HomeMy WebLinkAbout2005-06-30 - Agendas - Final Firemen's Pension and Relief Fund
Meeting Agenda
June 30, 2005
A meeting of the Fayetteville Firemen's Pension and Relief Fund will be held at 11 :00 a.m.
on June 30, 2005 in Room 326 of the City Administration Building
1. Approval of the Minutes:
• May 26, 2005 Meeting Minutes
2. Approval of the Pension List:
• July 2005 Pension List
3. Old Business:
• Travel Reconciliation Pete Reagan —Need to complete
• Nichols & Campbell, P.A. - Income Tax refund for Retirees — Update
• TIF Lawsuit — Copy of Answer that was Filed
4. New Business:
• Peter T. Reagan Retirement
• NCPERS May 12, 2005 Meeting Minutes
5. Longer Investments:
• Report
Firemen's Pension&Relief Fund Board of Trustees
Meeting Minutes
May 26,2005
Page 1 of 8
Firemen's Pension and Relief Fund Board of Trustees
Meeting Minutes
May 26, 2005
A meeting of the Fayetteville Firemen's Pension and Relief Fund was held at 11:00 a.m.
on May 26, 2005 in Room 326 of the City Administration Building.
Mayor Coody called the meeting to order.
Present: Mayor Coody, Robert Johnson, Pete Reagan, Marion Doss, Sondra Smith City Clerk,
Amy Bozarth, City Clerk's Office, Trish Leach, Accounting Department, Kit Williams City
Attorney, and Carl Springston, Pensioner.
Absent: Danny Farrar and Ronnie Wood.
Approval of the Minutes:
Pete Reagan made a motion to approve the April 28, 2005 minutes. Marion Doss seconded
the motion. Upon roll call the motion passed 5-0.
Approval of the Pension List:
Sondra Smith: There haven't been any changes. There hasn't been anyone that has gone from
drop to retirement, the next person scheduled for retirement will be in July, and there has not
been anyone that has deceased.
Pete Reagan made a motion to approve the June 2005 Pension List. Robert Johnson
seconded the motion. Upon roll call the motion passed 5-0.
Old Business:
Travel Reconciliation Pete Reagan
Sondra Smith: This is just to let Pete know we need to get his Travel Reconciliation Report on
the trip he went on.
Pete Reagan: The NCPERS Conference. I submitted a report, an overview of the conference. I
have all the material here if anyone would like to see it. I had the receipts lying on my desk, but
I failed to get them. I will bring them in.
Mayor Coody: When was the conference?
Firemen's Pension&Relief Fund Board of Trustees
Meeting Minutes
May 26,2005
Page 2 of 8
Sondra Smith: The first of May.
Pete Reagan: May 5t` through the 13th.
Sondra Smith: Could you get the information to me so we can do the Reconciliation Report.
2005 Elections
Sondra Smith: We had five people that were nominated: Robert Johnson, Dennis Ledbetter,
Charles McWhorter, Larry Poage, and Ronnie Woods. Ronnie Woods and Dennis Ledbetter
were elected to the board.
Marion Doss made a motion to accept the election results. Pete Reagan seconded. Upon
roll call the motion passed 5-0.
Kit Williams: You shall notify them, Sondra?
Sondra Smith: Yes.
Kit Williams: Will they need to actually be sworn in?
Sondra Smith: Not that I know of, we have not sworn them in in the past.
Pete Reagan: No, it's just a simple election.
Sondra Smith: We just need to notify them that they've been elected.
Kit Williams: And they'll be at the next meeting.
Sondra Smith: Yes.
Nichols & Campbell, P.A. — Income Tax refund for Retirees
Sondra Smith: I enclosed a copy of the letter, and each one of you should have received a copy
of it my mail stating that we're going to submit the information directly to the Department of
Finance and the Administration. We are currently working on that, and it will probably be
sometime in July before we get all of the data compiled. Then, we will submit all of the
information directly. After we compile all of the information, we are going to send a copy to
each pensioner for them to verify that the information we compiled is correct. There will be a
little box down in the bottom for them to check to say, yes this is correct. Some of them have
said that they do not want to participate, and if they do not want to participate, they will check a
little box that says I do not wish to participate. Then they will have to send it back to us.
Kit Williams: Will it have a signature block on it too?
Firemen's Pension&Relief Fund Board of Trustees
Meeting Minutes
May 26,2005
Page 3 of 8
Sondra Smith: Yes.
Marion Doss: Now this is just concerning an income tax refund, it has nothing to do with the
pension plan, right?
Sondra Smith: No, it has nothing to do with the pension plan. A lot of people are confused
about this. This refund has to do with their tax return and how the Department of Finance and
Administration calculated their tax. Is that right?
Kit Williams: Yes.
Sondra Smith: The State evidently did not calculate their taxes correctly. Some of them think
they did not pay any tax but if they paid State Income Tax they may be due a refund on some of
that state tax they paid. So, they could be eligible for a refund.
Kit Williams: I think the State gave a $6,000 exemption to the military but not to other ones.
That was found to be improper. They should have given the $6,000 exemption everybody or
nobody.
Sondra Smith: There are also some people that are confused because their spouse is now
deceased, but they also could be eligible for this refund.
Kit Williams: But it's not going to be much.
Sondra Smith: No.
Robert Johnson: One letter said it averaged around $1,000, didn't it?
Sondra Smith: That's from the attorney, so we have no idea how much it's actually going to
average.
Kit Williams: It's over a number of years, so if you receive $6,000 for a number of years and
were paying at the highest 7% rate, then it could add up. But, most people are not going to be at
that level.
Pete Reagan: For the purposes of the DROP pensioners, this is just for retirees of the fund from
1999 to 2002?
Kit Williams: I think that's correct.
Sondra Smith: I think that's correct. I sent a letter to the DROP participants, so they will know
what's going on. Not everybody is going to be eligible.
Pete Reagan: Right. But the DROP members should be, because they're actually considered
retired.
Firemen's Pension&Relief Fund Board of Trustees
Meeting Minutes
May 26,2005
Page 4 of 8
Kit Williams: I don't think you have paid any State Income Tax on that, have you? You had to
have paid State Income Tax on pension funds and didn't get that $6,000 deduction from the
amount you would be paying taxes on that the military received.
Pete Reagan: So it's only for those that are actually drawing their retirement check then?
Kit Williams: I think that's probably correct because in the future, the State is not making that
mistake. When you get your pension it will be under the new and improved rules that no longer
discriminate.
Robert Reagan: It will totally depend on yourself and how you filed to begin with.
Kit Williams: Yes.
Sondra Smith: You have to have been hired before 1984 to be eligible. There are a lot of
variables on whether or not you'll get a refund.
Carl Springston: I'm a retired firefighter since 1976. It says from the tax years of 1999
through 2002. That leaves me a little confused. I've paid tax on that ever since 1976.
Kit Williams: That's due to the statute of limitation and when the suit was filed. They can only
go back so far after the suit was filed and it would be during the period of time they were
collecting it improperly. You can only look under 1999 through 2002, because of the statute of
limitations.
Sondra Smith: It could be possible that the State law changed sometime during that time too.
Kit Williams: Yeah, I think State law changed in 2002, and that's why there is the cut off.
They went back three years, because the statute of limitations. They could make claims back
three years because of the statute of limitations. This originally came from another state, and
when that state's pension's revisions were declared unconstitutional, a lawyer filed the suit here.
He immediately won because the precedence had already been set in another state.
Carl Springston: Do I have to go through my CPA or do I have to go through this attorney to
receive this potential refund?
Kit Williams: The attorney I think has been already awarded a fee by the Supreme Court. He
received a lot of money back on this I think. Your CPA certainly can help you with this. At this
point, the attorney I don't think is charging any more. He's already received his funds or will at
the end of the suit. I don't think it will affect your refund. If you pay your CPA, then of course,
you will be out that money. But your CPA can certainly help you.
Sondra Smith: Right now, the State is saying the only way they're going to accept the
information is if we submit it to them electronically. So, it's possible they might not accept the
information if we don't submit it for you.
Firemen's Pension&Relief Fund Board of Trustees
Meeting Minutes
May 26,2005
Page 5 of 8
Trish Leach: We were also told, in an email from David Foster, with the State, that if we
submit it, the pensioners should not have to do anything.
Sondra Smith: If we submit the information the State has told Accounting that the pensioner
will not have to file a claim form. Kit said there's information on the claim form that he feels the
pensioners are going to have to fill out themselves.
Trish Leach: I wondered about that, but David Foster with the State and told us that if we
submit it, then you shouldn't have to do anything. So we're gathering the information to send to
the State.
Sondra Smith: But that's up to you. If you want to submit it, you can.
Carl Springston: Is the attorney going to get part of the $1,000?
Sondra Smith: No.
Kit Williams: He's probably already been awarded his fee, and now they're trying to get the
money to the people that lost it in the first place. The attorney's fee is supposedly based on the
amount of money that is out there that should not have been taken by the State. He's gotten a
percentage fee of that I think, so your amount might have already been reduced.
Carl Springston: Overall, I've paid quite a bit of state tax, but the state tax I've paid on my
pension has not been that great.
Kit Williams: The most it could be is $6,000 times 7%, because that's the most you could have
lost if you received $6,000 from the Fayetteville Pension Fund per year and you paid taxes on it
when you shouldn't have. So it would be whatever your rate was, about 7% is the maximum, so
that's about $420 a year. That's the maximum you could recover a year and that's with no
attorney's fees taken out. Whether the court has reduced that already by attorney's fees, I don't
know.
Carl Springston: So we don't need to do anything else with it until we hear something from the
City?
Kit Williams: That's what we've been told.
Sondra Smith: Right. Accounting is doing the calculations. When we get everything
completed we will send you a letter with your personal information in your letter. Then you'll
have to verify whether your information is correct. If it is, you'll let us know by sending the
letter back to us, and we will submit it directly to the State.
Carl Springston: Thank you.
Kit Williams: I hope it all works out. We're getting advice from different sources and it's not
always consistent.
Firemen's Pension&Relief Fund Board of Trustees
Meeting Minutes
May 26, 2005
Page 6 of 8
Mayor Coody: Thanks for coming today.
New Business:
Longer Investment Authorization on Equity Variance of 5%
Sondra Smith: We changed the equity potion so that Longer could have a variance of 5%, but
if they go over or under that variance then we have to vote on it. They have gone over by 2.4%.
This is just for us to approve that variance.
Pete Reagan motioned to approve the 2.4% variance. Marion Doss seconded the motion.
Upon roll call the motion passed 5-0.
Other:
Kit Williams: There's one more item that it would be best to update. On the TIF lawsuit, Jim
Rose was in fact hired. Everybody on both the police and fire pensions agreed on Mr. Rose, so
he has begun representing you and has filed an answer on your behalf. Right now, the only thing
we are waiting for is for the State Department of Finance and Administration to file an answer. I
have talked to their attorney and their attorney said that they probably will wait. Normally when
you sue the state, you have to go to Pulaski County. Well, that would cost everybody more
money to send their attorney down to Pulaski County when all the attorneys are here. So I
beseeched the Department of Finance and Administration to please leave the case up here and
wave venue, which they can do. Their attorney told me that they probably would do that. I'm
still waiting to get their answer. Hopefully they will specifically wave venue. Then it will go
through up here and you all would stand in a very good position with the new law saying that
you are exempt from the TIF District. I expect that I will lose the argument that you are
supposed to be in it, and then it will actually go down to the Supreme Court. So far, everything
is doing well, and we're just waiting for the Department of Finance and Administration's
attorney to file their response.
Pete Reagan: Do you have a copy of the response by Jim Rose yet?
Kit Williams: Yes I do. Basically he quoted the new law saying that you're exempt and you
should be dismissed and you shouldn't pay anything.
Pete Reagan: Can we get a copy of that for the minutes? How thick is it?
Kit Williams: It's a number of pages, because obviously when I filed this complaint, I had to
do a lot. But, I could give a copy to Sondra if she wants it.
Sondra Smith: We probably need to keep a copy of it in our records too.
Firemen's Pension&Relief Fund Board of Trustees
Meeting Minutes
May 26,2005
Page 7 of 8
Kit Williams: And of course, your attorney has a copy. But I will supply a copy so you can
have it for both of the pension boards.
Sondra Smith: That would be great. Thank you.
Longer Investments Report
Sondra Smith: This is for everyone to look at and review.
Robert Johnson: What's the bottom line on this?
Pete Reagan: The bottom line is that oil stocks are doing rather well.
Kit Williams: But the rest of the market is pretty shaky.
A brief discussion of the Longer Investments Report ensued.
Marion Doss motioned to approve the report. Pete Reagan seconded the motion. Upon roll
call the motion passed 5-0.
Pete Reagan: I have a question to Kit on this Pulaski County case, McFadden vs. Weiss. I guess
Weiss is the Director of the Department on Finance and Administration?
Kit Williams: Yes he is. Mr. McFadden, I don't know.
Pete Reagan: This is the one on our Income Tax Refund. Have you reviewed that case?
Kit Williams: I really haven't. It was done totally by an independent lawyer who got a class
action to represent all pensioners, people in the teachers retirement program, and all of the
pensioners like that that did not get the benefit of that $6,000 deduction. That's my
understanding of it. This case has been going on, as you can tell, for a long time, at least since
2002. I've read about it in the newspaper, and that's basically what I know about it.
Pete Reagan: When I got this, it was all news to me. I thought I'd wait until I got here to ask
you, as our attorney, what the bottom line was on it, why it was done, and if it was because of a
new law.
Kit Williams: It was done because another case in Michigan found that it was unconstitutional
to treat military retirement pay differently than firemen pension retirement fund. So they said
that you can exempt some, but if you exempt some, you have to exempt it for all the pensions
and not just military. That's my understanding of the case. Since 2002, the state changed it
around and now exempts it. When you do your State Income Tax, I think you have about a
$6,000 exemption now that used to be military only.
Pete Reagan: We have some disability retirees on LOPFI. How are they handling that?
Firemen's Pension&Relief Fund Board of Trustees
Meeting Minutes
May 26,2005
Page 8 of 8
Kit Williams: I think any kind of pension, whether it is for disability or regular, probably was
handled in the same case. They have probably gotten the same notifications.
Marion Doss: It probably would have been sent to LOPFI, wouldn't it?
Pete Reagan: Yeah, it probably would have been sent to LOPFL
Meeting Adjourned at 11 :27 a.m.
FIREMEN'S RELIEF AND PENSION
July 2005
THE FOLLOWING ARE THE OBLIGATIONS OF THE FIREMEN'S RELIEF FUND FOR THE
MONTH OF JULY. YOU ARE HEREBY INSTRUCTED TO ISSUE CHECKS TO THE
PAYEES, IN THE AMOUNTS SHOWN, AND FOR THE PURPOSE SO STATED.
DATE OF Regular Mo Year To Date
EMP#RETIREMENT NAME Benefit Reg Benefit Fed Tax St Tax Net
79 11/99 ARMSTRONG (DILL), PAMELA 1,759.94 12,319.58 300.00 100.00 1,359.94
177 4/04 BACHMAN, EDDIE 2,542.28 17,795.96 479.27 119.82 1,943.19
74 3/86 BAIRD, JULIA 1,749.59 12,247.13 350.00 145.00 1,254.59
2 3/75 BLACKARD, PAUL 106.09 742.63 106.09
63 5/72 BOLAIN, ANN 106.09 742.63 106.09
68 7/99 BONADUCE, MICHAEL 2,901.71 20,311.97 475.38 2,426.33
44 9/86 BOUDREY, BETTY MRS. 2,405.26 16,836.82 300.00 50.00 2,055.26
45 9/86 BOUDREY, HOWARD 2,028.43 14,199.01 2,028.43
49 7/88 BOUDREY, JACK 1,599.64 11,197.48 287.68 50.00 1,261.96
4 6/67 CARL, FLOYD JR, (Deceased 2/28/05) 0.00 212.18
5 5/72 CASELMAN, ARTHUR 127.31 891.17 127.31
57 5/90 CATS, ROY 1,736.80 12,157.60 1,736.80
6 4/68 CHRISTIE, ARNOLD 106.09 742.63 106.09
8 10/76 COUNTS, WAYNE 106.09 742.63 106.09
77 11/99 DILL,GARY JOHN 1,759.95 12,319.65 100.00 1,659.95
11 2/76 FARRAR,ALONZO 969.77 6,788.39 969.77
38 5/84 FRALEY, JOSEPH G. 1,716.62 12,016.34 200.00 15.00 1,501.62
170 5/03 FREEDLE, LARRY 3,705.58 25,939.06 500.00 100.00 3,105.58
92 03/02 GAGE,TOMMY 2,521.06 17,647.42 226.00 50.00 2,245.06
34 6/79 HARRIS, JAMES E. 106.09 742.63 106.09
70 11/99 HARRIS, MARY RUTH 106.09 742.63 106.09
182 10/04 JENKINS, EILEEN 1,736.65 12,156.55 350.00 100.00 1,286.65
93 06/02 JENKINS, JOHN 1,736.66 12,156.62 350.00 100.00 1,286.66
86 07/01 JOHNSON,ROBERT 2,983.95 20,887.65 500.00 100.00 2,383.95
64 4/95 JORDAN, CHARLIE 2,208.69 15,460.83 2,208.69
76 5/88 JUDY, JAN 1,599.64 11,197.48 200.00 50.00 1,349.64
37 3/84 KING, ARNOLD D. 1,478.03 10,346.21 300.00 47.00 1,131.03
54 5/89 KING, ARVIL 1,661.37 11,629.59 130.00 50.00 1,481.37
12 3/60 LANE, HOPE MRS 106.09 742.63 106.09
13 10/67 LAYER, MERLIN 442.93 3,100.51 442.93
173 12/03 LEDBETTER, DENNIS 3,665.83 25,660.81 650.00 200.00 2,815.83
181 10/04 LEE, VIOLA LOUISE 106.09 742.63 106.09
51 10/88 LEWIS, CHARLES 1,599.64 11,197.48 75.00 25.00 1,499.64 -
40 9/85 LOGUE, PAUL D. 2,784.74 19,493.18 325.00 75.00 2,384.74
50 9/88 MASON, LARRY 1,583.74 11,086.18 137.61 25.00 1,421.13
39 4/85 MC ARTHUR, RONALD A. 1,702.66 11,918.62 150.00 50.00 1,502.66
35 2/82 MC CHRISTIAN, DWAYNE 106.09 742.63 106.09
15 4/77 MC WHORTER, CHARLES 1,295.64 9,069.48 150.00 1,145.64
29 8/81 MILLER, DONALD 1,266.09 8,862.63 125.00 25.00 1,116.09
73 2/00 MILLER,KENNETH 3,087.40 21,611.80 325.00 75.00 2,687.40
42 2/86 MOORE, JAMES H. 106.09 742.63 106.09
176 4/04 MORRIS, DIXIE E. 122.00 854.00 122.00
62 10/68 MORRISON, ELIENE- 132.61 928.27 132.61
48 7/88 MULLENS, DENNIS W. 2,127.48 14,892.36 2,127.48
184 3/05 NAPIER, LONNIE 3,415.81 13,663.24 110.00 88.00 3,217.81
46 5/88 OSBURN, TROY 1,844.33 12,910.31 200.00 38.00 1,606.33
81 02/01 PHILLIPS,LARRY 2,684.55 18,791.85 2,684.55
53 2/89 POAGE, LARRY 2,278.35 15,948.45 300.00 100.00 1,878.35
186 06/05 REAGAN, PETE 3,432.73 3,432.73 3,432.73
22 4/73 REED, JOE 106.09 742.63 106.09
172 12/03 SCHADER, MADGE 1,345.64 9,419.48 1,345.64
41 9/85 SCHADER, TROY 1,480.57 10,363.99 57.00 1,423.57
83 03/01 SKELTON, KIMBERLY 1,182.03 8,274.21 125.00 25.00 1,032.03
66 8/98 SKELTON, PAULINE 413.75 2,896.25 413.75
82 03/01 SKELTON,KELLY 1,182.03 8,274.21 125.00 25.00 1,032.03
DATE OF Regular Mo Year To Date
EMP#RETIREMENT NAME Benefit Reg Benefit Fed Tax St Tax Net
36 5176 SPRINGSTON, CARL 782.71 5,478.97 70.00 17.00 695.71
90 03/02 STOUT, IMOGENE W. 745.44 5,218.08 745.44
165 12/02 TATE, RALPH 3,561.26 24,928.82 300.00 100.00 3,161.26
65 3/66 TUNE, BILLIE SUE 132.61 928.27 132.61
27 3/71 TUNE, MILDRED MRS. 132.61 928.27 132.61
71 1/00 WARFORD,THOMAS 2,429.83 17,008.81 300.00 2,129.83
28 7/68 WATTS, DONALD 424.36 2,970.52 424.36
88 01/02 WOOD,RONNIE D 2,987.52 20,912.64 800.00 200.00 1,987.52
52 9/88 WRIGHT, RANDALL 1,642.08 11,494.56 20000 25.00 1,417.08
94,004.89 627,402.60 9,572.94 2,169.82 82,262.13
DROP DATE DROP EMPLOYEES NEW BENEFITS
01/01/01 DOSS,MARION 5,220.30
03/01/03 MAHAN, MARSHALL 3,958.53
03/01/03 PIERCE, JOEY 3,540.95
03/01/03 SHACKLEFORD, GLEN 3,540.95
04/01/03 O'NEAL, TEDDY 4,000.96
05/01/04 FARRAR, DANNY 4,034.33
WE, THE UNDERSIGNED, DO SOLEMNLY SWEAR THAT THE ABOVE OBLIGATIONS ARE
JUST AND CORRECT; THAT NO PART THEREOF HAS BEEN PREVIOUSLY PAID; THAT
THE PENSION PAYMENTS SO CHARGED ARE IN ACCORDANCE WITH THE ACTIONS OF
THE BOARD OF TRUSTEES OF THE FIREMEN'S RELIEF AND PENSION FUND; THAT
THE SERVICES OR SUPPLIES FURNISHED, AS THE CASE MAY BE, WERE ACTUALLY
RENDERED OR FURNISHED; AND THAT THE CHARGES MADE THEREFORE DO NOT
EXCEED THE AMOUNT ALLOWED BY LAW OR THE CUSTOMARY CHARGE FOR SIMILAR
SERVICES OR SUPPLIES
SECRETARY CHAIRMAN AND PRESIDENT
ACKNOWLEDGEMENT
STATE OF ARKANSAS )
COUNTY OF WASHINGTON)
SWORN TO AND SUBSCRIBED BEFORE ME THIS DAY OF 2005.
NOTARY PUBLIC
MY COMMISSION EXPIRES :
YTD
6810-9810-5335-00
6810-9810-5335-06
YTD Column
Difference 0.00
i
IN THE CIRCUIT COURT OF WASHINGTON COUNTY , ARKANSAS
CITY OF FAYETTEVILLE , ARKANSAS PLAINTIFF
; -
VS . N0 . CV 05 - 559 - 2 Cl)
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WASHINGTON COUNTY, ARKANSAS ; C P,r� w
WASHINGTON COUNTY ASSESSOR , . -5; -- 1 .
LEE ANN KIZZAR ; FAYETTEVILLE
SCHOOL DISTRICT ; FAYETTEVILLE M
PUBLIC LIBRARY ; POLICE PENSION
AND RELIEF FUND BOARD OF TRUSTEES ; ;0
FIREMEN ' S PENSION AND RELIEF
FUND BOARD OF TRUSTEES ; AND
RICHARD A . WEISS , DIRECTOR OF
ARKANSAS DEPARTMENT OF FINANCE
AND ADMINISTRATION AND CHIEF
FISCAL OFFICER OF THE STATE OF
ARKANSAS DEFENDANTS
ANSWER OF SEPARATE DEFENDANTS POLICE PENSION
AND RELIEF 'FUND : BOARD OF TRUSTEES AND
FIREMEN ' S PENSION AND RELIEF FUND
BOARD OF TRUSTEES TO
PLAINTIFF ' S AMENDED COMPLAINT
COME NOW Separate Defendants Police Pension and Relief Fund
Board of Trustees and Firemen ' s Pension and Relief Fund Board of
Trustees and for their Answer to the Amended Complaint. for
Declaratory Judgment and Mandatory Injunction of Plaintiff , state :
1 . That the allegations of paragraph 1 of the Amended
Complaint are admitted .
2 . That the,', . allegations of , paragraph 2 of the Amended
Complaint are admitted .
3 . That the allegations of paragraph 3 of the Amended
Complaint are admitted .
4 . That the allegations of paragraph 4 of the Amended
Complaint are specifically and categorically denied .
5 . That the allegations of paragraph 5 of the Amended
Complaint are specifically and categorically denied . Affirmatively
pleading , the Separate Defendants Police Pension and Relief Fund
Board of Trustees and Firemen' s Pension and Relief Fund Board of
Trustees state that they are not a " taxing unit " in relation to
property tax millage . Further , that House Bill 2735 of the 85th
General Assembly meeting in regular session and signed into law by
the Governor of the State of Arkansas on April 12 , 2005 , amended
Ark . Code Ann . 14 - 168 - 301 to read inter alia , in pertinent parts
as follows :
14 - 168 - 301 Definitions
( 17 ) " Taxing Unit " means the State of Arkansas and any
city, county, or school district and
( 18 ) (A) " Total ad valorum rate " means the total millage
rate of all state , county, city, school , or other property taxes
levied on all taxable property within a redevelopment district in
a year .
(B ) ( iii ) The total ad valorum rate SHALL NOT INCLUDE
ANY , emphasis added, property taxes levied for a fireman ' s relief
and pension fund or policeman ' s relief and pension fund of any
municipality or county .
2
This amendment excludes by not mentioning these Separate Defendants
in ( 17 ) and specifically excludes these Separate Defendants by
naming them as SHALL NOT INCLUDE , emphasis added , in ( 18 ) (A) and
( 18 ) (B ) .
6 . That the allegations of paragraph 6 of the Amended
Complaint are admitted .
7 . That the allegations of paragraph 7 of the Amended
Complaint are admitted .
8 . That the allegations of paragraph 8 of the Amended
Complaint are admitted .
9 . That the allegations of paragraph 9 of the Amended
Complaint are admitted .
10 . That the allegations of paragraph 10 of the Amended
Complaint are admitted .
11 . That the allegations of paragraph 11 of the Amended
Complaint are admitted .
12 . That the allegations of paragraph 12 of the Amended
"Complaint are admitted.
13 . That the allegations of paragraph 13 of the Amended
Complaint are admitted .
14 . That the allegations of paragraph 14 of the Amended
Complaint are admitted .
15 . That the allegations of paragraph 15 of the Amended
Complaint are admitted .
3
26 . That the allegations of paragraph 26 of the Amended
Complaint are specifically and categorically denied .
27 . That the allegations of paragraph 27 of the Amended
Complaint are specifically and categoricallydenied .
28 . That the Separate Defendants restate and reallege
paragraphs 1 through 27 , above .
29 . That paragraph 29 of Plaintiff ' s Amended Complaint does
not contain factual allegations to which Separate Defendants are
required to respond ; that , however , Separate Defendants acknowledge
that Plaintiff seeks a "mandatory injunction against the Washington
County Assessor to order the Assessor to comply with the findings
of the Court in preparing an amended Assessor ' s Certification for
this Redevelopment District " .
30 . That paragraph 30 of Plaintiff ' s Amended Complaint does
not contain factual allegations to which Separate Defendants are
required to respond ; that , however , Separate Defendants acknowledge
that Plaintiff seeks a "mandatory injunction against Washington
County to distribute the Redevelopment District ' s tax increment
pursuant to the Court ' s declaratory judgment ' s finding and
analysis , and not to distribute any of this contested tax increment
millage until the Court has determined through its declaratory
judgment the legal and constitutional division of such tax
increment . "
31 . That the allegations of paragraph 31 of the Amended
Complaint are specifically and categorically denied .
5
WHEREFORE , the Separate Defendants Police Pension and Relief
Fund Board of Trustees and Firemen ' s Pension and Relief Fund Board
of Trustees pray that the Amended Complaint for Declaratory
Judgment and Mandatory Injunction filed here,in . by the Plaintiff ,
City of Fayetteville , be dismissed as to the Separate Defendants
herein , for their costs in this matter , for a reasonable attorney
fee , and for all other proper relief to which they may be entitled .
POLICE PENSION AND RELIEF FUND BOARD
OF TRUSTEES AND FIREMEN' S PENSION
AND RELIEF FUND BOARD OF TRUSTEES ,
DEFENDANTS
By : V/A��
Jim Rose III ABA # 79247
115 North Block Avenue
P . 0 . Box 1504
Fayetteville , Arkansas 72702
479 -443 - 5700
6
s ,
CERTIFICATE OF SERVICE
This will certify that a copy of the foregoing document has
been mailed by United States Postal Service this � day of May ,
2005 , to
Mr . Kit Williams
Fayetteville City Attorney
113 West Mountain Street
Fayetteville , Arkansas 72701
Mr . Rudy Moore , Jr .
P . O . Box 290
Fayetteville , Arkansas 72702 - 0290
Mr . George Butler
Washington County Attorney
280 North College Avenue , 5th Floor
Fayetteville , Arkansas 72701
Mr . Vince Chadick
P . O . Box 3618
Fayetteville , Arkansas 72702
Mr . Mike Beebe
Arkansas Attorney General
323 Center Street , Suite 1100
Little Rock , Arkansas 72201 - 2610
Ms . Martha Hunt , Chief Counsel
Department of Finance and Administration
P . O . Box 1272
Little Rock , Arkansas 72203
Jim Rose III
7
FIREMEN'S PENSION & RELIEF FUND AFFIDAVIT
State of Arkansas )
)ss:
County of Washington )
I, Peter T. Reagan , do solemnly swear that:
1. X I am a former firefighter for the City of Fayetteville, Arkansas, Fire Department.
I am the spouse/former spouse/widow of a former firefighter for the City of Fayetteville, Arkansas,Fire Department, and
I have not remarried since becoming eligible for benefits.
I am an eligible dependent of a former firefighter for the City of Fayetteville, Arkansas, Fire Department and submit the
attached school affidavit as verification of my school attendance.
2. I presently receive benefits from the Fayetteville Firemen's Pension and Relief Fund and I am eligible to continue receiving the
pension fund benefits as governed under state law.
3. My personal information is as follows:
Address: 2086 South Mally Wagnnn Road
Fayetteville , AR 72701
Telephone: —(--A79--) 521-7542
Social Security No.: 431 - 86 - 8045
Birth Date: January 18 , 1956
PLEASE LIST ALL BENEFICIARIES BELOW: (complete only if you are the retiree)
NAME SOCIAL SECURITY NO. BIRTH DATE RELATIONSHIP
Brian Reagan 432-55-6346 12/1 /81 Son
Brad Reagan 432-55-6360 1 /27 /83 Son
Laura J. Reagan 432-15-6578 4/10/56 Wife
DATED this 29th day of June, 2005 ,
AFFIANT (signa+ e)
Parent/Guardian Signature
SUBSCRIBED AND SWORN TO before me, a Notary Public, this day of
L
"I.-NOTMY
KIM M.COOPER: Washington County
My Commission ExpiresNotary Public "k1"5�'` June 1, 2013
My Commission Expires: I t
(This affidavit is required annually by the Firemen's Pension and Relief Fund Board of Trustees and must be properly executed and returned to the
Fayetteville City Clerk, 113 West Mountain, Fayetteville, Arkansas, 72701 by January 3151 of each year.)
(Revised 11/03)
Fayetteville Firemen's Pension and Relief Fund
Deferred Retirement Option Plan (DROP) Distribution Election Form
To be completed by Employee with regard to the distribution of his DROP account balance.
> ,Pr ..;, Z.;�7 ,�7,f"t,/—
Member Name (please print)
Retirement Date
Please select option A B or C•
A. The Fayetteville Firemen's Pension and Relief Fund is directed to make full payment to me, the member,
less 20% federal withholding tax. I understand that the entire amount of distribution from my DROP
account will be reported to the Internal Revenue Service.
Signature of Member Date
B. The Fayetteville Firemen's Pension and Relief Fund is directed to mail my full distribution to:
Petar T_ RPavan TRA Rnl l niro,. (Name of Annuity Provider)
for depos I understand that the entire amount of distribution from my DROP account will be reported to
the I rn evenue S i e.
&1' -ay-ar
S gnature of Member Date
C. The Fayetteville Firemen's Pension and Relief Fund is directed to mail $
(fill in the amount) of my distribution to
(Name of Annuity Provider) for deposit. The remainder will be paid directly to me, the member, less 20%
Federal withholding tax. I understand that the entire amount of distribution from my DROP account
will be reported to the Internal Revenue Service.
Signature of Member Date
(To be completed by the Annuity Provider if option B or C is selected)
In accordance with the above authorization of the depositor, we agree to deposit the forthcoming distribution
amount from the Fayetteville Firemen's Pension and Relief Fund in the following account:
Type of Account: (fill in the blank) IRA Rollover w/ Charles Schwab & Co . (account ;' 2047-7886)
I(we) certify that the account is a qualified account, as defined by the Internal Revenue Service, to receive
distributions, from the Fayetteville Firemen's Pension and Relief Fund, on which the income tax may be deferred.
Longer Investments Inc .
Annuity Provider
AuthorIzeVSIgnature
P. O. Box 1269 / _��,��r .-.
Mailing Address Date
Fayetteville , AR 72702 (479) 443-5851
city State zip Telephone Number
Return to: Firemen's Pension and Relief Fund
City of Fayetteville
113 West Mountain
Fayetteville, AR 72701
Page 1 of 2
The following is an excerpt from the original DROP Member Election Form:
IMPORTANTNOTICE
Attorneys for the Fayetteville Firemen's Pension and Relief Fund Board of Trustees has
advised that there may be serious potential tax consequences as a result of participating in the
Deferred Retirement Option Plan (DROP, A.C.A. &24- 11-830) as follows;
An application for a letter of determination as to the tax
deferral status of the Firemen's Pension and Relief Fund Plan
and Trust has never been filed with the IRS. .Also, no
determination request has been made for the Deferred Retirement
Option Plan (DROP), an amendment to the pension and relief fund
plan and frust. Reliance on another State's qualification is
not permitted. An adverse ruling on the tax deferred status of
the plan could have serious detrimental tax consequences to each
participant. DROP distributions will be treated as ordinary
income in the year constructive receipt occurs and rollover into
an otherwise qualified plan, IRA, or other investment may not be
possible. By not acting to formally tax qualify the plan, an
array of possible options for the DROP participants may not be
a vailable.
We strongly urge you to seek ad vice from a competent tax accountantand/or an attorney before
participating in the DROP program. You assume the risk of such adverse tax consequences if
you elect to participate.
I understand that the Fayetteville Firemen's Pension and Relief Fund has no liability for any adverse tax
consequences which may accrue to me as a participant in the DROP plan.
O
Member Signature Date
Page 2 of 2
National Conference on Public Employee Retirement Systems
The Voice for Public Pensions
RECEIVED
OFFICERS
Robert Podgorny JUN 2 a 2
President CITY OF FAYETTEVILLE
Pat McElligott TO: NCPERS Member Funds CITY CLERKS OFFICE
First Vice President
Mel Aaronson RE: Minutes of NCPERS Membership Meeting
Second Vice President
Tina Fazendine Attached are the minutes from the general membership meeting of NCPERS that
Secretary was held on May 12, 2005 in conjunction with the annual conference.
Richard Wachsman
Treasurer Attached to the minutes are the resolutions adopted at this meeting. I ask you to
read the resolutions and share them with the other trustees, administrators and
EXECUTIVE BOARD staff of your pension board or organization.
Larry Curran
Boston,MA I ask you to pay particular attention to Resolution #10 - America's Retirement
Lawrence Deck Security. I encourage all pension funds and organizations to adopt this resolution
Columbus, OH and make a commitment to the principles of the resolution. This resolution
Daniel Fortuna establishes our commitment to retaining defined benefit plans so that our retirees
Chicago, IL have a secure and guaranteed income upon retirement.
Kelly L.Fox
Olympia, WA Shortly, NCPERS will be publishing materials to assist you in making the case for
Stephan G. Fugate defined benefit plans and to stop the attempts to eliminate defined benefits and
Baltimore, MD replace them with 401(k)-style private accounts. This is a national battle that
Rick Gale could affect every state and NCPERS believes we must be ahead of the curve on
West Allis, WI
this issue to protect our pension plans. We are prepared to provide you with the
Dan Givens
Miami, FL resources to counter this attack on our plans.
Ronald If NCPERS can be of assistance to you in anway, please do not hesitate to
'M/ y y
Detroit, M/
Kenneth Hauser contact our office in Washington, DC at 1-877-202-5706 or by email at:
Chicago, IL infor@NCPERS.org. Thank you for your participation and support of NCPERS.
Bill Lundy
Little Rock, AR Sincerely yours,
Donald L Phillips
Swartz Creek, MI
Will Pryor tel^
Los Angeles, CA Robert Podgorny, President
John Reilly
Philadelphia, PA
Mona Romain
New York, NY
Carol G. Stukes
Philadelphia, PA
Elmer J. Khal
Past President
Frederick H. Nesbitt
Executive Director
Legislative Counsel
NCPERS • 444 North Capitol Street NW, Suite 221,Washington, DC 20001 • 202-624-1456 • Fax 202-624-1439 • info@NCPERS.org • www.NCPERS.org
(91•MIN02,
NCPERS Annual Meeting
Thursday, May 12, 2005
Las Vegas, Nevada
9:00 A.M. President Bob Podgomy called the annual business meeting to order.
Swearing-in Past President Bob Wetherille administered the oath of office to the officers and
executive board members for 2005-2006.
Reports Bill Robinson presented a preliminary report on the NCPERS insurance
programs.
Committees By-Laws - John Reilly reported no by-law changes.
Credentials - Tina Fazendine presented a final credentials report:
Delegates: 343
Alternates: 74
Fund Members: 256
Sponsor Members: 168
Exhibitors: 129 (72 booths)
Guests: 254
Staff/Complimentary: 12
Speakers: 42
TOTAL: 1278
Resolutions Ron Gracia presented 10 resolutions for consideration:
41 - Oppose Mandatory Social Security Coverage - adopted
#2 - Social Security and Private Retirement Accounts - adopted
#3 - Health Care for All Americans - adopted
44 - Raiding Pension Funds - adopted
#5 - Defined Contribution Plans adopted
46 - GASB - adopted
#7 - Retirement Benefits - adopted
#8 Guaranteed Retirement Benefits - adopted
#9 - Appreciation of Sponsors and Exhibitors - adopted
#10 - America's Retirement System - adopted
New Business Upon a motion by Don Phillips, duly seconded, that
"NCPERS send a list of money managers opposing defined benefit plans to all
NCPERS members." Upon a motion by Elmer Khal, duly seconded, that the
motion be referred to the executive board for action. Motion to table adopted
unanimously.
Adjournment There being no further business, the meeting was adjourned.
Respectfully submitted,
Tina Fazendine, Secretary
NCPERS: RESOLUTION 2
TITLE: Social Security System and Private Retirement Accounts
Submitted by: NCPERS Executive Board
Whereas, private retirement accounts in Social Security place in jeopardy the guaranteed
benefits promised those covered by the Social Security system; and
Whereas, diverting funds from the Social Security Trust Fund places the entire Social Security
system in jeopardy by utilizing funds for transition costs that should be used for benefits; and
Whereas, private retirement accounts cannot guarantee benefits to participants and place their
retirement income at the mercy of the fluctuations in the stock market and their ability to make
investment decisions; and
Whereas, an accurate comparison of all the costs and returns of private savings plans with the
costs and returns of the existing Social Security system shows that a mandated savings plan, in
which retirees invested their money individually, would simply not generate higher retirement
income than the present Social Security system; and
Whereas, by investing their savings individually in financial markets, rather than collectively
relying on the Social Security system, workers supposedly will get a greater return; and
Whereas, Social Security pays the low-income worker an annual income equal to 56.7 percent
of their final wage, the middle-income worker would receive 43.9 percent, and the high-income
worker would get 31.4 percent; and
Whereas, Social Security provides payout in the form of a real valued annuity, a payment that
continues for the life of the worker and is not diminished by inflation;
Now therefore be it resolved, that the National Conference on Public Employee Retirement
Systems goes on record in opposition to the establishment of private retirement accounts within
the Social Security system; and
Be it further resolved, that the National.Conference on Public Employee Retirement Systems
supports making the Social Security system solvent by adopting the following five reforms:
■ Invest 15% of the Social Security trust fund in equity market index funds;
■ Invest 25% of the Social Security trust fund in state and local government bonds that are
specifically designed to rebuild the infrastructure of our cities, counties and states;
• Establish an independent investment board to oversee these new Social Security trust fund
investments;
■ Create a new retiree Social Security COLA to reflect inflation costs affecting retirees; and
• Set the total wage base taxed by Social Security to 90% of nationwide earnings.
CONFERENCE ACTION: Adopted May 12, 2005
NCPERS: RESOLUTION 4
TITLE: Raiding Pension Funds
Submitted by: NCPERS Executive Board
Whereas, several state and local governments in the past raided or attempted to raid public
pension fund assets to satisfy budgetary shortfalls and deficits; and
Whereas, governments should resist the political expediency that could lead to the
destabilization of pension funds and should be willing to operate within their revenue sources or
raise additional revenues through legislative actions; and
Whereas, governments should recognize and respect the position of public fund trustees as
fiduciaries whose primary function is to serve the plan participants and their beneficiaries and
refrain from subjecting them to political or legislative constraints that could undermine their
objectivity; and
Whereas, governments should, in principle and practice, fully support a level of funding that
guarantees the employer's promise of security and the employee's right to future contractual-
benefits;
Now therefore be it resolved, that the National Conference on Public Employee Retirement
Systems strenuously opposes governmental raids of public pension fund assets; and
Be it further resolved, that the National Conference on Public Employee Retirement Systems
takes the lead to recruit other national organizations to join in opposing attempted raids or
schemes not to fully fund public pension systems.
CONFERENCE ACTION: Adopted May 12, 2005
NCPERS: RESOLUTION 6
TITLE: GASB Accounting Standards
Submitted by: NCPERS Executive Board
Whereas, many pension plans provide health benefits for their active and retired members; and
Whereas, the costs of health benefits provided by public sector employers are greatly different
than the costs associated with private sector employers; and
Whereas, requiring public employers to list health benefits as a long-term liability is impossible
to estimate and by doing so could affect the bond ratings of employers and the budgets of state
and local governments, which are suffering revenue shortfalls; and
Whereas, the experience in the private sector, when such requirements were instituted, resulted
in the loss of employee and retiree health benefits so that corporations could show a more
favorable balance sheet to their investors, which is not applicable to the public sector;
Now therefore be it resolved, that the National Conference on Public Employee Retirement
Systems strenuously opposes actions by the Government Accounting Standards Board to require
government employers or pension plans to carry employee and retiree health benefits as long-
term liabilities, which will greatly overstate the costs and adversely affect these government
employers, pension plans and members; and
Be it further resolved, that the National Conference on Public Employee Retirement Systems
continue working to revise the General Accounting Standards Board proposed standards so they
better meet their stated goal of accurate accounting that can be relied upon by public and
financial institutions without endangering health benefits for millions of retired and active public
workers.
CONFERENCE ACTION: Adopted May 12, 2005
NCPERS: RESOLUTION 8
TITLE: Guaranteed Retirement Benefits
Submitted by: NCPERS Executive Board
Whereas, public officials are advocating eliminating defined benefit plans-as a cost savings
mechanism;and
Whereas, these so-called cost savings represent in reality more costs to taxpayers when defined
benefit plans are closed and replaced with defined contribution plans; and
Whereas, replacing a defined benefit plan with a defined contribution plan does not provide
death and disability pension benefits for the survivors of public safety officers or other
government workers and eliminates a secure pension for current and future government workers;
and
Whereas, such a scheme is a risky gamble for state and local governments, their employees, the
economy and the taxpayers;
Now therefore be it resolved, that the National Conference on Public Employee Retirement
Systems opposes the constitutional initiative in California to eliminate defined benefit plans for
government workers and replace them with private retirement accounts; and
Be it further resolved, that the National Conference on Public Employee Retirement Systems
opposes any legislative, executive, judicial or regulatory attempts to eliminate defined benefits
plans for government workers and replace them with private retirement accounts; and
Be it further resolved, that the National Conference on Public Employee Retirement Systems
believe that all workers, both public and private sector, should have as their retirement
foundation a defined benefit plan that will ensure that workers can enjoy retirement with the
certainty that they will be able to maintain their standard of living and not outlive their pension
benefits.
CONFERENCE ACTION: Adopted May 12, 2005
NCPERS: RESOLUTION 10
TITLE: America's Retirement Security
Submitted by: NCPERS President Bob Podgorny
Whereas, All American workers, both public and private sector, who have earned these benefits,
are entitled to secure, guaranteed retirements provided through their employers; and
Whereas, All American workers should be able to live their retirement years with security and
certainty by receiving guaranteed pension benefits; and
Whereas, All American workers should be assured they cannot outlive their retirement benefits
and be assured against poverty-ridden old age ;
Now therefore be it resolved, that the National Conference on Public Employee Retirement
Systems endorses the following four principles and work toward their implementation in
coalition with other concerned organizations and citizens:
1. To oppose all legislative efforts to abolish defined benefit plans and replace them with
401(k)-style individual accounts; and
2. To preserve and protect death and disability benefits for all workers; and
3. To hold accountable those who support, finance or advocate, either directly or indirectly, the
abolition of secure, guaranteed defined benefit pensions; and
4. To ensure workers receive secure, guaranteed pension benefits, not gambled pension benefits.
CONFERENCE ACTION: Adopted May 12, 2005