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HomeMy WebLinkAbout1985-10-07 MinutesMINUTES OF A FIREMEN'S RELIEF & PENSION FUND BOARD MEETING A meeting of the Firemen's Pension Relief 7, 1985, in Room 326 of City Hall. PRESENT: Treasurer Scott Linebaugh, Fire Chief Boudrey; Fire Springston ABSENT: Chairman Grimes Board was held on Monday, October Secretary Suzanne Kennedy, Acting Fighters Dill, Judy, Reagan and CALL TO ORDER The meeting was called to order at 4:30 P.M. by Treasurer Linebaugh, in the absence of the Chairman. MINUTES It was moved by Reagan, seconded by Springston, and unanimous, to approve the minutes of the September 9 meeting. PENSION LIST It was noted that there was a correction to the amount of former Fire Chief Logue's pension, which was incorrectly reflected on the October Pension List. Linebaugh explained that the amount was corrected to reflect Logue's amount of service beyond twenty years. It was moved by Dill, seconded by Boudrey, and unanimous, to approve the Pension List for October. OLD BUSINESS Money Manager Linebaugh reported that Don Grimes had requested the Board table making a decision regarding a money manager until he can be present to discuss this matter with the Board. Springston stated he thought the feelings of the Fire Department employees were that they wanted to use some of the funds coming due in December for investment through a money manager, and that they wished to employ Merrill -Lynch, with RNC. Firemen's Relief and Pension Fund Board October 7, 1985 Page 2 Linebaugh noted that, as of September 30, there would be about $3,315,000, including turnback, to be invested. Reagan stated the employees discussed the idea of "trusteeing" the funds to be invested through the money manager at a local bank. Linebaugh suggested that, rather than taking action at this meeting, the Board invite RNC to attend the next meeting. It was moved by Springston, seconded by Reagan, and unanimous, to invite Jacques Devote of RNC to attend the next meeting. After some discussion, Board members requested Linebaugh schedule a meeting to be held prior to the next regularly scheduled meeting. It was agreed to schedule the meeting for October 28. NEW BUSINESS Investments Linebaugh reported that a Certificate of Deposit was due to mature on October 21 and another on October 28, both for $250,000. Current rates as reported by Linebaugh were: C.D. s 90 days 7% 180 days 7.25% 360 days 7.5% 2 years 8.5% Treasury's 6 months 7.59% 1 year 7.92% 2 years 8.89% Linebaugh noted that he had recommended to the Police Pension Fund Board that they consider investing in "Ginnie Mae pools", or unit investment trusts. Linebaugh explained these were government -backed securities earning 11%, but include a withdrawal penalty for the first five years. Springston commented that he would like the Board to have some guidelines as far as how much of the Fund should be invested over a short term, and how much over a long term. Linebaugh agreed. Linebaugh pointed out that Merrill -Lynch may not want to make any short-term investments. Springston suggested the Board might adopt a guideline such as that 1/3 of the fund would be invested over a long term, 1/3 with Merrill -Lynch, and 1/3 over a short term. Firemen's Relief and Pension Fund Board October 7, 1985 Page 3 It was moved, seconded and unanimously approved to invest the C.D.'s under discussion in Treasury Bills for six months at the rate of 7.59%. Actuarial Study Linebaugh reported that the actuarial study had been received and shows the Fund is in good shape. ADJOURNMENT With no further business, the meeting was adjourned at about 5:15 P.M.