Title
Resolution Making Certain Administrative Amendments to the Local Government Other Post-Employment Benefits ("OPEB") Trust Agreement Between the City of Greensboro and the Trustees
Body
Department: Financial and Administrative Services
Council District: All
Public Hearing: N/A
Advertising Date: N/A
Contact 1 and Phone: Richard Lusk, Finance Director, 373-2077
Contact 2 and Phone: Marlene Druga, Deputy Finance Director, 373-2094
PURPOSE:
An irrevocable OPEB Trust and a local government participation arrangement with the North Carolina Department of State Treasurer's office for professional management of OPEB Trust investments was authorized and established by the City Council on June 21,2011 for the sole purpose of accumulating funds to pay post-employment health benefits to City retirees until age 65. Certain administrative amendments to the Trust Agreement are necessary to clarify the name of the Trust, allow for more flexibility in naming of Trustees when changes in City employment occur and to set forth and approve the Trust's Investment policy.
BACKGROUND:
In FY 2016, the City paid approximately $4.7 million in post-employment health benefits to eligible retirees. To date, approximately $15.2 million has been accumulated in Trust to pay future OPEB benefits until age 65. The assets of the OPEB Trust are not subject to the claims of the City's creditors and are held for the exclusive purpose of providing OPEB benefits to eligible City retirees and to pay reasonable administrative and actuarial expenses of the OPEB Trust. An actuary will provide an estimate of the City's OPEB obligation and amounts the City should set aside and contribute each year, in order to accumulate sufficient funds to pay these future benefits when due.
In such OPEB Trust agreement dated June 21, 2011, Rashad Young, City Manager, Rick Lusk, Director of Finance, and Connie Hammond, Director of Human Resources were individually appointed Trustees of t...
Click here for full text