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HomeMy WebLinkAbout2003-10-03 MinutesFireman's Pension and Relief Fund Board Meeting October 3, 2003 Page 1 of 3 MINUTES OF A MEETING OF THE FIREMAN'S PENSION AND RELIEF FUND BOARD October 3, 2003 A meeting of the Fayetteville Firemen's Pension and Relief Fund was held at 11:00 a.m. on October 3, 2003 in Room 326 of the City Administration Building. Present Danny Farrar, Pete Reagan, Robert Johnson, Marion Doss, Sondra Smith, Secretary, Steve Davis, Marsha Farthing, Elaine Longer, Kim Cooper. Absent: Mayor Coody and Ronnie Wood Approval of the Minutes: Pete Reagan moved to approve the August 28, 2003 meeting minutes. Danny Farrar seconded. Motion passed unanimously. Approval of the Pension List: Pete Reagan moved to approve the pension list for October with the removal of Beulah F. Davis who has deceased. Danny Farrar seconded. Upon roll call the motion passed unanimously. Investment Report: Elaine Longer: The plan is about 42% Stock, you are about 4 '''/ % in Real Estate Investments, Preferred Debt Securities are yielding 6.2%, Fixed Income Mutual Funds are yielding 6.2% and then your Corporate Bonds they are yielding 6.7%. We still don't have a bid on Enron bonds; hopefully we will see a bid pop up there. Treasuries are yielding about 4.4%, your Federal Home Loan Bonds and Government Agencies are about 15.6% of portfolio and GNMA is about 5.5%. The total portfolio is approximately $10,000,000; the income yield on the total portfolio is 3.4%. Ms. Longer continued to review the investment report. Pete Reagan: Sondra can you get Elaine a copy of the Osborn, Carreiro & Associates, Inc. actuarial report. Sondra gave Elaine Longer a copy of the report. Elaine Longer: There has been a lot of mention in the minutes about the class action lawsuits, we have filed every lawsuit, we have a cross check and balance system with Northern Trust, they notify us and we notify them when we receive notice of a class action lawsuit. We have filed the lawsuits and there have been approximately 13 Fireman's Pension and Relief Fund Board Meeting October 3, 2003 Page 2 of 3 settlements, the total amount received on those settlements is about $2,800 and this was over a seven year time period. I have read the minutes where the attorneys are talking about big pots of money waiting to be claimed in these suits and we just don't see that. Pete Reagan: I explained in a phone conversation to Elaine that we signed a contract with Dan -in Williams of Cauley, Geller, Bowman & Rudman this firm is actually working with the law firm of Martin & Kieklak that is representing us in the litigation with Merrill Lynch. They are the ones that are doing the background checking. When we signed the agreement with them it was for past and present. It's nothing against Northern Trust or Longer Investments. Elaine Longer: I was just concerned about them going forward and if they were to get a third of what you are going to recover. Pete Reagan: They do it only if Northern Trust doesn't do it, Northern Trust is the primary. Old Business: LOPFI Plan: Steve Davis gave an update on the LOPFI plan. This is on the City Council Agenda for this next week. The recommendation to the City Council will be to postpone the merger until some date in the future. The request from the staff will be to indefinitely table the merger. Skelton College Enrollment: Copies of the current college enrollment for Kelly D. Skelton and Kimberly Skelton have been received by the City Clerk's office. Gust Requirements: Steve Davis: We did some research on the GUST requirement and it's not applicable to this pension plan. Martin & Kieklak Letter: The City Clerk's office received a letter from the law firm of Martin & Kieklak stating they would not be at the October 3, 2003 Fireman's Pension meeting. They said as soon as they receive a final report and the arbitration papers they will call and set up a meeting to give their final report to the board. New Business: Arkansas Municipal League Ballot: A Ballot form the Arkansas Municipal League regarding the Arkansas Local Government Cash Management Trust was received in the City Clerk's office. The Fireman's Pension Board has no money in the plan; therefore they did not vote or return the ballot. Fireman's Pension and Relief Fund Board Meeting October 3, 2003 Page 3 of 3 APRB Information: The Arkansas Fire & Police Pension Review Board sent a brief summary of five acts from the 2003 Legislative Session. A letter was received from The Arkansas Fire & Police Pension Review Board on the Future Supplement Fund Distribution and the amount of the distribution. Pete Reagan: Is this amount per year? Sondra Smith: The letter states it is a single one time payment in the amount of $218.40 for a paid fire retiree and $43.68 per year for a volunteer fire retiree. A copy of the Arkansas Fire & Police Pension Review Board letter will be sent with the checks and we will highlight the statement single one time payment so they will not expect this amount on any checks in the future. Pete Reagan: Did we get our State Insurance turn back check. Marsha Farthing: Your check was $412,688.18. Pete Reagan: If you are not happy about they way they handled the payment, I would advise you to contact the LOPFI chairman. Sondra Smith: I have a bill from Ashland Management showing the investment advisory fees have not been paid by Merrill Lynch to Ashland Management. Pete Reagan: Sondra will you send a copy to City Attorney Kit Williams and to our attorneys Martin & Kieklak. Marion Doss: Pete do you know anything about working after DROP? Pete Reagan: I have asked Mr. Davis to cost that with the actuary, also the 10 year DROP is being costed and they have not gotten back to us yet. Marion Doss: There are a couple of people that are interested. Steve Davis: I think there are provisions where the City Council would have to approve it also. Meeting adjourned 11:45 AM.