[HISTORY: Adopted by the Town of Clinton as indicated in
article histories. Amendments noted where applicable.]
[Adopted 4-15-2015]
Pursuant to the authority granted to the Board of Selectmen of the Town of Clinton (the "Town") by § 5-5 of the Charter of the Town of Clinton (the "Charter") and Section 7-450(b) of the Connecticut General Statutes, there shall be created and established for the Town of Clinton (the "Town") the Other Post-Employment Benefits Trust (the "OPEB Trust") to fund certain retiree benefits pursuant to the terms of previously established plans for the benefit of certain employees and retirees, their spouses and dependents (the "OPEB System").
Immediately upon the enactment of this article, there shall
be established an OPEB Board of Trustees (the "OPEB Board") as provided
for in Connecticut General Statutes § 7-450(b) for the management
and investment of the OPEB Trust. The OPEB Board shall consist of
five members and shall include the First Selectman, the Chairman of
the Board of Finance, the Chairman of the Police Commission, the Chairman
of the Board of Education and one person from the Board of Education
who shall be appointed by the First Selectman. Each member shall serve
for terms coextensive with the terms of their respective positions.
Three members shall constitute a quorum of the OPEB Board. The members
of said OPEB Board shall receive no compensation for service.
The Town, acting through its Board of Selectmen, and the OPEB
Board are hereby authorized and directed to enter into a Trust Agreement
to govern the administration, management and investment of the OPER
Trust and the assets thereof (the "Trust Agreement"). The Town, acting
through its Board of Selectmen, and the OPEB Board are further authorized
to modify, amend, cancel or terminate the Trust Agreement, as they
deem appropriate and in accordance with applicable law.
The OPEB Board shall perform the duties set forth in the OPEB
Trust Agreement, as amended from time to time, relating to the management
of the assets held in the OPEB Trust. The Town's Treasurer initially
shall have the care and custody of all funds held in the OPEB Trust
and shall have the power, with the approval of the OPEB Board, to
invest such funds in securities legal for investment for such trust
funds. One or more investment managers and a custodian may be appointed
by the OPEB Board in accordance with the terms of the Trust Agreement.
The terms of the OPEB System shall govern the ultimate payment
and disbursement of the funds accumulated in the OPEB Trust. Payments
shall be made from the OPEB Trust only to provide benefits to beneficiaries
in accordance with the terms of the OPEB System. Funds held in the
OPEB Trust may not be used for any purpose other than to:
A.
Pay reasonable operating and administrative expenses of the OPEB
Trust;
B.
Make payments permitted under applicable Connecticut law;
C.
Pay benefits to beneficiaries in accordance with the terms of the
OPEB System; and
D.
Make a distribution to a trust or entity whose income is exempt from
federal income taxation under Section 115 of the Internal Revenue
Code of 1986, as amended, as specified by the Town upon the termination
of the Trust Agreement as provided in the Trust Agreement.
The Town, acting through the First Selectman, or his designee,
is hereby authorized and approved to take any further action that
he, in his discretion, deems necessary or appropriate to effectuate
the foregoing article, including, without limitation, filing and executing
appropriate documents and requests with the Internal Revenue Service.
This article shall become effective 30 days after its publication pursuant to § 5-5 of the Charter.
