Loading...
HomeMy WebLinkAbout1983-05-02 MinutesMINUTES OF A MEETING OF THE FIREMEN'S PENSION RELIEF BOARD A meeting of the Firemen's Pension and Relief Board was held on Monday, May 2, 1983, at 4:30 p.m., in the City Manager's Office, Interim City Hall, Fayetteville, Arkansas. PRESENT: City Manager Grimes, Treasurer Linebaugh, Fire Chief Logue, Firemen Johnson, Springston, and Boudrey; and City Clerk Kelly. ABSENT: Fireman Dill CALL TO ORDER City Manager Grimes called the meeting to order. MINUTES There being no corrections to the minutes of the meeting of April 11, 1983, they were approved as circulated. PENSION LIST There being no changes to the Pension List of April, 1983, Fireman Johnson, seconded by Fireman Boudrey, made a motion to approve the Pension List, as submitted. Upon roll call, the motion passed unanimously. OLD BUSINESS Treasurer Linebaugh stated that the following investments (for 90 days) took place in the month of April: 4/19/83, CD #11734, at Northwest National Bank, in the amount of $275,405, was earning 7.9%, now earning 8.45% at First National Bank; 4/20/83, CD #21912, at Mcllroy Bank, in the amount of $125,800, was earning 8.02%, now earning 8.47% at Northwest National Bank; 4/26/83, CD #01241, at First Federal, in the amount of $220,000, was earning 8.5%, now earning 8.29% at Northwest National; and 4/27/83, CD #11747, at Northwest National, in the amount of $165,000, was earning 8.72%, now earning 8.25% at First Federal. Mr. Linebaugh stated that another CD will mature on 5/3/83 and had previously been authorized for investment, at 90 days. Fireman Springston, seconded by Fireman Boudrey, made a motion to approve these investments. Upon roll call, the motion passed unanimously. NEW BUSINESS Treasurer Linebaugh stated that the following investments will be made in the month of May: 5/9/83, CD #24973, at First National Bank, in the amount of $100,000, at 8.410%; 5/9/83, CD #24974, at First National Bank, in the amount of $320,595, at 8.410%; and 5/23/83, CD #22022, at Mcllroy Bank, in the amount of $270,000, at 8.22%. Current approximate rates are: 30 days -8.10%; 90 days -8.20%; 180 days -8.30%; and 1 year -8.50%. Mr. Linebaugh recommended these investments at 90 days. Fireman Springston, seconded by Fireman Boudrey, made a motion to approve these investments at 90 days. Page Two DISCUSSION OF PROPOSED FIRE PENSION BENEFIT INCREASES Treasurer Linebaugh referred to a memorandum he had directed to the Pension Board on April 5, 1983, concerning proposed fire pension benefit increases. In that memorandum, he and Chief Logue had proposed two alternative approaches: (1) Increase all Fire Pension Beneficiaries to at least $250 per month, thereby giving them a $75.00 per month raise. This would amount to a total increase for this alternative of $10,656 per year; (2) Increase all Fire Pension Beneficiaries to at least $250 per month, only increasing the dollars necessary to reach $250 per month. The beneficiaries that were full time firemen would receive a minimum of $60.00 per month or 10%, whichever is greater. The Beneficiaries that were part-time firemen or widows of firemen would receive 10%. This would amount to a total increase for this alternative of $10,368 per year. Mr. Linebaugh stated that he was confident that increases could be within the $20,000 range. He added that he felt these alternatives would be the most equitable but stated that it was ;a decision. for the Board. In discussion, Fireman Springston stated that he had talked to several members of the Department and those members felt that the percentage increase was not the preferred alternative, adding that the oldest members of the Fund would have to get a 30+% increase to reach the minimum. City Manager Grimes felt that the same percentage should be given to everyone, in staying with the intent of the law, as written. He suggested a percentage increase of 20% for full paid retirees. Fireman Springston also stated that the majority of the men he had talked with would rather not give increases to the volunteers. Chief Logue stated that he felt the volunteers who had put in 20 years had a vested right in the Pension Fund. However, Fireman Springston pointed out that many of the volunteers were already receiving retirement funds from other places of employment. Chief Logue felt that the volunteers should also be given a raise and reiterated his concern. Fireman Springston then suggested a $10.00 across the board raise for the volunteers. He added that Fireman Dill, who was absent, felt the raise should be $100.00 for the full time retirees, and $10.00 for retired volunteers. It was Chief Logue's view that the $10.00 increase for volunteers was not sufficient. In terms of the proposal made by Fireman Springston, Treasurer Linebaugh pointed out that this would mean a 50% increase for a member getting $200 per month, while it would mean a 15% increase for a member getting $700 per month. City Manager Grimes suggested that the proposed increase contain a statement to the effect that the intention is not to continue this increase each time circumstances might permit such an increase. He felt that it should be based on a percentage increase in the future. Chief Logue stated that he would be in favor of the $100.00 increase for the full time retirees, but would prefer the increase for volunteers be set at $20.00. Treasurer Linebaugh stated that an increase to $20.00 for volunteers would put the overall increase in the Plan to over $20,000, and would necessitate lowering the increase for the full paid retirees to compensate. However he felt it was urgent to begin plans for the increase at this time. Page Three Treasurer Linebaugh stated that the Plan is growing each year, due to the City's growing annual contribution and stated that unless there are a lot of members retiring at once, it should not present a problem. Fireman Springston pointed out that one-third of the members will be eligible for retirement within five years, and he felt that sooner or later some of the other towns in the region will want the State to take over their plans. He felt this was the opportune time to make this increase. In further discussion, Fireman Springston pointed out that the $10.00 increase for volunteers would be a 28.5% increase for the lowest paid volunteer; the $100.00 increase for the highest fullpaid retiree would amount to a 13.9% increase. Fireman Springston, seconded by Fireman Johnson, made a motion to approve the $100.00 across-the-board increase for all full paid retirees, and $10.00 across-the-board increase for all retired volunteers. Upon roll call, the motion passed unanimously. City Manager Grimes repeated his suggestion that this increase be clarified as to its intent, and that a statement accompany any communication to members of the Fund indicating that future increases may be percentage increases. It was determined that Treasurer Linebaugh would prepare a memorandum to the members of the Firemen's Pension Fund clarifying the terms of the approved increase in benefits. ADJOURNMENT There being no futher business, the meeting adjourned at 5:05 p.m. Ai,4eEri' OLIVIAA. KEL , SECRETARY DONALD L. GRIMES, C IRMAN