HomeMy WebLinkAbout1986-06-09 MinutesMINUTES OF A FIRE PENSION BOARD MEETING
A meeting of the Firemen's Pension and Relief Fund Board was held
on Monday, June 9, 1986 at 4:30 p.m. in Room 326 of City Hall.
REHM:Chairman Don Grimes, Treasurer Scott Linebaugh, Secretary
Suzanne Kennedy, Fire Chief Mickey Jackson, Firemen
Dill, Reagan and Springston, Public Safety Director
Marty Coates; Richard Yada and Curtis Williams representing
Merrill -Lynch investment firm
ABSENT: Darrell Judy
The meeting was called to order by Chairman Grimes.
Consideration of the Minutes of the last meeting were deferred until
the next meeting.
OLD BUSINESS
Pursuant to a request for information made at the last meeting, Linebaugh
told the Board that the rules on benefit increases allow the Board
to request any amount of increase, as long as the Fund is aetuarily
sound.
Linebaugh noted that, at the last meeting, the Board voted to raise
the benefits for 13 people by $50. He noted that there is a problem
in that this does not cover new retirees
Reagan asked in what month the actuarial study will be conducted this
year. Yada noted that the study would not be conducted until after
December and results would probably not be received until July.
Linebaugh asked if any Board member wished to amend the Board's actions
to grant an increase only to 13 people.
Jackson noted that the increase should be subject to approval of the
Review Board. Jackson asked if the increase should be effective as
of last month.
Linebaugh stated a request would be submitted for a $50 raise for
13 people.
Yada explained that, if the Fund drops below actuarial soundness,
a second request can be submitted for a benefit increase at whish
time limits are supposed to be provided but another actuarial study
would still have to be conducted.
MERRILL-LYNCH REPORT
Merrill -Lynch presented a report for the period 4/26/86 to 5/30/86.
It was noted that the portfolio value for this period was $1,119,693.10
and that there had been an 11.97% increase in the portfolio in less
than six months.
A Cash Management Account Monthly Statement was distributed to the
Board.
JUNE PENSION LIST
It was moved by Reagan, seoonded by Dill and unanimous to approve
the Pension List for June.
NEW BOARD MEMBER
It was noted that Carl Springston had been elected to fill the retiree
position on the Board.
INVESTMENTS
Linebaugh reported that an investment was due to mature, in the amount
of $312,657, presently earning 7.65% at First Federal. He reported
on current available rates:
Certifiaates of Deposit 90 days 6.4%
180 days 6.6%
1 year 6.7%
Treasuries 180 days 6.59%
1 year 6.71%
2 years 7.33%
Linebaugh reported the next investment to mature will Gome due in
October.
Reagan reported there has been discussion among the firemen about
putting approximately $500,000 into an Equity Annount because interest
rates are so low. He noted their intent was to have the account managed
by RNC, as is the current Fixed Income Annount.
Curtis Williams reported the maximum management fee would be 1.6%
on $500,000, but added that he felt some aoneession might be possible.
Dill asked for the amount of fee whieh would be charged on $1,500,000.
Yada responded that there would be a fee of $13,000 on $1 million,
and a fee of $5,000 for an additional $500,000. Yada said that if
the $500,000 is in a separate account, the fee would be $8,000. Williams
said their firm Gould pursue this contingent upon getting some aoneession
on the fee from RNC.
Linebaugh noted that only $300,000 was available to be invested at
this time, with the remainder to be available in October. Williams
stated there would be no problem beginning with an investment of only
$300,000. Williams explained that additional funds may be added to
an Equity Account at any time, and that funds may be withdrawn as
well at any time.
Williams explained that the Income Account is the most conservative
portfolio, and the Equity portfolio is the most aggressive.
Williams stated that over 75% of the funds managed by RNC are pension
funds.
Jackson made a motion the Board commit $500,000 of the Fund to an
Equity Account, beginning with approximately $300,000.
Reagan moved to amend the motion that this be done on the stipulation
a better deal can be obtained from RNC on a management fee. Jackson
agreed to the amendment. The motion, as amended, was seconded by
Dill and passed unanimously.
ADJOURNMENT
The meeting adjourned at about 5:20 p.m.
CHAIRMAN