HomeMy WebLinkAbout11555& 0
1 RESOLUTION NO. 11,555
2
3 A RESOLUTION TO APPROVE, PURSUANT TO ACT 1371 OF
4 2003, A DEFERRED PAYMENT OPTION FOR FIREFIGHTERS
5 PARTICIPATING IN THE DEFERRED RETIREMENT OPTION
6 PLAN PURSUANT TO ARKANSAS CODE ANNOTATED § 24-
7 11 -830; AND FOR OTHER PURPOSES.
8
9 WHEREAS, Act 1371 of 2003 provides that a participant in the Firemen's
10 Pension and Relief Fund Deferred Retirement Option Plan (DROP) may defer receiving
11 payment of the participant's account and continue with the funds deposited in the Plan
12 upon conclusion of the DROP period, and
13 WHEREAS, the interest rate earned shall be two percent (2 %) below the Fund's
14 earnings but not less than zero percent (0 %), and
15 WHEREAS, said option is conditioned upon approval by a majority vote of the
16 governing body of the sponsoring municipality and the Board of Trustees of the
17 Firemen's Relief and Pension Fund, and
18 WHEREAS, the Board of Trustees of the Firemen's Relief and Pension Fund
19 approved this option at their June, 2003 meeting, and
20 WHEREAS, the Board of Directors has considered the potential impact of DROP
21 changes on the Fund, and
22 WHEREAS, in the long term, the 2% reduction from the actual earning rate of
23 the pension assets provides the pension fund with a reasonable return from the DROP
24 assets to increase the actuarial soundness of the pension fund.
[PAGE 1 OF 21
2eaoloticm
To authorize deferred payment option
To rr
firefighter
i _i
1 NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
2 THE CITY OF LITTLE ROCK, ARKANSAS:
3 Section 1. Pursuant to Act 1371 of 2003, the Board of Directors hereby approves
4 the option to allow a firefighter participant in the DROP to defer receiving payment of
5 the participant's account and continue with the funds deposited in the plan.
6 Section 2. Findings. The Board has reviewed the potential impact to the fund
7 and has determined that such action is likely to increase the actuarial soundness of the
8 pension fund. (See memorandum attached)
9 Section 3. Severability. In the event any title, section, paragraph, item, sentence,
10 clause, phrase, or word of this resolution is declared or adjudged to be invalid or
11 unconstitutional, such declaration or adjudication shall not affect the remaining
12 portions of the resolution which shall remain in full force and effect as if the portion so
13 declared or adjudged invalid or unconstitutional was not originally a part of the
14 resolution.
15 Section 4. Repealer. All laws, ordinances, resolutions, or parts of the same, that
16 are inconsistent with the provisions of this resolution, are hereby repealed to the extent
17 of such inconsistency.
18 ADOPTED: July 15, 2003
19 ATTEST: APPROVED:
20
21 /7
22 Na cy Wood, City Clerk
23 APPROVED AS TO FORM:
24
25
26 Thomas M. Carpenter, Ci Attorney
[PAGE 2 OF 21
Resolufion
To authorize deferred payment option
To firefighters
Willie Hinton, Vice -Mayor