ROGERS -- A Firemen Pension and Relief Board member walked out of an executive session after he resigned during a special meeting held Wednesday to hire an investment firm.
Floyd Phillips declined to comment when reached Wednesday. Phillips had made a statement during previous public meetings he wanted the city to continue investing with a former employee of Stifel Nicolaus & Company who was accused by the company of misinvesting money in the city's pension plan.
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The board met for about 40 minutes in executive session before Phillips walked out. The session ended soon after Phillips left.
A contract with Stephens Capital Investment Firm of Little Rock was approved by the board when it resumed in public session. The board also accepted Phillips' resignation. A reason wasn't given for the resignation.
The board accepted a $27,535 settlement from Stifel, Nicolaus & Company on July 14. The settlement included about $25,000 Andrew Hardie, an employee, invested at a higher rate of commission than is responsible from a fiduciary standpoint, said Kenneth Williams, vice president of the company.
Hardie, now with Willbanks Securities, said a 1 percent commission rate he received for investing in "L Shares" was a requirement of this type of investment. He said it was a good decision because the fund was greater than before the investment.
Williams has said "L shares" aren't proper for the size of the Rogers pension fund. He said "A Shares" should have been used. These shares carry a 0.25 percent commission. L and A shares are types of mutual fund shares.
Williams and Hardie presented proposals to the board on July 23. Stephens, Arvest and WealthPath Investors also presented.
Larry Middleton, executive vice president of Stephens, said the company manages more police and fire pension funds than any other company in the state.
"This is our business," Middleton said at the July 23 meeting.
Middleton said Wednesday it could take about 30 days for his company to transfer assets from Stifel Nicolaus & Company.
"Typically the assets of the existing account are reviewed before we transfer the assets," Middleton said.
It's possible the firm will meet with the board for more discussion before transferring funds, he said.
Mayor Greg Hines, a member of the board, said all of the companies had stellar records.
"At the end of the day, it comes down to which firm we feel the most comfortable with," Hines said.
The board believes Stephens will invest the pension fund in the way it should be, he said.
Casey Wilhelm, Rogers finance director, said there's about $8.3 million in the investment portfolio. City firefighters were required to change to a different pension fund in the 1980s, she said. The last of the firefighters in this pension fund retired in 2011.
There are 29 retired firefighters who receive a pension from the portfolio, Wilhelm said. They receive between $15,000 to $37,000 annually. Another four spouses are receiving benefits, she said. Part-time volunteers receive about $1,200 annually from the fund, she said.
NW News on 07/30/2015