HomeMy WebLinkAbout1983-01-03 MinutesMINUTES OF FIREMEN'S PENSION AND RELIEF BOARD MEETING
A meeting of the firemen's Pension and Relief Board washeld on Monday,
January 3, 1983, at 4:30 p.m., in the City Manager's Office, Interim City
Hall, Fayetteville, Arkansas.
PRESENT: City Manager Grimes, Treasurer Scott Linebaugh, Chief Paul Logue,
Firemen Dill, Johnson, and Springston, Secretary Kelly.
ABSENT: Fireman Boudrey
CALL TO ORDER
City Manager Grimes called the meeting to order.
MINUTES
The minutes of the December 6, 1982 meeting were approved as submitted.
PENSION LIST
There was a minor change to the Pension List. Mrs. Ellis Poor has
requested that her name be changed on the records of the Firemen's Pension
and Relief Board to read Mrs. Carmen Poor, in order to be consistent with
identification papers she utilizes when cashing checks. There being no
additional changes to the list, motion was made and seconded to approve
the list, with this amendment. Upon roll call, the motion passed unanimously.
OLD BUSINESS
Treasurer Linebaugh mentioned that there were no investments in the
month of December.
NEW BUSINESS
Treasurer Linebaugh stated that the following CD's will come due in the
month of January. They are: January 19, 1983, CD#12347, at Northwest
National Bank, in the amount of $275,405, at the rate of 13.00%, including
$20,150 from savings; January 20, 1983, CD#24447, at First National Bank, in
the amount of $105,675.89, at the rate of 12.25%; and January 26, 1983, CD#
01094, at First Federal, in the amount of $220,000, at the rate of 12.75%.
Treasurer Linebaugh stated that the current available rates are: 30
days -8.25%; 90 days -8.25%; 180 days -8.50%; and 1 year -8.75%. His recommen-
dation is to go with 90 days.
Motion was made and seconded to approve these investments, at 90 days
term.
In another matter, Treasurer Linebaugh stated that the actuarial report
should be received by him from the State Auditor's Office at approximately
January 10th. At that time Treasurer Linebaugh would summarize the report
and distribute that summary to the members of the Firemen's Pension and
Relief Board. He added that the State Auditor's Office had indicated that the
Fayetteville Pension & Relief Board is not actuarially sound although it is
running closer than any Plan the State Auditor's Office has reviewed to date.
He added that in the last four years the Plan has increased its assets by 116%;
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liabilities have only increased by 11%. Ms. Katherine Hinshaw of the Office
of the State Auditor feels the Fayetteville Plan will show actuarial soundness
as of December 31, 1983.
Treasurer Linebaugh added that the accounting firm of Arthur Young
will complete another annual report on the Pension Fund, which is required
by law, and as soon as this accountant's report is completed, the Board
can request another actuarial study by the State Auditor's Office. He
stated that this indicates that by the end of 1983 the Board will be able
to grant benefit increases, as requested, of $250 for 5 beneficiaries, and
an additional $60.00 per month for 7 others. These increases are 1.9% and
5.4% respectively.
In a related matter, City Manager Grimes stated that he had participated
in the introduction of legislation which would insure, when the Plan becomes
actuarially sound, that the governing body has to review any additional
benefits. The intent of the tax being to get these benefits on an
actuarially sound basis. The legislation will keep Pension Boards from
getting carried away with the benefits as a result of these taxes. There
was concensus at the meeting of the Municipal League that this type of
control is necessary. He added that he felt Fayetteville was a long way
away from giving unlimited benefits to the Pension Board. He added, however,
that a lot of the benefits have not kept up with inflation.
In another matter, Chief Logue presented a check donated by Mrs. Kathryn
Stout, in the amount of $100.00, to the Pension Fund. A letter of appre-
ciation has been written to Mrs. Stout.
NEXT MEETING DATE
The next meeting of the Firemen's Pension Board is scheduled for Monday,
February 7, 1983, at 4:30 p.m.
ADJOURNMENT
There being no further business, the meeting was adjourned at 4:50 p.m.
62.&;.. / a x-Ne.6%;
OLIVIA A. KELLY, SECRETARY/
D NALD L. GRIMES, CHAIRMAN