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HomeMy WebLinkAbout2005-02-24 MinutesFiremen's Pension and Relief Fund Board of Trustees Meeting Minutes February 24, 2005 Page l of 4 Firemen's Pension and Relief Fund Meeting Minutes February 24, 2005 A meeting of the Fayetteville Firemen's Pension and Relief Fund was held at 11:00 a.m. on February 24, 2005 in Room 111 of the City Administration Building Marion Doss called the meeting to order Present: Pete Reagan, Robert Johnson, Marion Doss, Danny Farrar, City Clerk Sondra Smith and City Attorney Kit Williams. Absent: Mayor Coody and Ronnie Woods Approval of the January 27, 2005 Meeting Minutes: Pete Reagan moved to approve the Minutes. Robert Johnson seconded the motion. Upon roll call the motion passed 5-0. Approval of the March 2005 Pension List: Marion Doss: Did we get the 3% COLA added to the DROP retirees? Sondra Smith: Accounting changed the DROP amount and added the 3% COLA. Robert Johnson moved to approve the Pension List. Danny Farrar seconded the motion. Upon roll call the motion passed 5-0. Longer Investments: A copy of the investment report for January 31, 2005 was handed out. Old Business: Investment Policy Change: A copy of the revised investment policy was given to the Board. Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes February 24, 2005 Page 2 of 4 Kit Williams: That should be part of her report to you every quarter, whether or not she has had to go within that five percent and then you will have to approve it. Sondra Smith: She will report to us any overage every month even if she is not scheduled to attend our meeting that month. She will let me know if she has had to go beyond the percentage each month and I will report the overage to the board for them to vote on the overage. I didn't think every quarter for the Firemen's Pension would be appropriate since we meet every month. The revised investment policy was given to the board for them to sign. Pete Reagan moved to approve the revised Investment Policy adding the last two sentences to Section 3 on Page 3. Danny Farrar seconded the motion. Upon roll call the motion passed 5-0. Benefits to widows of firefighters if married after retirement: Marion Doss: If a fire fighter marries after retirement and is married for more than five years his widow can have spousal benefits. Is that correct Kit? Sondra Smith: With approval of the board. Kit Williams: They use different language in this particular section than they do when you increase your own benefits under Section 24-11-102. When they came up with this benefit under Section 11-8-20 of the State statues, they say the pension fund must be actuarially sound after this benefit increase. They also say that any payment of benefits above the minimum amount stated in the section shall not be made except upon determination that the fund will remain actuarially sound. I don't think your fund right now is actuarially sound. Pete Reagan: No it is not. Kit Williams: Does this language control? It seems like it does as opposed to the normal benefit increase where it says actuarially feasible and then they talk about going through the cash flow method. I have not seen any interpretation of this because this is a new statue. If you want we could ask the attorney general to see if it would still be granted under the old way that you can do your regular benefits or because they specifically said the fund must be actuarially sound that it would not be available. Pete Regan: I agree with Kit. Marion Doss: The board can decide if we want Kit to clarify that now or just wait until we need to know. Kit Williams: The first thing is whether you really want to do it. If there is not a big move to do this, then let's not ask the attorney general to spend his time to give us an opinion. Pete Regan: There is no one that has petitioned us to do this sound. Kit Williams: If there is no one really eligible then I would back burner and wait until there is a reason to look at it. Danny Farrar: Sounds good to me. Marion Doss: I think we should take our attorney's advice. NCPERS Conference: Marion Doss: Do we need to do something on this today? Pete Reagan: We need to do something today. Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes February 24, 2005 Page 3 of 4 and we know we are not actuarially recommend that we put this on the Marion Doss: If someone wants to go and we have the money budgeted I think we should send someone. It is pretty important to keep laws concerning pensions in the forefront. There is a lot of movement to change things. Danny Farrar moved to send up to two pension board members to the NCPERS Conference. Pete Regan seconded the motion. Upon roll call the motion passed 5-0. Kelly Skelton — College Enrollment: A copy of the Proof of Enrollment for Kelly Skelton was given to the Board. Kelly Skelton Eligibility for benefits: A copy of Kelly Skelton's birth certificate was given to the Board. She will turn 23 on October 25, 2005 so her benefits will stop this year. Kelly's benefits will revert to Kim Skelton if Kim stays in college until she reaches the age of 23. Sondra Smith: Kit could you check the law to see if they have to remain in school continuous or if they can sit out a semester and then draw from the pension fund again when they return to school. Pete Regan: It says in the State statue however if the child enrolls in an institution of higher education after completing high school the payment shall continue as long as the child is a full time student but in no instance beyond the child's 23rd birthday. Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes February 24, 2005 Page 4 of 4 Kit Williams: It is not really clear on that. Normally these pension laws are supposed to be construed generously to the beneficiary. I would think that probably as long as they are under the age of 23 and took a year off, they would not draw benefits during the time they were not enrolled in school but probably should get paid when they go back to school. Marion Doss: I think that is a good benefit for the kids, it is a good program. Kim Skelton — College Enrollment: A copy of the Proof of Enrollment for Kim Skelton was given to the Board. New Business: DROP amounts due this year: A copy of the estimated DROP amounts that was prepared by the Accounting Department was given to the Board. A discussion followed on the amount that the three DROP retirees will receive in a lump sum distribution. Meeting Adjourned at 11:40 AM