
24-11419. Credited service — Purchase of mili- military service as provided iri
t. '`.. tary service by active police in cities of 75,000. application therefor to the ii
and shall furnish the board
+(' , (a)( 1 ) Any person who, on July 20, 1979, was an Pouf '
active member of the police department of an cit of the applicant, as well as the �..__
p p y y honorably discharged from ^
• i ' having a population of seventy-five thousand (75,000) the
or more persons, according to the 1970 Federal Decen- (2) The member shall, withiq
nial Census, shall be entitled to purchase credited prescribed by the board, pay into ;
b
th
f money as e board dete _
service in the policemen's pension and relief fund of the o -
% city for the time the person served on active duty in the contributed to the fund by or an
had he been a member of the
armed forces of the United States.
-_• ,Yg ,.� (2) No member shall be entitled to purchase more military service, based on the eon
than two (2) years of credited service in a pension fund Cund by or on behalf of the membe'for service in the armed forces. became a member or the fund, F
" thereon at the rate of six
(b)( 1) The policemen's pension and relief fund in perppp
r� each city having a population of seventy-five thousand beginning six (6) months altar ,.
(75,000) or more persons, according to the 1970 Federal eligible to purchase the credit, . , S
Decennial Census, is authorized to allow the purchase (g)( 1) The cost of the actuariay
of service credit for military service as provided in this the provisions of this section shall
section whenever it is determined by an actuary em- of trustees of the policemen's panaffrQ
x ployed by the Arkansas Local Police and Fire Retire- which proposes to increase mem4nrgf
,. ment System who is a member of the American Acad• efits under the fund. r ;
r emy of Actuaries that it is and has been actuarially (2) The actuarial valuation phall
� • feasible for it period of five (5) years for the policemen's (A) The current financial and
pension and relief fund to pay both the benefits pro- the income and liabilities of the
vided under this section and all other benefits provided men's pension and relief fund;
.. � by law from the policemen's pension and relief fund. (B) A detailed statement of tha
(2) The Executive Director of the Arkansas Fire and increases;
a Police Pension Review Board shall state the actuarial (C) A comparison reflecting talgti
findings in writing to the board of trustees and shall tributions and other income Undpf '
I E certify the appropriate action to be token. relief fund is sufficient to amorN1#i ,
(c) A policemen's pension and relief fund shall be liabilities resulting from the bona t`
y deemed to be actuarially sound if the unfunded liabil- thirty-year period; and 7.1+,�
c ities of the fund can be funded over a period of not more (D) An evaluation determining
` than thirty (30) years, based on the current available opinion of the actuary, the incom0 '
and known revenue or income sources available to the
men'spension and relief fund
.x d policemen's pension and relief fund. sound.
(d)(1)(A) An explanation by the board of trustees of I - ,
the policemen's pension and relief fund outlining the
History. Acts 1979, No. 712, §§ 13; 1981, Na 196 '
increase in active member benefits shall be filed with r53. § 1; A.S.A. 1947, §§ 19.1825-19-1827. -
?� * the executive director.
(B) The executive director shall determine that an
•rX{;Br - 24-11-421. Credited service — Rerio' "
actuarial valuation has been made in accordance
with the provisions of this section and that the (a)(1) In the event a former me" bti `
actuarial valuation has determined that the pro- an employee of the same rpoliceidepgr{7tijj
k'.- - posed increase in benefits may be funded, over a previously employed, the police offiorr.t' lWl _
.? period of time set forth in subsection (c) of this come a member of the system, and the
, q section, based upon available or defined revenue forfeited by him shall be restored to h1a erEd{ ;
sources of the relief fund, in which event the execu- if he returns to the fund the amount reIWt11{tr1
tive director may approve the increase to member or plus interest from the date of withdrawal
r ; beneficiary benefits under the policemen's pension repayment. ., tr7'Irt
and relief fund. - (2) The interest rate to be paid shall be
' . (2) All actions of the executive director shall be fund's average investment rate ofreturill
subject to review and acceptance by the Arkansas Fire the last three (3) annual accountants repo
and Police Pension Review Board. - case less than six percent (6%). ,.rte e