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