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Home My WebLink About2023-04-27 - Agendas - FinalLioneld Jordan Chairman Kara Paxton Secretary Roy Cate Position 1 Retired Firemen's Pension and Relief Fund Board of Trustees Meeting Agenda April 27, 2023 Pete Reagan Position 2 Retired Lonnie Napier Position 3 Retired Ron Wood Position 4 Retired Gene Warford Position 5 Retired A meeting of the Fayetteville Firemen's Pension and Relief Fund Board of Trustees will be held at 3:00 p.m. on April 27, 2023, in Room 326 of the City Administration Building. Call to Order Roll Call Garrison Financial: • Quarterly reports ending December 31, 2022 & March 31, 2023 Approval of the Minutes: • Approval of the October 27, 2022 Meeting Minutes Pension List Changes: • None Approval of the Pension List: • Approval of the May — October 2023 Pension Lists Unfinished Business: • None New Business: • None Informational: • Revenue and Expense Summary Reports for December 31, 2022 & March 31, 2023 • Analysis of Fayetteville's Premium Tax & PRB Information 2023 Meeting Calendar: • Next meeting October 26, 2023 Note: All meetings are tentative and subject to change. The City meetings calendar is located on www.f4yetteville-ar.gov owi, GARRISON ASSET MANAGEMENT January 11, 2023 Ms. Kara Paxton City of Fayetteville 113 West Mountain Street Fayetteville, Arkansas 72701-6069 Dear Ms. Paxton, Enclosed is your quarterly report for the quarter ended December 31, 2022. Looking back on 2022, the financial markets were faced with an economic backdrop they have not had to deal with in 40 years. The uncertainty surrounding how "sticky" inflation is, how aggressive the Fed would be, and how long the Ukraine conflict would last all underpinned increased volatility throughout the year. This led to an unusual year with both stocks and bonds moving in tandem and posting significant losses. Equity markets peaked at the end of 2021 and headed south most of the year with a few rallies interspersed. The year lows occurred in October for the S&P 500 when the selloff hit -24.5% before a decent rally in the 4t" quarter which left the index-18.11% for the year. The tech heavy Nasdaq continued its slide through the end of the year leaving it in the red-32.15%. Equity sector returns were interesting to say the least. Energy was the standout gaining +59.04%, with the next best sectors Utilities and Consumer Staples down -1.44% and -3.17% respectively. The worst performing sectors of the year were Communication Services, Consumer Discretionary and Information Technology which were down-40.42%,-37.58%,-28.91% respectively. I cannot recall a time in my career when sector returns had such a disparity. The fixed income markets were also difficult. Total returns as measured by Barclay's Intermediate Government/Credit Index, although positive for the fourth quarter at +1.54%, were down -8.23% for the year. If not for the fourth quarter bounce, the fixed income markets could have been down -11% or so for the year. Ten-year Treasury rates have risen from a low of 1.7% in mid -January 2022, peaked in late October at 4.25%, and ended 2022 at 3.57%. The yield curve continues to be "inverted", meaning that short-term rates are higher than long-term rates, a condition that is commonly known to potentially precede recessions. As I write, the yield on 2-year Treasury notes is 4.19%, while the yield on 10-year Treasury bonds is 3.51%, an inversion of 68 basis points, or .68%. The Federal Reserve raised interest rates a total of seven times during the year, beginning at their March 2022 meeting. The Fed Funds target rate went from essentially 0% to 4.50% in nine months. This is the highest Fed Funds rate in 17 years and the rate of increase was the fastest pace since the early 1980s. Although the incremental increases in inflation have tended to slow recently, inflation rates are the highest in years and are continuing to negatively affect consumers. Overall inflation was reported at +7.1% year -over -year November. A few examples, through November; 1) gasoline +12.4%, 2) poultry +13.1%, 3) eggs +49.1% (not a typo), 4) bread and crackers +19.9%, 5) coffee +14.6%, 6) fruits and vegetables +9.7%, 7) pasta +16.8%, 8) paper products +14.1%, 9) electricity +13.7%, 10) restaurants +8.5%. This is just what the Bureau of Labor Statistics (BLS) is telling us inflation is. It seems much higher. What should we expect in 2023? We do expect inflation to moderate in 2023 from current levels but could stay above the Fed target of 2% for longer than expected as the Ukraine conflict continues, and the world becomes less global while supply chains shift from global to more regional. The era of free money is in the rearview mirror and consumers and businesses should get used to paying more "normal" rates for loans, cars, homes, etc. On the flipside, this also allows investors to earn a decent return on their savings. Will we dip into recession? The likelihood is great given the Fed's track record of unsuccessfully engineering soft economic landings. Tighter financial conditions are leading to decelerating economic growth in the U.S. which will put increased pressure on earnings in 2023. Europe is likely already in recession and the World Bank recently slashed their 2023 global growth forecast almost in half, down to 1.7% from 3% in June. Recessions are inevitable but they do not last forever. They are normal, expected and healthy. When things get uncomfortable, it's always constructive to look at history. Based on the last 11 economic cycles since 1950, recessions have ranged from two to 18 months, with the average lasting about 10 months. Equity markets always peak and start declining prior to a recession and start to recover prior to the ending of recession. On average the peak is seven months before the recession begins and the recovery starts six months before it ends. Furthermore, the strongest gains often occur immediately after the bottom, which is why trying to time the moves is a very risky proposition. We wish you a happy, healthy and prosperous 2023. As always, we appreciate your trust and confidence in our firm, and we look forward to serving you in the years to come. If you have any questions or would like to schedule a review, please call our office. Sincerely, Kerry Bradley, CFA, MBA Equity Portfolio Manger 001�1, GARRISON ASSET MANAGEMENT City of Fayetteville Firemen's Pension & Relief Fund Charles Schwab #7851-1206 Quarter Ending December 31, 2022 PORTFOLIO SUMMARY City of Fayetteville Firemen's Pension & Relief Fund Charles Schwab #7851-1206 0.6% 82.4% December 31, 2022 17.0% ■ Cash & Equivalents 8,000.68 ■ Money Market 231,806.46 ■ Account Fixed Income 1,124,500.89 Garrison Asset Management PORTFOLIO APPRAISAL City of Fayetteville Firemen's Pension & Relief Fund Charles Schwab #7851-1206 December 31, 2022 Adj Unit Total Adjusted Market Pct. Unit Annual Quantity Security Cost Cost Price Value Assets Income Income Yield CASH AND EQUIVALENTS Schwab Bank Sweep 8,000.68 8,000.68 0.6 0.450 36.00 0.4 8,000.68 8,000.68 0.6 36.00 0.4 TRADED - MONEY MARKET 231,806 Schwab Govt Money 1.00 231,806.46 1.00 231,806.46 17.0 3.990 9,249.08 4.0 Fund Investor Shares 231,806.46 231,806.46 17.0 9,249.08 4.0 CORPORATE BONDS 50,000 IBM Corp. 100.00 50,000.95 105.78 52,888.25 3.9 7.000 3,500.00 4.8 7.000% Due 10-30-25 Accrued Interest 583.33 0.0 50,000.95 53,471.58 3.9 3,500.00 4.8 MUTUAL FUNDS 12,366.035 Vanguard Admiral 12.13 150,025.00 9.94 122,918.39 9.0 0.170 2,102.23 1.7 Intermed-tern Treasury 9,191.176 Vanguard Admiral 10.88 100,025.00 9.93 91,268.38 6.7 0.140 1,286.76 1.4 Short -Term Treasury 3,046.112 Vanguard Intermed 24.63 75,025.00 20.91 63,694.20 4.7 0.590 1,797.21 2.8 Bond Admiral 25,162.828 Vanguard Intermediate 10.39 261,463.57 8.32 209,354.73 15.3 0.250 6,290.71 3.0 Admiral 58,672.725 Vanguard Short -Term 10.86 637,204.87 9.95 583,793.61 42.8 0.190 11,147.82 1.9 Admiral 1,223,743.44 1,071,029.31 78.5 22,624.72 2.1 TOTAL PORTFOLIO 1,513,551.53 1,364,308.03 100.0 35,409.80 2.5 You should carefully compare this statement to the statement you receive from your custodian and notify us immediately of any discrepancies. Trade Settle Date Date PURCHASES 08-26-22 08-29-22 12-30-22 01-03-23 Garrison Asset Managernent PURCHASE AND SALE City of Fayetteville Firemen's Pension & Relief Fund Charles Schwab #7851-1206 From 01-01-22 To 12-31-22 Quantity REINVESTED DIVIDENDS 09-15-22 09-15-22 10-17-22 10-17-22 11-15-22 11-15-22 12-30-22 12-30-22 12-30-22 12-30-22 Security 175,000 Schwab Govt Money Fund Investor Shares 55,000 Schwab Govt Money Fund Investor Shares 166 Schwab Govt Money Fund Investor Shares 384 Schwab Govt Money Fund Investor Shares 417 Schwab Govt Money Fund Investor Shares 839 Schwab Govt Money Fund Investor Shares 0 Schwab Govt Money Fund Investor Shares Unit Price Amount 1.00 175,000.00 1.00 55,000.00 230,000.00 1.00 1.00 1.00 1.00 1.00 166.15 383.86 417.33 838.88 0.24 SALES 05-16-22 05-17-22 3,676.471 Vanguard Core Bond Admiral Shares 19.01 69,901.48 05-16-22 05-17-22 8,453.085 Vanguard Intermed-Term Bond Index 10.66 90,084.89 159,986.37 Garrison Asset Management REALIZED GAINS AND LOSSES City of Fayetteville Firemen's Pension & Relief Fund Charles Schwab #7851-1206 From 01-01-22 Through 12-31-22 Open Close Date Date Quantity Security 10-29-19 05-16-22 8,453.085 VanguardIntermed-Term Bond Index 12-18-19 05-16-22 3,676.471 Vanguard Core Bond Admiral Shares TOTAL GAINS TOTAL LOSSES TOTAL REALIZED GAIN/LOSS -15,063.63 CAPITAL GAIN DISTRIBUTIONS 03-31-22 Vanguard Intermed-Term Bond Index 12-30-22 Schwab Govt Money Fund Investor Shares TOTAL DISTRIBUTIONS 24.75 TOTAL GAIN/LOSS -15,038.88 An'*' denotes an average cost transaction. Cost Amort. or Basis Accretion Proceeds 100,025.00 90,084.89 75,025.00 69,901.48 175,050.00 0.00 159,986.37 Gain Or Loss Short Term Long Term -9,940.11 -5,123.52 0.00 0.00 0.00-15,063.63 0.00-15,063.63 24.51 0.24* 0.24 24.51 0.24-15,039.12 Garrison Asset Manac-ement PERFORMANCE SUMMARY GROSS OF FEES City of Fayetteville Firemen's Pension & Relief Fund Charles Schwab #7851-1206 December 31, 2022 PORTFOLIO COMPOSITION CHANGE IN PORTFOLIO Market Pct. Value Assets Yield Cash & Equivalents 8,000.68 0.6 0.4 Portfolio Value on 12-31-21 1,641,524.32 Money Market 231,806.46 17.0 4.0 Accrued Interest 583.33 Account Fixed 1,124,500.89 82.4 2.2 Net Additions/Withdrawals -158,274.00 Income Account Equities 0.00 0.0 - Realized Gains -18,498.76 Account 0.00 0.0 - Unrealized Gains -132,471.78 Commodities Income Received 31,444.92 Change in Accrued Interest 0.00 Portfolio Value on 12-31-22 1,363,724.70 Accrued Interest 583.33 Total 1,364,308.03 100.0 2.5 1,364,308.03 Account Account Fixed Income Barclays Capital Intermed Govt/Credit TIME WEIGHTED RETURN Annualized Quarter Last 12 Inception To Date Months To Date 1.75 -7.47 3.83 1.97 -8.69 1.83 1.54 -8.23 1.28 All "Account" returns refer to your portfolio. Benchmark indexes are also listed for reference. All returns are reported as percentages. This report is calculated using industry -standard accounting and performance calculation methodologies and is generated by our Axys portfolio accounting software. Calculations are a time -weighted total return series based on monthly valuations, including all cash and equivalents. All calculations are done based on trade date, employing the accrual method of accounting and include cash, interest, dividends and realized and unrealized gains and losses. Performance is adjusted to accurately reflect portfolio deposits and withdrawals. Results are presented after transaction costs but before management fees. Inception -to -date returns are annualized numbers, except for accounts under management less than one year. Unsupervised assets are excluded in performance calculation. At any given point in time an investment may be worth more or less than the original purchase price. owi, GARRISON ASSET MANAGEMENT April 7, 2023 Ms. Kara Paxton City of Fayetteville 113 West Mountain Street Fayetteville, Arkansas 72701-6069 Dear Kara, Enclosed are your quarterly report for the quarter ended March 31, 2023. Despite challenging geopolitical and banking events, both stocks and bonds advanced in the first quarter of 2023. 2022 was a rough year for investors, but both markets began to recover in the fourth quarter and that trend has continued in the new year. For the first quarter, the S&P 500 total return was +7.50% while the Barclays Intermediate Government/Credit bond index was +2.33%. Equity sectors had a 2021 feel with Information Technology +21.5%, Communications Services +20.2%, and Consumer Discretionary +15.8%. Laggards were Financials -6.1%, Energy -5.6%, and Health Care -4.7%. Growth stocks significantly outperformed value with the Russell Large Cap Growth Index +14.1% versus +0.4% for Russell Large Cap Value. Market breadth was extremely narrow, with a handful of large cap names responsible for nearly all of the index movement. The entirety of the S&P 500's return can be attributed to just the ten largest contributors. This is due in part to the market cap weighted construction of the index and in part to the narrowness of what performed well. Broader participation would be a sign of a healthy economy and an aspect that we will be monitoring closely this year. Internationally, developed markets were strong with the MSCI EAFE +7.6% and the emerging markets MSCI EMI +3.5%. Perhaps the defining event in a quarter full of news was the failure of some high -profile banks. Any investor who lived through 2008 is well aware of the importance of confidence in our credit system. While these banks had positioned themselves as not systemically important, that became debatable as both the 'system' and its regulators took extraordinary steps to assure that both insured and uninsured depositors remained whole. Much of the issue was specific to certain banks who had a concentration of big, largely uninsured depositors with herd- like tendencies while their asset profile was weighted toward longer duration bonds in a spiking interest rate environment as opposed to a more traditional loan portfolio. At the same time, there was no appetite from regulators to see these failed banks assumed by a 'too big to fail' entity, and those mega -banks had little desire on their end, having been burned in their perspective following forced mergers back in 2008. While the measures taken seem to have reassured depositors and calmed contagion concerns, these events serve as reminder that there is a constant tension in the banking system between prudent management and risk taking. After all, banks are conceptually in the business of accepting overnight demand deposits as liabilities and loaning those funds as five-year commercial loans or thirty-year mortgages. Our economy is better off when this works smoothly. Capital requirements, regulations and audits, and sound management practices give confidence but at the margins it seems periodically there are banks that ignore these principles or just bet the wrong way and we continue to refine the process of ensuring those are both rare and contained. In the fixed income markets the yield curve remains significantly inverted, as short-term yields continue to be greater than those in the long term. As I write, the six-month Treasury bill yields 4.95% while the ten-year Treasury note yields 3.40%, a difference of-1.55%, or 155 basis points. You receive 1.55% more yield in six-month bills than you do in ten-year notes ("bills" mature in less than one year when they are issued, "notes" have maturities between 1 and 10 years at the time of issuance. Treasury "bonds" have maturities greater than ten years at issuance). The question investors must ask themselves is, why would I invest in ten-year notes when I can get much greater yield in a 6-month bill? The calculus to answer this question is complicated of course, but the simple answer is you would need to assume that interest rates will be significantly lower on shorter -term treasuries in the not -too -distant future than they are now to invest in 10-year notes. That may turn out to be true, but you forgo a lot of present yield and there are maturity risks involved. Remember that longer maturity bonds react more in terms of price as rates change than do shorter maturity bonds. There are a lot of moving parts in that investment choice. The implications of an inverted yield curve are many; 1) they tend to be somewhat predictive of recessions, 2) they make the cost of money for borrowers and credit cards higher, 3) mortgage rates are higher, and on down the line. Higher rates decrease economic activity and lessen inflationary pressures. More importantly, higher rates and inflation hurt lower income households disproportional ly. Little benefit comes from inverted yield curves over the short to intermediate term. Yes, short term yields are higher, but then investors tend to hold cash or cash equivalents and thus those funds are not invested in long term economic projects that propel economic growth. Two things can happen to correct an inverted yield curve; 1) short term rates can fall significantly, or 2) long term rates can rise significantly. I'd be in favor of short-term rates falling, at least to the point where the curve is no longer inverted. Regardless of the shape of the future yield curve, the Fed will lower rates if/when economic activity slows, and/or inflation lessens. Lower rates stimulate the economy, higher rates do not. While bond returns were positive in the first quarter, it was a tough slog getting there. Ten-year Treasury rates were as low as 3.37% (January 18) and as high as 4.06% (March 2). The ten-year ended the quarter yielding 3.47%. That's a lot of volatility to manage through. As always, we appreciate your trust and confidence in our firm, and look forward to serving you in the years to come. If you have any questions or would like to schedule a review, please call our office. Sincerely, James B. Bell, CFA Equity Portfolio Manager Garrison Asset Management 605 W. Dickson Street, Suite 201 • Fayetteville, Arkansas 72701 479-587-1045 • 888-442-7637. 479-587-1257 Facsimile 9 www.GarrisonFinancial.com 10,I)i GARRISON ASSET MANAGEMENT January 9, 2023 City of Fayetteville Firemen's Pension & Relief Fund Charles Schwab #7851-1206 113 West Mountain Street Fayetteville, AR 72701-6069 STATEMENT OF MANAGEMENT FEES For The Period October 1 through December 31, 2022 Portfolio Value as of 09-30-22 1,341,359 Portfolio Value as of 10-31-22 1,336,883 Portfolio Value as of 11-30-22 1,365,484 Portfolio Value as of 12-31-22 1,364,308 Average of 4 Months 1,352,009 1,352,009 @ 0.1500% per annum 507 Quarterly Management Fee 507 TOTAL DUE AND PAYABLE 507 This statement is for informational purposes only. As you requested, the fee will be automatically deducted from your account. Please be advised that it is the responsibility of the client to verify the accuracy of each fee calculation. The custodian will not determine whether the fee is properly calculated. 001�1, GARRISON ASSET MANAGEMENT City of Fayetteville Firemen's Pension & Relief Fund Charles Schwab #7851-1206 Quarter Ending March 31, 2023 PORTFOLIO SUMMARY City of Fayetteville Firemen's Pension & Relief Fund Charles Schwab #7851-1206 March 31, 2023 82.1% ■ Cash & Equivalents 15,779.23 ■ Money Market 233,675.97 ■ Account Fixed Income 1,143,236.35 Garrison Asset Management PORTFOLIO APPRAISAL City of Fayetteville Firemen's Pension & Relief Fund Charles Schwab #7851-1206 March 31, 2023 Adj Unit Total Adjusted Market Pct. Unit Annual Quantity Security Cost Cost Price Value Assets Income Income Yield CASH AND EQUIVALENTS Schwab Bank Sweep 15,779.23 15,779.23 1.1 0.450 71.01 0.4 15,779.23 15,779.23 1.1 71.01 0.4 TRADED - MONEY MARKET 233,676 Schwab Govt Money 1.00 233,675.97 1.00 233,675.97 16.8 4.470 10,445.32 4.5 Fund Investor Shares 233,675.97 233,675.97 16.8 10,445.32 4.5 CORPORATE BONDS 50,000 IBM Corp. 100.00 50,000.87 105.70 52,847.55 3.8 7.000 3,500.00 4.7 7.000% Due 10-30-25 Accrued Interest 1,458.33 0.1 50,000.87 54,305.88 3.9 3,500.00 4.7 MUTUAL FUNDS 12,366.035 Vanguard Admiral 12.13 150,025.00 10.14 125,391.59 9.0 0.170 2,102.23 1.7 Interned -tern Treasury 9,191.176 Vanguard Admiral 10.88 100,025.00 9.98 91,727.94 6.6 0.140 1,286.76 1.4 Short -Term Treasury 3,046.112 Vanguard Intermed 24.63 75,025.00 21.53 65,582.79 4.7 0.590 1,797.21 2.7 Bond Admiral 25,162.828 Vanguard Intermediate 10.39 261,463.57 8.56 215,393.81 15.5 0.250 6,290.71 2.9 Admiral 58,672.725 Vanguard Short -Term 10.86 637,204.87 10.07 590,834.34 42.4 0.190 11,147.82 1.9 Admiral 1,223,743.44 1,088,930.47 78.2 22,624.72 2.1 TOTAL PORTFOLIO 1,523,199.52 1,392,691.55 100.0 36,641.04 2.6 You should carefully compare this statement to the statement you receive from your custodian and notify us immediately of any discrepancies. Garrison Asset Management PURCHASE AND SALE City of Fayetteville Firemen's Pension & Relief Fund Charles Schwab #7851-1206 From 01-01-23 To 03-31-23 Trade Date Settle Date Quantity Security Unit Price Amount REINVESTED DIVIDENDS 01-17-23 01-17-23 374 Schwab Govt Money Fund Investor 1.00 373.57 Shares 02-15-23 02-15-23 746 Schwab Govt Money Fund Investor 1.00 746.00 Shares 03-15-23 03-15-23 750 Schwab Govt Money Fund Investor 1.00 749.94 Shares Garrison Asset Management REALIZED GAINS AND LOSSES City of Fayetteville Firemen's Pension & Relief Fund Charles Schwab #7851-1206 From 01-01-23 Through 03-31-23 Open Close Date Date Quantity TOTAL GAINS TOTAL LOSSES TOTAL REALIZED GAIN/LOSS 0.00 NO CAPITAL GAINS DISTRIBUTIONS Gain Or Loss Cost Amort. or Security Basis Accretion Proceeds Short Term Long Term 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Garrison Asset Manac-ement PERFORMANCE SUMMARY GROSS OF FEES City of Fayetteville Firemen's Pension & Relief Fund Charles Schwab #7851-1206 March 31, 2023 PORTFOLIO COMPOSITION CHANGE IN PORTFOLIO Market Pct. Value Assets Yield Cash & Equivalents 15,779.23 1.1 0.4 Portfolio Value on 12-31-22 1,363,724.70 Money Market 233,675.97 16.8 4.5 Accrued Interest 583.33 Account Fixed 1,143,236.35 82.1 2.2 Net Additions/Withdrawals -507.00 Income Account Equities 0.00 0.0 - Realized Gains 0.00 Account 0.00 0.0 - Unrealized Gains 17,860.46 Commodities Income Received 10,155.06 Change in Accrued Interest 875.00 Portfolio Value on 03-31-23 1,391,233.22 Accrued Interest 1,458.33 Total 1,392,691.55 100.0 2.6 1,392,691.55 Account Account Fixed Income Barclays Capital Intermed Govt/Credit TIME WEIGHTED RETURN Annualized Quarter Last 12 Inception To Date Months To Date 2.12 -1.32 3.94 2.41 -1.71 2.01 2.33 -1.65 1.46 All "Account" returns refer to your portfolio. Benchmark indexes are also listed for reference. All returns are reported as percentages. This report is calculated using industry -standard accounting and performance calculation methodologies and is generated by our Axys portfolio accounting software. Calculations are a time -weighted total return series based on monthly valuations, including all cash and equivalents. All calculations are done based on trade date, employing the accrual method of accounting and include cash, interest, dividends and realized and unrealized gains and losses. Performance is adjusted to accurately reflect portfolio deposits and withdrawals. Results are presented after transaction costs but before management fees. Inception -to -date returns are annualized numbers, except for accounts under management less than one year. Unsupervised assets are excluded in performance calculation. At any given point in time an investment may be worth more or less than the original purchase price. 10,I)i GARRISON ASSET MANAGEMENT April 7, 2023 City of Fayetteville Firemen's Pension & Relief Fund Charles Schwab #7851-1206 113 West Mountain Street Fayetteville, AR 72701-6069 STATEMENT OF MANAGEMENT FEES For The Period January 1 through March 31, 2023 Portfolio Value as of 12-31-22 1,364,308 Portfolio Value as of 01-31-23 1,388,958 Portfolio Value as of 02-28-23 1,368,806 Portfolio Value as of 03-31-23 1,392,692 Average of 4 Months 1,378,691 1,378,691 @ 0.1500% per annum 517 Quarterly Management Fee 517 TOTAL DUE AND PAYABLE 517 This statement is for informational purposes only. As you requested, the fee will be automatically deducted from your account. Please be advised that it is the responsibility of the client to verify the accuracy of each fee calculation. The custodian will not determine whether the fee is properly calculated. Lioneld Jordan Chairman Kara Paxton Secretary Roy Cate Position 1 Retired Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes October 27, 2022 Firemen's Pension & Relief Fund Board of Trustees Minutes October 27, 2022 Pagel of 3 Pete Reagan Position 2 Retired Lonnie Napier Position 3 Retired Ron Wood Position 4 Retired Gene Warford Position 5 Retired A meeting of the Fayetteville Firemen's Pension and Relief Fund Board of Trustees was held at 3:00 p.m. on October 27, 2022, in Room 326 of the City Administration Building. Mayor Lioneld Jordan called the meeting to order. OF a VV Board Members Present: Roy Cate, Lonnie Napier, Pete Reagan, Gene Warford, Ronnie Wood, and Mayor Lioneld Jordan. Absent: City Clerk Treasurer Kara Paxton Staff and Others Present: Senior Deputy Kim Jhon, Assistant City Attorney Blake Pennington and Accounting Manager Garrison Financial: Quarterly Reports ending Jun Cayette, James Bell with Garrison Financial. i 30, 2022 James Bell, Garrison Financial began his review of the quarterly statements by explaining the account balance was at $1.34 illion. He went on to explain that the investments that are being made are very conservative. third quarter the account was down 2.3%, down a little over 3% on the index and for the ye the account was down a little over 9% with an index of 9.6%. He went on to say that it hasbeen an unusual year, but he expected to see more return on the invest ents in 202 He finalized his review by explaining each chart that was provided in the qu statement. Kerri atkins-Bradley, Garrison Financial spoke and agreed with James that the current investments are conservative. She also felt that the increase in interest rates would help stabilize the market. Kerri stated that based on what the market currently looks like, then add in mortgage loan interest rate increases, with these two things combined everyone would feel the increase and it would just need time to work through the system. James Bell explained that due to rates being higher the investments will see a higher return. Firemen's Pension & Relief Fund Board of Trustees Minutes October 27, 2022 Page 2 of 3 Kerri Watkins -Bradley assured the Fire Pension Board that Garrison Financial has 3 months worth of pension benefits held as cash just in case it is needed. She finalized her review by explaining the market will eventually stabilize and rates will come back down from the peak of where they were at the time. Board Member Pete Reagan thanked the representatives from Garrison Financial. Approval of the Minutes: Approval of the April 28, 2022 Meeting Minutes Board Member Pete Reagan moved to approve the April 28, 2022 meeting minutes. Board Member Gene Warford seconded the motion. Upon roll call the motion passed - . CitdV y Clerk Treasurer Kara Paxton was absent. Pension List Changes: None Approval of the Pension List: Approval of the November — December 2022 & January — April 2023 Pension Lists Board Member Pete Reagan moved to approve the November — December 2022 & January — April 2023 Pension Lists. Board Member Gene Warford seconded the motion. Upon roll call the motion passed 6-0. City Clerk Treasurer Kara Paxton was absent. Unfinished Business: None 7 New Business: Revenue and Expense Summary Reports for June 30, 2022 & September 30, 2022 Approval for City Clerk Treasurer Kara Paxton to complete the Survey of Public Pensions Electronically Firemen's Pension & Relief Fund Board of Trustees Minutes October 27, 2022 Page 3 of 3 Board Member Pete Reagan moved to approve City Clerk Treasurer Kara Paxton to complete the Survey of Public Pensions Electronically. Board Member Gene Warford seconded the motion. Upon roll call the motion passed 6-0. City Clerk Treasurer Kara Paxton was absent. Approval to Pay the 2023 NCPERS Membership Dues Board Member Pete Reagan moved to approve to pay the 2023 NCPERS Membership Dues invoice. Board Member Lonnie Napier seconded the motion. Upon roll call the motion passed 6-0. City Clerk Treasurer Kara Paxton was absent. Informational: 2022 Election — Board Members Nv Mayor Lioneld Jordan read the results of the 2022 Board Election that records the terms for Roy Cate (Position 1) & Pete Reagan (Position 2) as June 1, 2022 — May 31, 2024. Osborn, Carreiro & Associates, Inc — Estimated 2023 Tax Allocation Board Member Pete Reagan asked if anyone remembered what the 2022 Tax Allocation was. He explained that he remembered it being received in one check, but it was broken down for the pension plans and LOPFL He went on to ask to have that information sent to him after the meeting was over since no one had immediate access to that information. Mayor Lioneld Jordan answered and explained that the City could send that information. Adjournment: 3:23 PM FIREMEN'S RELIEF AND PENSION May 5 2023 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 Hours EMP# RETIREMENT NAME Benefit Reg Benefit Future Codes Supplement for Fut Supp 177 4/04 BACHMAN, EDDIE 2,618.55 13,092.75 88830 68 7/99 BONADUCE, MICHAEL 2,988.76 14,943.80 88830 44 9/86 BOUDREY, BETTY MRS. 2,477.42 12,387.10 88830 43 9/87 BOUDREY, IRMA 2,089.28 10,446.40 88830 49 7/88 BOUDREY, JACK 1,647.63 8,238.15 88830 57 5/90 CATE, ROY 1,788.90 8,944.50 88830 188 12/05 DOSS, MARION H 5,376.91 26,884.55 88830 188 12/05 DOSS, MARION H plus 25 additional pay 731.61 3,658.05 192 4/06 FARRAR, DANNY 4,155.36 20,776.80 88830 170 5/03 FREEDLE, LARRY 3,816.75 19,083.75 88830 170 5/03 FREEDLE, LARRY plus 25 additional pay 141.37 706.85 92 03/02 GAGE,TOMMY 2,596.69 12,983.45 88830 182 10/04 JENKINS, EILEEN 1,788.75 8,943.75 93 06/02 JENKINS, JOHN 1,788.76 8,943.80 88830 86 07/01 JOHNSON,ROBERT 3,073.47 15,367.35 88830 219 4/95 JORDAN, SANDRA K 2,274.95 11,374.75 88830 76 5/88 JUDY, JAN 1,647.63 8,238.15 88830 37 3/84 KING, ARNOLD D. 1,522.37 7,611.85 88830 54 5/89 KING, ARVIL 1,711.21 8,556.05 88830 173 12/03 LEDBETTER, DENNIS 3,775.80 18,879.00 88830 51 10/88 LEWIS, CHARLES 1,647.63 8,238.15 88830 202 02/08 MAHAN, MARSHALL 4,077.28 20,386.40 88830 MASON, DONNA 1,631.25 8,156.25 88830 35 2/82 MC CHRISTIAN, DWAYNE 109.27 546.35 88840 209 8/81 MILLER, ALICE GAYLE 1,304.07 6,520.35 88830 73 2/00 MILLER,KENNETH 3,180.02 15,900.10 88830 73 2/00 MILLER,KENNETH plus 25 additional pay 170.60 853.00 217 2/86 MOORE, BETTY L 109.27 546.35 88840 48 7/88 MULLENS, DENNIS W. 2,191.30 10,956.50 88830 184 3/05 NAPIER, LONNIE 3,518.28 17,591.40 88830 196 01/02 ONEAL, TEDDY 4,120.99 20,604.95 88830 5/88 OSBURN, VERNA 1,899.66 9,498.30 88830 81 02/01 PHILLIPS,LARRY 2,765.09 13,825.45 88830 203 02/08 PIERCE, JOEY 3,647.18 18,235.90 88830 53 2/89 POAGE, LARRY 2,346.70 11,733.50 88830 186 06/05 REAGAN, PETE 3,535.71 17,678.55 88830 41 9/85 SCHADER, TROY 1,524.99 7,624.95 88830 190 04/06 SHACKELFORD, GLEN 3,647.18 18,235.90 88830 SPRINGSTON, BARBARA 806.19 4,030.95 88830 165 12/02 TATE, RALPH 3,668.10 18,340.50 88830 71 1/00 WARFORD,THOMAS 2,502.72 12,513.60 88830 88 01/02 WOOD,RONNIE D 3,077.15 15,385.75 88830 208 9/88 WRIGHT, Barbara 1,691.34 8,456.70 88830 101,184.14 505,920.70 0.00 4/14/2023 K:\Fire Pension\Pension List\Pension List 2023\05 - May 2023 Fire WM DATE OF Regular Mo Year To Date Act 1373 Hours EMP# RETIREMENT NAME Benefit Reg Benefit Future Codes Supplement for Fut Supp 0.00 Double check -- should be zero 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 ACKNOWLEDGEMENT STATE OF ARKANSAS ) COUNTY OF WASHINGTON) SWORN TO AND SUBSCRIBED BEFORE ME THIS DAY OF NOTARY PUBLIC MY COMMISSION EXPIRES: 0.00 CHAIRMAN AND PRESIDENT YTD 6810-9810-5335-00 0.00 6810-9810-5335-06 0.00 Drop PayouUlntrest Checks to Drop Retirees 0.00 YTD Column 0.00 Difference 0.00 505920.70 #REF! "(should be off Supplemental amount for DROP par 4/14/2023 K:\Fire Pension\Pension List\Pension List 2023\05 - May 2023 Fire WM FIREMEN'S RELIEF AND PENSION Jun 6 2023 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 Hours EMP# RETIREMENT NAME Benefit Reg Benefit Future Codes Supplement for Fut Supp 177 4/04 BACHMAN, EDDIE 2,618.55 15,711.30 88830 68 7/99 BONADUCE, MICHAEL 2,988.76 17,932.56 88830 44 9/86 BOUDREY, BETTY MRS. 2,477.42 14,864.52 88830 43 9/87 BOUDREY, IRMA 2,089.28 12,535.68 88830 49 7/88 BOUDREY, JACK 1,647.63 9,885.78 88830 57 5/90 CATE, ROY 1,788.90 10,733.40 88830 188 12/05 DOSS, MARION H 5,376.91 32,261.46 88830 188 12/05 DOSS, MARION H plus 25 additional pay 731.61 4,389.66 192 4/06 FARRAR, DANNY 4,155.36 24,932.16 88830 170 5/03 FREEDLE, LARRY 3,816.75 22,900.50 88830 170 5/03 FREEDLE, LARRY plus 25 additional pay 141.37 848.22 92 03/02 GAGE,TOMMY 2,596.69 15,580.14 88830 182 10/04 JENKINS, EILEEN 1,788.75 10,732.50 93 06/02 JENKINS, JOHN 1,788.76 10,732.56 88830 86 07/01 JOHNSON,ROBERT 3,073.47 18,440.82 88830 219 4/95 JORDAN, SANDRA K 2,274.95 13,649.70 88830 76 5/88 JUDY, JAN 1,647.63 9,885.78 88830 37 3/84 KING, ARNOLD D. 1,522.37 9,134.22 88830 54 5/89 KING, ARVIL 1,711.21 10,267.26 88830 173 12/03 LEDBETTER, DENNIS 3,775.80 22,654.80 88830 51 10/88 LEWIS, CHARLES 1,647.63 9,885.78 88830 202 02/08 MAHAN, MARSHALL 4,077.28 24,463.68 88830 MASON, DONNA 1,631.25 9,787.50 88830 35 2/82 MC CHRISTIAN, DWAYNE 109.27 655.62 88840 209 8/81 MILLER, ALICE GAYLE 1,304.07 7,824.42 88830 73 2/00 MILLER,KENNETH 3,180.02 19,080.12 88830 73 2/00 MILLER,KENNETH plus 25 additional pay 170.60 1,023.60 217 2/86 MOORE, BETTY L 109.27 655.62 88840 48 7/88 MULLENS, DENNIS W. 2,191.30 13,147.80 88830 184 3/05 NAPIER, LONNIE 3,518.28 21,109.68 88830 196 01/02 ONEAL, TEDDY 4,120.99 24,725.94 88830 5/88 OSBURN, VERNA 1,899.66 11,397.96 88830 81 02/01 PHILLIPS,LARRY 2,765.09 16,590.54 88830 203 02/08 PIERCE, JOEY 3,647.18 21,883.08 88830 53 2/89 POAGE, LARRY 2,346.70 14,080.20 88830 186 06/05 REAGAN, PETE 3,535.71 21,214.26 88830 41 9/85 SCHADER, TROY 1,524.99 9,149.94 88830 190 04/06 SHACKELFORD, GLEN 3,647.18 21,883.08 88830 SPRINGSTON, BARBARA 806.19 4,837.14 88830 165 12/02 TATE, RALPH 3,668.10 22,008.60 88830 71 1/00 WARFORD,THOMAS 2,502.72 15,016.32 88830 88 01/02 WOOD,RONNIE D 3,077.15 18,462.90 88830 208 9/88 WRIGHT, Barbara 1,691.34 10,148.04 88830 101,184.14 607,104.84 0.00 4/14/2023 K:\Fire Pension\Pension List\Pension List 2023\06 - June 2023 Fire WM DATE OF Regular Mo Year To Date Act 1373 Hours EMP# RETIREMENT NAME Benefit Reg Benefit Future Codes Supplement for Fut Supp 0.00 Double check -- should be zero 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 ACKNOWLEDGEMENT STATE OF ARKANSAS ) COUNTY OF WASHINGTON) SWORN TO AND SUBSCRIBED BEFORE ME THIS DAY OF NOTARY PUBLIC MY COMMISSION EXPIRES: 0.00 CHAIRMAN AND PRESIDENT YTD 6810-9810-5335-00 0.00 6810-9810-5335-06 0.00 Drop PayouUlntrest Checks to Drop Retirees 0.00 YTD Column 0.00 Difference 0.00 607104.84 #REF! "(should be off Supplemental amount for DROP par 4/14/2023 K:\Fire Pension\Pension List\Pension List 2023\06 - June 2023 Fire WM FIREMEN'S RELIEF AND PENSION Jul 7 2023 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 Hours EMP# RETIREMENT NAME Benefit Reg Benefit Future Codes Supplement for Fut Supp 177 4/04 BACHMAN, EDDIE 2,618.55 18,329.85 88830 68 7/99 BONADUCE, MICHAEL 2,988.76 20,921.32 88830 44 9/86 BOUDREY, BETTY MRS. 2,477.42 17,341.94 88830 43 9/87 BOUDREY, IRMA 2,089.28 14,624.96 88830 49 7/88 BOUDREY, JACK 1,647.63 11,533.41 88830 57 5/90 CATE, ROY 1,788.90 12,522.30 88830 188 12/05 DOSS, MARION H 5,376.91 37,638.37 88830 188 12/05 DOSS, MARION H plus 25 additional pay 731.61 5,121.27 192 4/06 FARRAR, DANNY 4,155.36 29,087.52 88830 170 5/03 FREEDLE, LARRY 3,816.75 26,717.25 88830 170 5/03 FREEDLE, LARRY plus 25 additional pay 141.37 989.59 92 03/02 GAGE,TOMMY 2,596.69 18,176.83 88830 182 10/04 JENKINS, EILEEN 1,788.75 12,521.25 93 06/02 JENKINS, JOHN 1,788.76 12,521.32 88830 86 07/01 JOHNSON,ROBERT 3,073.47 21,514.29 88830 219 4/95 JORDAN, SANDRA K 2,274.95 15,924.65 88830 76 5/88 JUDY, JAN 1,647.63 11,533.41 88830 37 3/84 KING, ARNOLD D. 1,522.37 10,656.59 88830 54 5/89 KING, ARVIL 1,711.21 11,978.47 88830 173 12/03 LEDBETTER, DENNIS 3,775.80 26,430.60 88830 51 10/88 LEWIS, CHARLES 1,647.63 11,533.41 88830 202 02/08 MAHAN, MARSHALL 4,077.28 28,540.96 88830 MASON, DONNA 1,631.25 11,418.75 88830 35 2/82 MC CHRISTIAN, DWAYNE 109.27 764.89 88840 209 8/81 MILLER, ALICE GAYLE 1,304.07 9,128.49 88830 73 2/00 MILLER,KENNETH 3,180.02 22,260.14 88830 73 2/00 MILLER,KENNETH plus 25 additional pay 170.60 1,194.20 217 2/86 MOORE, BETTY L 109.27 764.89 88840 48 7/88 MULLENS, DENNIS W. 2,191.30 15,339.10 88830 184 3/05 NAPIER, LONNIE 3,518.28 24,627.96 88830 196 01/02 ONEAL, TEDDY 4,120.99 28,846.93 88830 5/88 OSBURN, VERNA 1,899.66 13,297.62 88830 81 02/01 PHILLIPS,LARRY 2,765.09 19,355.63 88830 203 02/08 PIERCE, JOEY 3,647.18 25,530.26 88830 53 2/89 POAGE, LARRY 2,346.70 16,426.90 88830 186 06/05 REAGAN, PETE 3,535.71 24,749.97 88830 41 9/85 SCHADER, TROY 1,524.99 10,674.93 88830 190 04/06 SHACKELFORD, GLEN 3,647.18 25,530.26 88830 SPRINGSTON, BARBARA 806.19 5,643.33 88830 165 12/02 TATE, RALPH 3,668.10 25,676.70 88830 71 1/00 WARFORD,THOMAS 2,502.72 17,519.04 88830 88 01/02 WOOD,RONNIE D 3,077.15 21,540.05 88830 208 9/88 WRIGHT, Barbara 1,691.34 11,839.38 88830 101,184.14 708,288.98 0.00 4/14/2023 K:\Fire Pension\Pension List\Pension List 2023\07 - July 2023 Fire WM DATE OF Regular Mo Year To Date Act 1373 Hours EMP# RETIREMENT NAME Benefit Reg Benefit Future Codes Supplement for Fut Supp 0.00 Double check -- should be zero 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 ACKNOWLEDGEMENT STATE OF ARKANSAS ) COUNTY OF WASHINGTON) SWORN TO AND SUBSCRIBED BEFORE ME THIS DAY OF NOTARY PUBLIC MY COMMISSION EXPIRES: 0.00 CHAIRMAN AND PRESIDENT YTD 6810-9810-5335-00 0.00 6810-9810-5335-06 0.00 Drop PayouUlntrest Checks to Drop Retirees 0.00 YTD Column 0.00 Difference 0.00 708288.98 #REF! "(should be off Supplemental amount for DROP par 4/14/2023 K:\Fire Pension\Pension List\Pension List 2023\07 - July 2023 Fire WM FIREMEN'S RELIEF AND PENSION Aug 8 2023 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 Hours EMP# RETIREMENT NAME Benefit Reg Benefit Future Codes Supplement for Fut Supp 177 4/04 BACHMAN, EDDIE 2,618.55 20,948.40 88830 68 7/99 BONADUCE, MICHAEL 2,988.76 23,910.08 88830 44 9/86 BOUDREY, BETTY MRS. 2,477.42 19,819.36 88830 43 9/87 BOUDREY, IRMA 2,089.28 16,714.24 88830 49 7/88 BOUDREY, JACK 1,647.63 13,181.04 88830 57 5/90 CATE, ROY 1,788.90 14,311.20 88830 188 12/05 DOSS, MARION H 5,376.91 43,015.28 88830 188 12/05 DOSS, MARION H plus 25 additional pay 731.61 5,852.88 192 4/06 FARRAR, DANNY 4,155.36 33,242.88 88830 170 5/03 FREEDLE, LARRY 3,816.75 30,534.00 88830 170 5/03 FREEDLE, LARRY plus 25 additional pay 141.37 1,130.96 92 03/02 GAGE,TOMMY 2,596.69 20,773.52 88830 182 10/04 JENKINS, EILEEN 1,788.75 14,310.00 93 06/02 JENKINS, JOHN 1,788.76 14,310.08 88830 86 07/01 JOHNSON,ROBERT 3,073.47 24,587.76 88830 219 4/95 JORDAN, SANDRA K 2,274.95 18,199.60 88830 76 5/88 JUDY, JAN 1,647.63 13,181.04 88830 37 3/84 KING, ARNOLD D. 1,522.37 12,178.96 88830 54 5/89 KING, ARVIL 1,711.21 13,689.68 88830 173 12/03 LEDBETTER, DENNIS 3,775.80 30,206.40 88830 51 10/88 LEWIS, CHARLES 1,647.63 13,181.04 88830 202 02/08 MAHAN, MARSHALL 4,077.28 32,618.24 88830 MASON, DONNA 1,631.25 13,050.00 88830 35 2/82 MC CHRISTIAN, DWAYNE 109.27 874.16 88840 209 8/81 MILLER, ALICE GAYLE 1,304.07 10,432.56 88830 73 2/00 MILLER,KENNETH 3,180.02 25,440.16 88830 73 2/00 MILLER,KENNETH plus 25 additional pay 170.60 1,364.80 217 2/86 MOORE, BETTY L 109.27 874.16 88840 48 7/88 MULLENS, DENNIS W. 2,191.30 17,530.40 88830 184 3/05 NAPIER, LONNIE 3,518.28 28,146.24 88830 196 01/02 ONEAL, TEDDY 4,120.99 32,967.92 88830 5/88 OSBURN, VERNA 1,899.66 15,197.28 88830 81 02/01 PHILLIPS,LARRY 2,765.09 22,120.72 88830 203 02/08 PIERCE, JOEY 3,647.18 29,177.44 88830 53 2/89 POAGE, LARRY 2,346.70 18,773.60 88830 186 06/05 REAGAN, PETE 3,535.71 28,285.68 88830 41 9/85 SCHADER, TROY 1,524.99 12,199.92 88830 190 04/06 SHACKELFORD, GLEN 3,647.18 29,177.44 88830 SPRINGSTON, BARBARA 806.19 6,449.52 88830 165 12/02 TATE, RALPH 3,668.10 29,344.80 88830 71 1/00 WARFORD,THOMAS 2,502.72 20,021.76 88830 88 01/02 WOOD,RONNIE D 3,077.15 24,617.20 88830 208 9/88 WRIGHT, Barbara 1,691.34 13,530.72 88830 101,184.14 809,473.12 0.00 4/14/2023 K:\Fire Pension\Pension List\Pension List 2023\08 - August 2023 Fire WM DATE OF Regular Mo Year To Date Act 1373 Hours EMP# RETIREMENT NAME Benefit Reg Benefit Future Codes Supplement for Fut Supp 0.00 Double check -- should be zero 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 ACKNOWLEDGEMENT STATE OF ARKANSAS ) COUNTY OF WASHINGTON) SWORN TO AND SUBSCRIBED BEFORE ME THIS DAY OF NOTARY PUBLIC MY COMMISSION EXPIRES: 0.00 CHAIRMAN AND PRESIDENT YTD 6810-9810-5335-00 0.00 6810-9810-5335-06 0.00 Drop PayouUlntrest Checks to Drop Retirees 0.00 YTD Column 0.00 Difference 0.00 809473.12 #REF! "(should be off Supplemental amount for DROP par 4/14/2023 K:\Fire Pension\Pension List\Pension List 2023\08 - August 2023 Fire WM FIREMEN'S RELIEF AND PENSION Sep 9 2023 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 Hours EMP# RETIREMENT NAME Benefit Reg Benefit Future Codes Supplement for Fut Supp 177 4/04 BACHMAN, EDDIE 2,618.55 23,566.95 88830 68 7/99 BONADUCE, MICHAEL 2,988.76 26,898.84 88830 44 9/86 BOUDREY, BETTY MRS. 2,477.42 22,296.78 88830 43 9/87 BOUDREY, IRMA 2,089.28 18,803.52 88830 49 7/88 BOUDREY, JACK 1,647.63 14,828.67 88830 57 5/90 CATE, ROY 1,788.90 16,100.10 88830 188 12/05 DOSS, MARION H 5,376.91 48,392.19 88830 188 12/05 DOSS, MARION H plus 25 additional pay 731.61 6,584.49 192 4/06 FARRAR, DANNY 4,155.36 37,398.24 88830 170 5/03 FREEDLE, LARRY 3,816.75 34,350.75 88830 170 5/03 FREEDLE, LARRY plus 25 additional pay 141.37 1,272.33 92 03/02 GAGE,TOMMY 2,596.69 23,370.21 88830 182 10/04 JENKINS, EILEEN 1,788.75 16,098.75 93 06/02 JENKINS, JOHN 1,788.76 16,098.84 88830 86 07/01 JOHNSON,ROBERT 3,073.47 27,661.23 88830 219 4/95 JORDAN, SANDRA K 2,274.95 20,474.55 88830 76 5/88 JUDY, JAN 1,647.63 14,828.67 88830 37 3/84 KING, ARNOLD D. 1,522.37 13,701.33 88830 54 5/89 KING, ARVIL 1,711.21 15,400.89 88830 173 12/03 LEDBETTER, DENNIS 3,775.80 33,982.20 88830 51 10/88 LEWIS, CHARLES 1,647.63 14,828.67 88830 202 02/08 MAHAN, MARSHALL 4,077.28 36,695.52 88830 MASON, DONNA 1,631.25 14,681.25 88830 35 2/82 MC CHRISTIAN, DWAYNE 109.27 983.43 88840 209 8/81 MILLER, ALICE GAYLE 1,304.07 11,736.63 88830 73 2/00 MILLER,KENNETH 3,180.02 28,620.18 88830 73 2/00 MILLER,KENNETH plus 25 additional pay 170.60 1,535.40 217 2/86 MOORE, BETTY L 109.27 983.43 88840 48 7/88 MULLENS, DENNIS W. 2,191.30 19,721.70 88830 184 3/05 NAPIER, LONNIE 3,518.28 31,664.52 88830 196 01/02 ONEAL, TEDDY 4,120.99 37,088.91 88830 5/88 OSBURN, VERNA 1,899.66 17,096.94 88830 81 02/01 PHILLIPS,LARRY 2,765.09 24,885.81 88830 203 02/08 PIERCE, JOEY 3,647.18 32,824.62 88830 53 2/89 POAGE, LARRY 2,346.70 21,120.30 88830 186 06/05 REAGAN, PETE 3,535.71 31,821.39 88830 41 9/85 SCHADER, TROY 1,524.99 13,724.91 88830 190 04/06 SHACKELFORD, GLEN 3,647.18 32,824.62 88830 SPRINGSTON, BARBARA 806.19 7,255.71 88830 165 12/02 TATE, RALPH 3,668.10 33,012.90 88830 71 1/00 WARFORD,THOMAS 2,502.72 22,524.48 88830 88 01/02 WOOD,RONNIE D 3,077.15 27,694.35 88830 208 9/88 WRIGHT, Barbara 1,691.34 15,222.06 88830 101,184.14 910,657.26 0.00 4/14/2023 K:\Fire Pension\Pension List\Pension List 2023\09 - September 2023 Fire WM DATE OF Regular Mo Year To Date Act 1373 Hours EMP# RETIREMENT NAME Benefit Reg Benefit Future Codes Supplement for Fut Supp 0.00 Double check -- should be zero 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 ACKNOWLEDGEMENT STATE OF ARKANSAS ) COUNTY OF WASHINGTON) SWORN TO AND SUBSCRIBED BEFORE ME THIS DAY OF NOTARY PUBLIC MY COMMISSION EXPIRES: 0.00 CHAIRMAN AND PRESIDENT YTD 6810-9810-5335-00 0.00 6810-9810-5335-06 0.00 Drop PayouUlntrest Checks to Drop Retirees 0.00 YTD Column 0.00 Difference 0.00 910657.26 #REF! "(should be off Supplemental amount for DROP par 4/14/2023 K:\Fire Pension\Pension List\Pension List 2023\09 - September 2023 Fire WM FIREMEN'S RELIEF AND PENSION Oct 10 2023 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 Hours EMP# RETIREMENT NAME Benefit Reg Benefit Future Codes Supplement for Fut Supp 177 4/04 BACHMAN, EDDIE 2,618.55 26,185.50 88830 68 7/99 BONADUCE, MICHAEL 2,988.76 29,887.60 88830 44 9/86 BOUDREY, BETTY MRS. 2,477.42 24,774.20 88830 43 9/87 BOUDREY, IRMA 2,089.28 20,892.80 88830 49 7/88 BOUDREY, JACK 1,647.63 16,476.30 88830 57 5/90 CATE, ROY 1,788.90 17,889.00 88830 188 12/05 DOSS, MARION H 5,376.91 53,769.10 88830 188 12/05 DOSS, MARION H plus 25 additional pay 731.61 7,316.10 192 4/06 FARRAR, DANNY 4,155.36 41,553.60 88830 170 5/03 FREEDLE, LARRY 3,816.75 38,167.50 88830 170 5/03 FREEDLE, LARRY plus 25 additional pay 141.37 1,413.70 92 03/02 GAGE,TOMMY 2,596.69 25,966.90 88830 182 10/04 JENKINS, EILEEN 1,788.75 17,887.50 93 06/02 JENKINS, JOHN 1,788.76 17,887.60 88830 86 07/01 JOHNSON,ROBERT 3,073.47 30,734.70 88830 219 4/95 JORDAN, SANDRA K 2,274.95 22,749.50 88830 76 5/88 JUDY, JAN 1,647.63 16,476.30 88830 37 3/84 KING, ARNOLD D. 1,522.37 15,223.70 88830 54 5/89 KING, ARVIL 1,711.21 17,112.10 88830 173 12/03 LEDBETTER, DENNIS 3,775.80 37,758.00 88830 51 10/88 LEWIS, CHARLES 1,647.63 16,476.30 88830 202 02/08 MAHAN, MARSHALL 4,077.28 40,772.80 88830 MASON, DONNA 1,631.25 16,312.50 88830 35 2/82 MC CHRISTIAN, DWAYNE 109.27 1,092.70 88840 209 8/81 MILLER, ALICE GAYLE 1,304.07 13,040.70 88830 73 2/00 MILLER,KENNETH 3,180.02 31,800.20 88830 73 2/00 MILLER,KENNETH plus 25 additional pay 170.60 1,706.00 217 2/86 MOORE, BETTY L 109.27 1,092.70 88840 48 7/88 MULLENS, DENNIS W. 2,191.30 21,913.00 88830 184 3/05 NAPIER, LONNIE 3,518.28 35,182.80 88830 196 01/02 ONEAL, TEDDY 4,120.99 41,209.90 88830 5/88 OSBURN, VERNA 1,899.66 18,996.60 88830 81 02/01 PHILLIPS,LARRY 2,765.09 27,650.90 88830 203 02/08 PIERCE, JOEY 3,647.18 36,471.80 88830 53 2/89 POAGE, LARRY 2,346.70 23,467.00 88830 186 06/05 REAGAN, PETE 3,535.71 35,357.10 88830 41 9/85 SCHADER, TROY 1,524.99 15,249.90 88830 190 04/06 SHACKELFORD, GLEN 3,647.18 36,471.80 88830 SPRINGSTON, BARBARA 806.19 8,061.90 88830 165 12/02 TATE, RALPH 3,668.10 36,681.00 88830 71 1/00 WARFORD,THOMAS 2,502.72 25,027.20 88830 88 01/02 WOOD,RONNIE D 3,077.15 30,771.50 88830 208 9/88 WRIGHT, Barbara 1,691.34 16,913.40 88830 101,184.14 1,011,841.40 0.00 4/14/2023 K:\Fire Pension\Pension List\Pension List 2023\10 - October 2023 Fire WM DATE OF Regular Mo Year To Date Act 1373 Hours EMP# RETIREMENT NAME Benefit Reg Benefit Future Codes Supplement for Fut Supp 0.00 Double check -- should be zero 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 ACKNOWLEDGEMENT STATE OF ARKANSAS ) COUNTY OF WASHINGTON) SWORN TO AND SUBSCRIBED BEFORE ME THIS DAY OF NOTARY PUBLIC MY COMMISSION EXPIRES: 0.00 CHAIRMAN AND PRESIDENT YTD 6810-9810-5335-00 0.00 6810-9810-5335-06 0.00 Drop PayouUlntrest Checks to Drop Retirees 0.00 YTD Column 0.00 Difference 0.00 1011841.40 #REF! "(should be off Supplemental amount for DROP par 4/14/2023 K:\Fire Pension\Pension List\Pension List 2023\10 - October 2023 Fire WM Fire Pension Fund Revenue and Expense Summary 12/31/2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Revenues: Employee Contributions $ - $ $ $ $ $ $ $ Employer Contributions $ - $ $ $ $ $ $ $ State Insurance Tax $ 325,746.25 $ 317,033.11 $ 282,432.97 274,560.98 229,664.81 $ 240,791.01 $ 221,627.01 $ 221,178.00 $ 231,280.75 $ 220,080.96 Local Millage (A mills) $ 756,699.35 $ 685,875.24 $ 640,639.48 624,223.49 587,536.68 $ 581,045.07 $ 551,507.74 $ 539,827.31 $ 527,589.73 $ 494,749.58 Interest and Dividends $ 29,886.44 $ 39,452.33 $ 56,404.66 69,100.21 81,065.76 $ 77,227.20 $ 94,574.56 $ 107,886.76 $ 132,617.08 $ 138,740.86 Gain (Loss) on Sales $ (15,063.63) $ (568.53) $ 152,203.52 69,678.92 115,744.70 $ 87,484.39 $ 538,693.95 $ 209,397.20 $ 144,875.98 $ 93,762.08 Future Supplement $ 75,568.92 $ 74,104.43 $ 68,828.73 66,300.00 54,390.00 $ 64,680.00 $ 73,224.00 $ 63,560.00 $ 56,563.00 $ 44,215.00 Misc Revenue $ 1.26 $ - $ 306.82 356.00 3,002.68 $ 8.16 $ 83.12 $ 8.00 $ 365.41 $ 10.70 Total Revenue $ 1,172,838.59 $ 1,115,896.58 $ 1,200,816.18 $ 1,104,219.60 $ 1,071,404.63 $ 1,051,235.83 $ 1,479,710.38 $ 1,141,857.27 $ 1,093,291.95 $ 991,559.18 Expenditures Regular Monthly Benefits $ 1,214,209.68 $ 1,245,963.68 $ 1,257,842.64 1,268,580.70 1,288,442.29 $ 1,289,776.80 $ 1,320,279.04 $ 1,355,680.14 $ 1,358,340.86 $ 1,388,308.71 Future Supplement $ 75,568.92 $ 72,220.48 $ 68,826.00 65,400.00 54,390.00 $ 64,680.00 $ 71,280.00 $ 63,280.00 $ 56,316.00 $ 44,215.00 Drop Expense $ - $ - $ - - - $ - $ - $ - $ - $ - Investment Manager Fees $ 2,274.00 $ 2,732.00 $ 7,676.00 12,878.00 14,860.00 $ 15,928.00 $ 17,201.00 $ 19,989.00 $ 21,988.00 $ 22,846.00 Other Expenses: $ - $ - $ - - - $ - $ - $ - $ - Audit Fees $ 3,500.00 $ 3,500.00 $ 3,500.00 3,500.00 3,500.00 $ 3,500.00 $ 3,500.00 $ 3,500.00 $ 3,500.00 $ 3,400.00 Professional Services $ - $ - $ - - - $ - $ - $ 1,240.00 $ - $ - Legal Fees $ - $ - $ - - - $ - $ - $ - $ - $ - Bank Fees $ 236.24 $ 354.91 $ 270.65 136.74 100.82 $ 84.07 $ 60.70 $ 54.58 $ 49.88 $ 53.55 Publications and Dues $ 565.00 $ - $ 260.00 260.00 250.00 $ 500.00 $ 250.00 $ - $ 250.00 $ 250.00 Travel and Training $ - $ - - - $ - $ - $ - $ - $ - Total Expenses $ 1,296,353.84 $ 1,324,771.07 $ 1,338,375.29 $ 1,350,755.44 $ 1,361,543.11 $ 1,374,468.87 $ 1,412,570.74 $ 1,443,743.72 $ 1,440,444.74 $ 1,459,073.26 Net Income (Loss) Before Market Adj $ (123,515.25) $ (208,874.49) $ (137,559.11) $ (246,535.84) $ (290,138.48) $ (323,233.04) $ 67,139.64 $ (301,886.45) $ (347,152.79) $ (467,514.08) Market Adjustment $ (135,906.92) $ (54,071.25) $ (431,623.25) 301,976.14 (339,512.60) $ 200,386.66 $ (339,573.29) $ (406,301.39) $ 101,904.76 $ 376,760.23 Net Income (Loss) $ (259,422.17) $ (262,945.74) $ (569,182.36) $ 55,440.30 $ (629,651.08) $ (122,846.38) $ (272,433.65) $ (708,187.84) $ (245,248.03) $ (90,753.85) Book Value Total Reserve Assets * 1,816,996.19 1,917,261.40 2,123,664.93 2,258,784.31 2,488,088.30 $ 2,778,226.78 $ 3,043,527.57 $ 3,021,845.48 $ 3,322,086.79 $ 3,668,717.01 Market Value Total Reserve Assets * $ 1,363,724.70 $ 1,643,257.92 1,984,177.37 2,608,561.62 2,585,684.35 $ 3,271,521.14 $ 3,273,057.94 $ 3,576,563.72 $ 4,280,570.15 $ 4,534,331.93 *Assets less any liabilities ** Market Value calculated at year end 4/14/2023 K:\Fire Pension\Revenue & Expense Summary\2022 Revenue & Expense Report\Fire Pension Summary 12.31.22 Fire Pension Fund Revenue and Expense Summary 3/31/2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Revenues: Employee Contributions $ $ $ $ $ $ $ $ Employer Contributions $ $ $ $ $ $ $ $ State Insurance Tax $ $ 325,746.25 $ 317,033.11 $ 282,432.97 274,560.98 229,664.81 $ 240,791.01 $ 221,627.01 $ 221,178.00 $ 231,280.75 Local Millage (A mills) $ 47,938.55 $ 756,699.35 $ 685,875.24 $ 640,639.48 624,223.49 587,536.68 $ 581,045.07 $ 551,507.74 $ 539,827.31 $ 527,589.73 Interest and Dividends $ 11,269.40 $ 29,886.44 $ 39,452.33 $ 56,404.66 69,100.21 81,065.76 $ 77,227.20 $ 94,574.56 $ 107,886.76 $ 132,617.08 Gain (Loss) on Sales $ - $ (15,063.63) $ (568.53) $ 152,203.52 69,678.92 115,744.70 $ 87,484.39 $ 538,693.95 $ 209,397.20 $ 144,875.98 Future Supplement $ $ 75,568.92 $ 74,104.43 $ 68,828.73 66,300.00 54,390.00 $ 64,680.00 $ 73,224.00 $ 63,560.00 $ 56,563.00 Misc Revenue $ $ 1.26 $ - $ 306.82 356.00 3,002.68 $ 8.16 $ 83.12 $ 8.00 $ 365.41 Total Revenue $ 59,207.95 $ 1,172,838.59 $ 1,115,896.58 $ 1,200,816.18 $ 1,104,219.60 $ 1,071,404.63 $ 1,051,235.83 $ 1,479,710.38 $ 1,141,857.27 $ 1,093,291.95 Expenditures Regular Monthly Benefits $ 303,552.42 $ 1,214,209.68 $ 1,245,963.68 $ 1,257,842.64 1,268,580.70 1,288,442.29 $ 1,289,776.80 $ 1,320,279.04 $ 1,355,680.14 $ 1,358,340.86 Future Supplement $ - $ 75,568.92 $ 72,220.48 $ 68,826.00 65,400.00 54,390.00 $ 64,680.00 $ 71,280.00 $ 63,280.00 $ 56,316.00 Drop Expense $ - $ - $ - $ - - - $ - $ - $ - $ - Investment Manager Fees $ 507.00 $ 2,274.00 $ 2,732.00 $ 7,676.00 12,878.00 14,860.00 $ 15,928.00 $ 17,201.00 $ 19,989.00 $ 21,988.00 Other Expenses: $ - $ - $ - $ - - - $ - $ - $ - $ - Audit Fees $ $ 3,500.00 $ 3,500.00 $ 3,500.00 3,500.00 3,500.00 $ 3,500.00 $ 3,500.00 $ 3,500.00 $ 3,500.00 Professional Services $ $ - $ - $ - - - $ - $ - $ 1,240.00 $ - Legal Fees $ $ - $ - $ - - - $ - $ - $ - $ - Bank Fees $ $ 236.24 $ 354.91 $ 270.65 136.74 100.82 $ 84.07 $ 60.70 $ 54.58 $ 49.88 Publications and Dues $ $ 565.00 $ - $ 260.00 260.00 250.00 $ 500.00 $ 250.00 $ - $ 250.00 Travel and Training $ $ - $ - $ - - - $ - $ - $ - $ - Total Expenses $ 304,059.42 $ 1,296,353.84 $ 1,324,771.07 $ 1,338,375.29 $ 1,350,755.44 $ 1,361,543.11 $ 1,374,468.87 $ 1,412,570.74 $ 1,443,743.72 $ 1,440,444.74 Net Income (Loss) Before Market Adj $ (244,851.47) $ (123,515.25) $ (208,874.49) $ (137,559.11) $ (246,535.84) $ (290,138.48) $ (323,233.04) $ 67,139.64 $ (301,886.45) $ (347,152.79) Market Adjustment** $ (135,906.92) $ (54,071.25) $ (431,623.25) 301,976.14 (339,512.60) $ 200,386.66 $ (339,573.29) $ (406,301.39) $ 101,904.76 Net Income (Loss) $ (244,851.47) $ (259,422.17) $ (262,945.74) $ (569,182.36) $ 55,440.30 $ (629,651.08) $ (122,846.38) $ (272,433.65) $ (708,187.84) $ (245,248.03) Book Value Total Reserve Assets * 1,572,674.37 1,816,996.19 1,917,261.40 2,123,664.93 2,258,784.31 2,488,088.30 $ 2,778,226.78 $ 3,043,527.57 $ 3,021,845.48 $ 3,322,086.79 Market Value Total Reserve Assets * $ 1,391,233.22 $ 1,363,724.70 $ 1,643,257.92 1,984,177.37 2,608,561.62 2,585,684.35 $ 3,271,521.14 $ 3,273,057.94 $ 3,576,563.72 $ 4,280,570.15 *Assets less any liabilities ** Market Value calculated at year end 4/14/2023 K:\Fire Pension\Revenue & Expense Summary\2023 Revenue & Expense Report\Fire Pension Summary 03.31.23 Osborn, Carreiro & Associates, Inc. ACTUARIES • CONSULTANTS • ANALYSTS September 19, 2022 Mr. David Clark, Executive Director Arkansas Fire and Police Pension Review Board 620 West Third Street, Suite 200 Little Rock, AR 72201 RE: Fayetteville Fire Pension Fund Estimated 2023 Premium Tax Allocation Mr. Clark: One Union National Plaza, Suite 1690 124 West Capitol Avenue Little Rock, Arkansas 72201 (501)376-8043 fax (501)376-7847 We have estimated the base benefit calculations needed for the Premium Tax Allocation formula created by Act 979 of 2011 and PRB Board Rule 12. This letter will provide these estimates for the above referenced Local Plan. Actual Benefits Valued l/l/2022 $1,214,210 Base Benefits Valued l/l/2022 $679,663 Actuarial Cost of Base Benefits $736,167 Estimated Premium Tax 2023 30% of Actuarial Cost $220,850 Estimated Additional Allocation 2023, if eligible 15% of Actuarial Cost $110,425 2022 Employer Contributions for Additional Allocation 2022 Eligibility 80% of Actuarial Cost $588,933 Actual 2021 Reported Employer Contribution $715,916 Shortfall based on 2021 contributions $0 Expected Eligibility based on 2021 contributions Yes The premium tax formula allocates monies based on an Actuarial Cost derived from a Local Plan's Base Benefits (that is, 50% of Final Salary, minimum $350 per month for paid members, and $100 per month for volunteer members). Each Local Plan receives 30% of this calculated Actuarial Cost as Premium Tax. A Local Plan is also eligible for an Additional Allocation equal to 15% of this Actuarial Cost, provided that the Employer Contributions other than Premium Tax made by the location are equal to at least 80% of the Actuarial Cost. The contributions made during calendar year 2022 will determine eligibility for Additional Allocation for 2023. We have included last year's contributions and the estimated shortfall to become eligible for the Additional Allocation if Employer Contributions were to remain level in 2022. As a reminder, these numbers constitute estimates and may vary materially from the actual premium tax allocation. In particular, an additional employer contribution equal to the shortfall estimate shown will not guarantee Additional Allocation eligibility in 2023. Please note that the Additional Allocation may be proportionally reduced due to a shortfall in Premium Tax revenues. Such a reduction last occurred in 2018, but has not occurred in recent years. Analysis of Fayetteville Premium Tax Distributed Based on Valuation A Valuation Benefits Valued B Base Benefits Valued C Valuation Accrued Liability D Base Benefit Accrued Liability E Market Value of Assets F Unfunded Base Benefit AL (D - E) G Amortization Factor H Base Benefit Actuarial Cost (F/G) I Premium Tax Amount (30% of H) J Additional Allocation (15% of H) Fire Fire Fire Police Police Police 2021 2022 Proj 2023 2021 2022 Proj 2023 1/1/2020 1/1/2021 1/1/2022 1/1/2020 1/1/2021 1/1/2022 1,257,843 1,257,843 1,214,210 1,410,487 1,358,105 1,358,105 704,380 704,380 679,663 824,489 796,919 796,919 14,474,931 14,068,129 14,068,129 16,059,261 15,204,980 15,204,080 8,304,040 7,874,125 7,753,151 9,624,153 8,921,800 8,970,820 2,731,253 2,148,179 1,930,020 6,144,284 6,196,387 6,560,436 5,572,787 5,725,946 5,823,131 3,479,869 2,725,413 2,410,384 7.910065 7.910065 7.910065 7.910065 7.910065 7.910065 704,518 723,881 736,167 439,929 344,550 304,724 211,356 217,164 220,850 131,979 103,365 91,417 105,678 108,582 110,425 65,989 51,683 45,709 Paxton, Kara From: Mayor Sent: Tuesday, June 28, 2022 3:33 PM To: David Clark; Alan Watson; Bill Lundy; Buddy Ledford; Farris Hensley; Jim Gates; Lance Spicer (Ispicer@cityhs.net); Melanie Hazeslip; Sara Lenehan (slenehan@littlerock.gov) Cc: Jen Sines; Lesley Weaver; preaganl4@gmail.com; jodyc@oca-actuaries.com; Greg.leding@senate.ar.gov; nicole.clowney@arkansashouse.org; denise.garner@arkansashouse.org; david.whitaker@arkansashouse.org; Norton, Susan; Becker, Paul; Williams, Kit; Harvey, Sonia; Jones, D'Andre; Kinion, Mark; Wiederkehr, Mike; Scroggin, Sloan; Bunch, Sarah; Turk, Teresa; Hertzberg, Holly; Paxton, Kara; rcate48@yahoo.com; lonniednapier@gmail.com; Ronniewood62@gmail.com; totwarford@gmail.com Subject: RE: Fayetteville Fire Funding Status Follow -Up Attachments: Ltr to David Clark PRB.pdf Mr. Clark, Please see the attached letter in response to your letter of May 10, 2022. Thanks. Mayor Jordan From: David Clark <dclark@lopfi-prb.com> Sent: Wednesday, May 11, 2022 10:50 AM To: Alan Watson <rwat2004@yahoo.com>; Bill Lundy <wblundy@sbcglobal.net>; Buddy Ledford <buddy.ledford@yahoo.com>; Farris Hensley <policepension@gmail.com>; Jim Gates <jimrgates@gmail.com>; Lance Spicer (Ispicer@cityhs.net) <Ispicer@cityhs.net>; Melanie Hazeslip <Melanie.Hazeslip@dfa.arkansas.gov>; Sara Lenehan (slenehan@littlerock.gov) <slenehan@littlerock.gov> Cc: Jen Sines <jsines@lopfi-prb.com>; Lesley Weaver <Iweaver@lopfi-prb.com>; Mayor <Mayor@fayetteville-ar.gov>; preaganl4@gmail.com; jodyc@oca-actuaries.com; Greg.leding@senate.ar.gov; nicole.clowney@arkansashouse.org; denise.garner@arkansashouse.org; david.whitaker@arkansashouse.org Subject: Fayetteville Fire Funding Status Follow -Up CAUTION: This email originated from outside of the City of Fayetteville. Do not click links or open attachments unless you recognize the sender and know the content is safe. Good Morning PRB Members - Most of you know that the Fayetteville Fire Pension Fund is in a precarious position in terms of its funding status. The PRB sent the attached letter and enclosures to the board of trustees and city council members asking for what has occurred to ensure assets will be available to pay all promised benefits. We will supplement this email with the location's response to the PRB's outreach. Regards, David NOTICE: Information contained in this E-mail, including attachments, may be confidential. It is intended only for the named individual(s). The intended recipient(s) is/are advised that state and federal privacy laws may restrict your use of confidential or personal information. If the reader of this message is not the intended recipient(s), you are hereby notified that you should not disseminate, distribute, or forward this transmission, including any attachments. If you have received this transmission in error, please promptly notify the sender and delete the material from your computer system. All email sent to or from this address is subject to archival, monitoring or review by, and/or disclosure to, someone other than the recipient. OFFICE OF THE MAYOR June 28, 2022 Executive Director David B. Clark Arkansas Fire & Police Pension Review Board 620 W. 3rd, Suite 200 Little Rock, AR 72201-2223 Re: Your Letter dated May 10, 2022 Dear Mr. Clark: Thank you for your letter dated May 10, 2022 concerning the long and continuing status of the Fayetteville Fire Pension Fund as actuarially unsound. The City had warned the Fire Pension Fund Board of Trustees as long ago as 2006 of the likely insolvency of the pension fund if corrective measures were not soon undertaken. By the time I was elected Mayor and began sitting with the Fire Pension and Relief Board in 2009, the actuarially unsound nature of the Pension Fund had already occurred, due to increased pension benefits approved by your Arkansas Fire and Police Pension Review Board. Reasonable corrective measures (such as a reasonable reduction in benefits to retirees) were suggested then and have been repeatedly suggested as a means to make the fund solvent. I have also suggested that a pension member submit a request to the City Council to present a ballot question to our citizens to restore the authorized millage for the local pensions to one mill each for the local police and fire pension. This millage was rolled back to .4 mills each pursuant to state statute. It is true that PRB representatives have given presentations to the City and Local Trustees concerning the deteriorating condition of the Local Pension Fund, but solutions presented were not financially sound as they placed the entire burden, with no reduction of increased benefits, on the current Fayetteville taxpayers. PRB offered two options: 1, consolidate with LOPFI, which would give total control of the plan to LOPFI with no limit to the amount of funds Fayetteville would have to contribute in a given year, or 2. subsidize the fund with local tax dollars over and above the tax amounts authorized by the voter. City of Fayetteville 113 W. Mountain Street Fayetteville, AR 72701 www.fayetteville-ar.gov As required by state law, I have every year (including 2020, 2021 and 2022) publicly informed the Fayetteville City Council during their City Council meeting of the dangerously deteriorating state of the Fire Pension and Relief Fund. The Fayetteville City Council extensively discussed the possible consolidation years ago but refused to place the burden of the pensioners' doubled benefits upon the Fayetteville taxpayers without the Pension Board agreeing to some adjustments of these benefits closer to the statutory level when this pension fund was first established. The Fire Pension and Relief Board of Trustees has continually refused to consider any reductions in benefits to save their pension fund. Each year the procedure to consolidate with LOPFI has been reviewed with the Local Pension Board but the trustees have not brought a request forward to the City Council for discussion since the 2015 discussion. This administration continues to oppose LOPFI consolidation because it would give total undisputed control to the LOPFI Board. The City of Fayetteville would be required to provide a subsidy to the Local Fire and Relief Fund above the amount approved by the original voter referendum based on pension increases not approved by the City Council or the citizens of Fayetteville. For a more complete history of this lengthy problem, I have asked City Attorney Kit Williams to prepare a memo to explain to the Fayetteville City Council how this sad situation has occurred. I have attached his memo for your information. Sincerely, Lioneld Mayor L] DEPARTMENTAL CORRESPONDENCE OFFICE. OF THE CITY ATTORNEY TO: Mayor Jordan City Council Kara Paxton, City Clerk / Treasurer Kit Williams City Attorney Blake Pennington Assistant City Attorney Lodi Maker CC: Susan Norton, Chief of Staff Paralegal Paul Becker, Finance Director FROM: Kit Williams, City Attorney V DATE: June 28, 2022 RE: History of approaching insolvency of the local Fire Pension and Relief Pension Fund Executive Director David Clark's letter asks what the Fire Pension and Relief Board of Trustees and City Council have done in 2020, 2021, and 2022 concerning "the Local Plan's severely underfunded condition?" The unfortunate answer is that reasonable actions to preserve the viability of the Fire Pension Fund are no longer available at this late date. The Arkansas Fire and Police Pension Review Board (PRB) had already determined that the Fire Pension Fund was actuarily unsound by the end of 2005. Please see my attached memo of August 31, 2006 to the Fire Pension Board. The reasonable options to preserve this local pension plan serving former fire fighters have now become very limited because the Fayetteville Fire Pension and Relief Board of Trustees failed take reasonable measures in 2006, 2008, or soon thereafter despite clear and repeated warnings from the City. I have also attached my "Train Wreck Approaching" memo of April 28, 2008 to the Fire Pension and Relief Board for historical perspective and to show that clear warning of the impending future insolvency of the pension fund had been provided to the Pension Board if the Board chose to do nothing. Unfortunately, the Fire Pension Board basically did nothing but continue to collect pension benefits at such a high level (104% of ending pay) that my prediction of future problems may soon come true. In fairness, the Fire Pension Fund Board of Trustees did pay for an actuary study by the PRB's actuary to determine if minor reductions of the increased pension benefits could resolve the future potential insolvency. That actuarial report and comments from the actuary revealed that reductions of around 20% of the pension benefits which had been substantially increased (with PRB approval) would likely prevent future loss of the pension fund's assets and its bankruptcy. Although initially painful to the beneficiaries, more than half of the increased benefits approved by the PRB could still be paid if benefits were adjusted promptly. These remaining increased benefits would have been on top of and in addition to the 50% of ending salary benefit when all pension benefits began pursuant to state law. Pensioners could rely upon these not as much increased benefits for their lifetime unlike the larger benefits that were deleting the pension fund. Relying on the statute and a Supreme Court Decision, I opined that the Pension Board had the statutory and inherent power to lower the benefits enough to save the pension fund. Unfortunately, the Fayetteville Fire Pension Board Trustees except for the Mayor and City Clerk rejected any reduction of benefits to save the pension fund from total depletion. I disagreed when the Attorney General opined that no reduction in benefits cuuld occur before.actual bankruptcy of the pension fund. However, to make it crystal clear that a pension board could save its pension fund from bankruptcy by adjusting benefits if absolutely necessary, the City prepared a proposed amendment to State Code to expressly and specifically empower (but not require) a pension board to lower benefits to prevent a catastrophic failure of the pension fund. A member of the Fayetteville Fire Pension Fund Board of Trustees appeared at the Legislative Committee meeting in Little Rock considering the City of Fayetteville's proposal and spoke in opposition to changing the law to expressly allow the pension board to just have the right to consider a decrease in pension benefits to save the pension fund. The pensioners prevailed in the Legislature, and the City's empowering bill was rejected. Around 2015, the Fayetteville Fire Pension Board asked the Fayetteville City Council to assume their debt by consolidating with LOPFI. Because the unsound condition of the Fire Pension and Relief Fund was caused by the Fire Pension and Relief Fund Board of Trustees' more than doubling their pension benefits, it made little sense to the Fayetteville City Council that Fayetteville taxpayers should be responsible to pay for the unwise decisions by the Fire Pension Board of Trustees to raise their pensions to unsustainable levels. With no reduction of the increased pension benefits offered by the Pension Board, the Fayetteville City Council refused to agree to consolidate this insolvent pension fund and place the burden of those higher pension benefits upon Fayetteville's taxpayers. The Arkansas Fire and Police Pension Review Board many years ago presented through a Legislative Sponsor a last second Legislative bill which would have forced cities (including Fayetteville) to consolidate their local pension plans with LOPFI to lock in unsustainable pension benefits which our city taxpayers would then have to pay. This would have cost our taxpayers millions of dollars (according to PRB's own estimates). When I pointed this out to the local Legislative Sponsor, he quickly and properly withdrew this bill. The Legislature could still possibly pass a law to try to force cities, including Fayetteville, to consolidate their local Fire and Police Pension and Relief Funds with LOPFI and thus become responsible to pay the pension benefits that had bankrupted the pension funds. 2 The pension benefits for retired fire fighters were initially statutorily set at 50% of ending pay for life. There is no age requirement or limitation. Many pensions require a retiree to reach 55 to 65 years of age before benefits are received. In contrast, the State Local Fire Pension provides that a fire fighter with twenty years of service could retire at 40 or even younger and immediately begin receiving pension benefits for life. These 15 to 25 extra benefit years that the pension must pay place a much bigger burden on the pension plan. These benefits had been repeatedly raised and new benefits added by the Fayetteville Fire Pension Board until their final request was turned down in 2006. The annual benefit costs to the pension fund have also more than doubled because of an additional 15% increase over the 90% of ending pay benefit. This more than doubled level of benefits simply cannot be supported by the existing millage, turnback, and existing pension fund assets. The City has advised the Fire Pension Board to request and work for a citizens' vote for an increase in millage. An increase as small as .3 mills to reach a .7 mills total might stabilize this pension. The Fire Pension Board has unfortunately taken no action to request a millage increase from the voters. I disagree with the Attorney General's opinion that the City Council, without a vote of the people, could raise the millage support of the local pension funds. I will supply any Council Member with my memo on this issue if requested. I also do not agree with any Attorney General Opinion that under current statutory law Fayetteville taxpayers are responsible to pay more than the current annual millage to support the pension fund. The Fire Pension and Relief Fund Board of Trustees is controlled by Pension beneficiaries, not the City. When millage receiving entities (School District, County and Pension Funds) were successfully sued for a constitutional violation in 1990's, it was the Pension Fund Boards of Trustees that made all the decisions in that case and agreed to reduce their millage allotment from .5 mill to .4 mill to settle that case. The City could not tell the Pension Board what to do as it is an independent entity. When distribution of TIF millage increments was the subject of litigation, the Pension Boards were independent parties represented by their own lawyer. The Assessor's mistaken assignment of pension millage increments to the TIF district or the school district was reversed by the Arkansas Supreme Court which certainly recognized the defendant Pension Boards as separate independent parties from the City of Fayetteville which was the plaintiff in this Declaratory Judgment case. As independent parties in current law, the City of Fayetteville should not be obligated to bail them out for their excessive benefits that will likely bankrupt their pension in the future. As independent entities, the local pension fund boards of trustees have the fiduciary duty to preserve the viability of their pension funds as they have been repeatedly advised. Overly optimistic actuarial assumptions and actuarial pension tests have resulted in many local pension funds in Arkansas to become unsound. if a citizens' vote to increase millage to .7 mills for the Fire Pension Fund should be undertaken, it should also raise the Police Pension fund (which is not quite as endangered) millage to the same .7 mills. 3 THE CITY OF FAYETTEVILLE, ARKANSAS KIT WILLIAMS, CITY ATTORNEY DAVID WMTAKER, ASST. CITY ATTORNEY DEPARTMENTAL CORRESPONDENCE TO: Firefighters Pension and Relief Board FROM: licit Williams, City Attorney C \ /� � DATE: August 31, 2006 LEGAL DEPARTMENT RE: A Resolution To Authorize The Expenditure Of The Fayetteville Firefighters Pension And Relief Fund Moneys To Pay For A Cash Flow Projection Evaluation Study By The Arkansas Fire & Police Pension Board As members of the Board of Trustees of the Firefighters Pension and Relief Board, you owe a fiduciary duty to all pensioners to manage the Pension Fund so that any "proposed increase in pension and relief fund benefits will not result in the deterioration of actuarial soundness ...." A.C.A. §24-11-101 Legislative intent "No benefit enhancement ... shall be implemented if it would cause the publicly supported retirement system's unfunded actuarial accrued liabilities to exceed a thirty-year amortization." A.C.A. 24-10-106 Limitation on benefit increase This Board of Trustees is required to report to the City Council every year in January concerning the soundness of its fund. "The board of trustees shall report to the council or city commission the condition of the pension fund on the first regular meeting in January of each year." A.C.A. §24-11-412 Report required If this Board increases benefits to such an extent that the assets of the fund become exhausted, the remaining beneficiaries shall have their benefits reduced pro rata. "If at any time there should not be sufficient money in the fund to pay each person the full amount to which he or she may be entitled, the beneficiaries shall be paid by prorating the fund available among them." A.C.A. §24-11-416 Pro rata share Since the actuary has already determined the fund is not actuarially sound, his prediction is that the firnd will be exhausted during the lifetimes of you or your beneficiary members. Any enhancement of benefits will hasten the day every member of this Pension Fund will have his or her benefits dramatically and permanently reduced. Acting as fiduciaries for every beneficiary, your duty should be to try to avoid that benefit reduction day and to try to preserve this pension fund and not allow its "deterioration of actuarial soundness." Attached please find three pages of 2005 Actuarial Valuation dated July 3, 2006. ARKANSAS FIRE & POLICE PENSION REVIEW BOARD To: Board of Trustees FAYETTEVILLE Fire pension and Relief bind From: David B. Clark Executive Director Re: 2005 Actuarial Valuation Date: July 3, 2006 620 W. 3rd, Suite 200 Little Rock, Arkansas 72201-2212 Telephone: (501) 682-1745 T011-Free: (M) 859-1745 Fax: (501) 682-1751 email: info@lopfi-prb.com website: www.lopfi-prb com In accordance with State law the actuary under contract to this office periodically tests all local fire and police pension funds for actuarial soundness. The 2005 actuarial study for your fund is enclosed. The financial tests for the fluid are designed to answer the following questions: YES NO 1. Is there enough income to the pension fiord to fully fund it (see page 4)? 2.. Are current assets sufficient to cover 97% of all accrued actuarial liabilities (see page 10), OR are there enough assets to cover all active member contributions, all payments to current beneficiaries and 100% of future payments earned by active members (see page 11)7 3. Is the pension fund considered actuarial sound under State law? V/ 01 I 1 '�jjJJ?? -'1i III li IIII -I--t-r-`/7r-.•I- I 1 ._$�,_ THE CITY OF FAYETTEVILLE, ARKANSAS V;J KIT WILLIAMS, CITY ATTORNEY DAVID WHITAKER, ASST. CITY ATTORNEY t7 - - -' DEPARTMENTAL CORRESPONDENCE I:I1'(.' if. 1)EPA RT.NIENT TO: Dan Coody, Mayor Sondra Smith, City Clerk/"Treasurer Fayetteville Firefighters Pension & Relief Board CC: Paul Becker, Finance Director FROM: Kit Williams, City Attorney DATE: April 28, 2008 �--� RE: Train wreck approaching No one likes to be the bearer of bad news, but I need the Fire Pension and Relief' Board Trustees to focus on and understand the very real long term dangers to the Pension Fund. The train wreck of the total depletion of the Pension Fund's assets could be only ten years away. On August 31, 2006, 1 wrote a memo to you e�:pressing my concerns over the large and growing unfunded liabilities of your •Pe,nsion and Relief Fund. I ended that memo as follows: "Since the actuary has already determined the fund is not actuarially sound. his prediction is that the Rind will be exhausted during the lifetimes of you or ) Our bcneficiar) members ... Acting as fiduciaries for every beneficiary, your duty should be to try to avoid that benefit reduction day and to try to preserve this pension fund and not allow its `deterioration of actuarial soundness.' " Reviewing page 10 of the Longer Investment Performance Summary makes mc even more concerned now. Fven though Longer was able to earn over $3 million on your $10 million portfolio in the last 5 !z years (a very strong period of stock market advance), the Fund's net value dropped $2.5 million. With only $7.5 million left. you cannot expect to earn nearly so much the next rive years, During that period, over $6 million was paid out to retirees. Although there will be no more .arge DROP payments, the over 104% of ending pay each retiree now receives (90% plus 34`o compound interest for five years) will rapidly deplete the Pension and lkelief Fund. After the next state evaluation of your actuarial condition, you may be identified as likely to deplete your assets within ten years. "(b)(1) Biennially, in conjunction with the actuarial valuations required by §24-11-205, the Arkansas Fire and Police Pension Review Board shall identify those plans which are projected to deplete their assets within ten (10) years after the valuation date." A.C.A. §24-1 1-20 (b). What will be your options? Not very many, nor very desirable. The City Council cannot send you to LOPFI without paying many millions of dollars. Because of budget problems, no City employee received a cost of living raise last year. The City Council has even instituted a hiring freeze this year. City revenue declined in 2007 and is about flat this year. I doubt that the City Council will spend millions of dollars (it does not have) to shore up a pension plan because retired workers raised their pensions to unsustainable levels. Will the Arkansas Fire and Police Pension Guarantee Fund save your pension plan? No, your plan does not qualify for help. Your plan does not meet at least two of the requirements. (1) "Any benefits ... shall not exceed the minimum amount provided by law." A.C.A. §24-11-209 (b)(2)(B)(iv). Your plan is in trouble because the benefits are now more than double the minimum amount. If your Pension Fund becomes totally depleted so that only the .4 mill and any insurance turnback money is available, the minimum (50% of ending pay) would look pretty good since the mandatory pro rata distribution of the millage would be much less. Unfortunately, this will not be an option since your fund does not meet the second requirement either: (2) "In order to receive any financial assistance from the Arkansas Fire and Police Pension Guarantee Fund, the local fund must be receiving a dedicated millage of one (1) mill." A.C.A. §24-11-209 (b)(2)(B)(iii). The millage supporting your plan originally was .5 mill and was rolled back to .4 mill because of Amendment 56 and the Rollback lawsuit. Any change in the millage supporting your pension must be approved by a city-wide vote. Although everyone likes firemen, I doubt if enough voters would raise taxes on themselves to remove you from the predicament you have placed yourselves in by paying yourselves more than 100% of ending pay despite knowing you would bankrupt your pension fund by continuing to do so. I warned you in my October 3, 2006 memo that the annual cash flow out of your pension of "approximately $700,000.00 decline per year cannot be allowed to continue or by 2020, the pension fund could be broke." This might have been too optimistic as I now fear fund bankruptcy as early as 2018. SOLUTIONS? What can you as trustees of the Pension and Relief Fund do to prevent the train wreck of bankruptcy and poverty pension payments in ten years? i do not believe you can successfully increase revenues. Remember that the school board lost its most recent millage increase election. I do not think you could win an election to increase millage so you could continue to receive over 100% of ending salary. If you cannot increase revenue or get the City Council to spend the millions it would take to send you to LOPFI, then your only option is to reduce benefits to sustainable levels. The earlier that benefits are returned to sustainable levels, the less they will have to be reduced. Delaying corrective actions while the peflslon Guild continues to deplete will only make the situation more difficult and the benefit reductions more extreme in the future. In four or five years, your fund could lose another one-third of its value and be reduced to under five million dollars. That means another one-third or more potential earnings from the fund's investment earnings which (with the .4 millage and any insurance turnback) is all you have to pay your benefits will be gone forever. Depleting your fund is like eating your seed corn. Bankruptcy and famine would be the result. Once you receive your biennial actuarial valuation this summer or early fall, you should determine what a sustainable level of benefits is possible with your remaining pension fund balance. You might also look forward to see what the likely balance of your fund would be in five years (with no change) and what amount of benefits could be sustainably funded. Then it will be time to choose your medicine: a little now or a lot more later. If this board does nothing to remedy this problem and allows the pension fund's investment account to continue to be paid out for current benefits, within a decade or so the pension fund account will be gone and your pension fund will be bankrupt. All pension benefits will then be drastically reduced placing all your pensioners in dire financial straits. Benefits must be reduced to sustainable levels very soon to avoid this train wreck scenario.