HomeMy WebLinkAbout1983-02-07 MinutesMINUTES OF FIREMEN'S PENSION AND RELIEF BOARD MEETING
A meeting of the Firemen's Pension and Relief Board was held on Monday,
February 7, 1983, at 4:30 p.m., in the City Manager's Office, Interim City
Hall, Fayetteville, Arkansas.
PRESENT: Treasurer Scott Linebaugh, Chief Paul Logue, Firemen Springston, Dill,
Johnson, and Boudrey; Secretary Kelly; volunteer firemen, Clarence Tune and
Bill Morris.
ABSENT: City Manager Grimes.
CALL TO ORDER
Treasurer Linebaugh called the meeting to order.
MINUTES
Fireman Johnson, seconded by Fireman Dill, made a motion to approve the
minutes of the January 3, 1983 meeting of the Board.
Upon roll call, the motion passed unanimously.
PENSION LIST
Treasurer Linebaugh stated that the Pension List for January, 1983, indicated
changes from the last month which were the result of the new Federal law which
requires the withholding of these taxes. Mr. Linebaugh stated that the Payees
on the Pension Fund were sent a. letter asking whether they wanted to have this
amount withheld, and responses were received from Mr. Carl Springston, Mr. Charles
McWhorter, and Mr. Dwayne N. McChristian.
There being no further discussion, Fireman Springston, seconded by Fireman
Boudrey, made a motion to approve this Pension List, as amended.
Upon roll call, the motion passed unanimously.
OLD BUSINESS
Treasurer Linebaugh presented to the Board the list of the investments made
for the Pension Fund during the preceding month. The list of investments is as
follows: $275,405.00, Northwest National Bank, 7.97; $125,800.00, Mcllroy Bank,
8.02; $220,000.00, First Federal, 8.50; $320,595.00, First National Bank, 8.41;
$100,000.00, First National Bank, 8.41; and $312,000.00, Northwest National, 8.53.
There being no further discussion, Fireman Dill, seconded by Fireman Boudrey,
made a motion to approve these investments.
Upon roll call, the motion passed unanimously.
Page Two
NEW BUSINESS
Increasing Benefits - Retirees
Volunteer Firemen Clarence Tune and Bill Morris attended the meeting and
voiced their concern over the fact that the volunteers were not included in
the letter sent to the State Auditor's Office requesting an actuarial study
for the retirees proposed for increases in benefits. Scott Linebaugh stated that
the Pension Board had submitted to the State Auditor the list which the Auditor's
Office had requested. He added that the information concerning the names and
salaries of the volunteers had already been on record with the State Auditors'
Office. The Board was merely complying with State rules and regulations.
Fireman Springston stated that the Pension Board had submitted the names
of Lee Skelton, Everett Cole, Merlin Layer, Donald Watts, and O.Ray Davis in an
attempt to have their benefits increased in order to bring these men up to
minimum of what a retiree's widow is currently drawing, that being $250 monthly.
Mr. Linebaugh stated that the Pension Board is unable to raise benefits
until such time as they reach actuarial soundness and the State Auditor's Office
had informed the Board that they anticipated this Fund to reach actuarial soundness
as of December 31, 1982. Mr. Linebaugh stated that if the Fayetteville plan was
permitted to raise benefits, it would be one of the first, if not the first, to
do so. He expects this approval will take approximately 6 months.
In discussion Mr. Morris asked what additional relief was offered to these
volunteers and retirees, and Chief Logue reiterated that these men receive
the benefit of payment of doctor bills and the use of private, in-home, nurses,
if necessary.
There being no further comment from Mr. Tune and Mr. Morris, that thanked
the Board of their attention to this matter.
Chief Logue made the suggestion that Treasurer Linebaunh prepare a letter
to send to the retirees, regarding the request to the State Auditor about increased
benefits, along with the Arkansas State Law pertaining to the procedure for
increasing benefits, once the Fund becomes actuarially sound. Mr. Linebaugh
would do so prior to the next meeting of the Board.
Future Investments
Scott Linebaugh stated that one CD was coming due on February 22, 1983, at
Mcllroy Bank, at the rate of 8.7%, in the amount of $207,000. He stated that
the rates have not started upward due to the standstill in the economy, and he
added that experts have predicted the rates will remain at this level until
June or July of this year, and go as high as 18% by the end of the year. For that
reason Mr. Linebaugh recommended going with the 90day interval on these CD's in
order to be ready when the rates go back up. He added that an alternative
investment could bethat of U.S. Treasury Bonds, adding that they currently
bring almost 10%, but would need to be held for a fairly long period of time.
He stated that if it the desire of the Board he could investigate this possibility
and bring the information back to the Board.
After discussion, Fireman Boudrey, seconded by Fireman Dill, made a motion
to go with the 90 -day interval on CD investments.
Upon roll call, the motion passed unanimously.
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Contribution to Pension Plan
Chief Logue noted that volunteer Firemen Dwayne McChristian and James Moore
had made contributions to the Pension Plan in an amount of $27.92
ADJOURNMENT
There being no further business, the meeting adjourned at 4:55 p.m.
OLIVIA A. KELLY,SEC�AR
DONALD L. GRIMES, CHAIRMAN