[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.