[Added 11-6-2006 by Ord. No. 2006-12]
A.
There shall be established a fund, separate and apart
from the general revenues of the Town, known as the "Other Post Employment
Benefits Trust Fund," hereby referred to as the "OPEB Trust Fund."
This fund shall be separated into two subaccounts, Town and School,
for funding and reporting purposes.
B.
The OPEB Trust Fund is hereby established to provide
the Town with a fund into which funds shall be deposited from time
to time, but at least annually, to provide funds to pay the Town's
liability for payment of premiums and/or related expenses in connection
with medical and other benefits for its employees after retirement,
which include but is not limited to medical, dental, vision, life
insurance, disability insurance and any other OPEB benefits, whether
optional or mandatory, in effect now or to be in effect in the future,
at the time of retirement.
C.
The OPEB Trust Fund shall be administered by the Finance
Director, as hereinafter provided. Such OPEB Trust Fund shall consist
of:
(1)
All funds appropriated or otherwise made available
by the Town for the purposes of meeting the current and future OPEB
costs payable by the Town.
(2)
Amounts contributed or otherwise made available by
employees of the Town for the purpose of meeting future OPEB costs
payable by the Town.
(3)
All interest, dividends and other income derived from
the above.
(4)
Any surplus derived from the Town's medical internal
service fund, as measured by the Finance Director.
The Finance Director shall be responsible for
the general administration, investment and maintenance of the OPEB
Trust Fund and for the payment of insurance premiums and/or other
post employment benefits from it in amounts sufficient to satisfy
the Town's obligation for post employment benefits. The Finance Director
may, from time to time, adopt rules and regulations for its administration,
and for the conduct and transaction of business affairs. The Finance
Director shall have such power as may be necessary to discharge their
duties, including but not limited to the power to interpret and construe
the provisions hereof, determine all questions of date of retirement,
eligibility, duration of service, continuity of service, dates of
birth, participation or retirement, and similar related matters subject
to existing contract provisions, and their determination of all questions
shall be binding upon all participants or any others concerned, subject
to existing contract provisions. All matters falling outside of the
scope of the powers and duties of the Finance Director and not otherwise
provided for herein shall be referred to the Town Council, which shall
have the power to act thereon.
A.
The Finance Director shall have, with respect to all
monies and properties of the OPEB Trust Fund at any time held by them,
power in their discretion to invest and reinvest in any personal property,
including, but not by way of limitation, common or preferred stocks,
bonds, certificates of deposit, interest or participation, mutual
funds, and other forms of security or investment, without being limited
in any respect by statute or court rule or decision of any jurisdiction
now or hereafter in force purporting to limit or otherwise affect
investments by the Finance Director and without regard to the proportion
that such property, or properties of a similar character so held or
thereafter acquired, may bear to the entire amount of the OPEB Trust
Fund, and to make such payment from such OPEB Trust Fund as herein
provided.
B.
The Finance Director shall have power and authority,
in their discretion, to have a bank or trust company which is licensed
in the state, or any other financial institution, or any corporation
established pursuant to R.I.G.L. § 45-5-20.1, to serve as
their agent in keeping custody of the monies and securities in such
fund, in keeping accounts and for other duties in connection with
the administration of the OPEB Trust Fund; and they are further authorized,
in their discretion, to employ such bank, trust company, financial
institution, or corporation established pursuant to R.I.G.L. § 45-5-20.1,
as agent in the investment of the OPEB Trust Fund and otherwise to
assist in its management, and to pay for any of such foregoing services.
As such, there shall be an investment policy, adopted by the Town
Council, governing the investment of the fund. There shall be no liability
on the part of the Finance Director in the management of the OPEB
Trust Fund by such an agent selected in good faith.
[Amended 8-3-2015 by Ord.
No. 2015-4]
The Finance Director shall have the power at
their discretion to employ one or more consultants, actuaries, accountants,
attorneys or other professionals at such times as are necessary or
advisable to assure the maintenance of the OPEB Trust Fund. An actuary
shall perform an actuarial valuation of the Town's OPEB liabilities
and funding schedule, as required by and in accordance with GASB 45,
for the purposes thereof, and may assist with the administration of
the OPEB Trust Fund. The expenses of the consultants will be payable
from the OPEB Trust Fund unless otherwise authorized by the Town Council.
The Finance Director shall use ordinary care
and reasonable diligence in the performance of his/her duty and shall
not be personally liable for any error of omission or commission unless
such error results from his or her own gross negligence, willful misconduct
or lack of good faith; nor shall the Finance Director be personally
liable for any act of any other related party.
No part of the OPEB Trust Fund assets shall
be subject, in any manner, to sale, transfer, alienation, pledge,
assignment, attachment, or any other encumbrance, whether voluntary
or involuntary, by operation of law or court order. Any attempt to
sell, transfer, alienate, pledge, assign or otherwise encumber the
assets of the OPEB Trust Fund shall be void and of no force and effect.
To the extent a distribution has been made from
the OPEB Trust Fund that was based on incorrect or inaccurate information
received by the Finance Director at the time, or resulted in an overpayment,
the Finance Director shall use their best efforts to apply such overpayment
to the next succeeding payment due or otherwise receive a credit,
and deposit any refund received, into the OPEB Trust Fund to the extent
of such overpayment.
At any time, but not more frequently than weekly,
the Finance Director shall submit a statement or invoice for premiums
and/or other allowable related costs due during such fiscal period
for post employment benefits due retired employees of the Town, which
statement shall include the amount to be paid from the OPEB Trust
Fund. The Finance Director shall make arrangements to withdraw from
the OPEB Trust Fund an amount sufficient to pay such expenditures
due.
