[HISTORY: Adopted by the City Council of the City of Harrisburg 3-23-2021 by Ord. No. 2-2021. Amendments noted where applicable.]
This chapter of the Codified Ordinances for the City of Harrisburg shall be known and may be cited as the Harrisburg OPEB Trust.
The City of Harrisburg authorizes the chartering and initial funding of a trust fund to be created for the sole purpose of financially assisting with the long-term costs of obligations for its beneficiaries, who shall be City retirees and family members, if any, entitled to receive other post-employment benefits (OPEB) from the City.
There is hereby established a Board of Trustees to be known as the Board of Trustees of the Other Post-Employment Benefit Trust Fund, otherwise referenced as the OPEB Trust.
Upon formation, the Board of Trustees is empowered to establish the OPEB Trust with such funds as the City shall cause to be transferred for that purpose and to invest and otherwise manage the assets of the Fund in accordance with the requirements of this ordinance.
The OPEB Trust is an entity separate from the City for the exclusive benefit of the beneficiaries and not of the City. Ownership of OPEB Trust assets shall be held by a Trustee at all times and, except as provided in the OPEB Trust agreement or any amendment thereto with respect to distribution of assets upon OPEB Trust termination, the OPEB Trust assets shall not be considered funds or assets of the City for any purpose.
A. 
The initial Board of Trustees of the OPEB Trust shall consist of nine members, with one member each to be appointed by the City's three local unions; two individuals to be appointed by the City Council; two members to be appointed by the Mayor; and two members to be appointed by the Recovery Coordinator for the City.
B. 
The Board shall select a Chair, Vice Chair and Treasurer.
C. 
In the event of a vacancy in the office of the Chair, the Vice Chair shall assume the office of Chair until the vacancy is filled. Trustees shall serve without compensation.
D. 
Appointments to fill a Board vacancy shall be made by the appointing authority originally authorized to appoint the vacated position, except that upon the City's exit from municipal distressed status under the Municipalities Financial Recovery Act of 1987, 53 P.S. § 11701.101, et al., as amended ("Act 47"), any vacancy of a Board seat originally made by the Recovery Coordinator shall be made by the Mayor.
The Trustees will have the following duties and responsibilities:
A. 
The principal of the OPEB Trust, together with any earnings thereon, shall be held by Trustees separate and apart from any assets of the City. All OPEB Trust assets and all income thereon are irrevocably dedicated to, and shall be used for the exclusive purpose of, making payments of benefits to or for the benefit of beneficiaries and for paying expenses of administering the OPEB Trust. At no time will any OPEB Trust assets be used for, or diverted to, any other purposes, other than the administrative expenses of operation and investment of the OPEB Trust.
B. 
Investments.
(1) 
The Trustees shall oversee a regular selection process for service providers to the OPEB Trust including the option to empower a financial institution to serve as a professional Trustee, and shall otherwise select an investment advisor, custodian, and legal counsel, as deemed necessary.
(2) 
The Trustees will oversee the activities of the OPEB Trust Investment Advisor ensuring that investments are made:
(a) 
Solely in the interest of, and for the exclusive purposes of providing for funding of benefits for participants and their beneficiaries, minimizing employer contributions thereto, and to defray reasonable expenses of administering the OPEB Trust;
(b) 
With the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with these matters would use in the conduct of an enterprise of a like character and with like aims; and
(c) 
By diversifying the investments of the OPEB Trust to minimize the risk of loss and to maximize the rate of return, unless under the circumstances it is clearly prudent not to do so.
(3) 
The Trustees will establish a written statement of investment policy. At least annually, the Trustees will evaluate the appropriateness of the policy and, based on such evaluation, either confirm the terms of the policy as then in effect, or amend the investment policy as appropriate. The investment policy will achieve the following:
(a) 
Document investment objectives, performance expectations and investment guidelines for assets under the OPEB Trust;
(b) 
Establish an appropriate investment strategy for managing all assets under the OPEB Trust, including an investment time horizon, risk tolerance ranges and asset allocation to provide sufficient diversification and overall return over the long-term time horizon of the OPEB Trust;
(c) 
Establish investment guidelines to control overall risk liquidity;
(d) 
Establish periodic performance reporting requirements that will effectively monitor investment results and ensure that the investment policy is being followed; and
(e) 
Comply with all fiduciary, prudence, due diligence, and legal requirements for the investment of assets under the OPEB Trust and as otherwise may arise under federal or state law.
C. 
The Trustees shall determine the amount of benefits payable and shall have exclusive authority and responsibility to determine the amount of such benefits to be paid out of the assets of the Trust and the amount which shall be paid to each beneficiary and/or to any insurer or other provider of benefits. The Trustees are authorized to disburse amounts in respect of benefits from the Trust to one or more benefit administrator(s) for subsequent distribution to or for the benefit of beneficiaries, to or for the benefit of beneficiaries, or to the City for reimbursement of documented benefits paid from City assets, or for related premium expenses to provide stop loss, catastrophic or other insurance coverages that provide for qualified retiree healthcare related needs.
D. 
The Trustees will take all other actions deemed prudent in their capacity as a fiduciary and in the furtherance of the duties and responsibilities delegated under this chapter. In addition, the Trustees may perform any activities consistent with this chapter and governing law, as the Trustees deem necessary and appropriate.
To the extent reasonable and appropriate:
A. 
Expenses are reimbursable in accordance with City policy and state law.
B. 
The Trustees will have access to City resources, including but not limited to internal advisors within the City, to assist the Trustees in carrying out their fiduciary duties and responsibilities to the Trust.
C. 
The Trustees may engage any service providers to assist in the performance of their duties and responsibilities, including but not limited to consultants, legal counsel or other providers.
D. 
The Trustee may utilize funds under the OPEB Trust to pay reasonable expenses of the OPEB Trust, including but not limited to compensation of any service provider to the OPEB Trust appointed by Trustees or the City, unless such expenses are paid directly by the City.
E. 
The Trustees are authorized to accept additional funds for deposit in the Trust from the City, the Commonwealth of Pennsylvania or a labor organization that has exclusive bargaining rights with the City, which must be subject to the same obligations for the initial OPEB Trust funds, and as otherwise provided by law.
F. 
The City Solicitor shall furnish the Board of Trustees with a charter for the OPEB Trust and related trust agreement, subject to such approvals and execution of as required by law at the time of delivery.
At least annually, the Trustees will do the following:
A. 
Monitor compliance with the investment policy for the OPEB Trust.
B. 
Review and assess the performance of any service providers appointed by the Trustees of the City to perform services related to the OPEB Trust; and
C. 
Deliver a report to the Mayor, City Council and City Controller setting out the results of the Trustees' evaluation of the two preceding items.
A. 
Regular meetings. Regular meetings of the Board of Trustees shall be held semi-annually.
B. 
Special meetings. Special meetings of the Board of Trustees may be called periodically, as needed, to address specific topics.
C. 
Quorum. Five members of the Board constitute a quorum. A vote of a majority of those voting members present shall be required for action. Action may be taken by motion or resolution.
D. 
Agenda. An agenda shall be distributed to Trustees at least one week in advance of the scheduled meetings. Trustees may request an item to be included on the agenda by contacting the Chair.
E. 
Minutes. The Chair shall cause to be recorded in the minutes the time and place of each meeting of the Trustees, the names of the Trustees present, all official acts of the Board, the votes given by Trustees except when the action is unanimous, and, when requested, a Trustee's dissent or approval with his or her reasons for the vote, and shall cause the minutes to be written forthwith and presented for approval at the next regular meeting. The approved minutes shall form part of the permanent records of the Board.
F. 
Committees. The Chair may appoint committees, comprised of Trustees and nonmembers, as may be deemed necessary to carry out the business of the Board.
G. 
Execution of documents. Any documents required to be executed on behalf of the Board of Trustees shall be executed by the Chair and witnessed by the Vice Chair or Treasurer. If the Vice Chair and Treasurer positions are vacant, any Trustee can serve as witness.
A. 
Annual reports. The Trustees shall submit an annual report (fiscal year) of performance to the Mayor and City Council within 90 days after the end of the fiscal year. An annual audit of the financial statements of the Trust will be conducted by an independent certified public accountant.
B. 
Review of financial information. The Trustees shall periodically receive reports from the Trustees and Investment Advisor and shall review all key financial information to ensure that resources are used, and actions taken in compliance with the trust agreement and any approved investment policy statement. The Trustees shall review all audits and similar information to ensure compliance with financial control practices and accounting rules.
C. 
Education. Trustees are encouraged to take at least one up-to-date educational course annually on investment strategies or other education programs that are relevant to their duties as fiduciaries for the OPEB Trust.
A Trustee shall not engage in any employment, activity or enterprise for compensation which is inconsistent, incompatible, in conflict with or inimical to his or her fiduciary duties, functions or responsibilities to the OPEB Trust. A Trustee shall not perform any work, service or counsel for compensation outside of his or her OPEB Trust responsibilities where any part of his or her efforts will be subject to approval by the Trustees. Notwithstanding the foregoing, unless otherwise prohibited by law, City officials and employees are authorized to serve as a Trustee.