City of Camarillo
CITY COUNCIL POLICY
Section: Finance Date Adopted: July 22, 2009 Last Amended: October 12, 2022
Subject: Other Post-Employment Benefit
(OPEB) Trust Investment Policy
Number: 3.09 Page 1 of 2
PURPOSE
This policy outlines parameters for the in vestment of funds within the Other Post- Employment Benefit (OPEB) Plan. This poli cy is independent of the City’s Investment Policy and other funds for which the City prov ides financial management services. This policy is specific to the OPEB Trust and PAR S as the selected Plan Administrator. The OPEB trust assets shall provide sufficient liquidity for payment of direct medical benefits and expenses.
POLICY
Full Investment Authority will be delegated to Highmark Capital PFM Asset Management as the selected Investment Manager to actively manage the OPEB Plan according to the designated risk tolerance. The primary objective is to maximize total Plan return, subject to the risk and quality constraint s set forth by the Strategic Asset Allocation model. The Plan has selected the Moderate Asset Alloca tion Strategy. The pr imary goals of the Moderate Asset Allocation Strategy are growth of principal and income. It is expected that dividend and interest income will comprise a significant portion of the total return, although growth through capital appreciation is equally important.
Prohibited assets include precious metals, venture capital, short sales, purchase of letter stock, private placements, or direct payments, leveraged transactions, commodities or other option strategies, purchases of real estate, and derivatives.
A. Return Objective
Achieve a reasonable return within the risk parameters under the Asset Allocation Strategy compared to the established benchmark.
B. Asset Allocation Strategy
Strategic Ranges under the Moderate Asset Allocation Strategy 0 – 20% Cash
40 – 60% Fixed Income
40 – 60% Equity
Adopted 3.09, July 22, 2009 Policy 3.09
Amended December 12, 2018 Page 2 of 2
Amended 3.09, 10/13/21; 10/12/22
BC. Funding
Annually, through the budget process, City Council will determine the OPEB Trust annual contribution amount based on the actuarial valuation report. City Council is committed to attain and maintain fully funded status based on a 30-year period.
CD. Disbursements
The OPEB Trust will disburse funds for the costs of eligible retirement benefits.
DE. Reporting
The PARS activity statement will be delivered to staff and City Council monthly.
The Highmark Capital PFM performance statement will be delivered to staff and City Council quarterly and will be reviewed on a semi-annual basis. The portfolio Investment mManager will keep staff apprised of any material changes in Highmark Capital’s PFM’s outlook, recommended investm ent policy and tactics, and be available on a reasonable basis for telephone communication as needed.
EF. Annual Review
The fiscal year end performance statement and policy will be reviewed annually by the Investment Committee and the City Council.