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Home My WebLink About2005-01-27 - Agendas - Final Firemen's Pension and Relief Fund Meeting Agenda January 27, 2005 A meeting of the Fayetteville Firemen's Pension and Relief Fund will be held at 11:00 a.m. on January 27, 2005 in Room 326 of the City Administration Building 1. Approval of the Minutes: • December 30, 2004 meeting minutes 2. Approval of the Pension List: • Revised January 2005 Pension List • February 2005 Pension List 3. Longer Investments: • Report 4. Old Business: • John and Eileen Jenkins Qualified Domestic Relations Order 5. New Business: • Kelly Skelton — College Enrollment • Kim Skelton — College Enrollment Firemen's Pension Meeting Minutes December 30,2004 Page 1 of 5 Firemen's Pension and Relief Fund Meeting Minutes December 30, 2004 A meeting of the Fayetteville Firemen's Pension and Relief Fund was held at 11 :00 a.m. on December 30, 2004 in Room 326 of the City Administration Building Marion Doss called the meeting to order Present: Marion Doss, Danny Farrar, Pete Reagan, Ronnie Wood and City Clerk Sondra Smith, Assistant City Attorney David Whitaker. Absent: Mayor Coody and Robert Johnson Approval of the November 18, 2004 Meeting Minutes: Pete Reagan moved to approve the minutes. Danny Farrar seconded the motion. Upon roll call the motion passed 5-0. Approval of the Pension List for January 2005: Marion Doss: There is a difference in the bottom line. Pete Reagan: The January one reflects the 3% COLA increase. Marion Doss: I noticed the DROP personnel amounts are the same as last year aren't they included in the 3% COLA? Sondra Smith: Accounting may have forgotten to increase the DROP pensioners. I thought they were included in the COLA too. Pete Reagan: They are, but the amounts did not change. Sondra Smith: I will bring that to Accounting's attention. They have someone new in Accounting that does this now. Pete Reagan: Are we approving the December list too? Sondra Smith: Just the January list, the December list you approved in November. I attached a copy of the December list to the agenda so you could see the change and that the 3% temporary Firemen's Pension Meeting Minutes December 30,2004 Page 2 of 5 COLA had been added to the January list. I just put a copy of the December list in as a comparison. Pete Reagan: Thank you very much for doing that it's very helpful. On the front page we have Eileen Jenkins and John Jenkins. It is my understanding that our statues state that we can only pay beneficiaries of the fund. John and Eileen were divorced, I don't know when that took place but I think it was after he was retired from here. The only way that we can legally write Eileen Jenkins a check for half of John's benefit is with a court order. David Whitaker: It is called a qualified domestic relations order, a specific financial order from a judge, without the order you couldn't pay her. Pete Reagan: Are you saying we do have an order? David Whitaker: I don't know that we have it; we certainly need to look into that because if we are paying benefits it needs to be presented in a court order because otherwise this Board lacks the desecration to grant benefits to a divorced spouse. Pete Reagan: Right. Sondra Smith: It looks like that must have happened in November. Marion Doss: Pete I am glad you brought that up. Pete Reagan: Should Eileen Jenkins not have an employee number the same as John Jenkins? Sondra Smith: No. Those numbers are not actually the employee's number that is a number that Accounting assigns to each account. Pete Reagan: So that is just an Accounting number? Sondra Smith: I think that is just an Accounting number. David Whitaker: I think their software requires an employee number be input for each data field. Sondra Smith: I think that might be the number of people that have been allowed to draw benefits from this plan. I think they enter them in numerical order. Marion Doss: You are probably right on that. We need to find out what paperwork we have on Eileen Jenkins. We need to see what the divorce decree states. Marion Doss: Would they have turned that in to you Sondra or Accounting. Sondra Smith: I don't ever see anything like that. Firemen's Pension Meeting Minutes December 30,2004 Page 3 of 5 David Whitaker: They go to Accounting because I will get calls from Accounting on certain things. I would assume they have it. Marion Doss: I think it is safe to say that our Accounting Department would not have done anything without the proper paperwork. We just need to make sure we have a copy of that. Marion Doss: We need to approve the Pension List as amended with the COLA for the DROP people, is that correct. Pete Reagan: That is correct. Pete Reagan moved to approve the Pension List as amended. Ronnie Wood seconded the motion. Upon roll call the motion passed 5-0. Longer Investments: A copy of the Longer Investment report was submitted to the Board. Old Business: There was no old business New Business: 2005 Meeting Schedule: A copy of the meeting schedule for 2005 was given to the Board. Marion Doss: Thank you Sondra for that. Sondra Smith: In November 2005 we moved the meeting date up a week due to Thanksgiving. Budget Reports for 10/31/04 A copy of the budget reports was attached to the agenda. Other: Pete Reagan: Trish is our new point of contact in Accounting? Sondra Smith: Yes. Firemen's Pension Meeting Minutes December 30,2004 Page 4 of 5 Pete Reagan: Is she going to attend our meetings? Sondra Smith: Normally she does, they were here at the last meeting. I know they have a lot going on in Accounting today. Pete Reagan: Okay that's great. Danny Farrar: The NCPERS Conference what is going on with that? David Whitaker: I am here to tell you about it. I have looked at the history of Attorney General's opinions and case law in the State and the question has never been asked directly. I can tell you that the State statue governing the powers of this Board, section 24-11-803 state among your enunciating powers it says in addition to the other powers granted in this subchapter, the Board of Trustees shall have the power to, I will skip down to 2A, provide for the payment from the fund of all it's necessary expenses and printing. The question becomes is training to serve on this Board a necessary expense. My feeling is yes that can be arguably a necessary expense of the Board. Now, an annual Christmas party or New Year's parry would not. If there is an opportunity for the members of the Board to be trained to be better members of this Board I see that as a necessary expenditure. I would recommend that if you do it you do two things, you make it a budget line item each year and as Sondra suggested in last months meeting and that you conform to the rules consistent with the Travel and Training rules and procedures of the City of Fayetteville. They are very good, I have dealt with them a lot myself and there is a good over site, so that only as the law states, necessary expenses are covered. That would be my recommendation. There is certainly nothing in there to say training for Board members would not be a necessary expense. Pete Reagan: I was always under the assumption that you were elected to this Board by the members with absolutely no training what so ever. You are being held in account to manage their money. David Whitaker: There are some fairly complex things here too. Pete Reagan: Yes. There should be training and I would encourage everyone to get some training. This conference is by far the best one and the cheapest one out there. NCPERS is all public sector pensions, fire and police. Sondra Smith: I don't think anyone really had a problem with sending someone; we just wanted to make sure that we were not violating any law. Pete Reagan: The trustee educational seminar if someone is going to go they should attend that too. That is a two day seminar just for trustees that sit on Boards you are updated about legalities and different law changes. Danny Farrar: We probably should have someone there if there is any way we could. David Whitaker: I think you need to formalize it and get it in your budget and get a proactive education program. If there is anyone currently sitting on the Board that hasn't attended the Firemen's Pension Meeting Minutes December 30,2004 Page 5 of 5 training then make sure they get at the front of the list and as new members come on the Board make sure everybody gets to go. As you know from your own experience there are complex financial, legal and ethical questions that you have to deal with quite often. Sondra Smith: We just need to add a dollar amount for training to the budget and then if we don't use it that's fine. We also need to budget funds for Publication and Dues. Ronnie Wood: I feel like Danny does on this, we do make a lot of decisions and it is getting more complex all the time. If something happens and we make a bad decision and have had the opportunities to be trained and we haven't taken advantage of those opportunities I think that would be bad. Pete Reagan moved to add $4,000 to the Travel and Training line item in the budget. Marion Doss: We have to be judicious in doing it. Pete Reagan: The legislative conference is important but that is where they educate you. David Whitaker: That stands a little close to the line on necessary. Pete Reagan: The federal government tried for years to put us on social security we don't want that because we get a split bill. We put in the same amount of social security as you would and draw out 70% less that you would because we have a public sector pension. That is one of the:"' key items that are on the legislative agenda every year and it is real important to us as it would be to our retirees. Sondra Smith: We also need to add around $150 to Dues and Subscriptions so that we can pay the annual membership due every year. Pete Reagan: I would amend my motion to include that. Pete Reagan moved to add $4,000 to the Travel and Training line item in the budget and add $150 to the Dues and Subscriptions line item. Danny Farrar seconded the motion. Upon roll call the motion passed 5-0. Sondra Smith: I will check with the Budget Department to see what we need to do to get that added. Danny Farrar: Sondra thank you for taking care of us, you do a good job. Meeting Adjourned at 11:20 A.M FIREMEN'S RELIEF AND PENSION January 2005 THE FOLLOWING ARE THE OBLIGATIONS OF THE FIREMEN'S RELIEF FUND FOR THE MONTH OF JANUARY. 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 1,759.94 300.00 100.00 1,359.94 177 4/04 BACHMAN, EDDIE 2,542.28 2,542.28 479.27 119.82 1,943.19 74 3/86 BAIRD, JULIA 1,749.59 1,749.59 350.00 145.00 1,254.59 2 3/75 BLACKARD, PAUL 106.09 106.09 106.09 63 5/72 BOLAIN, ANN 106.09 106.09 106.09 68 7/99 BONADUCE, MICHAEL 2,901.71 2,901.71 475.38 2,426.33 44 9/86 BOUDREY, BETTY MRS. 2,405.26 2,405.26 300.00 50.00 2,055.26 45 9/86 BOUDREY, HOWARD 2,028.43 2,028.43 2,028.43 49 7/88 BOUDREY, JACK 1,599.64 1,599.64 287.68 50.00 1,261.96 4 6/67 CARL, FLOYD JR 106.09 106.09 106.09 5 5/72 CASELMAN, ARTHUR 127.31 127.31 127.31 57 5/90 CATE, ROY 1,736.80 1,736.80 1,736.80 6 4/68 CHRISTIE, ARNOLD 106.09 106.09 106.09 8 10/76 COUNTS, WAYNE 106.09 106.09 106.09 77 11/99 DILL,GARY JOHN 1,759.95 1,759.95 100.00 1,659.95 11 2/76 FARRAR,ALONZO 969.77 969.77 969.77 38 5/84 FRALEY, JOSEPH G. 1,716.62 1,716.62 200.00 15.00 1,501.62 170 5/03 FREEDLE, LARRY 3,705.58 3,705.58 500.00 100.00 3,105.58 92 03/02 GAGE,TOMMY 2,521.06 2,521.06 226.00 50.00 2,245.06 34 6/79 HARRIS, JAMES E. 106.09 106.09 106.09 70 11/99 HARRIS, MARY RUTH 106.09 106.09 106.09 182 10/04 JENKINS, EILEEN 1,736.65 1,736.65 350.00 100.00 1,286.65 93 06/02 JENKINS, JOHN 1,736.66 1,736.66 350.00 100.00 1,286.66 86 07/01 JOHNSON,ROBERT 2,983.95 2,983.95 500.00 100.00 2,383.95 64 4/95 JORDAN, CHARLIE 2,208.69 2,208.69 2,208.69 76 5/88 JUDY, JAN 1,599.64 1,599.64 200.00 50.00 1,349.64 37 3/84 KING, ARNOLD D. 1,478.03 1,478.03 265.00 35.00 1,178.03 54 5/89 KING, ARVIL 1,661.37 1,661.37 130.00 50.00 1,481.37 12 3/60 LANE, HOPE MRS 106.09 106.09 106.09 13 10/67 LAYER, MERLIN 442.93 442.93 442.93 173 12/03 LEDBETTER, DENNIS 3,665.83 3,665.83 575.00 173.00 2,917.83 181 10/04 LEE, VIOLA LOUISE 106.09 106.09 106.09 51 10/88 LEWIS, CHARLES 1,599.64 1,599.64 75.00 25.00 1,499.64 40 9/85 LOGUE, PAUL D. 2,784.74 2,784.74 325.00 75.00 2,384.74 50 9/88 MASON, LARRY 1,583.74 1,583.74 137.61 25.00 1,421.13 39 4/85 MC ARTHUR, RONALD A. 1,702.66 1,702.66 150.00 50.00 1,502.66 35 2/82 MC CHRISTIAN, DWAYNE 106.09 106.09 106.09 15 4/77 MC WHORTER, CHARLES 1,295.64 1,295.64 150.00 1,145.64 29 8/81 MILLER, DONALD 1,266.09 1,266.09 125.00 25.00 1,116.09 73 2/00 MILLER,KENNETH 3,087.40 3,087.40 325.00 75.00 2,687.40 42 2/86 MOORE, JAMES H. 106.09 106.09 106.09 176 4/04 MORRIS, DIXIE E. 122.00 122.00 122.00 62 10/68 MORRISON, ELIENE 132.61 132.61 132.61 48 7/88 MULLENS, DENNIS W. 2,127.48 2,127.48 2,127.48 46 5/88 OSBURN, TROY 1,844.33 1,844.33 200.00 38.00 1,606.33 81 02/01 PHILLIPS,LARRY 2,684.55 2,684.55 2,684.55 53 2/89 POAGE, LARRY 2,278.35 2,278.35 300.00 100.00 1,878.35 22 4/73 REED, JOE 106.09 106.09 106.09 172 12/03 SCHADER, MADGE 1,345.64 1,345.64 1,345.64 41 9/85 SCHADER, TROY 1,480.57 1,480.57 57.00 1,423.57 83 03/01 SKELTON, KIMBERLY 1,182.03 1,182.03 125.00 25.00 1,032.03 66 8/98 SKELTON, PAULINE 413.75 413.75 413.75 82 03/01 SKELTON,KELLY 1,182.03 1,182.03 125.00 25.00 1,032.03 36 5/76 SPRINGSTON, CARL 782.71 782.71 70.00 17.00 695.71 90 03/02 STOUT, IMOGENE W. 745.44 745.44 745.44 DATE OF Regular Mo Year To Date EMP#RETIREMENT NAME Benefit Reg Benefit Fed Tax St Tax Net 165 12/02 TATE, RALPH 3,561.26 3,561.26 300.00 100.00 3,161.26 65 3/66 TUNE, BILLIE SUE 132.61 132.61 132.61 27 3/71 TUNE, MILDRED MRS. 132.61 132.61 132.61 71 1/00 WARFORD,THOMAS 2,429:83 2,429.83 300.00 2,129.83 28 7/68 WATTS, DONALD 424.36 424.36 424.36 88 01/02 WOOD,RONNIE D 2,987.52 2,987.52 800.00 200.00 1,987.52 52 9/88 WRIGHT, RANDALL 1,642.08 1,642.08 200.00 25.00 1,417.08 87262.44 87,262.44 9,352.94 2,042.82 75,866.68 DROP DATE DROP EMPLOYEES NEW BENEFITS 04/01/00 NAPIER,LONNIE 3,415.81 07/01/00 REAGAN,PETE 3,432.73 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 2003. 2004 NOTARY PUBLIC MY COMMISSION EXPIRES : YTD 6810-9810-5335-00 6810-9810-5335-06 YTD Column Difference 0.00 FIREMEN'S RELIEF AND PENSION February 2005 THE FOLLOWING ARE THE OBLIGATIONS OF THE FIREMEN'S RELIEF FUND FOR THE MONTH OF FEBRUARY. 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 3,519.88 300.00 100.00 1,359.94 177 4/04 BACHMAN, EDDIE 2,542.28 5,084.56 479.27 119.82 1,943.19 74 3/86 BAIRD, JULIA 1,749.59 3,499.18 350.00 145.00 1,254.59 2 3/75 BLACKARD, PAUL 106.09 212.18 106.09 63 5/72 BOLAIN, ANN 106.09 212.18 106.09 68 7/99 BONADUCE, MICHAEL 2,901.71 5,803.42 475.38 2,426.33 44 9/86 BOUDREY, BETTY MRS. 2,405.26 4,810.52 300.00 50.00 2,055.26 45 9/86 BOUDREY, HOWARD 2,028.43 4,056.86 2,028.43 49 7/88 BOUDREY, JACK 1,599.64 3,199.28 287.68 50.00 1,261.96 4 6/67 CARL, FLOYD JR 106.09 212.18 106.09 5 5/72 CASELMAN, ARTHUR 127.31 254.62 127.31 57 5/90 CATE, ROY 1,736.80 3,473.60 1,736.80 6 4/68 CHRISTIE, ARNOLD 106.09 212.18 106.09 8 10/76 COUNTS, WAYNE 106.09 212.18 106.09 77 11/99 DILL,GARY JOHN 1,759.95 3,519.90 100.00 1,659.95 11 2/76 FARRAR,ALONZO 969.77 1,939.54 969.77 38 5/84 FRALEY, JOSEPH G. 1,716.62 3,433.24 200.00 15.00 1,501.62 170 5/03 FREEDLE, LARRY 3,705.58 7,411.16 500.00 100.00 3,105.58 92 03/02 GAGE,TOMMY 2,521.06 5,042.12 226.00 50.00 2,245.06 34 6/79 HARRIS, JAMES E. 106.09 212.18 106.09 70 11/99 HARRIS, MARY RUTH 106.09 212.18 106.09 182 10/04 JENKINS, EILEEN 1,736.65 3,473.30 350.00 100.00 1,286.65 93 06/02 JENKINS, JOHN 1,736.66 3,473.32 350.00 100.00 1,286.66 86 07/01 JOHNSON,ROBERT 2,983.95 5,967.90 500.00 100.00 2,383.95 64 4/95 JORDAN, CHARLIE 2,208.69 4,417.38 2,208.69 76 5/88 JUDY, JAN 1,599.64 3,199.28 200.00 50.00 1,349.64 37 3/84 KING, ARNOLD D. 1,478.03 2,956.06 265.00 35.00 1,178.03 54 5/89 KING, ARVIL 1,661.37 3,322.74 130.00 50.00 1,481.37 12 3/60 LANE, HOPE MRS 106.09 212.18 106.09 13 10/67 LAYER, MERLIN 442.93 885.86 442.93 173 12/03 LEDBETTER, DENNIS 3,665.83 7,331.66 575.00 173.00 2,917.83 181 10/04 LEE, VIOLA LOUISE 106.09 212.18 106.09 51 10/88 LEWIS, CHARLES 1,599.64 3,199.28 75.00 25.00 1,499.64 40 9/85 LOGUE, PAUL D. 2,784.74 5,569.48 325.00 75.00 2,384.74 50 9/88 MASON, LARRY 1,583.74 3,167.48 137.61 25.00 1,421.13 39 4/85 MC ARTHUR, RONALD A. 1,702.66 3,405.32 150.00 50.00 1,502.66 35 2/82 MC CHRISTIAN, DWAYNE 106.09 212.18 106.09 15 4/77 MC WHORTER, CHARLES 1,295.64 2,591.28 150.00 1,145.64 29 8/81 MILLER, DONALD 1,266.09 2,532.18 125.00 25.00 1,116.09 73 2/00 MILLER,KENNETH 3,087.40 6,174.80 325.00 75.00 2,687.40 42 2/86 MOORE, JAMES H. 106.09 212.18 106.09 176 4/04 MORRIS, DIXIE E. 122.00 244.00 122.00 62 10/68 MORRISON, ELIENE 132.61 265.22 132.61 48 7/88 MULLENS, DENNIS W. 2,127.48 4,254.96 2,127.48 46 5/88 OSBURN, TROY 1,844.33 3,688.66 200.00 38.00 1,606.33 81 02/01 PHILLIPS,LARRY 2,684.55 5,369.10 2,684.55 53 2/89 POAGE, LARRY 2,278.35 4,556.70 300.00 100.00 1,878.35 22 4/73 REED, JOE 106.09 212.18 106.09 172 12/03 SCHADER, MADGE 1,345.64 2,691.28 1,345.64 41 9/85 SCHADER, TROY 1,480.57 2,961.14 57.00 1,423.57 83 03/01 SKELTON, KIMBERLY 1,182.03 2,364.06 125.00 25.00 1,032.03 66 8/98 SKELTON, PAULINE 413.75 827.50 413.75 82 03/01 SKELTON,KELLY 1,182.03 2,364.06 125.00 25.00 1,032.03 36 5/76 SPRINGSTON, CARL 782.71 1,565.42 70.00 17.00 695.71 90 03/02 STOUT, IMOGENE W. 745.44 1,490.88 745.44 DATE OF Regular Mo Year To Date EMP#RETIREMENT NAME Benefit Reg Benefit Fed Tax St Tax Net 165 12/02 TATE, RALPH 3,561.26 7,122.52 300.00 100.00 3,161.26 65 3/66 TUNE, BILLIE SUE 132.61 265.22 132.61 27 3/71 TUNE, MILDRED MRS. 132.61 265.22 132.61 71 1/00 WARFORD,THOMAS 2,429.83 4,859.66 300.00 2,129.83 28 7/68 WATTS, DONALD 424.36 848.72 424.36 88 01/02 WOOD,RONNIE D 2,987.52 5,975.04 800.00 200.00 1,987.52 52 9/88 WRIGHT, RANDALL 1,642.08 3,284.16 200.00 25.00 1,417.08 87,262.44 174,524.88 9,352.94 2,042.82 75,866.68 DROP DATE DROP EMPLOYEES NEW BENEFITS 04/01/00 NAPIER,LONNIE 3,415.81 07/01/00 REAGAN,PETE 3,432.73 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 6810-98105335-00 6810-9810-5335-06 YTD Column Difference 0.00 4 . BRADY & PLATT, P.L.C. ATTORNEYS AT LAW 2792 E. MILLENNIUM-POST OFFICE BOX 9298 FAYETTEVILLE, ARKANSAS 72703-0021 W. BLAIR BRADY TEL: (479)443-3334 FAX: (479)443-3341 JANET FOSTER, Qfflee Mgr KATHRYN E.PLATT NANCY GREER,Legal Asslst Of Counsel: DALE VARNER October 4, 2004 Marsha C. Woo OCT Q ?Q04 Woodruff La Irm ACrt� a P.O. D r 1866 ,; <••,,,; ..1'. Faye Ville, AR.72103 RE: John Jenkins vs Eileen Jenkins Washington County Case No.: DR 2003-1764-6 Dear Marty: Please find enclosed a file-marked QDRO in the above-referenced matter. SincereI , Kathryn E. Platt Enc. KEP:nvg cc: John Jenkins / City of Fayetteville v IN THE CIRCUIT COURT OF WASHINGTON COUNTY, !A►lst , JOHN JENKINS WAAPLMF �1lpp rR4'(Ij }' Gp VS. NO: DR 2003-1764-6 EILEEN JENKINS DEFENDANT QUALIFIED DOMESTIC RELATIONS ORDER WHEREAS, the plaintiff and defendant were married to each other on April 27, 1979 and, pursuant to a Decree of Divorce, the marriage was terminated on March 16, 2004. WHEREAS, this Court has personal jurisdiction over the plaintiff and defendant and jurisdiction over the subject matter of this Order and this dissolution proceeding; and WHEREAS, the Court intends that this Order shall be a Qualified Domestic Relations Order (hereinafter referred to as a "QDRO") as that term is used in Section 206(d) of the Employee Retirement Income Security Act of 1974, as amended (the "Act"), and Section 414(p) of the Internal Revenue Code of 1986, as amended (the "Code"); NOW, THEREFORE, IT IS HEREBY ORDERED BY THE COURT AS FOLLOWS: SECTION 1 - FACTUAL RECITALS John Jenkins, herein after referred to as "Participant", has the following social security number and current address: SOCIAL SECURITY: 431-23-6787 ADDRESS 2615 Brink Drive, Fayetteville, AR 72701 Eileen Jenkins hereinafter referred to as "Alternate Payee", has the following date of birth, social security number and current address: e SOCIAL SECURITY: 431-33-4396 ADDRESS: 2396 Dead Horse Mountain Rd, Fayetteville, AR 72701 The Participant is a participant in the Fayetteville Firemen's Pension Fund and/or Retirement, hereinafter referred to as "Plan". The Plan Administrator is City of Fayetteville, Arkansas. Date of Marriage of the parties: June 27, 1979 Date of Divorce of the parties: March 16, 2004 SECTION 2 - DETERMINATION OF THE ALLOCATED PORTION The Alternate Payee is allocated and assigned a portion of the Participant's accrued benefit as determined under the Plan in the amount specified below: 50% of Participant's accrued benefit between June 27, 1979 and March 16, 2004. For purposes of the paragraph, "accrued benefit" shall be the monthly benefit payable commencing at Participant's normal retirement age under the Plan. The portion of the Participant's benefit which is described in this paragraph shall hereinafter be referred to as the "Allocated Portion". As provided in Section 4, the Allocated Portion may be paiid in alternate forms and/or at alternate commencement dates. In such event, any benefits payable to the Alternate Payee shall be the actuarial equivalent under the terms of the Plan of the benefit described above converted to the method of payment elected by the Alternate Payee. As the Participant has already begun receiving benefits under the Plan in the amount of $3372.15 per month, the Alternate Payee shall receive one-half of that monthly benefit, beginning the first month after the entry of the QDRO and its approval as a valid QDRO by the Nov l7A t Plan Administrator. SECTION 3 - DETERMINATION OF THE PARTICIPANT'S PORTION All benefits available to the Participant under the Plan, except the Allocated Portion, shall herein after be referred to as the "Participant's Portion". Except as may be provided in Section 5, this Order shall not apply to the Participant's Portion and the Participant shall retain all right and title thereto. In addition, the Alternate Payee shall have no rights with respect to the timing or method of payment of the Participant's Portion. SECTION 4 - MENG AND METHOD OF PAYMENT OF PENSION BENEFITS The Allocated Portion shall commence to the Alternate Payee at a date elected by the Alternate Payee, but no earlier than the Participant's earliest retirement age under the Plan, and no later than the latest date that benefits may commence to the Participant under the terms of the Plan. The method of payment of the Allocated Portion shall be any method in which benefits may be paid under the Plan, as elected by the Alternate Payee, other than a form of joint and survivor annuity which would designate a subsequent spouse of the Alternate Payee as the survivor annuitant. In the event that the Participant retires under the early retirement provisions of the Plan, the Participant may be entitled to an employer subsidy for early retirement. Any employer subsidy received by the Participant shall not be reflected in the calculation of the actuarial equivalent value, as defined in the Plan, of the Allocated Portion unless Alternate Payee commences receiving benefits as of the same date that benefits commence to Participant. SECTION 5 - PROVISIONS CONCERNING DEATH BENEFITS If the Alternate Payee should die prior to commencement of benefits to the Alternate Payee, the actuarial equivalent value, as defined in the Plan, of the Allocated Portion as of the Alternate Payee's date of death shall be distributed to Alternate Payee's estate. If the Alternate Payee should die after commencement of benefits to the Alternate Payee, any death benefits payable under the form of payment elected by.Alternate Payee shall be distributed to the beneficiary named by the Alternate Payee on forms provided by the Plan Administrator for that purpose, or as otherwise provided under the Plan. If the Participant should die prior to the death of the Alternate Payee and prior to commencement of benefits to the Participant: The Alternate Payee shall have no interest whatsoever in the Participant's Portion and shall not be treated as the Participant's surviving spouse for any purpose. If the Participant should die prior to the death of the Alternate Payee and after commencement of benefits to the Participant, the Alternate Payee shall have no interest whatsoever in the Participant's Portion unless Participant shall have indicated otherwise in writing on a form provided by the Administrator. If the Participant should die prior to the death of the Alternate Payee, neither the calculation of the Allocated Portion nor the timing and method of payment thereof shall be affected in any way. SECTION 6 - MISCELLANEOUS PROVISIONS Except as may be provided in any other QDRO, the Participant shall be entitled to all remaining benefits which may become payable under the Plan. The Allocated Portion under this Order, in conjunction with benefits that may be assigned under any other QDROs, may not exceed the actuarial value, as defined in the Plan, of benefits to which the Participant would be entitled in the absence of any assignments. This Order is intended only to assign benefits to the Alternate Payee that may have come ' 4 payable to the Participant. This Order shall not be construed in any manner to require the Plan to provide benefits, based on the definition of actuarial value in the Plan, that are in excess of those that would be provided to the Participant under the Plan in the absence of this Order. If termination of the Plan causes the total benefits provided to or on behalf of the Participants to be reduced, any benefit thereafter payable under this Order to the Alternate Payee shall be reduced in the same proportion as the reduction in total benefits. This Order shall supersede any beneficiary designation or payment election made by the Participant under the Plan but only with respect to the Allocated Portion. Nothing contained in this Order shall be construed to require the Plan or Plan Administrator: To provide the Alternate Payee with any type or form of benefit or any option not otherwise available under the Plan; To provide the Participant and the Alternate Payee with increased benefits; or To pay benefits to the Alternate Payee which are required to be paid to another alternate payee under another order determined by the Plan Administrator to be a QDRO before this Order is determined by the Plan Administrator to be a QDRO. This Order is intended to be a QDRO made pursuant to the Act and the Code its provisions shall be administered and interpreted in conformity with said Act and Code. In the event that the Act or the Code is amended or the law regarding QDROs is otherwise changed or modified, the parties hereto shall immediately take such steps as are necessary to amend this Order to comply with any such changes, amendments and/or modifications. If permissible under any such change, amendment or modification to the Act, Code or laws regarding QDROs, the Plan Administrator may also elect to treat this Order as a qualifying order. e The Court retains jurisdiction over this matter to amend this Order so as to establish and/or maintain its qualifications as a QDRO under the Act and the Code. The provisions of this Order shall not be affected by any changes in the Plan sponsor the Plan Administrator, the name of the Plan, or other actions which do not affect the Participant's entitled to benefits under the Plan. IT IS SO ORDERED. i HONORABLE MARK L Y, CIRCUIT COURT JUDGE APPROVED: Ka E. PY4, Attorney for Plaintiff Marsha C. Woodruff, Attorn endant Tayve ARKANSAS The City of Fayetteville, Arkansas January 25, 2005 Ms. Kelly Skelton P.O. Box 8044 Fayetteville, AR 72703 Dear Kelly, State law allows children of deceased pensioners to continue to receive pension benefits until they reach the age of nineteen or graduate from high school, which ever comes first. The law also allows them to continue to receive benefits if they are a full time student enrolled in an institution of higher learning after completing high school. The benefits will continue as long as they are enrolled as a full time student until they reach.the age of twenty-three or get married. You must provide Proof of Enrollment each semester. Please provide Proof of Enrollment from an institution of higher learning by the beginning each semester which clearly states the following information: 1. Number of hours you are enrolled. 2. Number of hours the institution considers full-time. 3. The length of the term. I have not received your Proof of Enrollment for the current semester. Please keep in mind that you will be required to submit verification each semester. If we do not receive the necessary enrollment information by the beginning of each semester of school, your pension benefits could cease. Please forward the documents to the City Clerk's Office, 113 W. Mountain, Fayetteville, AR. 72701 before February 14, 2005. If you have any questions, please feel free to call the City Clerk's Office at 575- 8323. Sincerely, Sondra Smith City Clerk 113 WEST MOUNTAIN 72701 479-575-8330 FAX 479-575-8257 Tayette7;i1le ARKANSAS The City of Fayetteville, Arkansas January 25, 2005 Ms. Kim Skelton 807 W. Bowen Fayetteville, AR 72703 Dear Kim, State law allows children of deceased pensioners to continue to receive pension benefits until they reach the age of nineteen or graduate from high school, which ever comes first. The law also allows them to continue to receive benefits if they are a full time student enrolled in an institution of higher learning after completing high school. The benefits will continue as long as they are enrolled as a full time student until they reach the age of twenty-three or get married. You must provide Proof of Enrollment each semester. Please provide Proof of Enrollment from an institution of higher learning by the beginning each semester which clearly states the following information: 1. Number of hours you are enrolled. 2. Number of hours the institution considers full-time. 3. The length of the term. I have not received your Proof of Enrollment for the current semester. Please keep in mind that you will be required to submit verification each semester. If we do not receive the necessary enrollment information by the beginning of each semester of school, your pension benefits could cease. Please forward the documents to the City Clerk's Office, 113 W. Mountain, Fayetteville, AR. 72701 before February 14, 2005. If you have any questions,please feel free to call the City Clerk's Office at 575- 8323. Sincerely, Sondra Smith City Clerk a 113 WEST MOUNTAIN 72701 479-575-8330 FAX 479-575-8257 �ey 3'sy`r'. qL� gni ✓f�r��x �xr'f f�>rF �vxj 0.pJ,Ns ,v5_ ti �rc ."t^,Px"_\k raj r«pr' y,,"'•" ♦ lyy�{�+��y{v'` f �,.��N�'y+zxt�`y2'n'4 ti3��" *•�^5�r . `� ��.�C3rry.,$��" WL �!•Y G dC 'a gp- IRE In q�C] r• ashr . .0 6j!'""k Fury' �Wj drt'J,}� .,P�•+. � fes? Lill LONGER I NVESTM ENTS INCORPORATED City of Fayetteville Fire Pension and Relief Fund UA dated 6-18-86 Board Meeting January 27, 2005 Longer Investments Inc. PORTFOLIO APPRAISAL Fayetteville Fire Pension and Relief Fund U/A DTD 6-I8-86 December 31, 2004 Unit Total Market Pct. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield COMMON STOCK 2,300 Abbott Labs 41.35 95,102.93 46.65 107,295.00 1.0 1.040 2,392.00 2.5 3,000 Aluminum Co. of 32.84 98,517.30 31.42 94,260.00 0.9 0.600 1,800.00 1.8 America 4,000 Amsouth Bancorp 25.09 100,348.57 25.90 103,600.00 1.0 1.000 4,000.00 4.0 1,450 Anadarko Petroleum 59.37 86,081.15 64.81 93,974.50 0.9 0.560 812.00 0.9 Corp 2,550 B.P. Amoco PLC A.D.S. 42.09 107,330.00 58.40 148,920.00 1.4 1.662 4,238.10 3.9 4,000 Baldor Electric 25.64 102,557.60 27.53 110,120.00 1.1 0.600 2,400.00 2.3 2,575 BankAmerica Corp. 44.26 113,969.50 46.99 120,999.25 1.2 2.560 6,592.00 5.8 2,750 Biomet, Inc. 28.89 79,454.80 43.39 119,322.50 1.1 0.200 550.00 0.7 1,700 Caterpillar Inc. 73.50 124,944.99 97.51 165,767.00 1.6 1.640 2,788.00 2.2 2,250 Cephalon, hic. 49.12 110,530.35 50.88 114,480.00 1.1 0.000 0.00 0.0 2,000 ChevronTexaco Corp. 36.42 72,841.76 52.51 105,020.00 1.0 1.600 3,200.00 4.4 3,500 Citigroup 41.09 143,827.09 48.18 168,630.00 1.6 1.600 5,600.00 3.9 1,850 Clorox Co. 57.87 107,053.58 58.93 109,020.50 1.0 1.120 2,072.00 1.9 2,000 Dell Computer 28.52 57,038.00 42.14 84,280.00 0.8 0.000 0.00 0.0 Corporation 2,475 Devon Energy Corp 25.20 62,359.75 38.92 96,327.00 0.9 0.200 495.00 0.8 3,250 Dover Corp. 38.80 126,090.05 41.94 136,305.00 1.3 0.640 2,080.00 1.6 3,000 Ecolab 28.57 85,702.26 35.13 105,390.00 1.0 0.350 1,050.00 1.2 2,000 Emerson Electric 48.02 96,050.00 70.10 140,200.00 1.3 1.660 3,320.00 3.5 1,500 ExxonMobil 27.65 41,475.76 51.26 76,890.00 0.7 1.080 1,620.00 3.9 3,500 Flowserve Corp. 26.14 91,491.35 27.54 96,390.00 0.9 0.000 0.00 0.0 5,750 General Electric 24.34 139,982.00 36.50 209,875.00 2.0 0.880 5,060.00 3.6 3,000 Genuine Parts 31.51 94,517.56 44.06 132,180.00 1.3 1.200 3,600.00 3.8 4,250 Herley Industries 20.53 87,270.15 20.34 86,445.00 0.8 0.000 0.00 0.0 1,250 Illinois Tool Works 89.66 112,072.75 92.68 115,850.00 1.1 0.960 1,200.00 1.1 1,500 Intl Business Machines 87.82 131,734.20 98.58 147,870.00 1.4 0.720 1,080.00 0.8 3,500 Intel Corp 16.12 56,407.50 23.39 81,865.00 0.8 0.320 1,120.00 2.0 2,850 International Paper Co. 41.24 117,536.50 42.00 119,700.00 1.1 1.000 2,850.00 2.4 3,000 Johnson &Johnson 52.08 156,250.18 63.42 190,260.00 1.8 1.140 3,420.00 2.2 2,500 Kennametal, Inc. 39.65 99,124.21 49.77 124,425.00 1.2 0.680 1,700.00 1.7 3,000 Kerr McGee Corp. 49.95 149,851.35 57.79 173,370.00 1.7 1.800 5,400.00 3.6 3,300 Kraft Foods hic. 35.08 115,770.00 35.61 117,513.00 1.1 0.820 2,706.00 2.3 1,500 L-3 Communications 43.73 65,602.17 73.24 109,860.00 1.1 0.400 600.00 0.9 Holdings Inc. 2,000 Lockheed-Martin Corp. 54.77 109,536.50 55.55 111,100.00 1.1 1.000 2,000.00 1.8 2,000 MeadWestvaco 29.06 58,120.00 33.89 67,780.00 0.7 0.920 1,840.00 3.2 2,500 Medtronic, Inc. 42.43 106,075.96 49.67 124,175.00 1.2 0.335 837.50 0.8 2,000 Minnesota Mining& 80.42 160,843.80 82.07 164,140.00 1.6 1.440 2,880.00 1.8 Mfg. 10,000 Nanogen hic. 4.42 44,220.75 7.36 73,600.00 0.7 0.000 0.00 0.0 9,000 Oracle Systems 13.62 122,572.00 13.72 123,480.00 1.2 0.000 0.00 0.0 1,875 Par Pharmaceutical 41.76 78,298.88 41.38 77,587.50 0.7 0.000 0.00 0.0 5,000 SBC Communications 24.57 122,840.38 25.77 128,850.00 1.2 1.290 6,450.00 5.3 3,750 Sara Lee 24.33 91,237.50 24.14 90,525.00 0.9 0.790 2,962.50 3.2 7,500 Schwab Corporation 10.39 77,940.75 11.96 89,700.00 0.9 0.080 600.00 0.8 2,500 Union Pacific Corp. 58.87 147,178.75 67.25 168,125.00 1.6 1.200 3,000.00 2.0 4,250 Walgreen Company 33.60 142,816.50 38.37 163,072.50 1.6 0.210 892.50 0.6 2,350 Walmart Stores 53.23 125,086.61 52.82 124,127.00 1.2 0.520 1,222.00 1.0 4,615,653.74 5,412,665.75 52.0 96,429.60 2.1 REAL ESTATE INVESTMENT TRUSTS 1,500 Pan Pacific Retail 33.68 50,514.25 62.70 94,050.00 0.9 2.170 3,255.00 6.4 50,514.25 94,050.00 0.9 3,255.00 6.4 1 LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor Longer Investments Inc. PORTFOLIO APPRAISAL Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 December 31, 2004 Unit Total Market Pct. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield PREFERRED DEBT SECURITIES 5,000 G.E. Preferred 6.10% 25.00 125,000.00 26.21 131,050.00 1.3 1.525 7,625.00 6.1 AAA/AAA(C 11-15-07) 5,000 G.E. Preferred 6.625% 26.01 130,030.00 26.75 133,750.00 1.3 1.656 8,281.25 6.4 AAA/AAA(C 6-28-07) 3,000 Roch G&E 6.65% 26.30 78,893.10 26.77 80,310.00 0.8 1.662 4,987.50 6.3 AAA/AAA (C 6-20-07) AMBAC 333,923.10 345,110.00 3.3 20,893.75 6.3 MUTUAL FUNDS-EQUITY 15,000.0000 Japan Webs 9.85 147,750.00 10.92 163,800.00 1.6 0.043 641.50 0.4 147,750.00 163,800.00 1.6 641.50 0.4 MUTUAL FUNDS-FIXED 3,000.0000 American Strategic 12.16 36,477.90 12.31 36,930.00 0.4 0.960 2,880.00 7.9 Income Portfolio III 36,477.90 36,930.00 0.4 2,880.00 7.9 CORPORATE BONDS 30,000 Exxon Capital Corp. 99.72 29,917.00 101.46 30,436.92 0.3 6.000 1,800.00 6.0 Notes Aaa/AAA (NC) 6.000% Due 07-01-05 15,000 Gillette Company Notes 99.78 14,967.00 101.80 15,269.60 0.1 5.750 862.50 5.8 Aa3/AA-(NC) 5.750% Due 10-15-05 75,000 Wal-Mart Stores Inc. 98.44 73,831.00 102.27 76,705.06 0.7 5.875 4,406.25 6.0 AA2/AA (NC) 5.875% Due 10-15-05 50,000 Boeing Capital Crp 100.00 50,000.00 102.02 51,012.10 0.5 6.040 3,020.00 6.0 ANA(NC) 6.040% Due 11-15-05 50,000 NationsBank Corp. 99.79 49,894.00 107.62 53,808.00 0.5 6.375 3,187.50 6.4 _1 Subordinated Notes AA3/A (NC) 6.375% Due 02-15-08 65,000 J.P. Morgan Chase 102.60 66,687.00 109.38 71,099.08 0.7 6.700 4,355.00 6.5 Bank AA3/A+ (NC) 6.700% Due 08-15-08 50,000 Bankers Trust NY Corp 99.26 49,630.00 107.05 53,524.30 0.5 6.000 3,000.00 6.0 Subordinated Notes A2/A (NC) 6.000% Due 10-15-08 25,000 First Union Corp. 93.78 23,446.00 107.05 26,761.55 0.3 6.000 1,500.00 6.4 Subordinated Debentures Al/A- (NC) 6.000% Due 10-30-08 25,000 Pepsico Incorporated 97.49 24,373.00 106.61 26,652.42 0.3 5.700 1,425.00 5.8 Medium Term Note Al/A+ (NC) 5.700% Due 11-01-08 50,000 Hershey Foods Corp. 97.63 48,816.00 116.11 58,054.65 0.6 6.950 3,475.00 7.1 Notes Al/A+ (NC) 6,950% Due 08-15-12 2 LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor Longer Investments Inc. PORTFOLIO APPRAISAL Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 December 31, 2004 Unit Total Market Pct. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield 50,000 Paribas New York 96.03 48,014.00 113.57 56,785.50 0.5 6.950 3,475.00 7.2 Branch Subordinated Notes AA3/AA- (NC) 6.950% Due 07-22-13 60,000 Aetna Inc. Debentures 87.48 52,487.00 109.81 65,885.04 0.6 6.750 4,050.00 7.7 AA3/A+ (NC) 6.750% Due 09-15-13 50,000 Bank America Corp 100.00 50,000.00 100.26 50,129.70 0.5 6.250 3,125.00 6.2 AA3/A Monthly Pay (C 2-15-05 @100, monthly thereafter) 6.250% Due 02-15-17 75,000 Merrill Lynch &Co. 99.26 74,442.00 109.68 82,257.67 0.8 6.500 4,875.00 6.5 Inc. Global Bonds AA3/A+ (NC) 6.500% Due 07-15-18 50,000 National City Corp. 96.65 48,326.00 114.28 57,138.70 0.5 6.875 3,437.50 7.1 Sub. Notes A2/A- (NC) 6.875% Due 05-15-19 50,000 IBM Corp. Debentures 100.01 50,004.00 118.59 59,292.90 0.6 7.000 3,500.00 7.0 Al/A+ (Subject to make whole call) 7.000% Due 10-30-25 50,000 Dell Computer Corp. 95.46 47,731.00 120.11 60,052.65 0.6 7.100 3,550.00 7.4 Debentures A2/A (Subject to make whole call) 7.100% Due 04-15-28 Accrued Interest 15,070.62 0.1 802,565.00 909,936.46 8.7 53,043.75 6.6 GOVERNMENT BONDS 225,000 U. S. Treasury Note 100.28 225,632.82 100.16 225,351.56 2.2 3.250 7,312.50 3.2 3.250% Due 08-15-07 200,000 U. S. Treasury Note 100.08 200,162.53 101.91 203,812.50 2.0 4.000 8,000.00 4.0 4.000% Due 06-15-09 50,000 U. S. Treasury Bond 100.01 50,004.00 108.25 54,125.00 0.5 5.500 2,750.00 5.5 5.500% Due 08-15-28 50,000 U. S. Treasury Bond 98.95 49,474.00 104.81 52,406.25 0.5 5.250 2,625.00 5.3 5.250% Due 11-15-28 300,000 U. S. Treasury Bond 98.03 294,097.66 104.91 314,718.75 3.0 5.250 15,750.00 5.4 5.250% Due 02-15-29 Accrued Interest 10,364.90 0.1 819,371.01 860,778.96 8.3 36,437.50 4.5 GOVERNMENT AGENCY 250,000 Federal Farm Credit 100.00 250,000.00 100.00 250,000.00 2.4 3.170 7,925.00 3.2 Bank(C 9-29-05 @ 100, 1X) 3.170% Due 09-29-06 100,000 Federal Farm Credit 100.00 100,000.00 100.19 100,187.50 1.0 3.580 3,580.00 3.6 Bank(C 6-15-05 @ 100, IX) 3.580% Due 06-15-07 3 LONGER INVESTMENTS INCORPORATED A Registaed Investment Advisor Longer Investments Inc. PORTFOLIO APPRAISAL Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 December 31, 2004 Unit Total Market Pct. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield 100,000 Federal Home Loan 100.00 100,000.00 98.94 98,937.50 0.9 3.000 3,000.00 3.0 Bank (C 09-07-05 @ 100 1X) 3.000% Due 09-07-07 100,000 Federal Farm Credit 100.00 100,000.00 98.69 98,687.50 0.9 3.020 3,020.00 3.0 Bank(C 1X 03/24/05 @100) 3.020% Due 12-24-07 75,000 Federal Home Loan 100.00 75,000.00 99.37 74,531.25 0.7 3.300 2,475.00 3.3 Bank (C 1-17-06 @ 100, IX) 3.300% Due 01-17-08 250,000 Federal Farm Credit 100.00 250,000.00 97.84 244,609.37 2.3 3.080 7,700.00 3.1 Bank(C 1 X 04-15-05 @100) 3.080% Due 10-15-08 225,000 Federal Farm Credit 100.00 225,000.00 100.00 225,000.00 2.2 4.000 9,000.00 4.0 Bank (C 1-31-05 @ 100, continuously thereafter) 4.000% Due 12-29-08 125,000 Federal Farm Credit 100.00 125,000.00 102.09 127,617.19 1.2 4.350 5,437.50 4.3 Bank(NC) 4.350% Due 06-01-09 225,000 Federal Home Loan 100.00 225,000.00 99.22 223,242.19 2.1 4.000 9,000.00 4.0 Bank (C 1-31-05 @ 100, continuously thereafter) 4.000% Due 04-01-10 200,000 Federal Home Loan 100.00 200,000.00 99.62 199,250.00 1.9 4.200 8,400.00 4.2 Bank(C 1-31-05 @100, continuously thereafter) j 4.200% Due 05-20-10 50,000 Tennessee Valley 98.95 49,474.00 107.43 53,716.40 0.5 5.625 2,812.50 5.7 Authority(NC) 5.625% Due 01-18-11 150,000 Federal Farm Credit 100.00 150,000.00 98.78 148,171.87 1.4 4.150 6,225.00 4.1 Bank (Call 04-07-06, continuously thereafter) 4.150% Due 04-07-11 55,556 Federal Home Loan 100.00 55,555.56 100.00 55,555.56 0.5 5.080 2,822.22 5.1 Bank(C 1-31-05 @ 100, continuously thereafter) 5.080% Due 10-03-12 150,000 Federal Farm Credit 100.00 150,000.00 100.03 150,046.87 1.4 5.000 7,500.00 5.0 Banks (C 1-31-05 @ 100, continuously thereafter) 5.000% Due 10-15-12 75,000 Federal Home Loan 100.00 75,000.00 101.41 76,054.69 0.7 5.375 4,031.25 5.4 Bank(C 11-7-05 @100) 5.375% Due 11-07-13 Accrued Interest 16,283.54 0.2 2,130,029.56 2,141,891.44 20.6 82,928.47 3.9 4 LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor Longer Investments Inc. PORTFOLIO APPRAISAL Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 December 31, 2004 Unit Total Market Pct. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield GNMA 50,000.00 GNMA 5.0% Pool# 99.61 49,804.17 96.78 48,392.50 0.5 5.000 2,500.00 5.0 GNR 2003-40 AE 5.000% Due 05-20-33 150,000.00 GNMA 6.0% Pool# 100.00 150,000.00 100.62 150,925.50 1.4 6.000 9,000.00 6.0 GNR 2004-44 EC 6.000% Due 07-20-34 Accrued Interest 958.33 0.0 199,804.17 200,276.33 1.9 11,500.00 5.8 CASH AND EQUIVALENTS Dividends Accrued 6,714.50 6,714.50 0.1 0.000 0.00 0.0 Money Market 86,503.24 86,503.24 0.8 1.450 1,254.30 1.4 93,217.74 93,217.74 0.9 1,254.30 1.3 i CERTIFICATE OF DEPOSIT 50,000 American National 100.00 50,000.00 101.78 50,887.80 0.5 7.050 3,525.00 7.0 Bank&Trust Chicago, IL AA2/NR(NC) FDIC-Insured 7.050% Due 08-02-05 50,000 MBNA America Bank 100.00 50,000.00 102.48 51,240.50 0.5 6.550 3,275.00 6.5 Newark, DE A3/NR (NC)FDIC-Insured 6.550% Due 12-20-05 40,000 Capital One Bank FSB 100.00 40,000.00 102.44 40,975.12 0.4 4.900 1,960.00 4.9 Falls Church, VA BAAI/NR(NC) FDIC-Insured 4.900% Due 02-20-07 Accrued Interest 16,372.25 0.2 140,000.00 159,475.68 1.5 8,760.00 6.3 WARRANTS 144 Lucent Warrants (Expire 0.00 0.00 1.58 227.52 0.0 0.000 0.00 0.0 12/10/2007) 0.00 227.52 0.0 0.00 0.0 TOTAL PORTFOLIO 9,369,306.47 10,418,359.88 100.0 318,023.87 3.4 5 LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor Longer Investments Inc. SUMMARY OF REALIZED GAINS & LOSSES AND INCOME & EXPENSES City of Fayetteville Fire Pension and Relief Fund January 1, 2004 to December 31, 2004 Realized Gains and Losses Short-Term $1491203.98 Long-Term $2413395.74 TOTAL REALIZED GAINS AND LOSSES $3909599.72 Income and Expenses I Income: Common Stock $921462.98 Real Estate Investment Trusts $143125.00 Preferred Stock $244.44 Preferred Debt $213307.70 Mutual Funds - Equity $641 .55 Mutual Funds - Fixed $9,790.42 Corporate Bonds $633585.22 Government Bonds $29,200.65 U.S. Government Agencies $763501.46 Asset-Backed Securities $9,075.00 Money Market $23901.31 Certificate of Deposit $83784.00 Expenses: Automated Cash Management $559.87 Foreign Tax on Dividends $90.00 Northern Trust Fee $6,892.42 Management Fee $793622.69 NET INCOME $2419454.75 6 ILLONGER INVESTMENTS INCORPORATED I, A Registered Investment Advisor Longer Investments Inc. FIXED INCOME HOLDINGS Fayetteville Fire Pension and Relief Fund U/A DTD 6-I8-86 December 31, 2004 Date/Price Unit Description Symbol Par Value Cost Total Cost S&P Moody Call Put CORPORATE BONDS Aetna Inc. Debentures AA3/A+ 008117AD5 60,000 87.48 52,487.00 A+ AA3 (NC) 6.750% Due 09-15-13 Bank America Corp AA3/A 06050XEG4 50,000 100.00 50,000.00 A AA3 02-15-05 Monthly Pay(C 2-15-05 @100, monthly thereafter) 6.250% Due 02-15-17 100.00 Bankers Trust NY Corp 066365BLO 50,000 99.26 49,630.00 A A2 Subordinated Notes A2/A(NC) 6.000% Due 10-15-08 Boeing Capital Crp A3/A (NC) 09700WAZ6 50,000 100.00 50,000.00 A A3 6.040% Due 11-15-05 J.P. Morgan Chase Bank AA3/A+ 163714AF5 65,000 102.60 66,687.00 A+ AA3 j (NC) 6.700% Due 08-15-08 Dell Computer Corp. Debentures 247025AE9 50,000 95.46 47,731.00 A A2 } A2/A(Subject to make whole call) 7.100% Due 04-15-28 Exxon Capital Corp.Notes 302289AQ6 30,000 99.72 29,917.00 AAA AAA Aaa/AAA (NC) 6.000% Due 07-01-05 First Union Corp. Subordinated 337358AU9 25,000 93.78 23,446.00 A- Al Debentures Al/A- (NC) 6.000% Due 10-30-08 Gillette Company Notes Aa3/AA- 375766AD4 15,000 99.78 14,967.00 AA- AA3 (NC) 5.750% Due 10-15-05 Hershey Foods Corp. Notes Al/A+ 427866AK4 50,000 97.63 48,816.00 A+ Al (NC) 6.950% Due 08-15-12 IBM Corp. Debentures Al/A+ 459200AM3 50,000 100.01 50,004.00 A+ Al (Subject to make whole call) 7.000% Due 10-30-25 Merrill Lynch &Co. Inc. Global 590188JF6 75,000 99.26 74,442.00 A+ AA3 Bonds AA3/A+ (NC) 6.500% Due 07-15-18 National City Corp. Sub. Notes 635405AM5 50,000 96.65 48,326.00 A- A2 A2/A- (NC) 6.875% Due 05-15-19 NationsBank Corp. Subordinated 638585BDO 50,000 99.79 49,894.00 A AA3 Notes AA3/A (NC) 6.375% Due 02-15-08 Paribas New York Branch 699490AA6 50,000 96.03 48,014.00 AA- AA3 Subordinated Notes AA3/AA- (NC) 6.950% Due 07-22-13 Pepsico Incorporated Medium Term 71345LBS6 25,000 97.49 24,373.00 A+ AA3 Note Al/A+ (NC) 5.700% Due 11-01-08 Wal-Mart Stores Inc. AA2/AA(NC) 931142ATO 75,000 98.44 73,831.00 AA AA2 5.875% Due 10-15-05 CORPORATE BONDS Total 802,565.00 7 LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor Longer Investments Inc. FIXED INCOME HOLDINGS Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 December 31, 2004 Date/Price Unit Description Symbol Par Value Cost Total Cost S&P Moody Call Put GOVERNMENT BONDS U. S. Treasury Bond 912810FE3 50,000 100.01 50,004.00 5.500% Due 08-15-28 U. S. Treasury Bond 91281 OFFO 50,000 98.95 49,474.00 5.250% Due 11-15-28 U. S. Treasury Bond 912810FG8 300,000 98.03 294,097.66 5.250% Due 02-15-29 U. S.Treasury Note 912828AH3 225,000 100.28 225,632.82 3.250% Due 08-15-07 U. S. Treasury Note 912828CL2 200,000 100.08 200,162.53 4.000% Due 06-15-09 GOVERNMENT BONDS Total 819,371.01 GOVERNMENT AGENCY Federal Farm Credit Banks (C 31331QFL6 150,000 100.00 150,000.00 01-31-05 1-31-05 @ 100, continuously thereafter) 5.000% Due 10-15-12 100.00 Federal Farm Credit Bank (C 31331SAR4 225,000 100.00 225,000.00 01-31-05 1-31-05 @ 100, continuously thereafter) 4.000% Due 12-29-08 100.00 Federal Farm Credit Bank (C 31331 SKF9 250,000 100.00 250,000.00 09-29-05 9-29-05 @ 100, 1X) 3.170% Due 09-29-06 100.00 Federal Farm Credit Bank (C 31331 TS44 100,000 100.00 100,000.00 06-15-05 6-15-05 @ 100, 1X) 3.580% Due 06-15-07 100.00 Federal Farm Credit Bank (NC) 31331 TS77 125,000 100.00 125,000.00 4.350% Due 06-01-09 Federal Farm Credit Bank (C IX 31331TUW9 100,000 100.00 100,000.00 03-24-05 03/24/05 @100) 3.020% Due 12-24-07 100.00 Federal Farm Credit Bank(C 1X 31331TYD7 250,000 100.00 250,000.00 04-15-05 04-15-05 @100) 3.080% Due 10-15-08 100.00 Federal Farm Credit Bank(Call 31331TZR5 150,000 100.00 150,000.00 04-07-06 04-07-06, continuously thereafter) 4.150% Due 04-07-11 100.00 Federal Home Loan Bank (C 3133MSAEO 55,556 100.00 55,555.56 01-31-05 1-31-05 @ 100, continuously thereafter) 5.080% Due 10-03-12 100.00 Federal Home Loan Bank(C 3133MXEC9 225,000 100.00 225,000.00 01-31-05 1-31-05 @ 100, continuously thereafter) 4.000% Due 04-01-10 100.00 Federal Home Loan Bank (C 3133MYR41 200,000 100.00 200,000.00 01-31-05 1-31-05 @100, continuously thereafter) 4.200% Due 05-20-10 100.00 Federal Home Loan Bank (C 3133X22G9 75,000 100.00 75,000.00 11-07-05 11-7-05 @100) 5.375% Due 11-07-13 100.00 8 LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor