HomeMy WebLinkAbout1999-01-21 Minutes•
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.
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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, untilthey had received more
information.
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• NEW BUSINESS
FUNERAL BENEFITS FOR DWAYNE STOUT
In response from questions, Mr. Roberts stated the benefits were $200.
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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
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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.
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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.
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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.
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