Loading...
HomeMy WebLinkAbout1988-02-25 MinutesMINUTES OF A FIRE PENSION BOARD MEETING A meeting of the Fayetteville Fire Pension and Relief Fund Board was held on Thursday, February 25, 1988 at 1:30 p.m. in Room 313 of City Hall, 113 West Mountain Street, Fayetteville, Arkansas. PRESENT: Chairman Jim Pennington, Secretary Suzanne McWethy, Firemen Pete Reagan and John Dill, and Retiree Carl Springtson ABSENT: Fire Chief Mickey Jackson, Fireman Mike Bonaduce OTHERS PRESENT: CALL TO ORDER Assistant City Manager Scott Linebaugh, Accounting Supervisor Zelda Parson, Curtis Williams and Richard Yada representing Merrill -Lynch The meeting was called to order by the Chairman. MINUTES It was moved by Reagan, seconded by Dill and unanimous, to approve the Minutes of the last meeting. PENSION LIST It was moved by Dill, seconded by Springston and unanimous, to approve the Pension List for the month of March. CITY ATTORNEY'S OPINION Referring to an Opinion from City Attorney McCord, Pete Reagan asked if the Board was covered under the same statute which applies to the Police Pension Board. Reagan said he had asked McCord to check this for him, so the Board can have this information for its next meeting. NEW BUSINESS Linebaugh distributed material on investments and told the Board the next investments to mature will do so on May 29 and June 1, 1988. MERRILL LYNCH REPORT Curtis Williams, speaking for Merrill -Lynch, distributed material to the Board. Williams said the firm may want to make some adjustments in the Fire Pension Board Minutes February 25, 1988 Page Two handling of the Board's investments. He said the firm may want to put together a portfolio that would earn a rate somewhere between that earned by stocks and by bonds, with some funds invested in stocks, some in bonds and some in C.D's and Treasury's, in order to "beat the 2% split on inflation" and to improve the fund's actuarial soundness. Richard Yada asked if the Board had adopted an investment policy since Cathyrn Hinshaw's September letter. He distributed questionnaires to the Board members which he said would be used to propose an investment policy. Yada reported on the Equity Account. with $507,000, had a present value the Income Account, Yada reported the a present value of $1,844,894 and was He said the account, which started of $475,519 and was down about 6%. On original investment of $1,645,000 had up 12%. Yada said he would draw up an investment policy after he receives the questionnaires back from the Board members, to present at the next meeting. Portfolios were passed out from two other cities showing their purchases of bonds. The Board was urged to consider in future months the possibility of purchasing corporate bonds. John Dill asked about the status of the M -L Lee investment. Williams reported this was doing very well. He said the stock market crash had no downward effect on the potential of that investment. Reagan said he thought it would be policy, and also thought the Board kept locally to pay the retirees. next meeting - the question of how year. ADJOURNMENT a good idea to come up with an investment needed to decide how much money should be He said he would bring that up at the much money it would take per month or per With no further business, the meeting adjourned at 2:20 p.m.