§ 26.03.911. Other Post-Employment Benefits trust fund.

A.

There is hereby established an Other Post-Employment Benefits ("OPEB") fund for the purpose of funding retiree health care and life insurance as provided for in Section 26.03.910. The OPEB fund shall constitute a trust fund that shall be separate and distinct from all other funds, including the pension fund established by Section 26.04.601.

B.

Definitions. The following words, terms, and phrases, when used in this Chapter shall have the meaning ascribed to them in this Section, except where the context clearly indicates a different meaning:

Beneficiary shall mean any dependent of a Participant who is entitled to receive Retiree Benefits or any other person who has been selected by a Participant to receive Retiree Benefits or other benefits that may be payable to a person other than a Participant.

Board means the OPEB fund Board of Trustees established by Subsection 26.03.911.C.

OPEB fund means the Other Post-Employment Benefits fund established by Subsection 26.03.911.A.

Participant shall mean any Employee of an Employer or any other person who becomes a participant entitled to Retiree Benefits but only with respect to the specified benefits as to which such person is a participant.

C.

Composition of the Board of Trustees.

1.

The OPEB fund created under this Division shall be construed to be a trust separate and distinct from all other entities. The responsibility for the operation and administration of the OPEB fund is hereby vested in the OPEB fund Board of Trustees. The Trustees shall sign the trust agreement (attached hereto as Exhibit "A") to establish the Trust. The Board of Trustees shall consist of:

a.

The Chief Administrative Officer;

b.

The Chief Human Resources Officer;

c.

The Chief Financial Officer;

d.

The Compensation and Pension Systems Coordinator;

e.

One (1) Representative from the Office of Finance, designated by the Chief Financial Officer;

f.

One (1) Representative from among the County labor unions, to be jointly selected by all of the unions.

2.

Each trustee shall be entitled to one (1) vote on the Board at any regular or special meeting.

3.

As County officers and employees, the trustees may have a right of representation and indemnification pursuant to Section 2.03.201 of this Code.

D.

Officers of the OPEB Board of Trustees.

1.

The OPEB Board of Trustees shall have the following officers whose duties shall be prescribed by bylaws to be adopted by the Board as part of its rules and regulations:

a.

The Chairperson shall be the Chief Administrative Officer.

b.

The Administrator of the OPEB program shall be the Chief Human Resources Officer.

c.

The Chief Financial Officer shall be the Treasurer and shall have custody of the Fund's monies and securities. The Treasurer shall authorize payments of OPEB costs in accordance with Board policies. Nothing in this Subsection shall be construed to prohibit the Board from entering into an agency agreement which requires the agent to adhere to the investment policy set by the Board; to report to the Board any order to sell or purchase any security, investment or other property of the fund; and to deliver to the Board any property of the fund held by it without prior notice when instructed to do so.

E.

Funding. The OPEB fund shall be funded as follows:

1.

The Trust shall be funded through deposits of County Operating Appropriations and other contributions made by the County as an employer, earnings from investments, refunds, reimbursements, or any other appropriate source. The County's cost of providing, including but not limited to retiree medical coverage and life insurance, as defined in Section 26.03.910, shall be paid out of the OPEB fund, in addition to any fees and expenses authorized by the Board. The OPEB fund shall be used for the sole purpose of paying OPEB expenses and defraying the cost of fund administration.

2.

The amounts remaining in the OPEB fund, if any, after all premiums, fees, and expenses have been paid for any year shall be retained in such trust for future payments until all County liabilities for post employment benefits other than pensions have been satisfied.

3.

The OPEB fund shall be an irrevocable trust exempt from federal income tax under Section 115 of the Internal Revenue Code (IRC) and subject to the financial reporting, disclosure and actuarial requirements of the Governmental Accounting Standards Board Statements Nos. 43 and 45 or any subsequent Accounting Standards Board updates or statements that may be applicable.

F.

Management of the Fund.

1.

The OPEB fund Board of Trustees, as defined in Subsection 26.03.911.B shall adopt a trust agreement (attached hereto as "Exhibit A") and may amend the trust agreement from time to time and shall have in its discretion, exclusive control and management of the OPEB fund, and shall take all actions necessary and appropriate to establish and maintain the OPEB fund. The OPEB Board of Trustees shall be separate and distinct from the Employees' Retirement System Board of Trustees established by Section 2.05.505 of this Code.

G.

Accounting. The assets of the OPEB fund shall be held for the express purposes set forth in this Division subject to the conditions prescribed in this Section. An adequate system of accounts and records shall be established and maintained to give effect to the requirements in this Section.

H.

Administration. Subject to the orders and resolutions of the Board, the Administration shall:

1.

Establish and maintain records, files and accounts in such form and scope as will give full effect to the requirements of the OPEB fund in accordance with this Division.

2.

Accumulate actuarial data concerning the operating experience of the OPEB fund in such form as is necessary for no less frequent than biennial actuarial valuations and periodic actuarial studies in accordance with recommendations of the actuary.

3.

Prepare periodic reports as may be required for the proper administration of the Trust. The Treasurer shall also prepare each year the annual report of the Board to be submitted to the Board of Trustees embodying, among other things:

a.

A statement of plan net assets and a statement of changes in plan net assets.

b.

A listing of investments held by the OPEB fund and a detailed statement of investments acquired and disposed of during the year covered by the report.

c.

Such other financial, statistical and supplementary information as may be deemed necessary for a proper interpretation of the condition of the OPEB fund and results of its operations.

d.

The annual report shall be a public document available for inspection at a time mutually agreed upon between the Administrator and the requestor.

4.

An Actuary shall serve as the technical advisor in the administration of the Trust in matters pertaining to the technical and actuarial aspects thereof.

5.

The County Attorney shall be Legal Counsel to the Board and shall represent the Board in all litigation affecting the Trust.

I.

Investments. The Board shall have full power to invest and reinvest the funds held in the OPEB fund in accordance with the investment policy adopted or confirmed by the Board from time to time. The Board shall discharge its duties with respect to investment of the fund solely in the interest of participants and beneficiaries of the OPEB fund and:

1.

For the exclusive purpose of providing post-employment benefits other than pensions to County retirees and defraying reasonable expenses of administering the Fund;

2.

With the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims;

3.

By diversifying the investments of the OPEB fund so as to minimize the risk of large losses, unless doing so is clearly not prudent under the circumstances; and

4.

In conformity with the provisions of the trust instrument and this Code:

a.

The Board may keep as an available fund for current expenditure an amount not to exceed the anticipated requirements for such purposes for a period of ninety (90) days.

b.

The Board shall review the investment policy and revise or confirm it as appropriate no less frequently than at three-year intervals. Such review shall include review and comment by a qualified person or entity engaged by the Board.

c.

The Board shall have the power to enter into arrangements with qualified persons, agents or entities as in its discretion may be useful to enable it to perform its investment duties, or to enter into investment management agreements with qualified persons, agents or entities under which investment responsibilities of the Board shall be delegated to such persons, agents, or entities.

d.

The Board shall not be liable for making, retaining or selling any investment as herein provided, or for any loss or diminution of funds, except due to its own gross negligence or willful misconduct. Any determination of liability for investment performance shall consider not only the performance of a particular investment, but also the performance of the investment portfolio as a whole.

(Ord. No. 08-068, § 1, 6-24-2008; Ord. No. 10-113, § 1(Exh. A), 1-18-2011; Ord. No. 12-016, § 2, 3-27-2012; Ord. No. 16-013 , § 1, 3-22-2016; Ord. No. 18-100 , § 1, 10-9-2018)

Editor's note

The exhibit referred to in this section is not set out at length herein, but is on file in the office of the clerk of council.