HomeMy WebLinkAbout7516RESOLUTION NO. 7516
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA,
APPROVING THE ADOPTION OF THE MULTIPLE EMPLOYER OTHER
POST -EMPLOYMENT BENEFITS/PENSION 115 TRUST
ADMINISTERED BY SHUSTER ADVISORY GROUP, LLC
WHEREAS, the Governmental Accounting Standards Board ("GASB") revised its
accounting rules, referred to as GASB 75, to require local governments to recognize, cost,
and disclose future obligations for providing Other Post -Employment Benefits ("OPEB");
and
WHEREAS, the City of Arcadia provides OPEB to eligible employees and retirees
in the form of retiree health care coverage as defined in applicable memorandums of
understanding and pay plans; and
WHEREAS, the City of Arcadia provides pension benefits to eligible employees
and retirees as a participant in the California Public Employees Retirement System
("CaIPERS") as defined in applicable memorandums of understanding and pay plans; and
WHEREAS, Shuster Advisory Group, LLC ("Shuster") has made available the
Multiple Employer OPEB/Pension 115 Trust for the purpose of pre -funding pension
obligations and/or OPEB obligations; and
WHEREAS, the City of Arcadia currently participates in the California Employers'
Retiree Benefit Trust ("CERBT") provided by CaIPERS; and
WHEREAS, the City of Arcadia is eligible to participate in a tax-exempt trust
performing an essential governmental function within the meaning of Section 115 of the
Internal Revenue Code ("IRC"), as amended, and the Regulations issued thereunder, and
is a tax-exempt trust under the relevant statutory provisions of the State of California; and
WHEREAS, all qualified assets held in the Trust will be irrevocably dedicated to
prefunding the City of Arcadia's OPEB and pension obligations; and
WHEREAS, the City of Arcadia's adoption and operation of the Multiple Employer
OPEB/Pension 115 Trust has no effect on any current or former employee's entitlement
to post -employment benefits; and
WHEREAS, the terms and conditions of post -employment benefit entitlement, if
any, are governed by contracts separate from and independent of the Pension 115 Trust;
and
WHEREAS, the City of Arcadia's funding of the Pension 115 Trust does not, and
is not intended to, create any new vested right to any benefit nor strengthen any existing
vested right; and
WHEREAS, the City of Arcadia reserves the right to make contributions, if any, to
the Pension 115 Trust; and
WHEREAS, Shuster has set forth an Investment Policy Statement for the Pension
115 Trust to ensure fiduciaries involved in the plan take prudent and careful action to
maintain the investment portfolios, goals and objectives while maintaining liquidity and
risk tolerance.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA,
CALIFORNIA, DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:
SECTION 1. The City of Arcadia hereby adopts the Multiple Employer
OPEB/Pension 115 Trust available through Shuster, effective June 20, 2023.
SECTION 2. The City Council hereby authorizes the termination of the City of
Arcadia's CERBT Program, services, administration, and investment contracts with
CaIPERS and CalPERS Board of Administration; and
SECTION 3. The City of Arcadia hereby authorizes the appointment of Alta Trust
Company as Trustee and Charles Schwab Trust Bank as custodian of the assets; and
SECTION 4. The City of Arcadia hereby appoints the City Manager, or his/her
successor or his/her designee as the City of Arcadia's Plan Administrator for the Pension
115 Trust.
SECTION 5. The City Council hereby authorizes the liquidation and transfer of all
assets held in the CalPERS CERBT Program to Charles Schwab Trust Bank, on a date
mutually agreed upon by the City and CaIPERS; and
SECTION 6. Upon the complete transfer of all assets, CaIPERS is removed as
trust administrator, trustee, and investment manager; and
SECTION 7. The City of Arcadia's Plan Administrator is hereby authorized to
execute the legal and administrative documents on behalf of the City of Arcadia and to
take whatever additional actions are necessary to maintain the City of Arcadia's
participation in the Pension 115 Trust and to maintain compliance of any relevant
regulation issued or as may be issued; therefore, authorizing him/her to take whatever
additional actions are required to administer the City of Arcadia's Pension 115 Trust.
SECTION 8. This Resolution shall become effective upon its adoption.
SECTION 9. The City Clerk shall certify to the adoption of this Resolution.
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Passed, approved, and adopted this 20th day of June, 2023.
Mayor of the City of Arcadia
ATTEST:
City Clerk
APPROVED AS TO FORM:
Michael J. Maurer
City Attorney
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES) SS:
CITY OF ARCADIA )
I, GENE GLASCO, City Clerk of the City of Arcadia, hereby certifies that the
foregoing Resolution No. 7516 was passed and adopted by the City Council of the City of
Arcadia, signed by the Mayor and attested to by the City Clerk at a regular meeting of said
Council held on the 20th day of June, 2023 and that said Resolution was adopted by the
following vote, to wit:
AYES: Cao, Kwan, Wang, Verlato, and Cheng
NOES: None
ABSENT: None
City of the City of Arcadia