RESOLUTION NO. HFPD 2023-03
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE HESPERIA FIRE PROTECTION
DISTRICT, HESPERIA, CALIFORNIA, APPROVING THE TERMINATION OF THE HESPERIA FIRE PROTECTION DISTRICT’S PARTICIPATION IN THE PARS PUBLIC AGENCIES POST-
EMPLOYMENT BENEFITS TRUST PROGRAM AND 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 Hesperia Fire Protection District (“ District”) is eligible to participate in a tax - exempt trust performing an essential governmental function within the meani ng of Section 115 of the Internal Revenue Code, as amended, and the Regulations issued thereunder, 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 IRC section 115; and
WHEREAS, all qualified assets currently held in the District’s Public Agency Retirement Services (“PARS”) Public Agencies Post -Employment Benefits Trust are irrevocably dedicated to prefunding the District’s pension obligations; and
WHEREAS, all qualified assets held in the Trust will be irrevocably dedicated to prefunding the District’s OPEB and pension obligations; and
WHEREAS, the District’s adoption and operation of the Multiple Employer OPEB/Pension 115 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 Section 115 Trust; and
WHEREAS, the Board of Directors of the District has prudently set aside funds for pre -funding pension obligations; and
WHEREAS, the District’s funding of the Section 115 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 District reserves the right to make contributions, if any, to the Section 115 Trust; and
WHEREAS, Shuster will set forth an Investment Policy Statement for the Section 115 Trust to ensure fiduciaries involved in the plan take prudent and careful action to maintain the investment portfolios, goals and objectives while maintaining liquidity and risk tolerance.
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE HESPERIA FIRE PROTECTION DISTRICT AS FOLLOWS:
Section 1. That the recitals above are true and correct and adopted as findings.
Section 2. The Board of Directors hereby adopts the Multiple Employer OPEB/Pension 115 Trust available through Shuster, effective May 16, 2023.
Section 3. The Board of Directors hereby authorizes the termination of the Hesperia Fire Protection District’s participation in the PARS Public Agencies Post -Employment Benefits Trust Program, all services, administration, and investment contrac ts with PARS and US Bank, N.A. (“U.S. Bank”), including the services of U.S. Bank as Trustee.
Section 4. The Board of Directors hereby authorizes the appointment of Alta Trust Company as Trustee and Charles Schwab Trust Bank as custodian of the assets. The transfer of assets is contingent upon the acceptance of the successor Trustee and custodian.
Section 5. The Board of Directors certifies that the successo r T rust satisfies the requirements of Section 115 of the Internal Revenue Code an d that all asset s held by that T rust shall qualify as “plan assets” that are irrevocably dedicated to the prefunding of pension obligations.
Section 6. The Board of Directors hereby authorizes the liquidation and transfer of all assets to Charles Schwab Trust Bank, as soon as administratively practicable.
Section 7. Upon the complete transfer of assets on or around July 31, 2023, PARS is removed as trust administrator and U.S. Bank is removed as trustee.
Section 8. The Board of Directors hereby appoints the City Manager , or his/her successor or his/her designee as the District’s Plan Administrator for the Section 115 Trust.
Section 9. The District’s Plan Administrator is hereby authorized to execute the legal and administrative documents on behalf of the District and to take whatever additional actions are necessary to maintain the District’s participation in the Section 115 Trust and to maintain compliance of any relevant regulation issued or as may be issued; therefore, authorizing him/her to take whatever additional a ctions are required to administer the District’s Section 115 Trust.
Section 10. That s aid action was taken during a regular meeting of the Hesperia Fire Protection District.
Section 11. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.
ADOPTED AND APPROVED this 16th day of May 2023.
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Brigit Bennington, Mayor
ATTEST:
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Erin Baum, Assistant City Clerk