[HISTORY: Adopted by the Town of Clinton as indicated in article histories. Amendments noted where applicable.]
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:
Pay reasonable operating and administrative expenses of the OPEB Trust;
Make payments permitted under applicable Connecticut law;
Pay benefits to beneficiaries in accordance with the terms of the OPEB System; and
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.