HomeMy WebLinkAbout1988-01-28 MinutesMINUTES OF A MEETING OF THE FIRE PENSION BOARD
A regular meeting of the Fayetteville Fire Pension and Relief Fund Board was
held on Thursday, January 28, 1988 at 1:30 p.m. in Room 313 of City Hall,
113 West Mountain Street, Fayetteville, Arkansas.
PRESENT: Chairman Pennington, Secretary McWethy, Board members
Jackson, Reagan and Bonaduce
ABSENT: Board members Dill and Springston
CALL TO ORDER
The meeting was called to order by the Chairman at 2:10 p.m.
MINUTES
It was moved by Jackson, seconded by Bonaduce, and unanimous, to approve the
minutes of the last meeting.
PENSION LIST
It was moved by Bonaduce, seconded by Reagan, and unanimous, to approve the
pension list from the last meeting.
OLD BUSINESS
POLICY ON PENSION PAYBACK
The Board discussed the issue of setting a policy for the paying back of
Pension Funds upon rejoining the Pension Fund. Danny Farrar was present
because he had been a former member of the Pension Fund, left the Fire
Department, has now returned and wishes to rejoin the Pension Fund.
Linebaugh distributed an opinion from the City Attorney which had been
prepared at the request of the Police Pension Board on the same issue. City
Attorney McCord's opinion addressed the question of whether an officer would
be eligible for pension and disability benefits if he was a former member of
the Police Department and was rehired. Linebaugh said the opinion concluded
that the Board must set the policy for repayment of the withdrawn pension
contributions, and that a former officer must repay his contributions in
order to be eligible for pension benefits. On the question of disability,
Linebaugh said the City Attorney's opinion was that a former officer who was
rehired and who becomes disabled from performance of his duties is eligible
for disability, and his eligibility is not contingent upon repayment of any
withdrawn pension contributions.
Jackson asked if the Board had the authority to make monthly withholdings if
the individual is not a member of the Fund. Linebaugh said he thought the
Board could set a policy which would allow them to make the withholdings.
The Board discussed the fact that at the last meeting it was suggested a
payback arrangement could be made for one year for Danny Farrar. Chairman
Pennington told the Board that Farrar withdrew $1,056.44 in May of 1983, and
the Board discussed Farrar paying back no less than 6% interest, making the
total payback $1585.39. Pennington said these calculations were made for a
12 -month payback period.
Linebaugh said the major point was that if Farrar were disabled, he would
not have disability coverage for a total of five years until all of the
amount was paid back. Jackson said the Board should adopt a policy to cover
the details in Farrar's case, and to be used for any additional cases.
Linebaugh agreed there should be one general policy to apply to everybody.
It was the consensus of the Board that the policy would be to allow
repayment of withdrawn pension contributions plus interest over a period of
one year.
Fire Chief Jackson suggested the following be adopted as the Board's policy
in the case of Danny Farrar, to be used in any future requests:
1. Former members of the Fayetteville Fire Department who have
withdrawn pension contributions and are subsequently rehired are
eligible to rejoin as a member of the pension system.
2. In order to rejoin as a member of the pension system, the
individual must repay all the withdrawn pension contributions plus
interest as per the rules.
3. Repayment must be made within one year of the time of re -joining
the system.
4. During the one-year period, the Board will consider the individual
as a member of the Fund with full privileges within the limits of
the law.
5. Pension contributions will be withheld from the individual's
paycheck.
The above policy was moved for approval by Jackson, seconded by Reagan and
unanimous.
INVESTMENTS
Linebaugh distributed a copy of the active securities in the Fund. He
reported that the investment to mature today was bid out and won by the Bank
of Fayetteville, at 5.5% interest. The investment was in the amount of
$40,000 for a term of 30 days.
Fire Pension Minutes
January 28, 1988
Page Two
NEW BUSINESS
Jackson reported he received a quarterly statement in the mail from RNC
which he said would be on file in his office.
Bonaduce reported on the status of the portfolios. He reported $1,647,000
had been invested in an Income Account, currently worth $1,824,698, up about
9%. He reported $507.000 was invested in an Equity account, currently worth
$442,047, down $65,000.
Bonaduce reported M -L Lee has about $100 million invested so far in their
acquisition program, which is averaging 14%-16% today.
ADJOURNMENT
The meeting adjourned at about 2:30 p.m.
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