[HISTORY: Adopted by the Town of Newtown as indicated in article histories. Amendments noted where applicable.]
[Adopted by the Legislative Council 11-1-2017]
Editor's Note: This ordinance superseded former Art. I, Other Post-Employment Benefits Trust Fund, adopted 10-7-2009 (Ord. No. 92).
This article is enacted pursuant to § 2-255 of the Newtown Town Charter and § 7-450b of the Connecticut General Statutes, and shall be known and may be cited as the "Pension and Other Post-Employment Benefits (OPEB) Ordinance."
The purpose of the pension, retirement or other post-employment health and life benefit systems of the Town of Newtown are to provide retirement benefits to eligible Town of Newtown officers and employees and their beneficiaries.
As used in this article, the term "Pension and OPEB Committee" shall be defined as the Pension Committee for purposes of Section 2-255 of the Newtown Town Charter, and the Other Post-Employment Benefits Committee for the Other Post-Employment Benefits Trust created and established by the Town of Newtown in Ordinance No. 92, adopted by the Legislative Council on or about October 7, 2009 (the "OPEB Trust"), which shall continue to exist and, except as specifically provided for herein, shall not be affected by the enactment of this article.
The provisions of this article are declared to be severable and the invalidity of any portion thereof shall not affect the validity of the remainder.
The Pension and OPEB Committee shall serve in an advisory role with respect to the administration and investment oversight of assets of the pension, retirement or other post-employment health and life benefit systems of the Town of Newtown. The members of the Pension and OPEB Committee shall receive no compensation for serving.
The Pension and OPEB Committee shall provide guidance and insight into the provisions of the retirement benefits system plans (the "plans") and monitor and report to the trustees (the "trustees") of trusts established to hold and invest the assets of such retirement benefits systems (the "trusts").
The Pension and OPEB Committee shall perform the duties set forth in the Pension and OPEB Trust agreements, as amended from time to time, relating to the management of the assets held in the trusts.
The chairman of the Pension and OPEB Committee and the Town's Personnel Administrator, as co-trustees of the OPEB Trust, shall perform the duties set forth in the OPEB Trust agreement, as amended from time to time, relating to the care and custody of all funds held in the OPEB Trust, and shall have the power, with the approval of the Pension and OPEB Committee, to invest such funds in securities legal for investment for such trust fund.
The members of the Pension and OPEB Committee shall have the following responsibilities:
Serve as advisors to the trustees with respect to the selection of appropriate investment vehicles in line with the relevant investment policy statement for each plan.
Evaluate investment vehicles and their risk parameters, monitor investment returns, make recommendations to the trustees regarding expanding or decreasing investment selections as appropriate to protect the assets of the plans and periodically report the investment performance of plans and trusts established to hold and invest the assets of the Town of Newtown retirement benefits systems.
Ensure that the relevant investment policy statement for each plan, along with other policy guidance and directives outlined by the trustees, are properly implemented.
Review quarterly reports of the plans and trusts established to hold and invest the assets of the Town of Newtown retirement benefits systems with respect to the status and value of each plan's assets and report any exceptions or major variances to the Board of Selectmen.
Monitor the performance of each plan's investments quarterly. Meet with the investment consultant of each plan to review and discuss plan performance and report to the Board of Selectmen.
Discharge their duties with the care, skill, prudence and diligence appropriate to the circumstances then prevailing and to comply with the ERISA (Employee Retirement Income Securities Act) fiduciary standards and the prudent investor rule as set forth in C.G.S. §§ 45a-541 to 45a-5411, inclusive.
Meet with the Board of Selectmen, not less than annually, to review the status of the plans' investments, performance, investment policy statement, actuarial assumptions, funding policy and any changes that the Pension and OPEB Committee, in consultation with the plans' actuary, investment consultant and/or trustees, might feel appropriate to suggest.
Establish procedures, with approval of the trustees, for coordinating a search for actuary(ies), custodians(s), investment manager(s), consultant(s), and other service providers as necessary and advisable in consultation with the plans' investment consultant and the trustees.
Composition of Pension and OPEB Committee members; appointment; terms.
There shall be six volunteer members of the Pension OPEB Committee appointed by the First Selectman, with the approval of the Board of Selectman, with a preference for those volunteers who have relevant expertise and backgrounds in one or more of the following disciplines: finance, health care, employee benefits, human resources, insurance, legal, investments and trustee/custodian.
A seventh volunteer member of the Pension and OPEB Committee shall be a representative of the Newtown Police Union, Local #3152, Council #15, AFSCME, AFL-CIO (the "Police Union"). The member representative of the Police Union shall be appointed by the First Selectman, with the approval of the Board of Selectmen, after receiving recommendations from the Police Union. The Pension Committee, including the member representative of the Police Union, shall constitute the "Police Pension Committee" under the collective bargaining agreement between the Town of Newtown and the Police Union, as the same may be amended from time to time. If at any time such agreement does not require a member representative of the Police Union on the Pension and OPEB Committee, then the preceding provisions of this Subsection B(2) shall have no legal effect and the seventh member of the Pension and OPEB Committee shall be appointed pursuant to the preceding Subsection B(1).
Members of the Pension and OPEB Committee shall be appointed to serve a two-year term. Upon the enactment of this article, the First Selectman, with the approval of the Board of Selectman, shall appoint three members for a one-year term in January 2018, and three members for a two-year term. The member representative of the Police Union shall serve a two-year term.
Pension and OPEB Committee Chairman, Vice Chairman and Clerk.
The Pension and OPEB Committee shall elect a Chairman and a Vice Chairman to serve for a term of one year.
The Chairman shall preside at meetings and public hearings. The Vice Chairman shall preside at all meetings and public hearings in the Chairman's absence.
The Pension and OPEB Committee shall utilize a clerk whose responsibility is the taking of minutes at all meetings, type and file minutes with the Town Clerk, distribute to Pension and OPEB Committee members and perform all other clerical or recording services for the Pension and OPEB Committee.
Pension and OPEB Committee meetings.
[Adopted by the Legislative Council 1-19-2011]
This article shall be known and may be cited as the "Self-Funded Health Insurance Fund and Committee Ordinance."
The Town of Newtown, hereinafter referred to as the "Town," by this article, authorizes the creation of the Self-Funded Health Insurance Fund, hereinafter referred to as the "fund," whose purpose is described below; and also authorizes the creation of the Self-Funded Health Insurance Fund Committee, hereinafter referred to as the "Committee," whose responsibilities are described below.
The purpose of this fund is to hold funds to pay claims made by municipal and school district employees of the Town as required in fulfilling employee health insurance obligations of the Town of Newtown, and other such liabilities relating to those claims and obligations.
For the purposes of this article, it is the intention of the Town of Newtown to have the Board of Selectman and Board of Education work collaboratively as "partner" or "partners" in connection with the fund and the benefits paid by the fund pursuant to the above section.
The Committee shall:
Serve the interests of the municipal and education departments of the Town.
Recommend the level of annual or other contributions to the fund by the Town and apportionment to each of the partners, in consultation with the insurance consultant in his work with the insurance provider.
Serve as an information bridge between the Town insurance consultant and the partners.
Work with the Town and the insurance consultant as needed in any matters pertaining to health benefits.
There shall be three volunteer members of the Committee, with a preference for those who have relevant expertise and knowledge in finance, health care, and/or insurance.
Members shall be appointed by the First Selectman with the approval of the Board of Selectmen to serve three-year terms. Initially, the First Selectman shall appoint one member for a one-year term, one member for a two-year term and one member for a three-year term.
There shall be two alternates, each appointed for a two-year term. The term of the alternates shall run from January 1 of the even year through December 31 of the ensuing year. If a regular member of the Committee is absent, the Chairman of the Committee shall designate an alternate to act in the absent member's place, choosing the alternates in rotation so that they shall act as nearly equal a number of times as possible.
The Committee shall elect a Chairman, to serve for a term of one year. The Chairman shall preside at meetings and public hearings.
The Committee shall utilize a Clerk, whose responsibility is the taking of minutes at all meetings, typing and filing the same, and performing all other clerical or recording services for the Committee.
The fund exists only to pay health care claims and related expenses of the plan and shall not be used for any other purpose.
The fund will build a reasonable (not to exceed three months of payments) balance to ensure that claims of covered employees can be paid during a high claim year.
Investments of the fund balance will be made in accordance with the Town's investment policy.
In the event the fund is terminated, any balance shall revert back to the General Fund of the Town (after all self-insurance claims have been paid) and shall be used to defray the partners' future health insurance costs and obligations.
The fund shall continue year to year without lapsing unless terminated by the Town.