HomeMy WebLinkAbout1982-04-05 MinutesMINUTES OF A FIREMEN'S PENSION AND RELIEF BOARD MEETING
A meeting of the Firemen's Pension and Relief Board was held on Monday,
April 5, 1982, at 4:30 p.m. in the City Manager's Office, City Administration
Building, Fayetteville, Arkansas.
PRESENT: City Manager Grimes, Chief Paul Logue, Larry Freedle, John Dill,
Robert Johnson, Treasurer Scott Linebaugh, and Secretary Sherry Rowe, (Ralph
Tate arrived late), and City Attorney Jim McCord.
ABSENT: None
CALL TO ORDER
City Manager Grimes called the meeting to order.
MINUTES
The minutes of the March 1, 1982 meeting were approved as submitted.
PENSION LIST
There was one change in the pension list for March - Mr. Dwayne McChristian,
whose retirement had been approved at the March 1 meeting, was added to the list.
Motion was made and seconded to approve the pension list. The motion passed
unanimously.
OLD BUSINESS
There was no old business. Mr. Linebaugh stated that there were no
investments coming up until next month. There was currently about $20,000 in
a savings account drawing approximately 5% interest.
NEW BUSINESS
Chief Logue stated there had been several inquiries regarding a possible
increase in pension benefits. Mr. Boyce Davis, son of retired fireman Ray Davis,
Mrs. Gladys Cole, and Mr. Don Watts had made inquiries.
Mr. McCord stated that Boyce Davis, an attorney from Lincoln, had called him
several times regarding his father's benefits. There are discrepancies in the state
statutes regarding the requirement of an actuarial study before benefits can be
increased. Mr. McCord stated that in 1981 there was a bill passed stating that
notwithstanding any law to the contrary, the fire pension board may pay .pension
benefits up to a minimum of $250 a month. Mr. Davis interprets this to mean that
the board has to pay $250 if they pay benefits because this is the minimum. After
this bill was passed, another bill was passed stating before the board can increase
benefits any, an actuarial study has to be done. The law is that the most recent
act prevails, so Mr. McCord stated he felt the actuarial study had to be done
before benefits can be increased.
Mr. Linebauah stated that he Was not sure that the pension fund would be
actuarially sound to enable anincrease at this point in time. Mr. Linebaugh
confirmed the fact that the board cannot increase benefits if the fund is not
actuarially sound.
Mr. Grimes stated that it would not be practical to increase benefits if the
fund was found actuarially unsound at this time.
Mr. McCord suggested requesting an Attorney General's opinion regarding the
discrepancies in the state statutes regarding the actuarial study which might
eliminate a possible lawsuit.
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Mr. Grimes stated he felt if one benefit was raised, he felt that the board
should be prepared to consider raising all of the benefits on an across-the-board
basis which could be a considerable amount of money.
Mr. Freedle asked how Mrs. Ellis Poor's benefit was increased and in regard
to this why thisGease_was different from possibly raising other benefits.
Mr. Grimes stated that Mrs. Poor was the only widow of a full-time retired
fireman, and this differentiated her case.
It was confirmed that when asking if an increase in benefits would be possible,
the specific amounts have to be submitted. There was general discussion about who
would be granted an increase and what amounts would be granted.
It was discussed that the procedure to be followed would have to conform
to the appropriate statutes. It was discussed that the actuarial study could be
requested at this time, then the specific figures regarding an increase could be
determined and submitted after the study is completed for determination if an
increase would be possible given the fund's financial position. It was confirmed
that the State Auditor performs the actuarial study.
Mr. Grimes made a motion to authorize Mr. Linebaugh to contact the state
auditors requesting the actuarial study to be done as soon as possible.
Mr. Linebaugh stated that according the the last actuarial study, it was going
to take almost a year from January 1982 before the fund would be financially sound.
Mr. McCord stated that this request should eliminate any lawsuits requesting
benefit increases.
Chief. Logue, seconded by Freedle, made a motion to request the actuarial
study from the State Auditor. They will be informed that a resolution will be
forthcoming from the board stating the specific amounts requested for benefit
increases. A request will be made to determine if the fund would be financially
sound if the increases were granted. The motion passed unanimously.
Mr. Grimes suggested that the people on the pension list be classified and
the increases be granted or based on the classes rather than the individual person.
It was also decided that Mr. McCord should contact Boyce Davis and inform him
of the action the committee took regarding the proposed increases to possible
keep Mr. Davis from filing a lawsuit requesting an increase.
Motion was made and seconded to request an Attorney General's opinion regarding
to the statutes and the need for an actuarial study. The motion passed unanimously.
Mr. McCord outlined the three acts in questions where there is a discrepancy.
It was confirmed that the firemen would get together and decide on the
proposed benefit increases to be submitted to the State Auditor.
ADJOURNMENT
There being no further discussion, the meeting adjourned at 5:05 p.m.
ecretary lonald L. Grimes, Chairman