RESOLUTION NO. 2025-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY,
CALIFORNIA, APPROVING THE ADOPTION OF THE MULTIPLE EMPLOYER OPEB/PENSION 115 TRUST ADMINISTERED BY SHUSTER ADVISORY GROUP, LLC
WHEREAS, Shuster Advisory Group, LLC (“Shuster”) has made available the Multiple Employer OPEB/Pension 115 Trust (Trust) for the purpose of pre-funding pension obligations and/or OPEB obligations; and
WHEREAS, the City of Cathedral City (“City”) is eligible to participate in a tax- exempt trust performing an essential governmental function within the meaning of Section 115 of the Internal Revenue Code, as amended, and the Regulations issued there under, and the Trust is a tax-exempt trust under the relevant statutory provisions of the State of California; and
WHEREAS, Alta Trust Company satisfies the Trustee requirements under IRS Section 115; and
WHEREAS, all qualified assets currently held in the City’s California Employers’ Retiree Benefit Trust (CERBT) are irrevocably dedicated to prefunding the City’s OPEB obligations; and
WHEREAS, the City’s adoption and operation of the Trust has no effect on any current or former employee’s entitlement to post-employment benefits; and WHEREAS, the terms and conditions of post-employment benefit entitlement, if any, are governed by contracts separate from and independent of the Trust; and WHEREAS, the City Council has prudently set aside funds for the OPEB liability; and
WHEREAS, the City’s funding of the Trust does not, and is not intended to, create any new vested right to any benefit nor strengthen any existing vested right; and WHEREAS, the City reserves the right to make contributions, if any, to the Trust.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. The City Council hereby adopts the Shuster Multiple Employer OPEB/Pension 115 Trust, effective June 25, 2025; and
Section 2. The City Council hereby authorizes the termination of the City of Cathedral City California Employers’ Retiree Benefit Trust (CERBT) Program, services, administration, and investment contracts with the California Public Employees’ Retirement System and California Public Employees’ Retirement System Board of Administration (herein CalPERS); and
Section 3. The City Council hereby authorizes the appointment of Alta Trust Company as successor Trustee and Charles Schwab Trust Bank as custodian of the assets of the OPEB assets. The transfer of assets is contingent upon the acceptance of the successor Trustee and custodian; and
Section 4. The City Council certifies that the successor trust satisfies the requirements of Section 115 of the Internal Revenue Code and that all assets held by that trust shall qualify as “plan assets” that are irrevocably dedicated to the prefunding of OPEB obligations; and
Section 5. The City Council hereby authorizes the liquidation and transfer of all assets to Charles Schwab Trust Bank, on a date mutually agreed upon by the City and CalPERS; and
Section 6. Upon the complete transfer of all assets, CalPERS is removed as trust administrator, trustee, and investment manager; and Section 7. The City Council hereby appoints the City Manager, or his/her successor or his/her designee as the City’s Administrator for the Trust; and Section 8. The City’s Administrator is hereby authorized to execute the legal and administrative documents on behalf of the City and to take whatever additional actions are necessary to maintain the City’s participation in the Trust and to maintain compliance with any relevant regulation issued or as may be issued; therefore, authorizing him/her to take whatever additional actions are required to administer the City’s Trust.
PASSED, APPROVED AND ADOPTED the 25th day of June, 2025. ______________________________
Nancy Ross, Mayor
Cathedral City
ATTEST:
______________________________
Tracey R. Hermosillo, City Clerk
Cathedral City
I, TRACEY R. HERMOSILLO, CITY CLERK of the City of Cathedral City, do hereby certify that the foregoing Resolution was introduced and adopted at a regular meeting of the City Council of the City of Cathedral City held on the 25th day of June, 2025 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
____________________________
Tracey R. Hermosillo, City Clerk
APPROVED AS TO FORM:
______________________________
Eric S. Vail, City Attorney