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HomeMy WebLinkAbout2011-07-21 - Agendas - Final Fayetteville Policeman's Pension and Relief Fund Meeting Date 7-.21—.2`— `/ Adjourn Time ;A0 �,m , Attendees: GOA / 6-A WO&At �e1 n t� —, C�J.¢A WAK i 4Yt y n r �r' yii is Subject: Subject: Motion To: Motion To: d� Motion By: Motion By: r Seconded: Seconded: Mayor Jordan Mayor Jordan Jerry Friend Jerry Friend t/ Tim Heider Tim Heider &" Frank Johnson Frank Johnson Eldon Roberts Eldon Roberts Pf Melvin Stanley < Melvin Stanley g Sondra Smith ✓ Sondra Smith ✓ Subject: I Subject: G Motion To: Motion To: d -, ' 2 Motion By: I d420, Motion By: ^ Seconded: �.� Seconded: 44 1-1-11 11 May or Jordan V" Mayor Jordan Jerry Friend ✓ Jerry Friend ✓ Tim Helder ✓ Tim Helder Frank Johnson ✓ Frank Johnson ✓ Eldon Roberts ✓� Eldon Roberts ✓ Melvin Stanley Melvin Stanley Sondra Smith ✓ Sondra Smith Lioneld Jordan Chairman • Jerry Friend Retired Position 2 Sondra E.Smith TreasurerFayve e Tim Helder Retired Position 3 Eldon Roberts Secretary/Retired Position I 1 Melvin Stanley Retired Position 4 1 Frank Johnson Retired Position 5 le ARKANSAS Policemen's Pension and Relief Fund Board of Trustees Meeting Agenda July 21, 2011 A meeting of the Fayetteville Policemen's Pension and Relief Fund Board of Trustees will be held on July 21, 2011 at 3:00 PM in Room 326 of the City Administration Building located at 113 West Mountain Street, Fayetteville, Arkansas. Roll Call Approval of the Minutes: • Approval of the April 21, 2011 meeting minutes Pension List Changes: • Charles Johnson deceased July 13, 2011. His benefit will go to his spouse. Approval of the Pension List: • Approval of the August, September, and October 2011 Pension Lists New Business: • Board Election Results—Tim Helder, Eldon Roberts and Melvin Stanley elected • New Pension Board List • Election of the Board Secretary • Policemen's Turnback for 2011 • Pension Review Board (PRB) Memo Evaluating Investments dated June 6, 2011 • Actuarial Valuation Report for December 31, 2010 • Revenue & Expense Report 06/30/11 • Alliant Fiduciary Liability Insurance Letter Discussion Items: • LOPFI Longer Investments: • Longer Investment Policy Review • The Longer View • Longer Privacy Notice • Longer Investment Information • Longer Investment Brochure (Form ADV) • Longer Investments 2nd Quarter 2011 report Policemen's Pension and Relief Fund Board d o of Trustees Meeting Minutes April 12,2011 Page 1 of 20 Lioneld Jordan Chairman Jerry Friend Retired Position 2 Sondra E.Smith Treasurer a e e;iile Tim Helder Retired Position 3 Eldon Roberts Secretary/Retired Position l Melvin Stanley Retired Position 4 ARKANSAS Frank Johnson Retired Position 5 Policemen's Pension and Relief Fund Board of Trustees Meeting Minutes April 12,2011 A meeting of the Fayetteville Policemen's Pension and Relief Fund Board of Trustees was held at 3:00 PM on April 12, 2011 in Room 326 of the City Administration Building. Eldon Roberts called the meeting to order. Present: Mayor Jordan, Jerry Friend, Frank Johnson, Eldon Roberts, Melvin Stanley, Sondra Smith, City Clerk, Paul Becker, Finance and Internal Services Director, Elaine Longer and Kim Cooper,Longer Investments. Tim Helder was absent Approval of the Minutes: Approval of the February 24,2011 meeting minutes Eldon Roberts: The first item on the agenda is the approval of the minutes. The last meeting was February 24, 2011. The meeting was actually January but it was postponed due to bad weather. Jerry Friend moved to approve the February 24, 2011 Policemen's Pension and Relief Fund Board of Trustees meeting minutes. Melvin Stanley seconded the motion. Upon roll call the motion passed 5-0. Tim Helder and Mayor Jordan were absent. Pension List Changes: Frank Upton deceased March 27,2011 No spouse Eldon Roberts: We had a retired police officer pass away March 27, 2011, Frank Upton. He had no spouse and no beneficiaries to continue receiving his monthly pension. Do we need to take action on that? Sondra Smith: No, I just wanted to make you aware of that before you approved the pension list. You are going to have to re-approve the April list because we have already approved it and Mr. Upon was on it. The May,June, and July are different by the amount that he was drawing. Policemen's Pension and Relief Fund Board d o of Trustees Meeting Minutes April 12,2011 Page 2 of 20 Approval of the Pension List: Re-approval of the April,2011 Pension List (Frank Upton deceased) Melvin Stanley moved to re-approve the April, 2011 Pension List. Jerry Friend seconded the motion. Upon roll call the motion passed 5-0. Tim Helder and Mayor Jordan were absent. Approval of the May,June, and July 2011 Pension Lists Eldon Roberts: I assume they are printed correctly and Frank's name is left off and everything else is the same? Sondra Smith: Yes. He was drawing $1,057.08. The pension list in March was $131,301.30 and it is now$130,244.22. Jerry Friend moved to re-approve the May, June, and July 2011 Pension List. Melvin Stanley seconded the motion. Upon roll call the motion passed 5-0. Tim Helder and Mayor Jordan were absent. Jerry Friend: If someone passes early in those three months, what do we do? Sondra Smith: We re-approve the pension list. Jerry Friend: We go ahead as usual and re-approve at the next meeting? Sondra Smith: Yes, they will get their monthly check on the month they decease and the next month we change it. Accounting and our office watch and then make any necessary changes. Jerry Friend: It's on the agenda at the next meeting. Sondra Smith: It's on the agenda to re-approve. Eldon Roberts: Our social security check has to be sent back. We send the pension benefit the month the person dies. It doesn't make any difference what day of the month it is. Sondra Smith: We also send a survivor benefit check to the estate. It is for$200 but it's only if a pensioner deceases not a spouse. Eldon Roberts: Did we send the check this time? Sondra Smith: Yes, it was sent. Policemen's Pension and Relief Fund Board d o of Trustees Meeting Minutes April 12,2011 Page 3 of 20 New Business: Board Election: Eldon Roberts Position 1 Tim Helder Position 3 Melvin Stanley Position 4 Eldon Roberts: Is that in April or May. Sondra Smith: Your term ends May 31St. We will send the ballots out May 1st. We are currently working on those. They will need to be returned by May 15th. Last year when we had problems with the Fire Pension, you voted to approve the same process as the Fire Pensioners, which means that we open the ballots at a regular meeting. The election is in May and the next regular meeting isn't until July. A concern of mine is leaving the ballots that long. I don't know how you want to do that. You may want to call a special meeting to open the ballots. If your term is supposed to change June Is'it concerns me that we are not taking care of it until July. Eldon Roberts: We will have to address that one way or the other today and get something in the minutes as to how we are going to do that. Sondra Smith: I don't think Kit was thinking about us meeting quarterly when he said at the next regular meeting. I brought that up to him afterwards. Eldon Roberts: I didn't catch that either. We will need to think about. Do we need to call a Special Meeting to open the election ballots and count the votes? Eldon Roberts: The election will be for Tim Helder, Melvin Stanley, and I. Is it to be held in May. If we are not going to have the ballots opened and read until the next meeting that's in July, we might go two months in limbo with three members who may or may not be elected, and being able to vote or their vote counting on anything. As a Board member, I don't have a problem with letting the City Clerks office open and read these ballots. Jerry Friends: I don't remember us deciding. Eldon Roberts: I do because of what happened with the Fire Department. I don't know what that was and I don't care but that is why we did what we did at the last meeting. They came up with a rule that their ballots have to be opened and read at a public meeting. I don't have that problem and I don't mind these ballots being counted by the Clerk's office and them giving us a final tally. We can move forward and not have to call a special meeting just to have the ballots opened. Mayor Jordan: You're saying you're comfortable with the way we use to do it. Eldon Roberts: Absolutely. Policemen's Pension and Relief Fund Board d o of Trustees Meeting Minutes April 12,2011 Page 4 of 20 Jerry Friend: Is that a motion? Mayor Jordan: Is that the Board's recommendation? Melvin Stanley: I agree completely. Jerry Friend: I agree. Frank Johnson: I'm fine with that. I think it depends more on whether or not Sondra wants to do it. Eldon Roberts: It does, it depends on you somewhat. I'm saying as a Board member on the Pension Board I don't have a problem with the votes going out in the mail in May and being returned in 30 days or there is a time limit. Sondra Smith: They go out May 1St with a return date. Eldon Roberts: You have some kind of a situation in place that you can determine that no more ballots are counted than that was sent out. Sondra Smith: Yes, we crimp stamp the ballots with the City Clerk's seal on every ballot that goes out. There is no way a duplicate ballot can come back. Eldon Roberts: I have no problem with the City Clerk counting these ballots as they come back in and not wait until the next regular scheduled meeting to count the ballots. Frank Johnson: There's also the bigger piece too, as an elected official there is an integrity piece. It's good all the controls are in place but if what necessitated the procedure now was a question of your integrity it is nothing that is a concern with this Board. Sondra Smith: One Fire pensioner said they did not get their ballot but they ended up getting it. It was put in the wrong post office box. They didn't get it so they were questioning whether or not the ballot was sent. There were several issues they called into question. Eldon Roberts: Was it just over one ballot? I thought it was over several. Sondra Smith: No, that happened and then we also received several ballots that looked like they had been copied. We have taken care of that with the crimping the ballots. You all adopted this process and it is pretty detailed. We have to shuffle the ballots, open them in random order in front of the Board. You meet quarterly and if you are suppose to put someone in place June 1St, you are either going to have to call a special meeting in May or do something different. Eldon Roberts: The ballots that are sent out are crimped with some kind of City seal. Sondra Smith: City Clerk seal. Policemen's Pension and Relief Fund Board d o of Trustees Meeting Minutes April 12,2011 Page 5 of 20 Eldon Roberts: And it can't be duplicated. As the ballots come back in you make sure no more ballots come in than were sent out and each one has this embossed stamp. Eldon Roberts made a motion to allow the City Clerk's office to count the ballots as they come in and decide who the elected members are. Melvin Stanley seconded the motion. Upon roll call the motion passed 6-0. Tim Helder was absent. Parking Tokens are available for the Board to use when attending meetings. Please go by the Parking office to get your tokens. Sondra Smith: All you have to do is go by the new parking office and get tokens. They are not doing hang tags anymore. Revenue Expense Report for 03/31/11 A copy was given to the Board Eldon Roberts: That is the report that Trisha does for us that has a running total of the ends and outs. Old Business: Pension Review Board (PRB) letter dated March 18. 2011 in response to the Policemen's Pension Board letter dated March 2,2011. A copy was given to the Board Sondra Smith: You asked the Mayor to submit a letter to PRB asking them to pursue a state law change to allow and clarify proper procedures for the pension boards and to adjust the benefits up or down. They sent a letter back which is in your packet explaining their position. Eldon Roberts: Paul and I were both at that meeting and we both addressed the Board. I told them our intent was that some kind of legislation be enacted at the state level, that would give local Fire and Police Pension Board of Trustees the authority to lower benefits, if the need was there to be done because there is nothing now in the state law that allows that. Paul spoke to them too. Their response in the letter plainly says it doesn't fit into their premise of a defined benefit plan and it is not anything they are interested in doing. So we are back to square one on that. Mayor Jordan: It's a nice letter. It just basically says no. Frank Johnson: It says no and it also includes some amusing recommendations on what could be done to create solvency. Not a very likely scenario but I think it is worthy of discussion with the Board. Policemen's Pension and Relief Fund Board d o of Trustees Meeting Minutes April 12,2011 Page 6 of 20 Jerry Friend: In the employee contribution level? Frank Johnson: Yes. Eldon Roberts: I assume that means the $3 million and that is for every year for the next five years. That is just the Police Department only. The Fire Department would be about the same amount so we are up to close to $7 million a year for the next five years. The City would have to come forward with that to make that work. You have the millage option but I don't see us going there. My understanding is that in this last legislative session a law passed that made it easier for pension plans to go to the guaranteed fund and ask for money. Prior to this legislative change neither Fayetteville Fire or Fayetteville Police fit the criteria because the criteria was you could never have increased benefits and you had to be drawing the full millage off the property tax. We are neither one of those two things. They have changed that to where you can have increased benefits and you don't have to be drawing a full mill. What that means and how much money is in that guaranteed fund I don't know. Apparently Fayetteville Fire and Police can qualify now. I don't know how much money is there and there are lots of other funds across the state that are in dire financial straights also. It is not unique to Fayetteville PD and Fire. I'm sure there is not going to be enough money in the guaranteed fund and they are going to dote it all out to everybody to fix our financial ills. Have you heard how that is going to be done? Paul Becker: Once that passes it's going to be over a period of time. The guarantee fund in its present form is going away and this will define it more on need. There is a period to implement it but the amount of money in the guarantee is not enough to solve the problems. Eldon Roberts: Did I hear a mention of$3 million? Paul Becker: I think it's less than that. Eldon Roberts: That's the total in this guarantee fund that all of the funds from the state are going to be interested in trying to get help for their pensions. Paul Becker: It will allow Fayetteville access. I think we have to realistically just put it in prospective. Little Rock Police Pension Fund is in much worse shape than any of the funds here in Fayetteville. Sondra Smith: And North Little Rock. Paul Becker: North Little Rock has their problems and as time goes by this is just going to continue. This will be helpful but it's not going to solve the total problem. The bill will also provide for somewhat of a redistribution or reallocation of the premium taxes. Eldon Roberts: When I was in Little Rock at the last meeting, Jody had a plan of action that he drew up for Fayetteville Fire and Police. Paul Becker: He had some projections. Policemen's Pension and Relief Fund Board d o of Trustees Meeting Minutes April 12,2011 Page 7 of 20 Eldon Roberts: Fayetteville Fire was going to increase $67,000 and we were going to decrease by $30,000. They are rated "F" and we are "D-" and you are taking money from us and giving them more. That's just helping us get to a death quicker. That is in this same bill? Paul Becker: That's correct, he presented it and said this is what the Board had wanted and nobody understood it for awhile. It will increase the allocation to Fire somewhat from his projections and decrease Police because it is based on an allocation of need. Mayor Jordan: It's going to give an extra$67,000 to the Firemen fund? Paul Becker: Police will be a decrease and it's about$70,000 to the Fire. Eldon Roberts: We are a little bit better off than the Fire. Looks like the plans that are rated A's and B's have more to give up than a plan rated D like we are and the Fayetteville Fire. Sondra Smith: In essence what they are doing is the Firemen's plan will increase some but the Policemen's plan is going to decrease. Paul Becker: That's correct. Eldon Robert: That's in this insurance tumback. Sondra Smith: It's almost the same difference. Paul Becker: Frankly, it's not material enough to really change the situation $30,000 is not going to reduce the problem. Eldon Roberts: It still seems like we are going in the wrong direction for a plan that is rated D to be giving up any assets. Paul Becker: That's because they based it on the need of the plan, not how it got there. There were people who were not comfortable with that. Frank Johnson: Just for public record can we go through this and hear what the discussion was relative to what the Mayor's letter in the original request was. They just basically said no, they wouldn't support it. Paul Becker: In answer to the response? Frank Johnson: Yes, it would be nice to focus on the reasons why he said no. Eldon Roberts: The first sentence in the third paragraph is their take on this. The reduction of benefits based on the financial condition of the pension fund was not supported because it runs counter to the basic premise of the defined benefit plan. That is where the Pension Review Board is at. A reduction in benefits runs counter to their thought of the way this should be handled. They are not willing to support legislation to allow a local board of trustees to reduce benefits. Policemen's Pension and Relief Fund Board d o of Trustees Meeting Minutes April 12,2011 Page 8 of 20 Sondra Smith: What percentage did the early pensioners think when they were going to get when they retired? Eldon Roberts: Before they ever got benefit increases? Fifty percent. Jerry Friend: Later ones retired thinking they were going to get what they retired at. Paul Becker: The PRB Committee's response was essentially that the statute doesn't allow it. Eldon Roberts: We know that. Our letter asked if they would support a statute that would give us the legal means by which we could do that and not be sued by a pensioner, if we see the need to lower benefits. We all know that we can be sued by any pensioner because there is no law that says we can do that legally. That is what we were asking them to do but they are not interested in going there. I don't think it can be forced to go there either so I don't know where we are at. Just keep rocking along until a court finally hears this. Paul Becker: I think we were very clear presenting the reservations and arguments. Eldon Roberts: What we were requesting in our letter was good. Frank Johnson: Based on the current statute or this reference to running counter to the basic premise of a defined pension plan is of interest to me in terms of what necessitated a need for us to consider a benefit reduction in terms of the solvency of the plan. Was the discussion relative to the business case? Eldon Roberts: What was the discussion about why we are in a dire straight? Frank Johnson: Certainly they can see why we are asking for their support. In light of the reason why, what was the discussion? We are at a point now where this plan is like some pension plans that actually went bankrupt. We are trying to avoid a similar scenario. Are they suggesting you can go up but you can't go down even if that means going bankrupt? Eldon Roberts: They mentioned the guaranteed fund and the proration statute which is in place. Where if a fund becomes depleted of its assets and can no longer pay the monthly benefits to each employee in their entirety they can prorate and that is law. I think they are willing to wait until it is played out in a court of law too. Little Rock Police Department is who you would think will be the first one in the State of Arkansas to file a lawsuit against their city to determine if the City is going to be responsible for the full benefits that the pensioners retired at or not. Sondra Smith: They don't seem very concerned about it because in the forth paragraph it says PRB will continue to offer cash flow evaluations but the actuarial parameters have been adjusted to factor in what happened in 2008. Eldon Roberts: That is talking about benefit increases. Policemen's Pension and Relief Fund Board d o of Trustees Meeting Minutes April 12,2011 Page 9 of 20 Sondra Smith: I know but they are still going to offer them on a cash flow basis and that is how this plan got to where it's at. Eldon Roberts: Apparently they have adjusted the regulations and the rules on what you've got to do to pass the cash flow evaluation. Sondra Smith: It says the adjustment will increase the probability but a fund that uses a cash flow evaluation to secure a benefit increase will meet all benefit obligations. It's going to increase the likelihood of people being able to get a benefit increase. Paul Becker: They talked about adjusting to 2008. Part of that is the discount rate. I presented to PRB that you have to understand the frustration of the Pension Board. You allow an increase in benefits and now you say you can't decrease, so if the conditions at the time allow an increase, what you are saying is if the conditions change, then you don't allow a decrease and that makes no sense. All that I got back was "well yes but the pensioners when they retired depended on that." I also said we are all sensitive to that, no one finds this a happy thing to deal with but you have no where to get support. The law does not allow it at this point in time and maybe that's going to have to be litigated. That is where it ended up. I went on to discuss the cash flow method and said all of us agree the cash flow method doesn't make any sense. He said they still use the cash flow but once they changed the discount rate in 2008 probably nobody is going to pass it anyway. I also talked about the frustration of the Board and all the members using that method. Eldon Roberts: I understand what they are asking for but they are not willing to go there. Did the Fire Department receive a letter like this from PRB. Sondra Smith: I'm sure they did, this letter went to the Mayor. Eldon Roberts: This came on the 18a' and that was two days after we were down there. I understood at the last meeting the Fire Department sent a letter requesting the same thing. Sondra Smith: They had to answer a letter that PRB sent them. PRB will probably respond. Paul Becker: That all started because I believe there were six pension funds that were considered at risk. Eldon Roberts: Insolvency in five to ten years. Paul Becker: They decided to send representatives from PRB and then they sent a letter and asked for a response. We were not in the same position as other cities and we were clear on that. Our Council members, Board members, and pensioners attended. Many cities went back and said it was a closed meeting so that generated the letter. We were pretty clear on what happened in Fayetteville. Fayetteville had Council members and pensioners attend. Mayor Jordan: I think there were six Council members here. Policemen's Pension and Relief Fund Board d o of Trustees Meeting Minutes April 12,2011 Page 10 of 20 Paul Becker: They were pretty clear on their position. That's where we are Frank they are going back and saying the law doesn't allow it. We talked to them until we are blue in the face and we are not going to get anywhere with them. It comes down to maybe it is going to take litigation. Eldon Roberts: I think its going to take litigation and somewhere down the road surely that's going to occur somewhere in the state. Paul Becker: It's going to be litigation or legislation. Frank Johnson: The later part of this says the pension fund currently receives .4 of a mill. Sondra Smith: That means if the City will kick in a little over $2,000,000 a year between what is needed and what's coming in. Mayor Jordan: I cut$2.6 million out of budget last year. Eldon Roberts: That would be for Police and Fire each. The increase of one mill takes a vote of the people. Frank Johnson: What does the situation do for the City's credit rating, the unfunded liability, or is there impact? Paul Becker: At this point the City is taking the position that the City does not have a liability on it. What is the impact on our credit rating? It has none at this point in time. Eldon Roberts: And there is nothing that says the City has any liability in a state law or a court finding. Mayor Jordan: That is the City Attorney's position. Paul Becker: That is what the Mayor has been advised by the City Attorney. Discussion Items: LOPFI Sondra Smith: That is a standing item on the agenda. If anyone wants to talk about it they can. Loner Investments: Exchan¢a-Traded Funds Information A copy was given to the Board Policemen's Pension and Relief Fund Board d o of Trustees Meeting Minutes April 12,2011 Page 11 of 20 Loner Investments lat Quarter 2011 report A copy was given to the Board Loner Investments monthly report Elaine Longer: I will start with the portfolio report and we've updated the investment policy also. Page one shows the quarter ending report of portfolio appraisal. Page four updates you through April 20t1. Individual stocks compose 48% of total portfolio and the dividend yield on your stocks is 3.1%. All along through out the past year to year and a half where the financial crisis erupted and bottomed in 2009 we have been maintaining a high quality portfolio of stocks and trying to hold close to achieving a ten year bond yield on the stock dividend part of the portfolio. We are still very close at a 3.1% dividend yield. The foreign stocks as a percent of portfolio are about 4.7%. Your foreign holdings are 10% of your equities. We are over 50% in the policy. We are about 54% equities so we have to take a vote to approve being over 50%. Jerry Friend moved to approve the Equity Overage. Sondra Smith seconded the motion. Upon roll call the motion passed 5-0. Tim Helder and Mayor Jordan were absent. The next section is what we are calling other income securities. We are using some assets that are not bonds to get a higher income yield than what we can get on a bond market. There are a lot of reasons for this right now, mostly because we think there is a lot of risk in being out long on the bond curves at 10, 30 years in maturity. If interest rates increase those bond prices will decline. To give you an example of how volatile that part of the yield curve is if you have a ten year treasury bond at the current interest rates 3.3%, if that goes up by 1% to 4.3% on the ten year treasury, that bond will decline in value by 8.2%. Bonds have a variation in price for a given change in interest rates. Last year we achieved an outsized return on the fixed income part of the portfolio by taking advantage of the volatility. Our bond return last year was 8.5%. That was higher than the income return but we were able to get a couple of trades in there on the long bond which we have since left. When I talk about the bond part of the portfolio you will see that we shortened the maturity of the bonds in your portfolio. To be able to get that kind of income we are using funds that include utility stocks which yield 4.1% and we have Guggenheim Multi Asset fund which includes high dividend stocks, utility stocks, some bonds but not a lot in terms of bonds that yields 4.8%. The total of the portfolio that's in what we call other securities is 4.7% of portfolio. The yield is 4.5% which is higher than we can get in high quality bonds at this time. This is another reason we are amending investment policies because we feel at current interest rates and with what we are looking at in terms of federal reserve policy and also government fiscal policy the risk of inflation and rising interest rates is significant enough that we want to go away from the long end of the bonds on the bond curve and try to get income in on other investments that would not necessarily be so negatively impacted by inflation. Policemen's Pension and Relief Fund Board d o of Trustees Meeting Minutes April l2,2011 Page 12 of 20 People don't think in terms of bonds having so much price volatility to a given increase in interest rates. As interest rates have been coming down we have had the benefit of that in bond performance but we don't want to give that up if interest rates move higher. This is what we are using in terms of other investments to generate income. It's not necessarily a bond but its other. In the policy revision we have a category for other assets that includes things like this. The next category is corporate bonds, investment grade corporate bonds that yield 5% and that is at the price that we purchased it which was 105. Since interest rates have come down from the time we purchased it you've made 4% roughly in capital appreciation as well as earning 5% on income return. The next category is preferred debt and we have a 6.3% yield. That part of the portfolio is only 5.8% of total portfolio. The treasuries income yield that we have on your treasury part of your portfolio is 4.1%. Your weighted average maturity in treasuries now is only six years. We have shortened the maturity considerably but when you look at this in a six year average maturity you're earning 4.1% and this compares to the current ten year only paying you 3.3%. You have a shorter maturity but a higher yield than a comparable ten year treasury. In the government agency part of your portfolio you have a 6.1% yield with only a weighted average maturity of only three years. You can see how much we've really reduced the average maturity on your fixed income holdings. Then you have the alternative investments which we hold for gold and silver is the central fund of Canada. Basically that is a closed fund that holds silver and gold in a 50/50 ratio. It's up about 18 points, 7% year to date and last year I think our performance in that fund was about 20 or 25%. That is only 3.4%of total portfolio. The last page shows cash is about 5.7%. That's a little bit more cash than what you usually see us holding but as we have come back up to this level in the market. We have been harvesting some gains rising a little bit of cash. The stocks that have reached our price targets, we've gone ahead and taken some of that off. We operate incrementally, for instance if I put on a position it's usually a 2% or 13/4 % of equity on the first step. Then we might get up to 3%or maximum of 3.5% of equity exposure. As we start to come out we might take the 3.5%to 2%before we go to zero. We are always kind of incrementally changing things at the margin. At this point in time we've got about 5.7% in cash. The income yield on your total portfolio is a 3.4% which is an income yield that's higher than if you're whole portfolio was invested in ten year treasury bonds. Even though you have a 55% growth component and you have 5% of the portfolio in an investment that is not necessarily bonds but has a bond yield and you have about 4% of portfolio sitting in gold and silver. You only have about 40% of the total portfolio in what we call real bonds but you are still getting an income return equivalent as if you had the whole portfolio invested in bonds. Our whole program since the crisis has been to try and emphasize income and go for conservative growth. We are diversified across a number of asset classes. If you look at your portfolio you have individual stocks that are well diversified not just by the individual holdings but also sector allocation, the industries that you're weighted in, the individual holdings, foreign holdings, corporate debt, treasury debt, agency debt, high yield funds, gold and silver. When I meet with clients and they say what is your crystal ball look like? I say pretty fuzzy right now. The main thing is to be diversified among a number of asset classes. The common threat across all of them is quality. That is where the total portfolio is. Policemen's Pension and Relief Fund Board d o of Trustees Meeting Minutes April 12,201 I Page 13 of 20 Year to date your stocks are up 5 1/4% through April 20th. Bonds are up 0.82% and gold and silver is up 18.7%. The total portfolio through April 20th is up about 3.5%. Page seven shows realized gains year to date through March 31"is about $188,000. That is just the gains we've realized on positions that we sold. Page eight gives the fixed income holdings. I know you are seeing a lot in the news about the QE2 Program the Federal Reserve has been doing and the big budget battles in Washington and the deficit raising the debt limit. This is all very important as it pertains to the fixed income market, the S & P 500 downgrading the US debt. We didn't actually get a downgrade but when they take you from the outlook is positive to the outlook is negative that is a downgrade. It's like a baby step to a downgrade. When they do that statistically there is a one and three chance that you will actually see a downgrade from the Triple A credit rating. This is pretty historic and in terms of the risk that would post to your portfolio. The biggest risk is on the fixed income side. If you have seen in the news some of the largest money managers have stepped away from the US Treasury market. Pimco which manages 1.2 trillion is the largest bond manager in the country. They completely let go of all their US Treasury securities and the longer maturities which is really a dramatic step for a firm like that. We haven't done anything so dramatic but I did want to point out that the average yield to maturity is at 4.4% and this is on your bond portfolio. At the end of the year it was about 4.5%. Nothing much has changed in terms of your yield to maturity but your average maturity has moved down almost three years from an average of 8.7 years to 5.9 years. We are much more conservatively postured because of that negative volatility that bonds have in response to a change in interest rates if interest rates go higher. The term is called duration. Duration is that relationship between the price movement in a bond to a given change in interest rates,the longer the bond the more volatility. For instance in the ten year if you hold the current ten year and that yield only goes from 3.3% to 4.3%that bond price will drop by 8.2%. The price volatility in the current ten year for just a 1% change in interest rate is equivalent to almost three years worth of income on that bond. The thirty year has a volatility of 16.1%. That means if you own a current 4 %% 30 year and that interest goes to 5 %%which is not out of line with historical averages. I started managing money in the early eighties when we were looking at 18% of money market. To think in terms of a 30 year going from 4 % in this kind of an environment to 5 % is not something I would wait at zero probability but the factor that relates to volatility in price for the 30 year is 16%. If that interest rate goes up just by 1% on a long bond the price of that bond will drop by 16%. This is very important as we face what we are facing the rest of this year. We can't go away from the bond market completely because since you have a balanced fund you do have to have some fixed income securities in there to provide income and also to cushion the portfolio should the stock market take another decline. In the mean time we have to be very cognizant of the price risk that bonds have in the event of rising interest rates. That is why we have made these significant changes on the fixed income side of the portfolio. We want to get income but we want to also get a little bit more defensive so that should interest rates rise the rest of the year we are not going to see significant price decline. The table below the distribution by maturity will show that the percent of the portfolio that we hold that matures within one year is 9.2%. This means we are very flexible should interest rates Policemen's Pension and Relief Fund Board d o of Trustees Meeting Minutes April 12,201 I Page 14 of 20 rise we have a lot of purchasing power here to be able to take advantage of higher rates. Anything that matures within three years to us is as good as cash. We can turn it into cash with one thirty second of a point on the institutional side of the market. That 9.2%is really as good as cash to us if interest rates go higher, we can harvest some of these bonds to move out the yield curve to capture higher income. Right now a big part of the strategy in terms of managing money in particular balance funds that have fixed income components, the biggest change to say last year or even at year end really has to do with the structure of the fixed income side of the portfolio. Not so much the equity side. That is why I'm going over this much information on bonds. The biggest difference as far as structure has been in what we have done on the fixed income side of the portfolio to position for the potential of a rising interest rates this year. Page nine shows the distributions year to date of approximately$330,000. Page 10 shows the returns by asset class year to date through 03/31, stocks were up about 4 '/4%. The international was down about 1.6% but that largely was due to Japan with Tsunami and the earthquake. That sent Japanese markets down 20% in just a few days. Japan equals about 22% of the EFA index which is the international index. It's a pretty big hit when that happens to an economy the size of Japan. Fixed income at quarter end was -.1%. Since the fixed income component has popped up to .82% and at the end of the quarter you were up 2.6%, over all year to date and now you are up 3.4%. The important thing is that you have fully recovered from the 2008 hit but also the compound annual return inception to date, which was back in 1990, is 6.3% compound annual return net of all expenses. That exceeds your actuary rate of return assumption of 6%during that time period. At the bottom is what we called the asset reconciliation. The beginning value all deposits that have taken place from the beginning of the portfolio and then transfer in a securities. The important thing is the distribution withdrawals have been 8.2 million and total investment return has been about 7.4 million. The investment return has pretty closely kept up with the withdrawal rate but not totally. Are there any questions on the investment report before we go to policy? Eldon Roberts: The withdrawals from the money market each month, do you withdraw from the money market what it takes to pay our pensioners and forward that to the City? Why is that not the same every month? Does it have something to do with other monies you have that you can add in? Elaine Longer: I think the City has a certain amount of money that's maintained in a cash account and then we get a call on what needs to be added to make the payments. Paul Becker: We trigger that depending on what the income is when we get the distribution of premium taxes and later in the year when we get the property taxes. Eldon Roberts: Do you have a new investment guideline policy that we need to sign today? Elaine Longer: We can give it to you to review or you can sign it today. We consulted with attorney's from Friday Law Firm, Joe Hurst and Brian Smith just to make sure everything in your policy is up to date. With all the changes in the SEC rules and regulations we are revising all of our investment policies for everybody. Since this is a public pension fund we wanted to Policemen's Pension and Relief Fund Board d o of Trustees Meeting Minutes April 12,2011 Page 15 of 20 make sure to incorporate anything that needs to be incorporated into public pension funds. We had them review the policy and they made some changes and removed some things in the policy. There's nothing that changes in terms of the asset allocation except that the ranges put in place in your policy, that plus or minus 10% that we always have to get approval for. Instead it's in the policy so that during those time periods that we are in the middle of the month or quarter and we are 5 or 10% over, we are still covered in the policy. We try to stay within the guidelines except for when it's really beneficial to be a little bit outside. That's the only difference there as far as it lines out the rules for the trustees adherence to the prudent investor rule. There isn't much else that changes, it still authorizes options and also exchange traded funds for hedging purposes and we already do that. International securities limited to 50%of the equity portfolio of cost that was in your old policy. The custodial arrangements, Northern Trust, the only thing it disallows in terms of a transaction are naked options. Whenever we use options it's for hedging purposes and that means the option is used to hedge an underline security. If we sell a covered call on a stock we are hedging a stock you own against a potential decline. Whereas we don't ever use what's called naked options which is just buying and selling options that are unrelated to an investment security. We don't do leveraging and your securities are not lent out without your approval. This policy has been updated to be in compliance with their recommendations but also with what we are doing in our policies to come into line with the SEC Rules and Regulations. Eldon Roberts: Is this an amendment to our existing or this a total new? Elaine Longer: This is a total new policy. Eldon Roberts: How important is it we sign this today? Can we put it off until the next meeting and let our City Treasurer review it? Elaine Longer: I think that is fine. Eldon Roberts: Paul would that be okay with you? Paul Becker: Sure. Eldon Roberts: Let's postpone that until the next meeting. You see if there is anything that we need to be aware of or any changes. If it's okay we will sign it at the next meeting. Will that foul you up in anyway between now and then? Elaine Longer: No, that's fine. Paul Becker: Elaine the current policy is incorporated into your report and this is your recommended new policy. Elaine Longer: Yes. Elaine handed out a Standard and Poors review that lead to their move in the US debt from a stable to negative outlook. I think its very telling in some of the items that those choose to emphasis. That's why I'm handing it out, I think it's important who is in a position of responsibility for funds to understand what the concerns are from their stand point that they see. Policemen's Pension and Relief Fund Board d o of Trustees Meeting Minutes April 12,201 I Page 16 of 20 It's not so much that we have a deficit that ran up during the economic crisis. You always have deficit increase during an economic recession but what their concern is and what you see out of Washington is the concern. The inability of the country to address the long term structural deficit that pertains more to entitlement spending and an aging workforce, Social Security, Medicare, Medicaid, unemployment benefits that can no longer be supported by the tax revenue. That is what is really covered in their write up and I thought they did such a great job of it that I wanted you to have a copy. We always write in the newsletter about the price earnings multiple which is the valuation applied to stocks. How expensive are stocks at theses levels? Last year earnings growth was actually faster than the performance in the stock market. Earnings growth out performed the price movement in the stock market. Even though we had a pretty good year last year with 13 — 14%earnings growth was higher than that. On a valuation basis we're still cheaper than we were at the start of last year. How cheap are we? If you look at this historical chart the S & P 500 is currently trading at about 13.5 times expected earnings for the forward 12 months. In terms of historical context the average price earnings multiple is about 15 times. What I like about this chart is that it also overlays. If you look at periods where inflation has been between 1-3% the average price earnings multiple has been as high as 17 3/4%. On a relative valuation bases not just historically in terms of price earnings multiple but also in relation to inflation and current interest rates, the stock market is still a very good value. The other chart is the Federal deficit as a percent of GDP. This is mentioned in the article that the S & P where we are in terms of deficit as a percentage of GDP. Even under their best case scenario they don't see us getting less than 8% of GDP even in the best case scenario. You can see that historically even at -8% we have only been there since this most recent crisis. To really get back to an average that would go back to say the mid seventies in terms of deficit as a percent of GDP, you would have to be more like 3%. All the bickering, gnashing of teeth, and pulling of hair that is going on out in Washington, DC that produced 34 billion in cuts, right now we're running a deficit close to 10% of GDP or 44 cents of every dollar we spend we had to borrow. Within that context you can see that 38 billion in cuts, which if you factor out the cuts that were made to programs that had been funded the money hadn't been spent or one time only expenditures that aren't a continuing expenditure in the budget and some other accounting gimmickry, the real cut was only 14 billion. Less than 1.5 of 1% for all that drama. That's something to keep in mind and again filters into the structure that we have in the portfolio to be more defensive on the bond side. If the Fed continues to do quantitative easing to elevate the stress of this debt being floated, then you will have a period at some point where interest rates rise to accommodate that. Jerry Friend: If the Fed does what? Elaine Longer: When you hear of quantitative easing basically what the Fed is buying debt that Washington is generating. You say we have a 1.6 trillion deficit this year but part of quantitative easing part 2. Jerry Friend: So they are printing money. Policemen's Pension and Relief Fund Board d o of Trustees Meeting Minutes April 12,2011 Page 17 of 20 Elaine Longer: Six hundred billion and that was only approximately six months. Basically all the net new debt that the government generated during that six month period was funded by the Federal Reserve. Now they are suppose to be exiting that program in June. We have a very important announcement on April 27 as to what Fed policy is going to be. This is the first time that a Fed Chairman is holding a press conference immediately following the Fed meeting. April 27th is a big date but it's important because as they come out and say no more QE, the next question is who's the buyer behind the Fed if the Fed is not picking up that 600 billion in a six month period and we are still intent on generating this level of debt. The question becomes who's going to pick it up and what price do we have to pay to float that kind of debt out there? There are a lot of different parties saying that the Fed won't back out. That there will be QE2 light or QE22. They won't call it QE3 because if they do that it can cause some turmoil in the markets. They are already talking about perhaps as securities mature they won't necessarily let them roll off, they will reinvest the fimds, which means at least there will be some continued support in the debt markets. Jerry Friend: Where does the money come from? Elaine Longer: It's created, there is no money. It's book entry at the Fed and the old thing use to be printed presses. Now it's not paper but it is created by the Fed. Jerry Friend: It increases inflation. Elaine Longer: It increases the liquidity which then leads more currency and circulation. That is why you see asset inflation first. You see stocks and commodities going up. Gold and silver is rising because of this monetary inflation and people are going to gold and currency of last resort. The repercussions of this so far have been food, energy, and commodity inflation. Jerry Friend: We loose. Elaine Longer: Yes, that's true. If you are retired and your CD rate is 1% fully taxable what you are experiencing in terms of price inflation, the consumer price index is reporting approximately 2.1-2.3% inflation but a lot of that has to do with housing costs that are not inflating because you still have excess capacity in housing. If you look at what the average consumer is experiencing in their weekly budget in terms of inflation, the studies I've read is closer to 8-8.5%. You are making 1% on your investments if you are a retired person. What you are experiencing in terms of price inflation out of your pocket on the living basis is about 8 or 9%. Paul Becker: That's if you discount things like home ownership etc. then you simply look at food costs and things of that nature. The inflation rate actually works out to relative 8%. Elaine Longer: Yes, and the reason it's not showing in the indices is you still have pockets of deflation in the economy. For instance labor rates are not going up. The last unemployment numbers that were released show that there has been no wage inflation net for 14 years. You have excess capacity and labor with a 9% unemployment rate and you have excess capacity in house and plant utilization. Plants are still operating at 75% of capacity. You have these pockets of deflation and then you have pockets of inflation which are your commodity, food, Policemen's Pension and Relief Fund Board d o of Trustees Meeting Minutes April 12,2011 Page 18 of 20 asset inflation, energy, that type of thing. Health care costs, the things people are experiencing as they pay out of pocket. Education expense is another one. Paul Becker: Lets talk about the PE ratio being 13.5 and how that is relatively low. That's assuming that earnings are going to continue at the same rate. If something happens to earnings, that's going to change how attractive the equity market is. Elaine Longer: Yes, it does. If we end up with a double dip recession or something like that, that's the big risk. That's where we were last year in the summer when the stock market sold off so dramatically. It was really the risk of a double dip recession and that is when the Fed came in gums a blazing and started the quantitative easing. The market left off those lows that we hit. I think we got to as low as 9600 on the DOW in the summer. We had a pretty good rally off those levels because of the excess liquidity that was thrown in by the Fed Reserve. Coming out of 2009 we were saying in 2010 the patient had come into ER, in 2008 stabilized triage but moved to ICU still hooked up to life support systems. In 2010 was the year we anticipated that you would see the patient, the US economy, transfer to independent living. The life supports would come off and we would see how the economy would run on its own accord. We still have a lot of life support systems hooked up. When you're running a budget deficit of 1.6 trillion dollars that's hugely simulative in terms of creating demand that would otherwise not be there. When you have the Federal Reserve throwing 600 billion in a six month period into the market in quantitative easing that's still very simulative. We still are not running without life support systems but you can see with what is going on in Washington the discussion about QE2, budget deficit should raise the debt ceiling. All of these things are starting to say the tolerance for continuing the public support is wearing thin. Are there any other questions? Jerry Friend: Thank you. That was a good report. Paul Becker: It was an informative report. Informational• 2011 Meetin¢ Schedule A copy was given to the Board. Continued Discussion on the Election Process Sondra Smith: We will go ahead and send out the ballots and when we get them back we will be sure to check if someone's been nominated that they are willing to serve. Whoever gets the most votes for three positions is how we will do it,right? Policemen's Pension and Relief Fund Board d o of Trustees Meeting Minutes April 12,2011 Page 19 of 20 You have position numbers and there are some pensioners that are confused by that. You might get someone to nominate the same person for position three and someone else nominate that person for position four. Eldon Roberts: I've given that some thought but I really don't understand how that works. Sondra Smith: I need to know what to do with those votes. Eldon Roberts: To me it's the top three with the most votes. Skip the positions. Once the top three are decided then you can decide what position they are going to serve. Sondra Smith: You don't care what position they serve. Eldon Roberts: That is making it more confusing than we need to make it. You are going to tally every vote and those three people are the winners. Then we can put them in the position they need to fall into. Sondra Smith: I don't know why we assign positions. Eldon Roberts: I don't either and that has been item of contention for me for awhile. Does everyone understand what I'm saying about the top three? They are going to be the three new Board members. Jerry Friend: Would the ballot even need to have a position? Sondra Smith: We won't put positions on and they can just vote for three people. Continued Discussion on the Pension Review Board (PRB) letter dated March 18, 2011 in response to the Policemen's Pension Board letter dated March 2,2011. Frank Johnson: We have showed a good faith effort, maybe not resolving a long term problem, but at least determining what we need by statute in order to make those decisions. We should continue the dialogue just to see what else there may be. At the next meeting if Kit is here maybe he can weigh in on what some of the possible legal remedies will be. Eldon Roberts: The Pension Review Board is not the only people out there that can propose legislation or can support proposed legislation. Your representatives can do that also. This Board and the Fire Department Board could go together and contact our local representatives, our senators and state representatives, and ask for some kind of proposed legislation. Whether it gets passed or not and is enacted in law that's a whole other thing. It has to get proposed and get in the committee. If the Pension Review Board doesn't want to take part in that they don't have to. That's an option we can pursue but that's later on. Frank Johnson: It seems like the written response from the Executive Director didn't seem to take into consideration what we were trying to achieve. It was almost as if the response was that we are not looking to totally eliminate the plan. To suggest that the basic premise of the plan is Policemen's Pension and Relief Fund Board d o of Trustees Meeting Minutes April 12,2011 Page 20 of 20 that pensioners depend on it, we know that. That is part of the reason we were pursuing action because we know they depend on it. It seems like it glossed over what we were really attempting to achieve. Meeting Adjourned at 4:35 PM Gharl s$jalmso ELKINS Charles Frank ' 65, Johnson, of`Elkins died July l3;2011, at Baptist Health 1Vled cal Center ju ,Little Rock,~ He was born Julyrll,1946,,in Fayetteville to Frank and jewel Kinsey TF se, retired from the Fayette �llez Police: Department and,enioyed;golf ing andsthe outdoors s vSurvivars,include lus vwife, Joyce Roberts Johnson,,four_ children; Randy Johnson of Bethel Heights, Danny Johnson-and"wife 1vIelissa of: Wesley, Sherry L ip.ef and hizsbandBrad of VanfBureri, and Scotti JohnsKon of Spring- dale,a sister- 'grandchildren, and four"great-grandchildren. °'Visitation will be from G,-to 8 p xn today at Heritage Funeral Home,-iii Springdale Services will be 4-=gm. Saturday at House of Worship in Hindsville Bunal will be-at nurkshed£cemetery Fayetteville,Arkansas RECEIVED POLICEMEN'S PENSION&RELIEF FUND AFFIDAVIT STATE OF A S 0 5 ) JAN 31 2011 `,�( t )ss: CITY OF FAYETTEVILLE COUNTY OF U (LS ah lk ) CITY CLERK'S OFFICE do solemnly swear that I presently receive pension benefits from the Policemen's Pension and Relief Fund and I am eligible to continue receiving pension benefits as governed under state law. In-.I am a former police officer for the Fayetteville Police Department. ❑ I am the spouselformer spouse/widow of a former police officer of the Fayetteville Police Department, and that I have not remarried since becoming eligible for benefits. ❑ I am an eligible dependent of a former police officer for the Fayetteville Police Department and have attached an affidavit verifying my school attendance. Address: 72XL W\A,L ot, (,o L4 i EA,^(S d e 7Z 7Z 7 Telephone: (!y7 Social Security No.: Birth date: PLEASE LIST ALL BENEFICIARIES BELOW(complete Only for spouse,minor children and/or children under 23 years of age that are enrolled in a institute of higher education): NAME SOCIAL-SECURITY NO. BIRTH DATE RELATIONSHIP vi DATED this 31 day of AFFIANT(signature) ^''(('' SUBSCRIBED AND SWORN to before me,a Notary Public,this 3116+ day of (JQr11d4T KM* 7D ...----- K-66 ral S�nQ �nOI� Notary Pu is COMMISSIONut2390734 My Commission Expires: UU 0 EXPIRES:Must28,2016 l p washm8toncouio i (This affidavit is required annually by the Policemen's Pension and Relief Fund Board of Trustees and must be properly completed and returned to the Fayetteville City Clerk, 113 West Mountain,Fayetteville,Arkansas,72701 by January 3150 each year.) City Clerk Division ae evl e City of Fayetteville, Arkansas y Sondra E. Smith, City Clerklrreasurer ARKANSAS Lisa Branson, Deputy City Clerk Amber Wood, Deputy City Clerk Departmental Correspondence TO: Trish Leach- Accounting FROM: Sondra E. Smith, City Clerk Treasurer DATE: July 15,2011 RE: Charles Frank Johnson Death Benefits Policemen's Pension I am forwarding this memo to you so that you may pay death benefits to the above retired police officer's estate. Mr. Johnson was a member of the old pension plan. After speaking with Eldon Roberts, who serves on the Policemen's Pension & Relief Fund Board of Trustees, it has been determined that the following payment should be made: 1. Pay to the estate of Charles Frank Johnson a sum of$200.00 for death benefits. Death benefits are only paid to the retired Police Pensioner's estate upon their death. When a widow/widower of a Police Pensioner deceases their estate does not receive death benefits. POLICE PENSION FUND 8 8 8 8 1 Aug 2011 6800-9800 6800-9800 Month a Regular Mo 5335-00 5335-05 8 EMP# NAME Benefit YTD Reg Benefit Suppl. YTD Suppl. Future Supple 154 ALLEN,CHARLES $ 2,584.64 $ 20,677.12 $ 50.00 $ 400.00 $ 810.00 206 BAYLES,BOBBI J $ 1,587.41 $ 12,699.28 $ 50.00 $ 400.00 $ 810.00 107 BLACK,JOE P $ 1,125.64 $ 9,005.12 $ 50.00 $ 400.00 $ 810.00 147 BRADLEY,GERALD $ 4,820.09 $ 38,560.72 $ 50.00 $ 400.00 $ 810.00 139 BRADLEY,RANDALL $ 2,860.17 $ 22,881.36 $ 50.00 $ 400.00 $ 810.00 167 BROWN,JOHN $ 4,362.01 $ 34,896.08 $ 50.00 $ 400.00 $ 810.00 157 CARROLL,RONALD L $ 2,106.04 $ 16,848.32 $ 50.00 $ 400.00 $ 810.00 151 COLE,RUSTON $ 3,065.74 $ 24,525.92 $ 50.00 $ 400.00 $ 810.00 109 COOPER,ADRIAN $ 638.42 $ 5,107.36 $ 50.00 $ 400.00 $ 810.00 160 DUGGER,GARY $ 3,163.74 $ 25,309.92 $ 50.00 $ 400.00 $ 810.00 140 FOSTER,BILLY D. $ 3,207.35 $ 25,658.80 $ 50.00 $ 400.00 $ 810.00 148 FRIEND,JERRY $ 1,970.42 $ 15,763.36 $ 50.00 $ 400.00 $ 810.00 211 FRIEND,MICHELE $ 1,182.26 $ 9,458.08 161 HANNA,JANICE $ 1,368.59 $ 10,948.72 $ - $ - 145 HANNA,MARK $ 1,368.59 $ 10,948.72 $ 50.00 $ 400.00 $ 810.00 169 HELDER,TIM $ 5,838.12 $ 46,704.96 $ 50.00 $ 400.00 $ 810.00 180 HOYT,RICK $ 7,460.01 $ 59,680.08 $ 50.00 $ 400.00 $ 810.00 146 HUTCHENS,BERNICE $ 1,825.54 $ 14,604.32 $ 50.00 $ 400.00 $ 810.00 143 JOHNSON,CHARLES deceased 7/13/11 $ - $ 17,188.50 $ - $ - $ - 194 JOHNSON,FRANK $ 7,974.81 $ 63,798.48 $ 50.00 $ 400.00 $ 810.00 215 JOHNSON,JOYCE $ 2,455.50 $ 2,455.50 $ - $ - $ - 103 JOHNSON,WENDELL $ 783.15 $ 6,265.20 $ 50.00 $ 400.00 $ 810.00 118 JONES,BOB $ 3,300.45 $ 26,403.60 $ 50.00 $ 400.00 $ 810.00 144 KILGORE,DONALD $ 2,046.48 $ 16,371.84 $ 50.00 $ 400.00 $ 810.00 150 LITTLE,PATSY R $ 730.35 $ 5,842.80 $ 50.00 $ 400.00 $ 810.00 156 MARTIN,KENNETH $ 3,692.85 $ 29,542.80 $ 50.00 $ 400.00 $ 810.00 128 MCCAWLEY,LARRY $ 1,694.79 $ 13,558.32 $ 50.00 $ 400.00 $ 810.00 126 MCWHORTER,KAREN $ 1,012.10 $ 8,096.80 $ 50.00 $ 400.00 $ 810.00 136 MITCHELL,MICHAEL $ 2,305.29 $ 18,442.32 $ 50.00 $ 400.00 $ 810.00 141 MUELLER,ROSEMARY $ 2,063.93 $ 16,511.44 $ 50.00 $ 400.00 $ 810.00 158 MUNSON,ANGELA $ 4,198.15 $ 33,585.20 $ 50.00 $ 400.00 $ 810.00 112 MURPHY,JAKE $ 405.75 $ 3,246.00 $ 50.00 $ 400.00 $ 810.00 137 PERDUE,LARRY $ 2,322.67 $ 18,581.36 $ 50.00 $ 400.00 $ 810.00 164 PERSHALL, ROBIN $ 1,525.07 $ 12,200.56 $ - $ - 132 PHILLIPS,HOMER GENE $ 1,754.44 $ 14,035.52 $ 50.00 $ 400.00 $ 810.00 199 PRESTON, NORMAJ $ 1,601.37 $ 12,810.96 $ 50.00 $ 400.00 $ 810.00 135 RICKMAN, LOREN $ 2,231.07 $ 17,848.56 $ 50.00 $ 400.00 $ 810.00 214 RIGGINS, BONNIE $ 1,669.37 $ 13,354.96 $ 50.00 $ 400.00 $ 810.00 183 ROBERTS,ELDON $ 4,263.24 $ 34,105.92 $ 50.00 $ 400.00 $ 810.00 183 ROBERTS,ELDON Plus 25 add pay $ 587.09 $ 4,696.72 $ - $ - 212 ROBERTS,CAROLYN K $ 3,216.13 $ 25,729.04 $ - 212 ROBERTS,CAROLYN K Plus 25 add pay $ 442.89 $ 3,543.12 $ - 159 SCHUSTER,JOHN H. $ 3,117.36 $ 24,938.88 $ 50.00 $ 400.00 $ 810.00 168 STANLEY,MELVIN $ 4,880.07 $ 39,040.56 $ 50.00 $ 400.00 $ 810.00 155 STOUT, BETTY $ 866.51 $ 6,932.08 $ 50.00 $ 400.00 $ 810.00 133 SURLES,JERRY $ 2,721.40 $ 21,771.20 $ 50.00 $ 400.00 $ 810.00 142 TAYLOR, DENNIS $ 2,063.93 $ 16,511.44 $ 50.00 $ 400.00 $ 810.00 106 UPTON,FRANKLIN deceased 3/27111 $ - $ 3,171.24 $ - $ 150.00 163 WATSON,RICHARD $ 6,947.05 $ 55,576.40 $ 50.00 $ - $ 810.00 163 Watson,Richard Plus 25 Add'I Pay $ 948.76 $ 7,590.08 $ - $ - 149 WILLIAMS,JOYCE $ 2,539.66 $ 20,317.28 $ 50.00 $ 400.00 $ 810.00 195 WITT, BETTY $ 1,766.83 $ 14,134.64 $ 50.00 $ 400.00 $ 810.00 213 WOOD,RUTHIE $ 1,580.93 $ 12,647.44 $ 50.00 $ 400.00 $ 810.00 $ 130,244.22 $ 1,045,125.00 $2,150.00 $ 16,950.00 $ 34,830.00 POLICE PENSION FUND 9 9 9 9 2 September 2011 6800-9800 6800-9800 Month 9 Regular Mo 5335-00 5335-05 9 EMP# NAME Benefit YTD Reg Benefit Suppl. YTD Suppl. Future Supple 154 ALLEN, CHARLES $ 2,584.64 $ 23,261.76 $ 50.00 $ 450.00 $ 810.00 206 BAYLES, BOBBI J $ 1,587.41 $ 14,286.69 $ 50.00 $ 450.00 $ 810.00 107 BLACK,JOE P $ 1,125.64 $ 10,130.76 $ 50.00 $ 450.00 $ 810.00 147 BRADLEY,GERALD $ 4,820.09 $ 43,380.81 $ 50.00 $ 450.00 $ 810.00 139 BRADLEY, RANDALL $ 2,860.17 $ 25,741.53 $ 50.00 $ 450.00 $ 810.00 167 BROWN,JOHN $ 4,362.01 $ 39,258.09 $ 50.00 $ 450.00 $ 810.00 157 CARROLL,RONALD L $ 2,106.04 $ 18,954.36 $ 50.00 $ 450.00 $ 810.00 151 COLE, RUSTON $ 3,065.74 $ 27,591.66 $ 50.00 $ 450.00 $ 810.00 109 COOPER,ADRIAN $ 638.42 $ 5,745.78 $ 50.00 $ 450.00 $ 810.00 160 DUGGER,GARY $ 3,163.74 $ 28,473.66 $ 50.00 $ 450.00 $ 810.00 140 FOSTER, BILLY D. $ 3,207.35 $ 28,866.15 $ 50.00 $ 450.00 $ 810.00 148 FRIEND,JERRY $ 1,970.42 $ 17,733.78 $ 50.00 $ 450.00 $ 810.00 211 FRIEND, MICHELE $ 1,182.26 $ 10,640.34 161 HANNA,JANICE $ 1,368.59 $ 12,317.31 $ - $ - 145 HANNA, MARK $ 1,368.59 $ 12,317.31 $ 50.00 $ 450.00 $ 810.00 169 HELDER,TIM $ 5,838.12 $ 52,543.08 $ 50.00 $ 450.00 $ 810.00 180 HOYT, RICK $ 7,460.01 $ 67,140.09 $ 50.00 $ 450.00 $ 810.00 146 HUTCHENS, BERNICE $ 1,825.54 $ 16,429.86 $ 50.00 $ 450.00 $ 810.00 143 JOHNSON,CHARLES deceased 7/13/11 $ - $ 17,188.50 $ - $ - $ - 194 JOHNSON, FRANK $ 7,974.81 $ 71,773.29 $ 50.00 $ 450.00 $ 810.00 215 JOHNSON,JOYCE $ 2,455.50 $ 4,911.00 $ - $ - $ - 103 JOHNSON,WENDELL $ 783.15 $ 7,048.35 $ 50.00 $ 450.00 $ 810.00 118 JONES, BOB $ 3,300.45 $ 29,704.05 $ 50.00 $ 450.00 $ 810.00 144 KILGORE, DONALD $ 2,046.48 $ 18,418.32 $ 50.00 $ 450.00 $ 810.00 150 LITTLE, PATSY R $ 730.35 $ 6,573.15 $ 50.00 $ 450.00 $ 810.00 156 MARTIN, KENNETH $ 3,692.85 $ 33,235.65 $ 50.00 $ 450.00 $ 810.00 128 MCCAWLEY, LARRY $ 1,694.79 $ 15,253.11 $ 50.00 $ 450.00 $ 810.00 126 MCWHORTER, KAREN $ 1,012.10 $ 9,108.90 $ 50.00 $ 450.00 $ 810.00 136 MITCHELL, MICHAEL $ 2,305.29 $ 20,747.61 $ 50.00 $ 450.00 $ 810.00 141 MUELLER, ROSEMARY $ 2,063.93 $ 18,575.37 $ 50.00 $ 450.00 $ 810.00 158 MUNSON,ANGELA $ 4,198.15 $ 37,783.35 $ 50.00 $ 450.00 $ 810.00 112 MURPHY,JAKE $ 405.75 $ 3,651.75 $ 50.00 $ 450.00 $ 810.00 137 PERDUE, LARRY $ 2,322.67 $ 20,904.03 $ 50.00 $ 450.00 $ 810.00 164 PERSHALL, ROBIN $ 1,525.07 $ 13,725.63 $ - $ - 132 PHILLIPS, HOMER GENE $ 1,754.44 $ 15,789.96 $ 50.00 $ 450.00 $ 810.00 199 PRESTON, NORMA J $ 1,601.37 $ 14,412.33 $ 50.00 $ 450.00 $ 810.00 135 RICKMAN, LOREN $ 2,231.07 $ 20,079.63 $ 50.00 $ 450.00 $ 810.00 214 RIGGINS, BONNIE $ 1,669.37 $ 15,024.33 $ 50.00 $ 450.00 $ 810.00 183 ROBERTS, ELDON $ 4,263.24 $ 38,369.16 $ 50.00 $ 450.00 $ 810.00 183 ROBERTS, ELDON Plus 25 add pay $ 587.09 $ 5,283.81 $ - $ - 212 ROBERTS,CAROLYN K $ 3,216.13 $ 28,945.17 $ - 212 ROBERTS,CAROLYN K Plus 25 add pay $ 442.89 $ 3,986.01 $ - 159 SCHUSTER,JOHN H. $ 3,117.36 $ 28,056.24 $ 50.00 $ 450.00 $ 810.00 168 STANLEY, MELVIN $ 4,880.07 $ 43,920.63 $ 50.00 $ 450.00 $ 810.00 155 STOUT, BETTY $ 866.51 $ 7,798.59 $ 50.00 $ 450.00 $ 810.00 133 SURLES, JERRY $ 2,721.40 $ 24,492.60 $ 50.00 $ 450.00 $ 810.00 142 TAYLOR, DENNIS $ 2,063.93 $ 18,575.37 $ 50.00 $ 450.00 $ 810.00 106 UPTON, FRANKLIN deceased 3/27/11 $ - $ 3,171.24 $ - $ 150.00 163 WATSON, RICHARD $ 6,947.05 $ 62,523.45 $ 50.00 $ - $ 810.00 163 Watson, Richard Plus 25 Add'I Pay $ 948.76 $ 8,538.84 $ - $ - 149 WILLIAMS,JOYCE $ 2,539.66 $ 22,856.94 $ 50.00 $ 450.00 $ 810.00 195 WITT, BETTY $ 1,766.83 $ 15,901.47 $ 50.00 $ 450.00 $ 810.00 213 WOOD, RUTHIE $ 1,580.93 $ 14,228.37 $ 50.00 $ 450.00 $ 810.00 $ 130,244.22 $ 1,175,369.22 $2,150.00 $ 19,050.00 $ 34,830.00 POLICE PENSION FUND 10 10 10 10 3 October 2011 6800-9500 6800-9800 Month 10 Regular Mo 5335-00 5335-05 10 EMP# NAME Benefit YTD Reg Benefit Suppl. YTD Suppl. Future Supple 154 ALLEN,CHARLES $ 2,584.64 $ 25,846.40 $ 50.00 $ 500.00 $ 810.00 206 BAYLES,BOBBI J $ 1,587.41 $ 15,874.10 $ 50.00 $ 500.00 $ 810.00 107 BLACK,JOE P $ 1,125.64 $ 11,256.40 $ 50.00 $ 500.00 $ 810.00 147 BRADLEY,GERALD $ 4,820.09 $ 48,200.90 $ 50.00 $ 500.00 $ 810.00 139 BRADLEY,RANDALL $ 2,860.17 $ 28,601.70 $ 50.00 $ 500.00 $ 810.00 167 BROWN,JOHN $ 4,362.01 $ 43,620.10 $ 50.00 $ 500.00 $ 810.00 157 CARROLL,RONALD L $ 2,106.04 $ 21,060.40 $ 50.00 $ 500.00 $ 810.00 151 COLE,RUSTON $ 3,065.74 $ 30,657.40 $ 50.00 $ 500.00 $ 810.00 109 COOPER,ADRIAN $ 638.42 $ 6,384.20 $ 50.00 $ 500.00 $ 810.00 160 DUGGER,GARY $ 3,163.74 $ 31,637.40 $ 50.00 $ 500.00 $ 810.00 140 FOSTER,BILLY D. $ 3,207.35 $ 32,073.50 $ 50.00 $ 500.00 $ 810.00 148 FRIEND,JERRY $ 1,970.42 $ 19,704.20 $ 50.00 $ 500.00 $ 810.00 211 FRIEND,MICHELE $ 1,182.26 $ 11,822.60 161 HANNA,JANICE $ 1,368.59 $ 13,685.90 $ - $ - 145 HANNA,MARK $ 1,368.59 $ - 13,685.90 $ 50.00 $ 500.00 $ 810.00 169 HELDER,TIM $ 5,838.12 $ 58,381.20 $ 50.00 $ 500.00 $ 810.00 180 HOYT,RICK $ 7,460.01 $ 74,600.10 $ 50.00 $ 500.00 $ 810.00 146 HUTCHENS,BERNICE $ 1,825.54 $ 18,255.40 $ 50.00 $ 500.00 $ 810.00 143 JOHNSON,CHARLES deceased 7/13/11 $ - $ 17,188.50 $ - $ - $ - 194 JOHNSON, FRANK $ 7,974.81 $ 79,748.10 $ 50.00 $ 500.00 $ 810.00 215 JOHNSON,JOYCE $ 2,455.50 $ 7,366.50 $ - $ - $ - 103 JOHNSON,WENDELL $ 783.15 $ 7,831.50 $ 50.00 $ 500.00 $ 810.00 118 JONES, BOB $ 3,300.45 $ 33,004.50 $ 50.00 $ 500.00 $ 810.00 144 KILGORE,DONALD $ 2,046.48 $ 20,464.80 $ 50.00 $ 500.00 $ 810.00 150 LITTLE,PATSY R $ 730.35 $ 7,303.50 $ 50.00 $ 500.00 $ 810.00 156 MARTIN,KENNETH $ 3,692.85 $ 36,928.50 $ 50.00 $ 500.00 $ 810.00 128 MCCAWLEY, LARRY $ 1,694.79 $ 16,947.90 $ 50.00 $ 500.00 $ 810.00 126 MCWHORTER,KAREN $ 1,012.10 $ 10,121.00 $ 50.00 $ 500.00 $ 810.00 136 MITCHELL,MICHAEL $ 2,305.29 $ 23,052.90 $ 50.00 $ 500.00 $ 810.00 141 MUELLER,ROSEMARY $ 2,063.93 $ 20,639.30 $ 50.00 $ 500.00 $ 810.00 158 MUNSON,ANGELA $ 4,198.15 $ 41,981.50 $ 50.00 $ 500.00 $ 810.00 112 MURPHY,JAKE $ 405.75 $ 4,057.50 $ 50.00 $ 500.00 $ 810.00 137 PERDUE,LARRY $ 2,322.67 $ 23,226.70 $ 50.00 $ 500.00 $ 810.00 164 PERSHALL, ROBIN $ 1,525.07 $ 15,250.70 $ - $ - 132 PHILLIPS,HOMER GENE $ 1,754.44 $ 17,544.40 $ 50.00 $ 500.00 $ 810.00 199 PRESTON,NORMA J $ 1,601.37 $ 16,013.70 $ 50.00 $ 500.00 $ 810.00 135 RICKMAN,LOREN $ 2,231.07 $ 22,310.70 $ 50.00 $ 500.00 $ 810.00 214 RIGGINS,BONNIE $ 1,669.37 $ 16,693.70 $ 50.00 $ 500.00 $ 810.00 183 ROBERTS, ELDON $ 4,263.24 $ 42,632.40 $ 50.00 $ 500.00 $ 810.00 183 ROBERTS,ELDON Plus 25 add pay $ 587.09 $ 5,870.90 $ - $ - 212 ROBERTS,CAROLYN K $ 3,216.13 $ 32,161.30 $ - 212 ROBERTS,CAROLYN K Plus 25 add pay $ 442.89 $ 4,428.90 $ - 159 SCHUSTER,JOHN H. $ 3,117.36 $ 31,173.60 $ 50.00 $ 500.00 $ 810.00 168 STANLEY,MELVIN $ 4,880.07 $ 48,800.70 $ 50.00 $ 500.00 $ 810.00 155 STOUT, BETTY $ 866.51 $ 8,665.10 $ 50.00 $ 500.00 $ 810.00 133 SURLES,JERRY $ 2,721.40 $ 27,214.00 $ 50.00 $ 500.00 $ 810.00 142 TAYLOR,DENNIS $ 2,063.93 $ 20,639.30 $ 50.00 $ 500.00 $ 810.00 106 UPTON, FRANKLIN deceased 327/11 $ - $ 3,171.24 $ - $ 150.00 163 WATSON,RICHARD $ 6,947.05 $ 69,470.50 $ 50.00 $ - $ 810.00 163 Watson, Richard Plus 25 Add']Pay $ 948.76 $ 9,487.60 $ - $ - 149 WILLIAMS,JOYCE $ 2,539.66 $ 25,396.60 $ 50.00 $ 500.00 $ 810.00 195 WITT, BETTY $ 1,766.83 $ 17,668.30 $ 50.00 $ 500.00 $ 810.00 213 WOOD, RUTHIE $ 1,580.93 $ 15,809.30 $ 50.00 $ 500.00 $ 810.00 $ 130,244.22 $ 1,305,613.44 $2,150.00 $ 21,150.00 $ 34,830.00 May 20,2011 Dear Police Pensioner, The Policemen's Pension and Relief Fund Board of Trustees has completed the board elections. Eldon Roberts, Tim Helder and Melvin Stanley have been reelected. I have attached the current list of board members with their term end dates. If you have any questions please call the City Clerk's office at(479) 575-8323. Sincerely, Sondra E. Smith City Clerk Treasurer Policemen's Pension& Relief Fund Board of Trustees Treasurer Policemen's Pension And Relief Fund Board Of Trustees DESCRIPTION: The Policemen's Pension and Relief Fund Board of Trustees was established pursuant to the ACA § 24-11-405. The board shall make all necessary rules and regulations for its government and the discharge of its duties and shall hear and decide all applications for relief or pension. The Board shall have the power to make all rules and regulations needful of its guidance to implement the provisions regarding Board composition. TERMS: Two-year terms, ending May 31. MEMBERS: The Board shall be composed of seven members as follows: ■ The chief executive, who shall serve as chairman of the board ■ The city treasurer, who shall be the treasurer of the fund; Five active or retired members of the pension fund; APPOINTMENT: If there are no active members of the pension fund, all five members shall be elected from and by the retired membership of the pension fund. The retired member or members shall be chosen in May of each year by a method to be determined by the board, with the member or members to be chosen in alternating years. CONTACT: Sondra Smith, City Clerk, 575-8323. PUBLIC NOTIFICATION: A weekly meetings list is prepared by the City Clerk's office which is distributed to the press and posted on the City's web site: www.accessfayetteville.org MEETING TIMES: Regular meetings are held the third Thursday of each quarter at 3:00 p.m. in Room 326 at the City Administration Building. Due to elections not being held until May of each year, the term end date was changed to May 31 at the Police Pension meeting on October 21, 2004 33