HomeMy WebLinkAboutCity Council Committees - Fireman's Relief and Pension Board - 05/07/1997 (3) I-
Firemen's Relief & Pension Board
May 7, 1997
Boardmembers Present: Jon Johnson, Gene Grenstad, Brenda
Jacober, Sam Grubbs
Others Present: Laurie Murray, Brigitte Hoopes,
Susan Narick
Johnson called the meeting to order at 4 : 00 p.m.
Approval of Minutes. Grubbs moved to approve the minutes of
April 2 , 1997. Grenstad seconded and the motion carried.
Approval of Financial Transactions. Murray explained the
documentation relating to the February financial transactions.
Grenstad moved to approve the February financial transactions.
Grubbs seconded and the motion carried.
CPI Changes. Hoopes noted that the CPI figure for this year is
3 . 657 , which Murray said should be rounded to 3 . 66. Grenstad
moved to accept the CPI changes. Grubbs seconded and the motion
carried.
Mutual Fund Investments. Narick distributed copies of the
results of her research and noted that Washington Mutual
Investors Fund looks good if the Board opts to move into more
mutual funds. She explained why Washington Mutual Investors is a
good fund, noting that it is comprised of Blue Chip companies and
that it is conservative. She explained that the fee would be 2-
1/2% if $250, 000 were spent, 3-1/2% if $100, 000-249, 000 were
spent, and 4-1/2% if $50, 000-99 , 000 were spent, and noted that j
the fee is included in the share price. She reminded
Boardmembers that mutual funds are more volatile than bonds, and
that there will be fluctuation.
Narick noted that 25% of the Board's portfolio is currently in
mutual funds, and that there will be approximately $70, 000 in
maturity in August. She emphasized that more money can be made
in mutual funds, although it is riskier. She said that if the
cash flow got tight, an investment could be sold to another fund.
She suggested selling a $72 , 173 fund to another fund, since it
will not pay any interest at all until 2009 and it would not
affect the cash until 2009 . She agreed to prepare a worksheet on
this fund covering the next 20 years and bring it to the next
meeting.
Report on Elections. It was noted that it is time to have an
election for the Board position currently held by Mary Berg.
Jacober agreed to send out a request for nominations and then
ballots.
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LEOFF comparison of Benefits. Hoopes distributed a worksheet and
pointed out the current LEOFF rate, the current benefit, and the
monthly amount due each retiree, as of April 1st. She also
,yl reviewed the column showing how much each retiree owes the city.
Murray explained that because of LEOFF's timeline, this
h(�Jo1,s` information is always a month late. Hoopes noted that only 50%
of the amount owed can be deducted from the payroll, and that
these figures will change in July with the CPI. Grenstad moved
to approve the LEOFF Comparison of Benefits. Grubbs seconded and
the motion carried.
Other Business. Hoopes stated that she had received a call from
Gary Tilley voicing concern about getting into a retro status
regarding the CPI. She explained that she provides the
information to the Board as soon as possible, but that it is
received late from LEOFF. Hoopes said she suggested to Tilley
that he contact a Boardmember for any back up material, but that
she had provided him with the back up information from the last
meeting regarding the CPI.
It was noted that only Boardmembers receive information which is
available prior to the meeting, and that others receive the
minutes and/or agenda if they have requested it. It was pointed
out that anyone can attend the Board meetings, and that back up
material is available at the meetings. After a brief
discussion, it was determined that the distribution of
information would be discussed at the next meeting.
Adjournment. Grenstad moved to adjourn the meeting at 4 : 35 p.m.
Grubbs seconded and the motion carried.
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Brenda Jacober,f CMC
City Clerk/Soardmember
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