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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. [SIGNATURES ON NEXT PAGE] 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