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Town of Monroe, CT
Fairfield County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Town Council of the Town of Monroe as indicated in article histories. Amendments noted where applicable.]
Pursuant to the authority granted to the Town Council of the Town of Monroe (the "Town") by Chapter II Section 4 of the Charter of the Town of Monroe (the "Charter") and Section 7-450 of the Connecticut General Statutes, there shall be created and established for the Town of Monroe (the "Town") the Town of Monroe Section 401(a) Money Purchase Pension Plan (the "401(a) Plan") in order to provide retirement benefits to certain employees of the Town in accordance with the requirements of § 401(a) of the Internal Revenue Code of 1986, as amended (the "Code").
The Town Council has established a pension committee of the Town (the "Pension Committee") which consists of nine members and includes the First Selectman, two representatives of the Monroe Town Council, two representatives of the Monroe Board of Finance, two representatives of the Monroe Board of Education, the Monroe Town Treasurer, and the Superintendent of the Monroe Board of Education. The Pension Committee is designated as the administrator of the 401(a) Plan, and shall have all of the powers and responsibilities of the administrator of the 401(a) Plan as provided by applicable law. The members of the Pension Committee shall receive no compensation for their service.
A. 
The Town, acting through its Town Council, is authorized to adopt the governing documents of the 401(a) Plan, including but not limited to the 401(a) Plan document and the related trust agreement for the 401(a) Plan. The Town, acting through its Town Council, is further authorized to modify, amend, cancel or terminate the 401(a) Plan and its governing documents, as the Town Council deems appropriate and in accordance with applicable law.
B. 
Furthermore, the Town Council is authorized to delegate to the Pension Committee the authority to adopt amendments to the 401(a) Plan that: (1) Effectuate the terms of any collective bargaining agreements which the Town Council has previously approved; or
(1) 
Are necessary in order to maintain the qualification of the 401(a) Plan under § 401(a) of the Code.
The terms of the 401(a) Plan shall govern the ultimate payment and disbursement of the funds accumulated in the trust for the 401(a) Plan. Payments shall be made from the 401(a) Plan trust only to provide benefits to participants and their beneficiaries in accordance with the terms of the 401(a) Plan. Except to the extent permitted by applicable law, no assets of the 401(a) Plan trust shall ever revert to, or be used or enjoyed by the Town, nor shall any such assets ever be used other than for the benefit of the participants of the 401(a) Plan and their beneficiaries.
The Town, acting through the First Selectman or his or her designee, is hereby authorized and empowered to take any further actions that the First Selectman, in his or her discretion, deems necessary or appropriate to effectuate the foregoing ordinance, including, without limitation, the execution of the 401(a) Plan document and its related trust agreement, the execution of any amendments to such documents, and the submission of an application to the Internal Revenue Service requesting a determination regarding the qualification of the 401(a) Plan.
Pursuant to the authority granted to the Town Council of the Town of Monroe (the "Town") by Chapter II Section 4 of the Charter of the Town of Monroe (the "Charter") and Section 7-450(b) of the Connecticut General Statutes, there shall be created and established for the Town of Monroe (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 Section 7-450(b) for the management and investment of the OPEB Trust. The OPEB Board shall consist of five (5) members and shall include the First Selectman, the Chairman of the Town Council, the Chairman of the Board of Finance, the Chairman of the Police Commission and the Director of Finance. 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 Town Council, and the OPEB Board are hereby authorized and directed to enter into a Trust Agreement to govern the administration, management and investment of the OPEB Trust and the assets thereof (the "Trust Agreement"). The Town, acting through its Town Council, 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 § 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 ordinance including, without limitation, the filing and executing appropriate documents and requests with the Internal Revenue Service.