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HomeMy WebLinkAbout2004-04-29 - Agendas - Final . .. ".::; , -.gig•-r Police Pension and Relief Fund Board of Trustees Agenda April 29, 2004 A meeting of the Fayetteville Policemen's Pension and Relief Fund Board will be held on April 29, 2004 at 1 :30 p.m. in Room 111 of the City Administration Building located at 113 West Mountain Street, Fayetteville, Arkansas. 1 . Approval of the Minutes of the January 15, 2004 meeting 2. Approval of Pension List for March and April 2004 3. Northern Trust Option Account Application 4. Investment Report • 5. Election 6. Letter from Osborn, Carreiro & Associates regarding GUST. 7. Police Tum back Funds for 2003 were $385,038.81 . The supplemental amount was $30,600.00. • C -41 .It 4 p LL =mN do 0 p O O p d0 Eo F DaLQfmAfous O ° d E mo 00 Cd .00 In OcC d U) O C is Q J s 3 LL d 5 C tya R i C O ksN C p d CL IL y 0r.°-' c dc o = p y7 E 0 oc m p O p B .6 y Ma U L p0LL CD c ^ OO O OVO ZN O m 3 m A m E m c 3 0 o m a m E m c LL tl1 to 2 K -� H O Ul fA Vl PL H D -� N Police Pension and Relief Fund Board of Trustees Meeting Minutes January 15, 2004 Page 1 of 5 • Police Pension and Relief Fund Board of Trustees Meeting Minutes January 15, 2004 A meeting of the Fayetteville Policemen's Pension and Relief Fund Board was held on January 15, 2004 at 1 :30 p.m. in Room 326 of the City Administration Building located at 113 West Mountain Street, Fayetteville, Arkansas. PRESENT: Mayor Coody, Randy Bradley, Jerry Surles, Jerry Friend, Dr. James Mashburn, Tim Helder, City Attorney Kit Williams, City Clerk Sondra Smith, Michele Bechhold, Marsha Farthing, Chief Hoyt and Eldon Roberts, Mayor Coolly called the meeting to order. • Approval of the Minutes of the July 17, 2003 Meeting, August 28, 2003 Special Meeting and the October 16, 2003 Meeting: Dr. Mashburn moved to approve the minutes. Tim Helder seconded the motion. Upon roll call the motion passed unanimously. Approval of Pension List for January 2004 and February 2004: Jerry Friend moved to approve the pension list. Randy Bradley seconded the motion. Upon roll call the motion passed unanimously. Schedule of Meetings for 2004: A copy of the meeting schedule for 2004 was given to the Board. Arkansas Fire & Police Pension Review Board Letter: Sondra Smith: This is a copy of the letter from Cathyrn Hinshaw stating that we can implement the 3% COLA. Parking Tags: The board was given new parking tags for 2004. Police Pension mid Relief Fund Board of Trustees Meeting Minutes ' January 15, 2004 Page 2 of 5 Investment Report: • Elaine Longer, Longer Investments: The first page is the combined portfolio from 12/31 /2003 . The equity exposure on the total portfolio at year end is about 41 % on common stock and then your mutual funds which are equity mutual funds are 4.2% so you are about 45% equity. The policy guideline gives you an upper range of 50%. We are pretty fully invested at this point compared to where we have been in the prior few years. We have a cash balance of $263 ,000; we were just basically holding a little bit of cash in the portfolio, we have some of that targeted to go into the fixed income market after the first of the year. The total portfolio value is $10.871 million and the annual income current yield which is the interest and dividends that you receive regardless of what the market does is 3.9%. The next tab is the stock part of the portfolio. We still hold some bonds in there but we have really pretty much moved back up to 45% or 46% equity so the bonds are really part of the fixed income portfolio. It shows an over draft but that's because the bond portfolio has cash so your total account is not over drafted. Page 10 has our largest holdings, Pfizer, GE, Cardinal Health, Citigroup, and Microsoft. Even in those five largest holdings the largest percent of total portfolio is Pfizer at 1 .4% so it is still very diversified. We sent out the statements yesterday and the news letters. What I talked about in the newsletter • is the fact that going into this next year we think the consumer will probably take a step back and the back side of the economic cycle which is the business end, capital investments, transportation stock will probably move to the forefront. To look at the year to year change in consumer spending we think the consumer will be taking a backseat to the industrial sector. In your industry weighing you will notice that we are over weighed on capital goods, defense stocks, more of the cyclical industries. We are over weighted in energy and also technology. We are under weighted in consumer stocks and financial stocks. We think that this year looking at how the stock market is positioned coming off a very big year, we have the rubber band stretched pretty far between a three year under performance of stocks, which was the first time we've had three years of negative returns since 1939 and three years of out performance of bonds so the relative performance of the stocks versus the bonds we really had that rubber band stretched pretty tight. Then we came out of the Iraq invasion and that pressure was released which lead to this big run up in the stock market. Looking at this next year we think that there are a number of factors to look at, earnings growth should be about 13% to 17% and historically in an election year you have an 8% return, but if an incumbent wins the average return is 13%. The economy does seem to be picking up speed. We have a strong economic growth outlook and for that reason we probably will have stocks out perform bonds again. We are anticipating there will be a more moderate rate of return more in line with what the earnings growth is going to be. • Police Pension and Relief Fund Board of Trustees Meeting Minutes January 15, 2004 Page 3 of 5 • Ms. Longer went on to explain how she thinks the market is going to perform during the upcoming year. On the bond portfolio, basically we still have the A rated bonds, corporate bonds, we have the real estate investment trust which returned in excess of 20% this year, the government bonds, and the government agency bonds, so the income yield on the bond portfolio is about $238,000. On page 19 you will see that the yield on book value or the price that was paid for the bonds is approximately 6% but the average maturity is 7. 1 years. To compare that with what the yield curve is right now the ten year treasury is at 4% today. Your income yield on the bond portfolio has stayed fairly stable even throughout a declining interest rate environment. Page 20 gives you more information about the bond portfolio. The important thing about this report is the distribution by maturity. We did move most of your bonds that matured within the year; they have already been reinvested so only 3% of your bonds mature this year. In the three year maturity we have about 14 %2% of portfolio. What that means is that we have the flexibility if in deed the economy continues to, pick up and interest rates rise with the recovering economy we do have short maturity bonds that we can reinvest to capture higher yields. Page 21 has the realized gains for the year, $ 11 ,800. Basically when we realized a gain this year we take a loss and clean the portfolio up. By the end of the year there are no more losses in the portfolio to take. The total increase in the portfolio value on the investment side is about _ $1 ,087,000. Page 22 has the contributions and distributions report $290,000 came into the portfolio and distributions were about $627,000. You are back up to a 7.4% annualized return since inception. Your total account is up 6.6% since 1999, so we weathered the storm. The most important consideration in your Investment Policy is the asset allocation which is 35%. to 50% equity. All of the other parts of your policy we monitor on a weekly basis to make sure that your weighted average stock weightings are within your policy constraints and that there are not any bonds being down graded that need to he sold and all the other assets of your policy are intact. Dr. Mashburn: So you think the 35% to 50% threshold is still alright, just leave it as it is? Elaine Longer: I would, because you have plenty of growth to meet your actuary plan assumptions. Jerry Friend asked about the foreign stock. Elaine Longer said we are okay on the foreign stock. She thanked the Board for their business. • Police Pension and Relief Fund Board of Trustees Meeting Minutes January 15, 2004 Page 4 of 5 Other Business: . Randy Bradley: Did we get a letter from Craig Westbrook. Michele Bechhold: When I was originally asked to contact Craig it was to find out if the GUST amendments would affect this plan and if anything needed to be done to bring the plan into compliance with GUST. I made a phone call to Craig and he said that he thought for the most part that there would not be anything the plan would need to do; there might be something that would affect the plan. He said that the plan has been set up by state code and that we ourselves could not necessarily amend the plan, that we should check with the actuaries of the plan because they should be keeping the plan in compliance with any laws that might change to affect the plan. He suggested that we write a letter to David Clark and ask some specific questions, which we did on September 171n Sondra Smith: David Clark responded by phone stating that we did not need to do anything to comply with the Gust requirement. We can probably get something from him in writing. I will request that he send us something in writing. Michele Bechhold: There were some specific questions in the letter, I don't know if you have seen the letter or not. There were three questions, has a determination been made as to whether or not these local plans carried statue are subject to these requirements, if these plans are covered by GUST are changes in the plan provisions needed to obtain compliance and if changes are needed has a process to accomplish this been established and what entity has been • charged with responsibility for this task Basically they were direct questions, have you determined if the plan has been covered, are changes necessary if it is covered and have you started any process to make any necessary changes. David Clark's response to that was that everything is okay. Craig Westbrook had also stated I suspect many such plans do nothing as there is no audit activity for governmental plans. Jerry Friend: How does that make our attorney feel? Kit Williams: It is always better to get something in writing. It probably means that we are okay. I would like for us to request David Clark to see if he responds in writing. Sondra Smith: I will send him a letter asking him to please respond to our questions in writing. Jerry Friend: Westbrook is the one that we paid the money to right? Michele Bechhold: Yes. It would cost an additional amount for a letter from Westbrook. He bills on a time basis, when I call I get a bill for the phone call, if it is an email, I get a bill for the email. Sondra Smith: That is the question to you, if you want something in writing from Westbrook it is probably going to cost more money, do we want to do that? Kit Williams: How much is he charging per hour? • x Police Pension and Relief Fund Board of TnLq= Meeting Minutes January 15, 2004 Page 5 of 5 • Michele Bechhold: This is a statement for $90.00, it does not state a per hour rate. Kit Williams: This was $90.00 for the email? Michele Bechhold: This $90.00 was for the original phone conversation on September 11th. Kit Williams:. I can guarantee that if we ask for a letter where it is in black and white and he is saying something that he could be liable for it would cost a lot more than $90.00. Sondra Smith: That is the reason before I told Michele to go ahead and get a letter from him I wanted to talk to the Board to see if they wanted to spend more money to receive a letter. Kit Williams: Let's ask David Clark to respond in writing because he will not charge us since he works for the state. Jerry Friend: Larry McCawley had something he wanted brought up, I asked him to put it in writing and he is working on it but will not have it completed until the next meeting. It is some kind of increase. A discussion followed on what Larry McCawley might present at the next meeting. • Tim Helder moved that the meeting be adjourned. Jerry Surles seconded the motion. Meeting adjourned at 2:05 P.M. • -POLICE PENSION FUND ' March 2004 6800-9800 6800-9609 5335-00 5335-05 EMP# NAME GROSS YTD Wages Suppl. YTD Suppl. Fed Tax ST. TAX NET •54 ALLEN, CHARLES 2,296.42 4,592.84 50.00 100.00 220.00 66.89 2,059.53 152 ARNOLD, WILLADEAN 863.14 1,726.28 50.00 100.00 913.14 130 BAYLES, DON 1,410.39 2,820.78 50.00 100.00 1 ,460.39 107 BLACK, JOE P 1 ,000.12 2,000.24 50.00 100.00 100.00 20.00 930.12 120 BOWEN, J R 616.14 1,232.28 50.00 100.00 10.00 656.14 147 BRADLEY, GERALD 4,282.59 8,565.18 50.00 100.00 940.53 217.32 3,174.74 139 BRADLEY, RANDALL 2,541.22 5,082.44 50.00 100.00 382.00 100.00 2,109.22 167 BROWN, JOHN 3,875.58 7,751 .16 50.00 100.00 -600.00 200.00 3,125.58 157 CARROLL,RONALD L 1 ,871 .19 3,742.38 50.00 100.00 250.00 105.00 1 ,566.19 151 COLE, RUSTON 2,723.87 5,447.74 50.06 100.00 600.00 200.00 1 ,973.87 109 COOPER, ADRIAN 567.23 10134.46 50.00 100.00 617.23 108 DENNIS, WARREN 1 ,223.34 2,446.68 50.00 100.00 0.00 1 ,273.34 160 DUGGER,GARY 2,810.94 5,621 .88 50.00 100.00 300.00 120.00 2,440:94 - 125 FLOWERS, HAROLD 766.42 1,532.84 50.00 100.00 816.42 140 FOSTER, BILLIE D. 2,849.68 5,699.36 50.00 100.00 300.00 120.00 2,479.68 148 FRIEND, JERRY - 2,801.12 . 5,602.24 50.00 100.00 725.00 150.00 1 ,976.12 161 HANNA, JANICE - 1 ,739.21 3,478.42 175.00 50.00 1 ,514.21 145 HANNA, MARK 692.74 1,385.48 50.00 100.00 742.74 162 HASKINS, IRENE 386.10 77220 50.00 100.00 436.10 103 HELDER, TIM 5,187.10 10,374.20 50.00 100.00 750.00 250.00 4,237.10 146 HUTCHENS, BERNICE 901 .10 1 ,802.20 50.00 100.00 130.00 - 821.10 143 JOHNSON, CHARLES - 2,181 .68 4,363.36 50.00 100.00 42.67 2,189.01 103 JOHNSON, WENDELL 695.82 1 ,391 .64 50.00 100.00 745.82 118 JONES, BOB 2,932.41 5,864.82 50.00 100.00 0.00 2,982.41 144 KILGORE, DONALD 1 ,81827 3,636.54 50.00 100.00 19.72 1 ,848.55 129 LAWSON, FORREST 1 ,393.05 2,786.10 50.00 100.00 350.00 1 ,093.05 150 LITTLE, PATSY R 360.50 721 .00 50.00 100.00 410.50 53 LORCH, DONNA G 360.50 721 .00 50.00 100.00 410.50 156 MARTIN, KENNETH 3,281.05 6,562.10 50.00 100.00 500.00 140.00 2,691 .05 128 MCCAWLEY, LARRY 1 ,505.80 3,011 .60 50.00 100.00 180.00 20.00 1 ,355.80 116 MCCHRISTIAN, MARIE 360.50 721.00 50.00 100.00 410.50 126 MCWHORTER, KAREN _ 499.57 999.14 50.00 100.00 - 549.57 136 MITCHELL, MICHAEL 2,048.22 4,096.44 50.00 100.00 150.00 1,94822 141 MUELLER, ROSEMARY 1 ,833.79 3,667.58 50.00 100.00 1 ,883.79 158 MUNSON,ANGELA 3,730.00 7,460.00 50.00 100.00 500.00 183.00 3,097.00 112 MURPHY, JAKE 360.50 721.00 5D.00 100.00 0.00 410.50 137 PERDUE, LARRY 21063.66 4,127.32 50.00 100.00 200.00 25.00 1 ,888.66 164 PERSHALL, ROBIN 1 ,355.00 2,710.00 290.00 92.00 973.00 132 PHILLIPS, HOMER GENE 1 ,558.80 31117.60 50.00 100.00 300.00 - 1 ,308.80 105 PRESTON, GEORGE DAVID 1 ,422.81 2,845.62 50.00 100.00 100.00 100.00 1 ,272.81 135 RICKMAN, LOREN 1 ,982.28 3,964.56 50.00 100.00 230.00 65.00 11737.28 104 RIGGINS, RAYMOND C 1 ,483.21 2,966.42 50.00 100.00 125.00 25.00 1,383.21 159 SCHUSTER,JOHN H. 2,769.74 5,539.48 50.00 100.00 340.00 . 110.00 2,369.74 122 SKELTON, FRANK 735.08 1,470.16 50.00 100.00 785.08 168 STANLEY, MELVIN - 4,335.87 8,671 .74 50.00 100.00 1 ,100.00 300.00 2,985.87 155 STOUT, BETTY 427.71 855.42 50.00 100.00 0.00 477.71, 133 SURLES, JERRY 2,417.93 4,835.86 50.00 100.00 450.00 150.00 1 ,867.93 142 TAYLOR, DENNIS 1 ,833.79 3,667.58 50.00 100.00 105.00 40.00 1 ,738.79 106 UPTON, FRANKLIN 939.20 1 ,878.40 50.00 100.00 10.00 979.20 163 WATSON, RICHARD 7,015.33 14,030.66 50.00 100.00 1 ,950.00 400.00 4,715.33 149 WILLIAMS, JOYCE 1 ,253.58 2,507.16 50.00 100.00 217.07 1,086.51 134 WITT, DON 1,569.81 3,139.62 50.00 100.00 115.00 64.00 11440.81 127 WOOD, PAUL J 11404.63 2,809.26 50.00 100.00 0.00 1,454.63 • 99335.73 198671 .46 2,550.00 5100.00 12,694.60 3,375.60 85,815.53 68OD-W o 68004*00 5335-00 5335-05 Tartad Year to Date 198,671 .46 5,100.00 203,771.46 POLICE PENSION FUND April 2004 6M98DD 680D49" 5335-00 5335-05 EMP# NAME GROSS YTD Wages Suppl. YTD Suppl. Fed Tax ST. TAX NET ALLEN, CHARLES 21296.42 9,185.68 50.00 200.00 220.00 66.89 2,059.53 ARNOLD, WILLADEAN 863.14 3,452.56 50.00 200.00 913.14 130 BAYLES, DON _ 1,410.39 5,641 .56 50.00 200.00 1 ,460.39 107 BLACK, JOE P 1,000.12 4,000.48 50.00 200.00 100.00 20.00 930.12 120 BOWEN, J R 616.14 2,464.56 50.00 200.00 10.00 656.14 - 147 BRADLEY, GERALD 4,282.59 17,130.36 50.00 200.00 940.53 217.32 3,174.74 139 BRADLEY, RANDALL 2,541 .22 10,164.88 50.00 200.00 382.00 100.00 2,109.22 167 BROWN, JOHN 3,875.58 15,502.32 50.00 200.00 600.00 200.00 3,125.58 .. 157 CARROLL,RONALD L 1 ,871.19 7,484.76 50.00 200.00 250.00 105.00 1,566.19 151 COLE, RUSTON 2,723.87 10,895.48 50.00 200.00 600.00 200.00 1,973.87 109 COOPER, ADRIAN 567.23 2,268.92 50.00 200.00 617.23 108 DENNIS, WARREN 1 ,223.34 4,893.36 50.00 200.00 0.00 1 ,273.34 160 DUGGER,GARY 2,810.94 11 ,243.76 50.00 200.00 300.00 120.00 2,440.94 125 FLOWERS, HAROLD 766.42 3,065.68 50.00 200.00 816.42 140 FOSTER, BILLIE D. 2,849.68 11,398.72 50.00 200.00 300.00 120.00 2,479.68 148 FRIEND, JERRY 2,601.12 11,204.48 50.00 200.00 725.00 150.00 1 ,976.12 161 HANNA, JANICE 1,739.21 6,956.84 175.00 50.00 1 ,514.21 145 HANNA, MARK 692.74 2,770.96 50.00 200.00 742.74 162 HASKINS, IRENE 386.10 1 ,544.40 50.00 200.00 436.10 169 HELDER, TIM 5,187.10 20,748.40 50.00 200.00 750.00 250.00 4,237.10 146 HUTCHENS, BERNICE 901 .10 3,604.40 50.00 200.00 130.00 821 .10 143 JOHNSON, CHARLES 2,181.68 8,726.72 50.00 200.00 42.67 2,189.01 103 JOHNSON, WENDELL 695.82 2,783.28 50.00 200.00 745.82 118 JONES, BOB 2,932.41 11 ,729.64 50.00 200.00 0.00 2,982.41 144 KILGORE, DONALD 1 ,818.27 7,273.08 50.00 200.00 19.72 1 ,848.55 129 LAWSON, FORREST 1 ,393.05 5,572.20 50.00 200.00 350.00 1 ,093.05 3.LITTLE, PATSY R 360.50 1 ,442.00 50.00 200.000 410.50 LORCH, DONNA G 360.50 1 ,442.00 50.00 200.00 410.50 156 MARTIN, KENNETH 31281.05 13,124.20 50.00 200.00 500.00 140.00 2,691.05 128 MCCAWLEY, LARRY - 1 ,505.80 6,023.20 50.00 200.00 180.00 40.00 1 ,335.80 116 MCCHRISTIAN, MARIE . 360.50 1 ,442.00 50.00 200.00 410.50 126 MCWHORTER, KAREN 499.57 1 ,998.28 50.00 200.00 549.57 136 MITCHELL, MICHAEL 2,048.22 8,192.88 50.00 200.00 150.00 1,948.22 141 MUELLER, ROSEMARY 1 ,833.79 7,335.16 50.00 200.00 1,883.79 158 MUNSONANGELA 3,730.00 14,920.00 50.00 200.00 500.00 183.00 3,097.00 112 MURPHY, JAKE 360.50 1 ,442.00 50.00 200.00 0.00 410.50 137 PERDUE, LARRY 2,063.66 8,254.64 50.00 200.00 200.00 - 25.00 1,888.66 164 PERSHALL, ROBIN 1 ,355.00 5,420.00 290.00 92.00 973.00 132 PHILLIPS, HOMER GENE 1,558.80 6,235.20 50.00 200.00 300.00 1 ,308.80 105 PRESTON, GEORGE DAVID 1,422.81 5,691 .24 50.00 200.00 100.00 100.00 1 ,272.81 135 RICKMAN, LOREN 1 ,982.28 - 7,929.12 50.00 200.00 230.00 65.00 1 ,737.28 104 RIGGINS, RAYMOND C 1 ,483.21 5,932.84 50.00 200.00 125.00 25.00 1 ,383.21 159 SCHUSTER,JOHN H. 21769.74 11 ,078.96 50.00 200.00 340.00 110.00 2,369.74 . 122 SKELTON, FRANK . 735.08 2,940.32 50.00 200.00 765.08 168 STANLEY, MELVIN 4,335.87 17,343.48 50.00 200.00 1,100.00 300.00 2,985.87 155 STOUT, BETTY 427.71 1 ,710.84 50.00 200.00 0.00 477.71 133 SURLES, JERRY 2,417.93 9,671.72 50.00 200.00 450.00 150.00 1,867.93 142 TAYLOR, DENNIS 1,833.79 7,335.16 50.00 200.00 105.00 40.00 1 ,738.79 106 UPTON. FRANKLIN 939.20 3,756.80 50.00 200.00 10.00 979.20 163 WATSON, RICHARD 7,015.33 28,061.32 50.00 200.00 1 ,950.00- 400.00 41715.33 149 WILLIAMS, JOYCE 1 ,253.58 5,014.32 50.00 200.00 217.07 1 ,086.51 134 WITT, DON 1 ,569.81 6,279.24 50.00 200.00 115.00 64.00 1 ,440.81 127 WOOD, PAUL 1,404.63 5,618.52 50.00 200.00 0.00 1 ,454.63 0 99,335.73 397,342.92 2,550.00 10,200.00 12,694.60 3,395.60 85,795.53 6800-9800 6800-9600 _ 5335-00 5335-05 Total Year to Date 397,342.92 10,200.00 407,542.92 LONGER INVESTMENTS INCORPORATED s A Registered Inveshnmi A hisff March 5, 2004 City of Fayetteville Police Pension Fund Attn: Sondra Smith 113 West Mountain Fayetteville, Arkansas 72701 Dear Sondra: Northern Trust has notified our office that they have changed the company through which they clear security trades. -They have further requested that we provide an updated Option Account Application for the City of Fayetteville Police Pension Fund account in order to complete the system changes. The use of options for hedging purposes has been approved in the investment policy for theaccount. Will you and the other members of the board please sign the enclosed form where.indicated and return it to our office in the envelope provided? We will submit the form to Northern Trust for processing. The income and net worth information on the Option Account Application is based on the annual income and value of the account. The investment experience information is based on the trading history of the account. Thank you for your assistance in this matter. Please feel free to call our office if you have questions regarding the enclosed form. Sincerely, Tina M. Lamb Client Services Manager Enclosure 5 c REGE4�t 2nn t'14Et 15 �r� E ° CIT( OF FAY N w PO. Box 1269 CIV CLERK' aFP� ; lnymmil4, Arkansas 72702 Telephone 501-443-5851 . ._ Toll free 800-827-7710 Fax: 501-443-7129 ANd�raSLY $�� . eP'. Northern Trust. Option Account Application Northern Trust Securities, Inc* Please complete the information and sign where indicated ozss CUSTOMERI . • ' • NT9000043 City Of Fayetteville Poll Name Mbdle Name Iasi Nam Police Pension Fund Attn Accounting Dept 113 W Mountain St Aye Marital Status No. of Dependents Fayetteville AR 72701-6069 Joint Tenant Name Aye Marital Status Have you granted trading authorization to another para? )qYes O No If so: 1) Your agent must also complete an Options Account Agreement; 2) Please attach the trading authorization unless you have previously provided it to us. Please indicate the relationship between you and your agent (Investmeneadvisor, Family member, trustee, etc.) .l tYV a'�f"yv'vw`rs V t Se7� EMPLOYMENT2. • FINANCIAL INFORNIATION Employer Type at Business Occupation i position Businme; Address city State Zip code If you are retired or NOT currently employed, please provide the source of your income here: I ANNUAL INCONIE All this information must be provided in accordance with the requiremenn of the National Auociation ofSecarities Drain; Inc. and the Options Exchange. Approximate Annual Income from All Sources: (For joint account cheek your rombined income.) Q O Under $25.000 O $25300045000 ❑ $50,0004100,000 IXOver $ 100,000 Please state amount $ Estimated Net Worth: (rxclusivr of home and farm) . ❑ Under $50,000 ❑ $500004100,000 O $100,0004500,000 Over $500,000 Please state amount $ )01 g—l � . �t-l � Investable Assets: (including tach and securities) O Under $50,000 O $50,0004100,000 ❑ $100,0004500,000 Over $500,000 Please state amount $ 10, 81 '1s C`ttl ` Tax Bracket: O 15% ❑ 28% 0 31 % ❑ 36% ❑ 39.6% Personal Information: Marital Stams: O Single ❑ Married Number of Dependents ❑O ❑ ❑ ❑❑❑1-1 Dale of Birth Age For osusvanea, plan contact the Investor Services Center at (800) 621-4482. Please mail your form to: Northern Trust Securities, Inc., 801 South Canal C4S, Chicago, IL 60607. — 1 — Id 3. ANNUAL INCOME Bank Reference. - �. Name of BankAccomt Number ❑�❑ ❑❑❑❑❑❑ ❑�❑ Breath / Cay State Zip Cole 4. TRADING Equity Options Index Options Trading Experience Level 1 Covered Call Writing Not applicable ❑ None ❑ Moderate 'Extensive Level 2 ❑ Covered Call Writing, Purchases ❑ None ❑ Moderate ❑ Extensive Purchases, Straddles and Combinations (Purchase Only) Level 3 ❑ 'Covered Call Writing, Purchases ❑ None ❑ Moderate ❑ Extensive - Purchases, Straddles and Combinations Straddles and Combinations (Purchase Only) (Purchase Only), Spreads Level 4 ❑ `Covered Writing, - Purchases ❑ None. ❑ Moderate ❑ Extensive Purchases, - Straddles and Combinations Straddles and Combinations, . (Purchase Only) Spreads, Uncovered Writing Level 5 ❑ 'Covered Writing, Purchases ❑ None ❑ Moderate ❑ Extensive Purchases, Straddles and Combinations Spreads, Straddles and Combinations, Spreads, Uncovered Writing Uncovered Writing i 'Margin account required OBJECTIVES5. INVESTIMENT Wresetvatioh of Capital (01 _XIncome (02) Capital Appreciation (03) ❑ Speculation (04) ❑ Trading Profits (05) ❑ Other (06) (Please specify) Oprionallnformation Risk Tolerance: ❑ Conservative ❑ Moderate ❑ Aggressive ❑ Combination General Investment Knowledge: ❑ Extensive ❑ Good ❑ Limited Specific Investment Knowledge: ❑ Stocks ❑ Bonds ❑ Mutual Funds ❑ Options ❑ Variable Contracts ❑ Limited Partnerships Time Horizon: ❑ Short (0-5) ❑ Intermediate (6-10) ❑ Long (over 10 years) ❑ Combination 6. INVESTNIENT EXPERIENCE Investment knowledge: ❑ Limited ❑ Good q Extensive Number of years trading: 16 Stocks 110 Bonds _ Commodities 1-tP 1-(PEquity Options (P Index Options Frequencyof option transactions 3b Q... Sim of transactions: $ SOC7 ($11000, $5,000, $ 10,000, etc.) Current option accounts with other brokerage firms: Name of Flan Current Positlons — 2 — 7. OPTION ACCOUNT 1 agree with and represent to Northern Trust Securities, Inc ("NTSI") as follows: 1 . 1 understand that my account is carried by National Financial Services LLC ("NFS") and that all terms of this Agreement also apply between me and NFS. 2. All transactions shall be subject to the constitutions, rules, regulations, customs and usages of The Options Clearing Corporation and any exchange or other market- • place where executed. In addition, 1 an aware of, and agree to be bound by, the rules of the National Association of Securities Dealers, Inc. (NASD) and the New York Stock Exchange, Inc. (NYSE) applicable to option contracts. 3. Any securities and funds held by you in any of my accounts may be held and used by you as security for the performance of my obligations to you under this agree- ment. 4. In ase of my insolvency, death or the attachment of my property, you may. with respect to any open options contract position, take such steps as yrou may consider necessary or appropriate to protect yourself against loss. 5. 1 will not enter any order for options until I have received, read and understood the appropriate Options Disclosure Document(s) of The Options Clearing Corporation. 1 specifically affirm rite following disclosures as set forth in said Document(s): A. That both the purchase and the writing of options contracts involve a high degree of risk, are not suitable for many investors and, accordingly, should be entered into only by Investors who understand the nature and extent of their rights and obligations and are fully aware of the inherent risk involved, especially during extreme market vdlat iliry or trading volumes. B. That I should not purchase any option unless 1 am able to sustain a total loss of the premium and Transaction costs and (i) that 1 should not write a call option unless I either own the underlying security (or a security convertible, tic surgeable or exercisable into such underlying security) or am able to sustain substantial financial losses and (it) that I should not write a put option unless I am able to sustain the loss resulting from purchasing the underlying security at the exercise price. C. That the price of an options contract is affected by various factors such as the relationship between the exercise price and the market price of the underlying secu- rity, the expiration date of the option and the price fluctuations or other characteristics of the underlying crock. D. That the exchanges or other regulatory bodies may restrict transactions in particular options or the exercise of options contracts in their discretion from time to Time. E. That all index option exercises are set ded by cash payment and not by the delivery of securities: and that all index option exercises are based on the dosing index value and that any "in the monev" index options exercised prior to the availability of the dosing index value face the risk of closing out of the money due to a sub- sequent adverse change in the index value. 6. 1 have noted particularly those sections of The Options Clearing Corporation Disclosure Dowment(s) which summaries the risk factors involved in options coding and 1 have determined that, in view of my financial situation and investment objectives, options coding is suitable for me. 1 shall advise you of any changes in my investment objectives, financial situation and needs insofar as such changes are material to my options transactions. The financial and other information listed on the reverse side is accurate. 7. 1 am aware of your requirements and time limitations for accepting an exercise notice. In the event that I fail to inswcs you not to exercise an option "in the money" by 314 of a point or more by 2:30 p.m. (Eastern time) on the business day immediately presiding the expiration date of the option, I understand that you will use your best efforts to exercise such option and liquidate the underlying securities for my account and at my sole risk for which 1 shall be charged two commissions. I agree to pay the full aggregate exercise price for the underlying securities covered by the option contract. I understand that I will be charged at least one commission in connec- tion with the exercising of any option. 1 further understand that you reserve the right to exercise any option which would not be profitable to me, for your own accoun� If 1 fail to instruct you not to exercise an option "in the money" by 314 of a point or more by the time stated above and you, for whatever reason, do not exercise an option on my behalf, I hereby agree to waive any and all claims for damage or loss which 1 might have at the time or any time thereafter against you arising our of the feta that the option was not exercised. 8. 1 understand that before writing any option 1 must have in my account a minimum equity or appropriate position in such amounts as you may specify from time to time, and that no withdrawals of cash or securities will be permitted from the account which would reduce either the equity or position below your requirements. I fur- ther understand that any orders to sell any securities held in my account pursuant to such minimum maintenance requirements may be refused by you at your sole dis- cretion, and I shall not hold you liable for any loss that 1 may sustain due to your refusal to permit the sale of said securities during such period- 9. Regarding any margin transactions I may make and supplementing the terms and conditions of my Margin Account Agreement, in the event I do not meet your mar- gin ells promptly, you are authorized in your sole discretion, and without notification to me, to take any and all steps necessary to protect yourself in connection with put or call transactions made for my account, including without limitation the right to buy or sell short, or short exempt, for my account and risk any pan or all of the shares represented by options endorsed by you for my account, or to buy, sell or exercise any put or call options as you may deem necessary to fully protea yourself .Any and all losses and expenses, including attorneys' fees, incurred by you in this connection will be reimbursed by me. 10. 1 shall have the sole responsibility to exercise, in a proper and timely manner, any right, privilege or obligation of any put option, all option or other option which you may purchase, handle, endorse or carry for my account(s). You shall not be liable in connection with the execution, handling, selling, purchasing, or endorsing of Options for my account. 11 . 1, alone or in concert with others, will not violate the position limits or the exercise limits of the options exchanges and the NASD or NYSE as set forth in The Options Clearing Corporation Disclosure Document(s). 12. 1 understand and acknowledge that, when transactions on my behalf are to be executed in options traded in more than one marketplace, in the absence of my specif- ic instructions, you may use your discretion in selecting the marker in which to enter my orders. 13. Securities in accounts carried by National Financial Services LLC ("NFS"), a Fidelity Investments company, are protected by the Securities Investor Protection Corporation ("SIPC") up to $500,000 (including ash claims limited to $100,000). NFS has arranged for additional unlimited insurance protection for ash and securi- ties to supplement its SIPC coverage. Neither coverage protects against a decline in the market value of securities. 14. This Agreement and its enforcement shall be governed by the laws of the Commonwealth of Massachusetts, its provisions shall inure to the benefit of your present corporation and its successors, and shall inure to the benefit of and be binding upon my ante, executors, administrators, suceesmrs and assigns. 15. Except to the extent to which they conflict with this Agreement, the provisions of my Margin Account Agreement arc incorporated herein by reference. In the event of a conflict, the provisions of this Agreement shall control. IG. Wuh reference to the allocation of exercise notices assigned, I understand that you will use the random selection method of allocation. This method randomly selects from all customers' short option positions, including positions established on the day of assignment, those option contracts which are subject to exercise. I further under- stand that all short option positions arc liable for assignment at any time. A detailed description of this method is available upon written request. • — 3 — OPTION ACCOUNT NOTICE TO CUSTOMER Payment for Order Flow: NTSI or NFS transmits customer orders for execution to various exchanges or market centers based on a number of factors. These include: size of order, trading characteristics of the security, favorable execution prices (including the opportunity for price improvement), access to reliable market data, availabil- icy of efficient automated transaction processing and reduced execution costs through price concessions from the market centers. Certain of the market centers may exe- cute orders at prices superior to the publicly quoted market in accordance with their rules or practices. While a customer may specify that an order be directed to a par- ticular market center for execution,' the order-routing policies, taking into consideration all of the factors listed above, are designed to result in favorable transaction processing for customers. ' Please note: Orders placed through any telephone, electronic, or on-line trading systems cannot specify a particular market center for aecution. NTSI and/or NFS receives remuneration, compensation or other consideration for directing customer orders for equity securities to particular brokerldealers or market centers for execution. Such consideration, if any, takes the form of financial credits, monetarypayments or reciprocal business. New York Stock Exchange Rule 382 requires that NTSI and NFS allocate between them certain functions regarding the administration of your brokerage account. The following is a summary of the allocation services performed by NTSI and NFS. A more complete description is available upon request. NTSI is responsible for (1) obtaining and verifying brokerage amount information and documentation, (2) opening, approving and monitoring your brokerage account, (3) transmitting timely and accurate instructions to NFS with respect to your brokerage account, (4) determining the suitability of investment recommends- tions and advice, (5) operating and supervising your brokerage account and its own activities in compliance with applicable laws and regulations, including compliance with margin rules pertaining to your margin amount (if applicable), and (G) maintaining the required books and records for the services it performs. NFS shall perform the following tasks at the direction of NTSI: (1) execute, dear and settle transactions processed through NFS by NTS], (2) prepare and send transaction confirmations and periodic statements of your brokerage account, (unless NTSI has undertaken to do so). Certain pricing and other information may be provided by NTSI or obtained from third parties, which has not been verified by NFS, (3) act as custodian for funds and securities received by NFS on your behalf, (4) follow the instructions of NTSI with respect to transactions and the receipt and delivery of funds and securities for your brokerage account, and (5) extend margin credit for purchasing or carrying securities on margin. NTSI is responsible for ensuring that your brokerage account is in compliance with federal, industry and NFS margin rules, and for advising you of margin requirements. NFS shall maintain the required books and records for the services it performs. 8. PLEASE RE-AD THE OPTION ACCOUNTBELOW I REPRESENT THAT 1 HAVE READ THE TERMS AND CONDITIONS GOVERNING THIS ACCOUNT INCLUDING THE SPECIAL STATEMENT FOR UNCOVERED OPTION WRITERS AND AGREE TO BE BOUND BY SUCH TERMS AND CONDITIONS AS CURRENTLY IN EFFECT AND AS MAY BE AMENDED FROM TIME TO TIME. THIS ACCOUNT IS GOVERNED BY A PRE-DISPUTE ARBITRATION AGREEMENT WHICH APPEARS BELOW. I ACKNOWLEDGE RECEIPT OF THE PRE-DISPUTE ARBITRATION AGREEMENT. In consideration of your accepting one or more accounts, I (we) hereby acknowledge that I (we) have read, understand and agree to the terms set forth in the Option Account Agreement above. �� �� ❑�� Customer's Signature Date Joint Tenant's Signature CB any) Dale Joint Accourit Holders (e my) Date Join! Account Holders (if my) - Dale In the me of joint account, all tenanrs mtuat sign. Foi Internal Use Only Approval to level Approval ROP Data ❑❑ — ❑❑ — ❑❑1:1❑ Oplions Disclosure Document sent Date ❑❑ — ❑❑ — DE1❑❑ Investment Consul Date — 4 — PLEASE READ THE OPTION ACCOUNTBELOW PLEASE I¢F.P THIS DOCUMENT FOR YOUR RECORDS. Dear Customer(s), . in accordance with the rules of the New York Stock Etchange and the National Association of Securities Dealers, following is a SPECIAL. STATEMENT FOR UNCOVERED OPTION WRITERS. After ending the STATEMENT, please sign on page 4, rear at the perforation, and return the signature portion to us in the enclosed envelope. Thank you. 9. SPECIAL STATEMENT FOR UNCOVERED OPTION There are special risks associated with uncovered option writing which expose the investor to potentially significant loss. Therefore, this type of strate- gy may not be suitable for all customers approved for options transactions. 1 . The potential loss of uncovered call writing is unlimited. The writer 4. For combination writing, where the investor writes both a put and of an uncovered call is in an extremely risky position, and may incur a all on the same underlying instrument, the potential risk is large losses if the value of the underlying instrument increases above unlimited. r the exercise price. M 5. If a secondary market in options were to become unavailable, UD) 2. As with writing uncovered calls, the risk of writing uncovered put investors could not engage in dosing transactions, and an option M options is substantial. The writer of an uncovered put option bears writer would remain obligated until expiration or assignment. 0 a risk of loss if the value of the underlying instrument declines A6. The writer of an American-style option is subject to being assigned D below the exercise price. Such loss could be substantial if there is a nan exercise at any time after he has written the option until the = significantdecline in the value of the underlying instrument. D option expires. By contrast, the writer of a European-style option is Z 3. Uncovered option writing is thus suitable only for the knowledge- subject to exercise assignment only during the exercise period. able investor who understands the risks, has the financial capacity M and willingness to incur potentially substantial losses, and has suf- _D ficient liquid assets to meet applicable margin requirements. In this Z regard, if the value of the underlying instrument moves against an • = uncovered writer's options position, the investor's broker may in request significant additional margin payments. If an investor does Dnot make such margin payments, the broker may liquidate stock or L) options positions in the investor's account, with little or no prior M 0 notice in accordance with the investor's margin agreement. O O C: M rn 0 NOTE: it is expected that you will rad the booklet entitled "Characteristics and Risks of Standardized Options" available from NTSI. In particular, 70 your attention is directed to the chapter entitled "Risks of Buying and Writing Options." This statement is not intended to enumerate all U) of the risks entailed in writing uncovered options. • — 5 — 1 . BROKERAGE ACCOUNTI • AWARE OF THE FOLLOWING: (A) ARBITRATION IS FINAL AND BINDING ON THE PARTIES. (B) THE PARTIES ARE WADING THEIR RIGHT TO SEEK REMEDIES IN COURT, INCLUDING THE RIGHT TO JURY TRIAL. (C) PRE-ARBITRATION DISCOVERY IS GENERALLY MORE LIMITED THAN AND DIFFERENT FROM COURT PROCEEDINGS. (D) THE ARBITRATORS' AWARD IS NOT REQUIRED TO INCLUDE FACTUAL FINDINGS OR LEGAL REASONING AND ANY PARTYS RIGHT TO APPEAL OR TO SEEK MODIFICATION OF RULINGS BY THE ARBITRATORS IS STRICTLY LIMITED. (E) THE PANEL OF ARBITRATORS WILL TYPICALLY INCLUDE A MINORITY OF ARBITRATORS WHO WERE OR ARE AFFILIATED:WITH'THESECURITIES INDUSTRY. I AGREE THAT ALL CONTROVERSIES THAT MAY ARISE BETWEEN US CONCERNING ANY ORDER OR TRANSACTION, OR THE CONTINUATION, PERFORMANCE OR BREACH OF THIS OR ANY OTHER AGREEMENT BETWEEN US, WHETHER ENTERED INTO BEFORE, ON, OR AFTER THE DATE THIS ACCOUNT IS OPENED, SHALL BE DETERMINED BY ARBITRATION BEFORE A PANEL OF INDEPENDENT ARBITRATORS SET UP BY EITHER THE NEW YORK STOCK EXCHANGE, INC., OR NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC., AS I MAY DESIGNATE. IF I DO NOT NOTIFY YOU IN WRITING WITHIN FIVE (5) DAYS AFTER I RECEIVE FROM YOU A WRITTEN DEMAND FOR ARBITRATION, THEN I AUTHORIZE YOU TO MAKE SUCH A DESIGNATION ON MY BEHALF. I UNDERSTAND THAT JUDGMENT UPON ANY ARBITRATION AWARD MAY BE ENTERED IN ANY COURT OF COMPETENT JURISDICTION. No person shall bring a putative or certified dazs attion to arbitration, nor seek to'enforce any pre-dispute arbitration agreement against any person who has initiated in court a putative class action; who is a member of a putative class who.has not opted out of the class with respect to any claims encompassed by the putative class action until: (i) the class certification is denied; (ii) the class is decertified; or (iii) the customer is excluded from the class by the court. *r eh forbearance to enforce an agreement to arbitrate shall not constitute a waiverex of any rights under this agreement except to the tent stated in. Northern Trust Securities, Inc, member NASD, $IPC clearing through National Financial Services LLC, Member NYSE, SIPC (11/00) 114335 P6.017-939 1.747211.100101/041 - 6 - Police Pension Election Form May 2003 Retiree Phone Number Allen, Charles 855-0186 Bayles, Don 750-2939 Black, Joe P 442-6477 Bowen, J R 251 -9982 Bradley, Gerald 521 -3681 Bradley, Randall 846-3551 Brown, John o,arroll, Ronald L 571 -4754 Cole, Ruston 582-5926 Cooper, Adrian Dennis, Warren 267-3899 Dugger,Gary 267-5369 Flowers, Harold 632-0033 'Fos illie D. 443-7226 Fdeno, Je 443-9337 Hanna, Mark 501 -217-3646 Helder, Tim. Johnson, Charles 643-4137 Johnson, Wendell ones, Bob 444-7847 'I ore, Donald 521 -5180 Lawson, Forrest 521-0147 rpAartin, Kenneth 756-1184 Mccawle , Larry 521-5765 Mitchell, Michael 443-7757 Mueller, Rosemary I. 443-2346 Munson,An ela 267-2799 Murphy, Jake 442-4691 Perdue, La 442-3482 Phi Homer Gene 643-3230 Police Pension Election Form May 2003 Preston, Geor a David 677-2478 Rickman, Loren 6342551 Riggins, Raymond C 443-3266 Schuster,John H. 643-2404 Skelton, Frank 442-5776 Stanley, Melvin Sudes, Jerry 443-2091 Taylor, Dennis 559-2794 Upton, Franklin 925-2681 Watson, Richard 442-2967 Witt, Don 789-5429 Wood, Paul J 521-7753 C> C> Nr d N c M m MT co IL 0 CD ODD t0 �O V V m w M rM to w n � w MMWW N N •- n n M r to V w N V w N 0 r V O r 0 m V r 1 O O r N N (? M N N f? N N 3 N N N N 3 LO f� co V -p M M r N N 3 M n V M M - N V M M In N V m n U) 3 3 v N v v aXi m cro 0 � ccoo v to 3 v � rn v 3 1 D LO 0 w a W Z W 0 U W J _ W a aIQ Q 2 Q Z w U Z Z Y Z_ Z W W 2 Y x W J } m W a W O x Z Z } co J Q U W J Z z g z C U fO W W a O 2 W a 0 a J a z Y x } a 5 z Q w 2 0 z Q a a 0 w 0 Q 0 a w a z Z U O J Q w W F- F"' Q x J K LL w w W ¢ Q d of J 0 a J a' Z } w J m Z Z W z } m O LL z (4 0 x0 x J U) d a fp d U Z D O Z J O w co Z U Q c a U U U w z a m a J w Y 5 x w J O F- J F O O Q U U U z m 7 W W 2 a Q O U Y H O0 Q a ¢ J ~ O CL a a a a rn m m m D 3 c m a E m 0 CL n m c v r o � CL _ m 0) n N M V m . °' rn rn M m n M V n w r O r OD M n w w M 0 N R W O M N M to O M N V w V O) V W O M n O a0 OD M O N M d N M m i N rn c� M M to w M to O r w �i ao 3 M r u� 3 3 LO V O N CO Q N n n N M M 3 M 'OO W V M n V .Q V MLO V N V w r w W t0 O M X M V CO V N N . aD 3 r v N LO w r LO LO N N. N O N M 3 ODI 3 to N V to w 3 Ti W W J O J U W J co J a Z W O Z J W a W g z z z Z a a } a } } W Z w Q z Q m a a z a J z a w ¢ x O 0 a a a a J a c� Y w m m W Z a } Z _ O0 w a c7 a 0 a (- a ¢ x m w za ¢ Ui U m0 o O a z -+ � ai -� ' g z z z m L a U m ' z w W z O a w U w w a 0 Z a w O O a z z W Y w W Q Q W 2 (O (n ( O W x w O J U O 0 � a W O- 2 U ?) Z z z Y 0 U Z Z w O J U J z } Q Q O a J O z 0 U N W z z cn J H x x z J F a J a a g 0 a a a a 0 0 w a a m m m CO m m U U o 0 0 LL LL LL _ _ _ _ = 0 0 o Y g J o Policemen's Pension And Relief Board Of Trustees • DESCRIPTION: The Policemen' s Board of Trustees was established pursuant to the Arkansas State Code. The Board was created to provide for the disbursement of the Firemen's Relief and Pension Fund and shall designate its beneficiaries as directed in this act. The Board shall have the power to make all rules and regulations needful of its guidance to implement the provision regarding Board composition. TERMS: Two-year terms, ending April 30. MEMBERS: The Board shall be composed of seven members as follows: • The chief executive, who shall serve as chairman of the board ■ The city treasurer, who shall be the treasurer of the fund; ■ Four active or retired members of the pension fund; ■ One physician. APPOINTMENT: Active pension fund members shall elect the active members by secret written ballot in May of each year, with the member or members to be chosen in alternating years. The retired members shall be chosen in May of each year, by a method to be determined by the board, with the member or members to be chosen in alternating years. CONTACT: Sondra Smith, City Clerk, 575-8323. PUBLIC NOTIFICATION : Meetings are published by the City Clerk on the weekly meetings list which is distributed to the media representatives with press boxes in the City Clerk's office and released via the Internet on the City' s web site at: http://www.accessfayetteville.org MEETING TIMES: Regular meetings are held the third Thursday of each quarter at 1 :30 p.m. at the City Administration Building. 34 Policemen's Pension And Relief Fund Board Of Trustees Chairman Mayor Dan Coody Physician. 1418 E. Rodgers Drive Dr. James Mashburn Fayetteville, AR 72701 236 Oakwood Ave. 443-6758 — Home Fayetteville, AR 72703 575-8330 — Work 442-8225 01/01/01 to Indef. 07/17/97 to 04/30/03 05/01/03 to 04/30/05 Treasurer Sondra Smith 'merry A Su�lesx. P.O. Box 9211 3038 Sandra Fayetteville, AR 72703 Fayetteville, AR 72704 442-7838 — Home 443-2091 — Home 575-8323 — Work 02/14/03 to 04/30/04 02/03/03 to Indef. Replaced Hollis Spencer EUnexpiied.term eeridmg=04%30404. Randy Bradley 11024 N. Highway 170 Farmington, AR 72730 846-3551 — Home 263-2009 — Cell 07/17/97 to 04/30/03 05/01/03 to 04/30/05 deriy 'Frtertd =e 1640 Stewart Fayetteville, AR 72703 443-9337 — Home 444-1747 — Work 05/01/96 to 04/30/02 105/01702 O 4/30%04 Tim Helder 188 Tower Street West Fork, AR 72774 839-8104 530-0142 — Cell Replaced Eldon Roberts 05/01/03 to 04/30/05 35 Osborn Carreiro & Associates Inc . _ One Union National Piau,Sulte 1690 Associates , 124 West Capitol Avenue • ACTUARIES • CONSULTANTS • ANALYSTS Lime liodt, Arkansas 72201 (501 )376-8043 December 22, 2003 Mr. David Clark Arkansas Fire and Police Pension Review Board Union National Plaza Little Rock, AR 72201 RE: Fayetteville Plan Document Questions Dear David: You have forwarded to me earlier a copy of a letter to you from the Fayetteville City Clerk concerning plan documents. There were three main questions which in the letter that I will answer. 1 . Are the local plan subject to the requirements of GUST? Similar to other questions concerning plan qualification, public plan are subject to some of the • same requirements that the private plans are, but not all of them. Many times the public plan also have different effective dates that private plans. 2. Are any changes needed to comply with GUST? There are no immediate changes needed because of GUST. The main item needed by year end is a restatement of plan documents and the local plans do not have a plan document they have the state law. 3 . Who will review for needed changes? We have always tracked changes and federal law and recommended changes when needed for the state law to comply with the federal law. Please let me know if you have any questions or comments. Sincerely, `mow j y Carreiro, A.S.A. Actuary ftcc F QFC 22 2003 D PRB FAA TTEVILLE THE CITY OF FAYETTEYILLE, ARKANSAS • January 23, 2004 RECEIVED JAN 2 9 ,?004 David Clark, Assistant Director P R B LOPFI PO Box 34164 Little Rock, AR 72203 Dear Mr. Clark: I sent the attached letter to you in September of 2003 asking about the new tax laws commonly referred to as Gust. You called and told me verbally that our plans are complying with these requirements. The Policemen's Pension Board of Trustees has asked that I get a response in writing from you on the three questions that they had . On behalf of Policemen's and Firemen's Pension Boards, I am requesting a written response to the following information. 1 . Has a determination been made as to whether or not these local plans • created by statute are subject to these requirements? 2. If these plans are covered by GUST, are changes of the plan provisions needed to attain compliance? 3. If changes are needed, has a process to accomplish this been established and what entity has been charged with responsibility for this task? I want to thank you in advance for your assistance in this matter. If you have any questions or need any further information to consider this request, please contact me at 479-575-8323. Sincerely,Sondra Smith City Clerk Police and Fire Pension Board Secretary RECEIVED JAN 3 0 204 CITY OF FAYETpEVILLE CITY CLERK'S OFFICE 113WESTMOUNTAIN 72701 .479-521-7700 FAX 479-575-8257 CITY OF FAYETTEVILLE, ARKANSAS ' September 17, 2003 David Clark, Assistant Director LOPFI PO Box 34164 Little Rock, AR 72203 Dear Mr. Clark: I am writing to you in reference to the City's closed, Local Police and Fire Pension and Relief Funds and a group of tax laws commonly referred to as GUST. The City recently became aware that covered pension plans have until September 30, 2003 to be in compliance with GUST provisions. Our local Boards have become aware of the GUST deadline. They are concerned that their plans may be covered by these provisions and have requested that additional information be gathered. Since the plans were created by statute, and the City has no direct control over their provisions, I am seeking your assistance in providing answers to our Boards. On behalf of each of the Pension Boards, I am requesting the following information. 1 . Has a determination been made as to whether or not these local plans created by statute are subject to these requirements? 2. If these plans are covered by GUST, are changes of the plan provisions needed to attain compliance? 3.- If changes are needed, has a process to accomplish this. been established and what entity has been charged with responsibility for this task? I want to thank you in advance for your assistance in this matter. If you have any questions or need any further information to consider this request, please contact me at 479-575-8323. . Sincerely, Sondra Smith $gyp 2 2 2003 City Clerk Police and Fire Pension Board Secretary LOPFI 113WESTMOUNTAIN 72701 479521-7700 FAX 479-575-0257