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Home My WebLink About2011-01-27 - Agendas - Final Fayetteville Fireman's Pension and Relief Fund Meeting Date 01-Ot 7-Cp9p// AdjournTirne —st,40 021M�. Attendees: Cetki U L gtAuv �6 Am:n 517-ilvA jWlo '2;4, IV Subject: Subject: 0 Motion To: Motion To: Alut-011-e- Motion By: Motion By: aa Seconded: Seconded: Mayor Jordan Mayor Jordan Marion Doss Marion Doss Pete Reagan Pete Reagan Gene Warford Gene Warford Ronnie Wood Ronnie Wood -Se� Sondra Smith I ISondra Smith Subj ct: jaN2ct: OU-41t Awom ^AaA-C,6 I Motio;nTo: rO U e� Motion To: Motion B:i:: Motion By: Seconded: Seconded: Mayor Jordan Mayor Jordan Marion Doss Marion Doss tole Pete Reagan Pete Reagan Pool' Gene Warford Gene Warford VI ,Ronnie Wood 1 Ronnie Wood AkLj- I ISondra Smith I Isondra Smith W.- Firemen's Pension&Relief Fun, Board of Trustees Agenda January 27,2011 Page I of 2 Lioneld Jordan Chairman Pete Reagan Position 2/Redred Sondra E.Smith Secretary aye Gene Warford Posifflon 3/Retired Marlon Doss Position I/Retired Tv e;lile Ron Wood Posrdon 4/Retired ARKANSAS Firemen's Pension and Relief Fund Board of Trustees Meeting Agenda January 27, 2011 A meeting of the Fayetteville Firemen's Pension and Relief Fund Board of Trustees will be held at 3:00 PM on January 27, 2011 in Room 326 of the City Administration Building. Approval of the Minutes: 0 November 18, 2010 meeting minutes. Pension List Changes: * None Approval of the Pension List: 0 January, February, March and April 2011 Pension List Old Business: 0 NCPERS membership has been paid 0 Fayetteville Firefighters Pension Fund Special Report datedl 0/18/2010 New Business: 0 PRB letter regarding the projected insolvency status of the fund. Need to send them a response letter: 1. What actions have you planned as a result of the Special Report? 2. What discussions have you had with the city officials to explore solutions? How has your city board been made aware? 3. Did you find the Special Report helpful in your planning? 4. What would you have wanted to have been included in the Special Report that was not previously included? 5. What additional information could be provided by the PRB to assist your fund? 0 2011 Annual NCPERS Conference Information 0 Revenue/Expense Report for 12/31/2010 Firemen's Pension&Relief Fund Board of Trustees Agenda January 27,2011 Page 2 of 2 Longer Investments: 0 Longer Letter regarding Northern Trust 0 The Longer View 12/29/10 6 Quarterly Report—0 Quarter 2010 Informational: 2011 Meeting Schedule Firemen's Pension and Relief Fund Board Members Board of Trust=Meeting Minutes *`VI November 18,2010 Mayor Jordan Chairman Page I of 2 Sondra E.Smith Secretary Marion Doss Position I/Rctired Pete Reagan Position 2/Retired Taye Gene Warlord Position 3/Retired ARKANSAS Ronnie Wood Position 4/Retired Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes November 18,2010 A meeting of the Fayetteville Firemen's Pension and Relief Fund Board of Trustees was held at 3:00 PM onNovember 18, 2010 in Room 326 of the City Administration Building. Mayor Jordan called the meeting to order. Present: Marion Doss, Gene Warford, Ronnie Wood, Pete Reagan, Sondra Smith, Mayor Jordan, Paul Becker, and Jason Kelley, Assistant City Attorney. ApI)roval of the Minutes: October 28,2010 Meetina Minutes Pete Reagan moved to approve the October 28, 2010 Firemen's Pension and Relief Fund Board of Trustees meeting minutes. Gene Warford seconded the motion. Upon roll call the motion passed unanimously. Pension List Changes: None Approval of the Pension List: December,2010 Pension List Pete Reagan moved to approve the December, 2010 Pension List. Gene Warlord seconded the motion. Upon roll call the motion passed unanimously. Old Business: None New Business: None Longer Investments: Monthly Report A copy of the report was given to the Board 113 West Mountain 72701 (479)575-8323 TDD(Telecommunications Device for the Deaf)(479)521-1316 Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes November 18,2010 Page 2 of 2 Sondra Smith: We have a copy of the monthly report for October 3 1, 2010. Informational: 2011 Meeting Schedule A copy of the meeting schedule was handed out to the board. Sondra Smith: That is a copy of the meetings for next year and the dates Longer Investment will be here. Pete Reagan: I know you all are busy and we are busy. I would like to bring forth to the board and move that we move our board meetings to quarterly to coincide with the Longer Investment report. If we need to have a special meeting we can call a special meeting. Mayor Jordan: I believe it was a suggestion of the board to have monthly meetings. I don't have an issue with that. Sondra do you or anybody have an issue with that? Sondra Smith: Not at all. Mayor Jordan: You want to go to quarterly to match up with Longer Investments when they give their report. Jason Kelley: Will that began with the December meeting or will that start in 2011. Pete Reagan: We will get the year end report in January, so we can meet again in January. Sondra Smith: You don't want to have a December meeting? Pete Reagan made a motion to move the board meetings to quarterly meetings effective January 2011 and no meeting in December. Gene Warford seconded the motion. Upon roll call the motion passed unanimously. Pete Reagan: Do we need to approve die pension list for December or do you want to wait until January? Sondra Smith: I don't have a copy for you to approve. Pete Reagan: It will be the same unless somebody deceases. Sondra Smith: We didn't have a quorum for several meetings and approved the pension lists after the fact. Pete Reagan: That's fine. Meeting Adjourned at 3:06 PM 113 West Mountain 72701 (479)575-8323 TDD(Telecommunications Device for the Deaf)(479)521-1316 FIREMEN'S RELIEF AND PENSION Jan 2011 THE FOLLOWING ARE THE OBLIGATIONS OF THE FIREMEN'S RELIEF FUND FOR THE MONTH LISTED ABOVE 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 Act 1373 EMP#RETIREMENT NAME Benefit Reg Benefit Future Supplement Q 79 11199 SMITH(ARMSTRONG)(DILL), PAMELA 1,812.74 1,812.74 R 177 4/04 BACHMAN, EDDIE 2,618.55 2,618.55 410.00 S 74 3/86 BAIRD, JULIA 1,802.08 1,802.08 410.00 V 63 5/72 BOLAIN,ANN 109.27 109.27 82.00 R 68 7199 BONADUCE, MICHAEL 2,988.76 2,988.76 410-00 S 44 9186 BOUDREY,BETTY MRS. 2,477.42 2,477.42 410.00 R 45 9186 BOUDREY, HOWARD 2,089.28 2,089.28 410.00 R 49 7188 BOUDREY,JACK 1,647.63 1,647.63 410.00 V 210 5/72 CASELMAN,GLADY'S 131.13 131.13 82.00 R 57 5/90 CATE, ROY 1,788.90 1,788.90 410.00 V 6 4/68 CHRISTIE,ARNOLD 109.27 109.27 82.00 V 8 10/76 COUNTS,WAYNE 109.27 109.27 82.00 R 77 11/99 DILL,GARYJOHN 1,812.75 1,812.75 410.00 R 188 12/05 DOSS, MARION H 5,376.91 5,376.91 410.00 R 188 12105 DOSS, MARION H plus 25 additional pay 731.61 731.61 R 11 2/76 FARRAR,ALONZO 998.86 998.86 410.00 R 192 4/06 FARRAR, DANNY 4,155.36 4,155.36 410.00 R 38 5/84 FRALEY,JOSEPH G. 1,768.12 1,768.12 410.00 R 170 5/03 FREEDLE, LARRY 3,816.75 3,816.75 410.00 R 170 5/03 FREEDLE, LARRY plus 25 additional pay 141.37 141.37 R 92 03102 GAGE,TOMMY 2,596.69 2,596.69 410.00 V 34 6179 HARRIS,JAMES E. 109.27 109.27 82.00 V 70 11/99 HARRIS, MARY RUTH 109.27 109.27 82.00 Q 182 10/04 JENKINS, EILEEN 1,788.75 1,788.75 R 93 06/02 JENKINS,JOHN 1,788.76 1,788.76 410.00 R 86 07/01 JOHNSON,ROBERT 3,073.47 3,073.47 410.00 R 64 4195 JORDAN,CHARLIE 2,274.96 2,274.95 410.00 S 76 5/88 JUDY,JAN 1,647.63 1,647.63 410.00 R 37 3/84 KING,ARNOLD D. 1,522.37 1,522.37 410.00 R 54 5/89 KING,ARVIL 1,711.21 1,711.21 410.00 R 13 10/67 LAYER,MERLIN 456.22 456.22 410.00 R 173 12/03 LEDBETTER, DENNIS 3,775.80 3,775.80 410.00 R 51 10/88 LEWIS, CHARLES 1,647.63 1,647.63 410.00 R 40 9/85 LOGUE, PAUL D. 2,868.28 2,868.28 410.00 R 202 02/08 MAHAN, MARSHALL 4,077.28 4,077.28 410.00 R 50 9/88 MASON, LARRY 1,631.25 1,631.25 410.00 R 39 4/85 MC ARTHUR, RONALD A. 1,753.74 1,753.74 410.00 V 35 2/82 MC CHRISTIAN, DWAYNE 109.27 109.27 82.00 R 15 4177 MC WHORTER,CHARLES 1,334.51 1,334.51 410.00 S 209 8181 MILLER,ALICE GAYLE 1,304.07 1,304.07 410.00 R 73 2/00 MILLER,KENNETH 3,180.02 3,180.02 410.00 R 73 2/00 MILLER,KENNETH plus 25 additional pay 170.60 170.60 V 42 2/86 MOORE,JAMES H. 109.27 109.27 82.00 V 176 4/04 MORRIS, DIXIE E. 125.66 125.66 82.00 R 48 7/88 MULLENS, DENNIS W. 2,191.30 2,191.30 410.00 R 184 3/05 NAPIER, LONNIE 3,518.28 3,518.28 410.00 R 196 01/02 ONEAL,TEDDY 4,120.99 4,120.99 410.00 R 46 5/88 OSBURN,TROY 1,899.66 1,899.66 410.00 R 81 02/01 PHILLIPS,LARRY 2,765.09 2,765.09 410.00 R 203 02/08 PIERCE,JOEY 3,647.18 3,647.18 410.00 R 53 2/89 POAGE, LARRY 2,346.70 2,346.70 410.00 R 186 06/05 REAGAN, PETE 3,535.71 3,535.71 410.00 V 201 A02/08 REED,JUNE 109.27 109.27 82.00 S 172 12/03 SCHADER,MADGE 1,386,01 1,386.01 410.00 R 41 9/85 SCHADER,TROY 1,524.99 1,524.99 410.00 R 190 04106 SHACKELFORD,GLEN 3,647.18 3,647.18 410.00 R 36 5176 SPRINGSTON, CARL 806.19 806.19 410.00 S 90 03/02 STOUT, IMOGENE W. 767.80 767.80 410.00 R 165 12/02 TATE, RALPH 3,668.10 3,668.10 410.00 1/20/2011 K:\FirePension\PensionList\Pension List 2011\FP 010111.xis WM DATE OF Regular Mo Year To Date Act 1373 EMP#RETIREMENT NAME Benefit Reg Benefit Future Supplement V 65 3166 TUNE, BILLIE SUE 136.59 136.59 82.00 R 71 1100 WARFORD,THOMAS 2,502.72 2,502.72 410.00 S 207 7/68 WATTS,MAGGIE 437.09 437.09 410.00 R 88 01/02 WOOD,RONNIE D 3,077.15 3,077.15 410.00 S 208 9/88 WRIGHT, Barbara 1,691.34 1,691.34 410.00 119,431.34 119,431.34 20,582.00 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 NOTARYPUBLIC MY COMMISSION EXPIRES: 1/20/2011 KAFire PensiomPension List\Pension List 201 1\FP 01011 1.x1s WM FIREMEN'S RELIEF AND PENSION Feb 2 2 2011 2 2 2 THE FOLLOWING ARE THE OBLIGATIONS OF THE FIREMEN'S RELIEF FUND FOR THE MONTH LISTED ABOVE 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 Act 1373 EMP# RETIREMENT NAME Benefit Reg Benefit Future Supplement Q 79 11/99 SMITH(ARMSTRONG)(DILL), PAMELA 1,812.74 3,625.48 R 177 4/04 BACHMAN,EDDIE 2,618.55 5,237.10 410.00 S 74 3186 BAIRD,JULIA 1,802.08 3,604.16 410.00 V 63 5/72 BOLAIN,ANN 109.27 218.54 82.00 R 68 7/99 BONADUCE, MICHAEL 2,988.76 5,977.52 410.00 S 44 9/86 BOUDREY, BETTY MRS. 2,477.42 4,954.84 410.00 R 45 9/86 BOUDREY, HOWARD 2,089.28 4,178.56 410.00 R 49 7/88 BOUDREY,JACK 1,647.63 3,295.26 410.00 V 210 5/72 CASELMAN,GLADY'S 131.13 262.26 82.00 R 57 5/90 CATE, ROY 1,788.90 3,577.80 410.00 V 6 4/68 CHRISTIE,ARNOLD 109.27 218.54 82.00 V 8 10/76 COUNTS,WAYNE 109.27 218.54 82.00 R 77 11/99 DILL,GARYJOHN 1,812.75 3,625.50 410.00 R 188 12/05 DOSS, MARION H 5,376.91 10,753.82 410.00 R 188 12/05 DOSS, MARION H plus 25 additional pay 731.61 1,463.22 R 11 2/76 FARRAR,ALONZO 998.86 1,997.72 410.00 R 192 4/06 FARRAR, DANNY 4,155.36 8,310.72 410.00 R 38 5184 FRALEY,JOSEPH G. 1,768.12 3.536.24 410.00 R 170 5/03 FREEDLE, LARRY 3,816.75 7,633.50 410.00 R 170 5/03 FREEDLE, LARRY plus 25 additional pay 141.37 282.74 R 92 03/02 GAGEJOMMY 2,596.69 5,193.38 410.00 V 34 689 HARRIS,JAMES E. 109.27 218.54 82.00 V 70 11199 HARRIS,MARY RUTH 109.27 218.54 82.00 Q 182 10/04 JENKINS, EILEEN 1,788.75 3,577.50 R 93 06/02 JENKINS,JOHN 1,788.76 3,577.52 410.00 R 86 07/01 JOHNSON,ROBERT 3,073.47 6,146.94 410.00 R 64 4/95 JORDAN,CHARLIE 2,274.95 4,549.90 410.00 S 76 5/88 JUDY,JAN 1,647.63 3,295.26 410.00 R 37 3/84 KING,ARNOLD D. 1,522.37 3,044.74 410.00 R 54 5/89 KING,ARVIL 1,711.21 3,422.42 410.00 R 13 10/67 LAYER, MERLIN 456.22 912.44 410.00 R 173 12/03 LEDBETTER, DENNIS 3,775.80 7,551.60 410.00 R 51 10/88 LEWIS,CHARLES 1,647.63 3,295.26 410.00 R 40 9/85 LOGUE, PAUL D. 2,868.28 5,736.56 410.00 R 202 02/08 MAHAN, MARSHALL 4,077.28 8,154.56 410.00 R 50 9/88 MASON, LARRY 1,631.25 3,262.50 410.00 R 39 4/85 MC ARTHUR, RONALD A. 1,753.74 3,507.48 410.00 V 35 2/82 MC CHRISTIAN, DWAYNE 109.27 218.54 82.00 R 15 4177 MC WHORTER,CHARLES 1,334.51 2,669.02 410.00 S 209 8/81 MILLER,ALICE GAYLE 1,304.07 2,608.14 410.00 R 73 2/00 MILLER,KENNETH 3,180.02 6,360.04 410.00 R 73 2100 MILLER,KENNETH plus 25 additional pay 170.60 341.20 V 42 2186 MOORE,JAMES H. 109.27 218.54 8Z00 V 176 4/04 MORRIS, DIXIE E. 125.66 251.32 82.00 R 48 7/88 MULLENS,DENNIS W. 2,191.30 4,382.60 410.00 R 184 3/05 NAPIER, LONNIE 3,518.28 7,036.56 410.00 R 196 01102 ONEAL,TEDDY 4,120.99 8,241.98 410.00 R 46 5188 OSBURN,TROY 1,899.66 3,799.32 410.00 R 81 02/01 PHILLIPS,LARRY 2,765.09 5,530.18 410.00 R 203 02/08 PIERCE,JOEY 3,647.18 7,294.36 410.00 R 53 2/89 POAGE, LARRY 2,346.70 4,693.40 410.00 R 186 06105 REAGAN, PETE 3,535.71 7,071.42 410.00 V 201 A 02108 REED,JUNE 109.27 218.54 82.00 S 172 12/03 SCHADER, MADGE 1,386.01 2,772.02 410.00 R 41 9/85 SCHADER,TROY 1,524.99 3,049.98 410.00 R 190 04/06 SHACKELFORD, GLEN 3,647.18 7,294.36 410.00 1/20/2011 K:\Fire Pension\Pension List\Pension List 2011\FP 020111.xis WM DATE OF Regular Mo Year To Date Act 1373 EMP# RETIREMENT NAME Benefit Reg Benefit Future Supplement R 36 5/76 SPRINGSTON,CARL 806.19 1,612.38 410.00 S 90 03/02 STOUT, IMOGENE W. 767.80 1,535.60 410.00 R 165 12/02 TATE,RALPH 3,668.10 7,336.20 410.00 V 65 3/66 TUNE,BILLIE SUE 136.59 273.18 82.00 R 71 1/00 WARFORD,THOMAS 2,502.72 5,005.44 410.00 S 207 7/68 WATTS, MAGGIE 437.09 874.18 410.00 R 88 01/02 WOOD,RONNIE D 3,077.15 6,154.30 410.00 S 208 9/88 WRIGHT, Barbara 1,691.34 3,382.68 410.00 119,431.34 238,862.68 20,582.00 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 NOTARY PUBLIC MY COMMISSION EXPIRES: 1/20/2011 K:\Fire Pension\Pension List\Pension List 201 1\FP 02011 1.xIs WM FIREMEN'S RELIEF AND PENSION March 3 3 2011 3 THE FOLLOWING ARE THE OBLIGATIONS OF THE FIREMEN'S RELIEF FUND FOR THE MONTH LISTED ABOVE 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 Act 1373 EMP# RETIREMENT NAME Benefit Reg Benefit Future Supplement Q 79 11/99 SMITH(ARMSTRONG)(DILL), PAMELA 1,812.74 5,438.22 R 177 4/04 BACHMAN, EDDIE 2�618.55 7,855.65 410.00 S 74 3/86 BAIRD,JULIA 1,802.08 5,406.24 410.00 V 63 5/72 BOLAIN,ANN 109.27 327.81 82.00 R 68 7/99 BONADUCE, MICHAEL 2,988.76 8,966.28 410.00 S 44 9/86 BOUDREY, BETTY MRS. 2,477.42 7,432.26 410.00 R 45 9/86 BOUDREY, HOWARD 2,089.28 6,267.84 410.00 R 49 7188 BOUDREY,JACK 1,647.63 4,942.89 410.00 V 210 5172 CASELMAN, GLADYS 131.13 393.39 82.00 R 57 5/90 CATE, ROY 1,788.90 5,366.70 410.00 V 6 4/68 CHRISTIE,ARNOLD 109.27 327.81 82.00 V 8 10/76 COUNTS,WAYNE 109.27 327.81 82.00 R 77 11/99 DILL,GARY JOHN 1,812.75 5,438.25 410.00 R 188 12/05 DOSS, MARION H 5,376.91 16,130.73 410.00 R 188 12/05 DOSS, MARION H plus 25 additional pay 731.61 2,194.83 R 11 2f76 FARRAR,ALONZO 998.86 2,996.58 410.00 R 192 4/06 FARRAR, DANNY 4,155.36 12,466.08 410.00 R 38 5/84 FRALEY,JOSEPH G. 1,768.12 5,304.36 410.00 R 170 5/03 FREEDLE, LARRY 3,816.75 11,450.25 410.00 R 170 5/03 FREEDLE, LARRY plus 25 additional pay 141.37 424.11 R 92 03/02 GAGEJOMMY 2,596.69 7,790.07 410.00 V 34 6/79 HARRIS,JAMES E. 109.27 327.81 82.00 V 70 11/99 HARRIS, MARY RUTH 109.27 327-81 82.00 Q 182 10/04 JENKINS, EILEEN 1,788.75 5,366.25 R 93 06/02 JENKINS,JOHN 1,788.76 5,366.28 410.00 R 86 07101 JOHNSON,ROBERT 3,073.47 9,220.41 410.00 R 64 4/95 JORDAN,CHARLIE 2,274.95 6,824.85 410.00 S 76 5/88 JUDY,JAN 1,647.63 4,942.89 410.00 R 37 3/84 KING,ARNOLD D. 1,522.37 4,567.11 410.00 R 54 5/89 KING,ARVIL 1,711.21 5,133.63 410.00 R 13 10/67 LAYER, MERLIN 456.22 1,368.66 410.00 R 173 12/03 LEDBETTER, DENNIS 3,775.80 11,327.40 410.00 R 51 10/88 LEWIS,CHARLES 1,647.63 4,942.89 410.00 R 40 9/85 LOGUE,PAUL D. 2,868.28 8,604.84 410.00 R 202 02/08 MAHAN, MARSHALL 4,077.28 12,231.84 410.00 R 50 9188 MASON,LARRY 1,631.25 4,893,75 410.00 R 39 4185 MC ARTHUR, RONALD A. 1,753.74 5,261.22 410.00 V 35 2/82 MC CHRISTIAN, DWAYNE 109.27 327.81 82.00 R 15 4/77 MC WHORTER,CHARLES 1,334.51 4,003.53 410.00 S 209 8/81 MILLER,ALICE GAYLE 1,304.07 3,912.21 410.00 R 73 2/00 MILLER,KENNETH 3,180.02 9,540.06 410.00 R 73 2/00 MILLER,KENNETH plus 25 additional pay 170.60 511.80 V 42 2/86 MOORE,JAMES H. 109.27 327.81 82.00 V 176 4104 MORRIS, DIXIE E. 125.66 376.98 82.00 R 48 7188 MULLENS, DENNIS W. 2,191.30 6,573.90 410.00 R 184 3/05 NAPIER, LONNIE 3,518.28 10,554.84 410.00 R 196 01/02 ONEAL,TEDDY 4,120.99 12,362.97 410.00 R 46 5/88 OSBURN,TROY 1,899.66 5,698.98 410.00 R 81 02/01 PHILLIPS,LARRY 2,765.09 8,295.27 410.00 R 203 02108 PIERCE,JOEY 3,647.18 10,941.54 410.00 R 53 2/89 POAGE, LARRY 2,346.70 7,040.10 410.00 R 186 06/05 REAGAN, PETE 3,535.71 10,607.13 410.00 V 201 A 02108 REED,JUNE 109.27 327.81 82.00 S 172 12103 SCHADER, MADGE 1,386.01 4,158.03 410.00 R 41 9185 SCHADER,TROY 1,524.99 4,574,97 410.00 R 190 04/06 SHACKELFORD,GLEN 3,647.18 10,941.54 410.00 1/20/2011 C:\DOCUME-l\ssmith\LOCALS-1\Temp\XPgrpwise\Mar 201 1.xIs WM DATE OF Regular Mo Year To Date Act 1373 EMP# RETIREMENT NAME Benefit Reg Benefit Future Supplement R 36 5176 SPRINGSTON,CARL 806.19 2,418.57 410.00 S 90 03/02 STOUT, IMOGENE W. 767.80 2,303.40 410.00 R 165 12102 TATE, RALPH 3,668.10 11,004.30 410.00 V 65 3/66 TUNE, BILLIE SUE 136.59 409.77 82.00 R 71 1/00 WARFORD,THOMAS 2,502.72 7,508,16 410.00 S 207 7/68 WATTS,MAGGIE 437.09 1,311.27 410.00 R 88 01/02 WOOD,RONNIE D 3,077.15 9,231.45 410.00 S 208 9/88 WRIGHT, Barbara 1,691.34 5,074.02 410.00 119,431.34 358,294.02 20,582.00 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 NOTARY PUBLIC MY COMMISSION EXPIRES: 1/2012011 CADOCUME-1�ssmith\LOCALS-1\Temp\XPgrpwise\Mar 201 1.xIs WM FIREMEN'S RELIEF AND PENSION April 4 4 2011 4 4 4 THE FOLLOWING ARE THE OBLIGATIONS OF THE FIREMEN'S RELIEF FUND FOR THE MONTH LISTED ABOVE 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 Act 1373 EMP# RETIREMENT NAME Benefit Reg Benefit Future Supplement * 79 11/99 SMITH(ARMSTRONG)(DILL), PAMELA 1,812.74 7,250.96 * 177 4104 BACHMAN, EDDIE 2,618.55 10,474.20 410.00 S 74 3/86 BAIRD,JULIA 1,802.08 7,208.32 410.00 V 63 5/72 BOLAIN,ANN 109.27 437.08 82.00 R 68 7199 BONADUCE, MICHAEL 2,988.76 11,955.04 410.00 S 44 9/86 BOUDREY, BETTY MRS. 2,477.42 9,909.68 410.00 R 45 9186 BOUDREY, HOWARD 2,089.28 8,357.12 410.00 R 49 7/88 BOUDREY,JACK 1,647.63 6,590.52 410.00 V 210 5/72 CASELMAN, GLADYS 131.13 524.52 82.00 R 57 5/90 CATE, ROY 1,788.90 7,155.60 410.00 V 6 4/68 CHRISTIE,ARNOLD 109.27 437.08 82.00 V 8 10176 COUNTS,WAYNE 109.27 437.08 82.00 R 77 11/99 DILL,GARYJOHN 1,812.75 7,251.00 410.00 R 188 12/05 DOSS, MARION H 5,376.91 21,507.64 410.00 R 188 12/05 DOSS, MARION H plus 25 additional pay 731.61 2.926.44 R 11 2/76 FARRAR,ALONZO 998.86 3,995.44 410.00 R 192 4/06 FARRAR, DANNY 4,155.36 16,621.44 410.00 R 38 5/84 FRALEY,JOSEPH 1,768.12 7,072.48 410.00 R 170 5/03 FREEDLE, LARRY 3,816.75 15,267.00 410.00 R 170 5/03 FREEDLE, LARRY plus 25 additional pay 141.37 565.48 R 92 03/02 GAGEJOMMY 2,596.69 10,386.76 410.00 V 34 6/79 HARRIS,JAMES E. 109.27 437.08 82.00 V 70 11/99 HARRIS, MARY RUTH 109.27 437.08 82.00 Q 182 10/04 JENKINS, EILEEN 1,788.75 7,155.00 R 93 06/02 JENKINS,JOHN 1,788.76 7,155.04 410.00 R 86 07/01 JOHNSON,ROBERT 3,073.47 12,293.88 410.00 R 64 4/95 JORDAN, CHARLIE 2,274.95 9,099.80 410.00 S 76 5188 JUDY,JAN 1,647.63 6,590.52 410.00 R 37 3/84 KING,ARNOLD D. 1,522.37 6,089.48 410.00 R 54 5/89 KING,ARVIL 1,711.21 6,844.84 410.00 R 13 10/67 LAYER, MERLIN 456.22 1,824.88 410.00 R 173 12/03 LEDBETTER, DENNIS 3,775.80 15,103.20 410.00 R 51 10188 LEWIS, CHARLES 1,647.63 6,590.52 410.00 R 40 9/85 LOGUE, PAUL D. 2,868.28 11,473.12 410.00 R 202 02/08 MAHAN, MARSHALL 4,077.28 16,309.12 410.00 R 50 9188 MASON, LARRY 1,631.25 6,525.00 410.00 R 39 4185 MC ARTHUR, RONALD A. 1,753.74 7,014.96 410.00 V 35 2/82 MC CHRISTIAN, DWAYNE 109.27 437.08 82.00 R 15 4/77 MC WHORTER,CHARLES 1,334.51 5,338.04 410.00 S 209 8/81 MILLER,ALICE GAYLE 1,304.07 5,216.28 410.00 R 73 2/00 MILLER,KENNETH 3,180.02 12,720.08 410.00 R 73 2/00 MILLER,KENNETH plus 25 additional pay 170.60 682.40 V 42 2/86 MOORE,JAMES H. 109.27 437.08 82.00 V 176 4/04 MORRIS, DIXIE E. 125.66 502.64 82.00 R 48 7/88 MULLENS,DENNIS W. 2,191.30 8,765.20 410.00 R 184 3/05 NAPIER, LONNIE 3,518.28 14,073.12 410.00 R 196 01102 ONEAL,TEDDY 4,120.99 16,483.96 410.00 R 46 5/88 OSBURN,TROY 1,899.66 7,598.64 410.00 R 81 02/01 PHILLIPS,LARRY 2,765.09 11,060.36 410.00 R 203 02/08 PIERCE,JOEY 3,647.18 14,588.72 410.00 R 53 2189 POAGE, LARRY 2,346.70 9,386.80 410.00 R 186 06/05 REAGAN, PETE 3,535.71 14,142.84 410.00 V 201 A 02/08 REED,JUNE 109.27 437.08 82.00 S 172 12103 SCHADER, MADGE 1,386.01 5,544.04 410.00 R 41 9185 SCHADER,TROY 1,524.99 6,099.96 410.00 R 190 04/06 SHACKELFORD, GLEN 3,647.18 14,588.72 410.00 1/2012011 C:XDOCUME-l\ssmith\LOCALS-1\Temp\XPgrpwise\ApdI 201 1.xIs WM DATE OF Regular Mo Year To Date Act 1373 EMP# RETIREMENT NAME Benefit Reg Benefit Future Supplement R 36 5176 SPRINGSTON,CARL 806.19 3,224.76 410.00 S 90 03102 STOUT, IMOGENE W. 767.80 3,071.20 410.00 R 165 12/02 TATE, RALPH 3,668.10 14,672.40 410.00 V 65 3/66 TUNE, BILLIE SUE 136.59 546.36 82.00 R 71 1/00 WARFORD,THOMAS 2,502.72 10,010.88 410.00 S 207 7/68 WATTS,MAGGIE 437.09 1,748.36 410.00 R 88 01/02 WOOD,RONN I E D 3,077.15 12,308.60 410.00 s 208 9/88 WRIGHT, Barbara 1,691.34 6,765.36 410.00 119,431.34 477,725.36 20,582.00 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 NOTARY PUBLIC MY COMMISSION EXPIRES: 1/20/2011 C:\DOCUME—l\ssmith\LOCALS-1\Temp\XPgrpwise\ApriI 201 1.xIs WM PRB ARKANSAS FIRE &POLICE PENSION REVIEW BOARD 620 W.3rd,Suite 200 Little Rock, Arkansas 72201-2223 Telephone: (501)682-1745 December 16, 2010 RECEIVED Toll-Free: (866)859-1745 Fax: (501)682-1751 Board of Trustees DEC 17 2010 email:info@lopfi-prb.com Fayetteville Fire Pension Fund CITY OF FAYETTEVILLE website:www.lopfi-prb.com 113 W. Mountain CITY CLERKS OFFICE Fayetteville, AR 72701 Re: Projected Insolvent Status (Via: Certified Mail) Dear Trustees: The Arkansas Fire and Police Pension Review Board (PRB) has reviewed the results of the December 31, 2009 actuarial valuations and has found that the projections used to identify underfurded plans under ACA 24-11-208 require us to declare that your fund still meets the definition of a"projected insolvent" plan as described in that section. During 20 10, the PRB provided to you through our actuary a detailed projection and simulation of your fund showing various actions that could be taken. These included adding income streams and consolidation with LOPFI. We do not plan on providing an update to this study at this time unless you request it. We would like to have an update from your fund so that the PRB will know how to best help your fund improve its funding. I. What actions have you planned as a result of the Special Report? 2. What discussion have you had with the city officials to explore solutions? How has your city board been made aware? 3. Did you find the Special Report helpful in your planning? 4. What would you have wanted to have been included in the Special Report that was not previously included? 5. What additional information could be provided by the PRE; to assist your fund? We would appreciate a response to the PRB in writing by the end of February, 2011. This would allow the PRB to discuss and authorize any additional help for your fund during our March 2011 regular board meeting. Thank you for your attention to this issue. Respectfully, 4-1VA&0/_ David B. Clark Executive Director Cc: PRB Members National Conference on Public Employee Retirement Systems The .Voicefor Public Pensions OFFICERS Pat McElligott President RECEIVED Mel Aaronson First Vice President September 27, 2010 HT 01 2010 Daniel Fortuna ITY OF FAYETTEVILLE Second Vice President �CITY CLERKS OFFICE Tina Fazendine Secretary Dear NCPERS Member: Richard Wachsman Treasurer As the end of a great year of membership approaches, we are reaching out to EXECUTIVE BOARD you to thank you for your membership. Our organization is made up of organizations that exist for the greater good of retirees and the protection of their financial security. Stacy Birdwell We want to continue to support you and your efforts through your NCPERS Shreveport,LA membership. We have made great strides over the past year and can only continue to Larry Curran with support from members like you. Boston,MA Kelly L.Fox One of the best parts of being a NCPERS member is the educational and Olympia, WA networking opportunities at our many events. Here are a few 2011 events you will not Stephan G.Fugate want to miss: Baltimore,MD Dan Givens 0 2011 Legislative Conference, Washington, DC—January 30—February I Miami,E. 9 Trustee Education Seminar, Miami Beach, FL—May 21 - 22 Ronald Gracia e , 2011 Annual Conference, Miami Beach, FL—May 22—26 Detnot,MI Kathy Harrell For your convenience you may renew your membership using your credit card by Cincinnati,OH logging onto the 'Member Only' section of the NCPERS.web site or via mail or fax. All Kenneth Hauser renewal payments are due by January 1, 2011. Chicago,iL Bill Lundy We encourage you to renew as soon as possible so that you can continue to Little Rook,AR enjoy all of your member benefits. Feel free to contact us if you have questions. Will Pryor Las Angeles,CA John Reilly Sincerely, Philadelphia,PA Mona Romain New York,NY Carol G,Shl Tenikka Greene Philadelphia,PA Director of Membership Richard Tettamant Dallas, TX Carolyn Widener Venice,CA Elmer J.Khal Past President Hank H.Kim,Esq. Executive Director &counsel NCPERS 0 444 North Capitol Street NW,Suite 630,Washington,DC 20001 0 202,624.1456 0 fax 202.624.1439 info@NCPERS.org www.ncpers.org Fire Pension Fund Revenue Expense Summary 12/31/2010 2009 2008 2007 2006 2005 2004 Revenues; Employee Contributions $ $ $ 1,366.43 $ 6,987.00 $ 11,863.00 $ 23,439.00 $ 25,393.00 Employer Contributions $ $ $ 2,712.85 $ 13,973.00 $ 25,852.00 $ 46,878.00 $ 63,730.00 State Insurance Tax $ 122,964.58 $ 125,710.67 $ 146,031.32 $ 150,067.00 $ 151,560.00 $ 225,492.00 $ 185,445.00 Local Millage(A mills) $ 508,192.08 $ 485,345.06 $ 441,696.50 $ 388,877.00 $ 370,649.00 $ 339,416.00 $ 295,409.00 Interest and Dividends $ 177,926.35 $ 179,204.26 $ 265,704.47 $ 292,444.00 $ 311,217.00 $ 308,578.00 $ 328,158.00 Gain(Loss)on Sales $ 327,952.15 $ 84,355.52 $ (728,656.78) $ 421,630.00 $ 383,393.00 $ 297,771.00 $ 466,221.00 Future Supplement $ 20,664.00 $ 24,192.00 $ 31,333.44 $ 38,917.00 $ 27,060.00 $ 24,480.00 $ 16,661.00 Misc Revenue $ 972.73 $ 389.74 $ 0.96 $ 1,044.00 $ 541.00 $ 176.00 $ 121.00 Total Revenue $ 1,158,671.89 $ 899,197.25 $ 160,179.19 $ 1,313,939.00 $ 1,282,135.00 $ 1,266,230.00 $ 1,371,138.00 Expenditures Regular Monthly Benefits $ 1,434,268.78 $ 1,434,487.32 $ 1,436,083.26 $ 1,430,646.00 $ 1,281,954.00 $ 1,097,427.00 $ 1,005,154.00 Future Supplement $ 20,664.00 $ 24,192.00 $ 31,333.44 $ 38,766.00 $ 26,749.00 $ 24,390.00 $ 16,349.00 Drop Expense $ 2,973.17 $ 43,816.86 $ 125,419.00 $ 238,801.00 $ 398,082.00 $ 431,817.00 Investment Manager Fees $ 52,767.01 $ 53,323.12 $ 67,758.33 $ 76,454.00 $ 78,764.00 $ 84,005.00 $ 86,515.00 Other Expenses: $ 48.00 $ 42.00 Audit Fees $ 3,500.00 $ 3,500.00 $ 3,500.00 $ 3,500.00 $ 3,300.00 $ 3,210.00 $ 3,700.00 Professional Services $ 2,900.00 $ 2,200.00 LegalFees $ 1,025.00 Bank Fees $ 110.90 $ 207.54 $ 228.60 $ 205.00 $ 202.00 $ 188.00 $ 129.00 Publications and Dues $ 300.00 $ 150.00 $ 150.00 $ 150.00 $ 100.00 $ 100.00 Travel and Training $ 2,548.88 $ 3,462.00 $ 2,389.00 Total Expenses $ 1,514,548.69 $ 1,518,725.15 $ 1,585,419.37 $ 1,675,140.00 $ 1,636,607.00 $ 1,609,791.00 $ 1,543,764.00 Net Income(Loss)Before Market Adj $ (355,876.80) $ (619,527.90) $ (1,425,240.18) $ (361,201.00) $ (354,472.00) $ (343,561.00) $ (172,626.00) Market Adjustment $ 583,853.06 $ (967,119.37) $ 3,621.71 $ 280,562.00 $ (378,645.00) $ (79,916.00) Net Income(Loss) $ (355,876.80) $ (35,674.84) $ (2,392,359.55) $ (357,579.29) $ (73,910.00) $ (722,206.00) $ (252,542.00) Book Value Total Reserve Assets $ 5,085,760.74 $ 5,441,627.64 $ 6,061,155.44 $ 7,486,396.00 $ 7,847,597.00 $ 8,202,070.00 $ 8,646,630.00 Market Value Total Reserve Assets $ 5,640,097.28 $ 5,759,825.37 $ 5,823,183.74 $ 8,215,644.00 $ 8,573,123.00 $ 8,647,034.00 $ 9,369,238.00 *Assets less any liabilities Market Value calculated at year end 1/2412011 C:\DOCUME-I\pleach.000\LOCALS-1\Temp\XPGrpVVise\Fire Pension Summary FAYETTEVILLE FIREFIGHTERS PENSION FUND SPECIAL REPORT PRESENTED OCTOBER 18, 2010 Osborn, Carreiro & Associates, Inc. Actuaries Consultants Analysts Little Rock, Arkansas One Union National Plaza.Suite 1690 Osbornq Caffelro & Associates, Inc. 124 West Capitol Avenue Little Rock,Arkansas 72201 ACTUARIES - CONSULTANTS - ANALYSTS (501)376-8043 FAX(501)376-7847 October 18,2010 Fayetteville Fire Pension and Relief Fund c/o City of Fayetteville 113 West Mountain Fayetteville,AR 72701 RE: Fayetteville Fire Pension Fund Ladies and Gentlemen: This report presents the results of our January 1,2010 actuarial study of the assets and liabilities of the Fayetteville Fire Pension and Relief Fund(the"Pension Fun&'), This report goes beyond the present value of the liabilities calculated in the regular valuation to show the timing and development of the income and expense streams. These streams are then reviewed with various p osals to improve the long term security of the Pension Fund. rop This report was completed according to the request of the Arkansas Fire and Police Pension Review Board(PRB). The PRB is providing this information to the Pension Fund to meet their obligation to provide options to improve funding as described in ACA §24-11-208. PROCESS We prepared a cash flow analysis. We first project out the benefit payments from the Pension Fund for the next 50 years. Next,the contribution income to the fund was projected. The contribution income includes the member contribution,the city match,local millage contributions,and insurance premium tax distributions. Exhibit 7 details the assumptions we made regarding these contributions. Note that in the 2003 legislative session,the methodology for allocating insurance premium taxes was changed. This report reflects that change. Once the benefit payout and contribution income projections were prepared,investment income was added. Instead of assuming a single level rate of return,we have simulated the investment results based on your current and expected future asset allocation. Exhibit 2 shows the results. CURRENT STATUS OF FUND If no changes are made,the Pension Fund is expected to deplete its assets between 10 and 15 years from now. We calculated the risk of ruin is over 90%. That is, in 90%of the simulated results the Pension Fund spends all of its assets before all benefits are paid. The graph in Exhibit 2 shows the various percentage outcomes of the simulations.Therefore,we would conclude that without some significant change in the income or payout,the plan will ran out of money. Osborn, Carretro & Assoclatest Inc. Fayetteville Fire Pension—p 2 ACTUARIES CONSULTANTS ANALYSTS October 18,2010 The current portfolio of the Pension Fund is well diversified in keeping with the investment policy. Because of the added risk of a well diversified portfolio,we looked at moving to a"safe" portfolio of 70%cash and bonds and only 30%equities. This type of portfolio change does not add safety but,because of the reduced return, increases risk of rain. We also compared this to an aggressive portfolio. See the graphs in Exhibit 2. POSSIBLE ACTIONS We were asked to took at possible actions that could be taken by the board of the Pension Fund or the city in an effort to ensure that all benefits are paid to all participants. Exhibit I addresses several of these changes as well as the pros and cons of each action. The purpose of the report is not to dictate a particular action,but to describe for the board and the city the effects of different actions. Exhibit 3 details the costs of each action to the city. Any change to help the plan must either increase income or reduce payouts. The possible actions reviewed are: 1. No change in current plan,investment strategy or income. 2. Additional city money 3. LOPFI consolidation 4. Benefit Changes Note that the results shown in this study are projections,and not predictions. The results of our projections depend,of course,upon the actuarial assumptions being met. The actual results cup, some WILL vary on a year-by-year basis from the projections. Because of the size of the gr of the results may vary materially from these projections. This report is based on the participant and financial data you supplied to the Arkansas Fire and Police Pension Review Board. We did not audit this data,although we did review it for reasonableness and consistency. This report is not intended for any other purpose or for use by persons who are not familiar with such matters. If you have any questions or comments,please let me know. Sincerely, 0 arreiro, A.S.A.,M.A.A.A. Actuary TABLE OF CONTENTS EXHIBIT I SUMMARY OF POSSIBLE ACTIONS EXHIBIT 2 SIMULATION RESULTS EXHIBIT 3 PROJECTED COSTS OF POSSIBLE ACTIONS EXHIBIT 4 HISTORICAL FINANCIAL INFORMATION EXHIBIT 5 MEMBER DATA PROFILES EXHIBIT 6 SUMMARY OF THE PLAN'S PROVISIONS EXHIBIT 7 ACTUARIAL AND SIMULATION ASSUMPTIONS EXHIBIT I SUMMARY OF POSSIBLE ACTIONS This report is to provide possible actions and the projected effects of those actions. This should provide the Pension Fund with the tools they need to make important decisions for the future of the Fund. The following is a discussion of possible changes in the Pension Fund along with positive and negative effects. No Chan2es. The Pension Fund could continue on the same path that they are currently pursuing. The base benefit projection shows that the Pension Fund would deplete assets in 2020. If you assume the city would then be responsible for the benefit payments we have shown in Exhibit 3 the benefit payments in excess of millage and premium tax beginning at that time. Positive. The Fund nor the City have to take any additional action at this time. Negative. The projections show that the Fund cannot"earn" its way out of this in the long term. The projection shows that the Fund would need to earn about 15%every year to not deplete assets. A portfolio that could earn 15%would necessarily have a very high variance. Negative. If the Fund did deplete its assets, the City is assumed to be responsible for picking up the benefit payments. This would be difficult for the City and would be a public relations problem. Negative. The bond rating services do review the pension liabilities contained in the City's financial reports. If the unfunded liabilities continue to grow or the Fund is depleted, it could affect the City's ability to issue bonds. Additional City Contribtuion. The City could find additional contributions to be made to the Pension Fund to reduce the risk of ruin to an acceptable level,that is, 5%. We ran various simulations to solve for the additional amount needed over 15 years ($325,000) and over 30 years ($250,000). Positive. The City significantly reduces the risk of having to pay benefits from general assets. Positive. The City improves its financial statement by reducing the unfunded liabilities and possibly their standing with bond underwriters. Negative. The current economic conditions make it difficult for cities to find any additional money for pension plans. EXHIBIT I (continued) LOPF1 Consolidation. A consolidation would allow the City to use its current income streams of millage and premium tax along with other City funds to pay the unfunded liabilities over a 15 year period based on the LOPFI assumptions. We have made estimates of the current consolidation and future consolidations. The results are in Exhibit 3. Positive. After consolidation,the benefits are guaranteed by the LOPFI system. This removes the risk of ruin from the City and the Fund. Positive. The City improves its financial statement by removing the unfunded liabilities from the City's financial statement and improves their standing with bond underwriters. Negative. The City must agree to pay whatever the actuarially calculated costs are under LOPFI. This is projected in Exhibit 3. The dollar cost of consolidation increases 4%a year before recognition of other gains or losses. This is faster than premium tax and millage is projected to grow. Negative. The local board of the Pension Fund is dissolved. There can be benefit improvements (for example, COLAs) in the future, but they come with the City agreeing to pay whatever the actuarially calculated costs are under LOPFI. Benefit Reductions. This option is included since several cities have asked about this possibility. The understanding of the PRB is that the law is clear that the base minimum benefit in law(i.e. 50%of pay) cannot be reduced. The PRB also understands based on the law and Attorney General Opinions that a reduction in previously granted benefit increases is not provided for in the code. Because of these issues, we did not provide any projections which include benefit reductions. Positive. A reduction in benefits would clearly reduce risk of ruin and reduce unfunded liabilities of the Fund. Negative. The PRB understanding of current law is that any reduction in benefits (including previously approve benefit increases) are not provided for in the code. Negative. There would be a local public relations issue to deal with if benefits were reduced. 2 EXHIBIT 2 SIMULATION RESULTS Following this page there is a series of four graphs showing the projected assets and the probabilities based on the simulation of investment results. These results are based on the actuarial assumptions concerning income and benefits detailed in Exhibit 7. The simulation looked at 2,000 series of 30 year investment results. The graph is read that the worst 5%of the results fall below the first red line,the worst 10%fall below the first blue line. The green line is where half of the results were better and half were worse. The four graphs are as follows: Current Plan. This is the plan as it is now with no additional income. Over 90%of the results depleted the fund, so even the median(green) line goes to zero. The other thing to notice about this graph is that simulations that deplete assets have losses in the first few years. In other words,the fund cannot afford another big loss in the next few years. Conservative Portfolio. The natural question to ask after review of the current plan is should the fund be investing more conservatively. This graph reflects moving to a very conservative (70%bond, 30%stock)portfolio in the second year. The result is that the plan has a higher risk of ruin (97%). That is,the simulation shows that the balance of the current portfolio actually reduces overall risk. Aegressive Portfolio. We also tested an aggressive portfolio(30%bond, 70% stock) beginning in the second year. The result is that risk of ruin is reduced to just under 90%. This is not a significant improvement. The simulation reaches zero more quickly in the poor investment scenarios. The obvious conclusion is that portfolio changes alone are not going to improve the fund. Additional Amount for 30 Years. We ran several simulations to find the additional city money that would be needed to reduce the risk of ruin to about 5%. This would be considered an acceptable level of risk. The graph shows that $250,000 additional every year for 30 years would reduce the risk to about 5%. We should also note that additional money and moving to a more conservative portfolio as the Fund becomes better funded further reduces risk. Additional Amount for 15 Years. We also solved for an additional city contribution over the next 15 years to reduce the risk of ruin to about 5%. This amount was found to be $325,000. This is shown in the last graph. 3 Fayetteville Fire Pension Fund 1/1/2010 Current Plan,, Projected Assets Simulation 7,000,000 - 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 . . . . . . 2009 2014 2019 2024 2029 2034 2039 Percentage of Simulations below this line —5% —10% 25% —50% 75% —90% —95% 4 Fayetteville Fire Pension Fund 1/1/2010 Current Plan, Conservative Portfolio 7,000,000 - 6,000,000 5,000,000 Nx 4,000,000 > 3,000,000 2,000,000 - 1,000,000 0 - 2009 2014 2019 2024 2029 2034 2039 Percentage of Simulations below this line -5% -10% 25% -50% 75% -90% -95% Fayetteville Fire Pension Fund 1/1/2010 Current Plan, Aggressive Portfolio 7,000,000 - 6,000,000 - 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 11 11 11 2009 2014 2019 2024 2029 2034 2039 Percentage of Simulations below this line -5% 10% 25% -50% 75% -90% -95% 6 Fayetteville Fire Pension Fund 1/1/2010 Current Plan Projected Assets Simulation, with Additional $325,000 for 15 years 7,000,000 - 6000,000 5,000,000 4,000,000 3,000,000 2,000,000 - 1,000,000 - 7""S� 0 2009 2014 2019 2024 2029 2034 2039 Percentage of Simulations below this line -5% -10% 25% -50% 75% -90% -95% 7