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HomeMy WebLinkAbout2006-05-26 MinutesFiremen's Pension and Relief Fund Board of Trustees Meeting Minutes May 25, 2006 Page l of 5 Firemen's Pension and Relief Fund Meeting Minutes May 25, 2006 A meeting of the Fayetteville Firemen's Pension and Relief Fund was held at 11:00 AM on May 25, 2006 in Room 326 of the City Administration Building Pete Reagan called the meeting to order Present: Mayor Coody, Marion Doss, Dennis Ledbetter, Pete Reagan, Ronnie Woods, City Clerk Sondra Smith, City Attorney Kit Williams, Trish Leach, Accounting. Absent: Teddy O'Neal Approval of the April 27, 2006 Meeting Minutes: Marion Doss moved to approve the April 27, 2006 meeting minutes. Ronnie Wood seconded the motion. Upon roll call the motion passed 5-0. Mayor Coody and Teddy O'Neal were absent. Approval of the June, 2006 Pension List: Sondra Smith: The difference between the May pension list and the June pension list is Dwayne McChristian's pension amount. The May list paid him the two checks that he did not receive due to no affidavit and this time his pension amount it has gone back down to the normal $109.27. So, this pension list is just a little bit less than last months. Ronnie Wood moved to approve the June, 2006 pension list. Marion Doss seconded the motion. Upon roll call the motion passed 5-0. Mayor Coody and Teddy O'Neal were absent. Old Business: Act 2094 - Disclosure of Gifts Affidavit Form Pete Reagan: I encourage you to keep track of that and turn it in at the end of the year. Elections — May 31, 2006 Final Date to Return Ballots Pete Reagan: Sondra can you give us an update on the election process? Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes May 25, 2006 Page 2 of 5 Sondra Smith: Kit decided that we probably needed to send ballots out so I sent ballots to everyone and included a write in vote. We put a deadline to either receive or have them postmarked by May 31, 2006. The ballots are coming back in and so far we have not received any write in votes. So as it stands right now it is still Pete Reagan and Marion Doss. Pete Reagan: The cut off date is May 31 st? Sondra Smith: May 31, 2006 to either be received or postmarked. Kit Williams: The Police Pension Board is not actually doing the nominations. They are just doing an election because it would have already been over if you just said who you want on your board and not who do you want to nominate and then have an election. They are just having an election. For next year I don't know if you want to maintain this policy that you currently have or if you want to just say that when the election goes through anybody can vote for anybody rather than do nominations. It's just something for you to think about in the future. Pete Reagan: I personally like it like it is. It maintains harmony on the board and there are positions now to run for if somebody wants to run against me or anyone sitting on the board they have that opportunity to. I really don't see why we had to have an election. Kit Williams: When you're supposed to be elected a nomination is not enough. You've got to actually have an election. You might not have to do nominations but the election is the part you can't do without. The nomination you can do it different ways but I would be uncomfortable without an actual vote. Dennis Ledbetter: Can we make a motion after the 31st if there is no write in votes that these would be accepted. Sondra Smith: You've already done that. You did that at the last meeting. Dennis Ledbetter: Okay. Alright. Sondra Smith: To accept them if there were no others. Dennis Ledbetter: Okay. Kit Williams: Besides that you don't really have a choice to accept them or not they are elected if they get the votes that's it. Sondra Smith: I do have a question on the elections that I would like for us to put in writing. I would like to know who you want the ballots and nomination forms sent to. If you want everyone that is drawing a pension or if you just want the actual retired firemen to receive it. Pete Reagan: The policy in the past has been just the retired fire fighters. Sondra Smith: Then you need to have something in writing regarding that. Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes May 25, 2006 Page 3 of 5 Kit Williams: Or at least a motion something officially that will go on the minutes Sondra Smith: Right. Marion Doss: I think that the way the state statute reads it says the members of the fund. For years we've accepted that the members of the fund meant the fire fighters are the members or the ones that pay into it and draw. The families are beneficiaries so I've always thought that it should be the membership that's elected. Kit Williams: That's what the Police Pension did. I think that's the right way to do it and probably the proper interpretation but you can clarify that is your intent by this motion. Marion Doss: Okay. I thought that you would probably clarify that. Kit Williams: I think that's the way it should be. Sondra Smith: I'm putting retired members only, no widows or anybody else. Marion Doss: We should stay in accordance with state statutes because I think that's what the state statute says. That way someone doesn't think we are trying to keep someone from voting. Dennis Ledbetter made a motion that retired members only can vote during election. Marion Doss seconded the motion. Upon roll call the motion passed 5-0. Mayor Coody and Ted O'Neal were absent. Pete Reagan NCPRES Travel Reconciliation Report A copy of the report was given to the board NCPRES Conference Report — Pete Reagan Pete Reagan: The opening speaker stated that in the United States we have 2,659 Public Retirement Systems of those the unfunded liabilities are $350 billion and as of August, 2005 the average fund was 88% funded. The other key note that he said was that American home owners owe $8.8 trillion in mortgages. He compared that to the unfunded liabilities in the pension funds which I thought was astounding. The average American doesn't actually own there own home the mortgage companies own it. NCPRES is the first pension group to put a book together titled "Public Pensions and You" going up to the trustee level. They also included a glossary of investment terms and acronyms which is very helpful. They also have an online test that you can go online to NCPRES.com and take a test to get certified as a trustee for a pension fund. I would encourage you all to do that. I have not personally done this yet but I do plan on doing it. Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes May 25, 2006 Page 4 of 5 Mayor Coody: How did they say that the short fall of the $300 billion could be made up, the shortfall? Pete Reagan: They didn't, they just noted that that was the number. Everybody is scared of it because it's a big number but it's out there in the universe. How many of us look at how much we own on our house we know that we make a $500.00, $1000.00, or a $1500.00 a month house payment and know your going to pay it off in 30 years. That's basically what they were comparing this to. Marion Doss: What did you say the mortgage rate was? Pete Reagan: $8.8 trillion. That's what is owed on American homes. Dennis Ledbetter: I think that is going to change because on TV they're advertising a 50 year loan now. Kit Williams: If you pay on a 20 year loan you hardly ever pay any principal. Pete Reagan: The other thing he mentioned was that 70% of the home mortgage loans in California since August 2005 have been interest only loans. Kit Williams: You're just betting on the economy? If the price doesn't go up for houses your stuck. Mayor Coody: There will be a lot of losers out there. Kit Williams: Including some of the lenders. If you'll remember we had a crisis in the savings and loan 10, 15 years ago that cost the tax payers billions of dollars to pay off these debts because the savings and loan people gambled with the money of there investors and lost it. Mayor Coody: Privatize profits socialize losses. Kit Williams: That's the way that one certainly worked. Pate Reagan: That's part of that trickle down economy. That was under the Reagan administration if I remember correctly. Longer Investments: Equity overage of 4% - Equity Allocation is at 54% Marion Doss moved to approve the equity overage of 4%. Ronnie Wood seconded the motion. Upon roll call the motion passed 6-0. Teddy O'Neal was absent. Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes May 25, 2006 Page 5 of 5 Email Resarding Proxy Vote Pete Reagan: We also have an email from Elaine Longer regarding the Proxy Vote for the Wal- Mart shares that the fund owns. They voted for the shareholder proposal related to greater disclosure and board oversight of political contributions that we requested. Monthly Report A copy of the Longer Investment first quarter report was given to the board. Meeting Adjourned at 11:20 AM