City Council
259 N. Wilma Avenue
Ripon, CA 95366
MEMO
To: Honorable City Council
From: Lisa Roos, City Clerk & Finance Director
Date: 06/14/2022
Subject: 115 Trust approval and appointment of Plan Administrator RECOMMENDED ACTION:
This resolution adopts the PARS Public Agencies Post-Employment Benefits Trust, appoints the City Administrator as the Plan Administrator, and authorizes the Plan Administrator to execute PARS documents on behalf of the City in order to maintain the City’s participation in and compliance of the Plan.
BACKGROUND:
Staff presented the Pension Rate Stabilization Program to the City Council at the May 10, 2022 City Council meeting and recommendation to move forward with PARS to administer this Section 115 Trust.
The following steps were outlined as the steps to take in order to get the Trust established and monies deposited.
1. June 2022 City Council Meeting: Approve resolution appointing a Plan Administrator (usually the City Administrator) and authorizing the mayor to execute the contract with PARS.
2. June 2022 – October 2022: PARS will assist staff in surveying the Council for input to help establish the Investment Policy.
3. October 2022 City Council Meeting: Adopt an Investment Policy for the Section 115 Trust, including risk tolerance, investment amount, and how the Section 115 Trust is to be used to fund CalPERS obligations.
4. November 2022: Establish the Section 115 Trust and deposit funds.
DISCUSSION/ANALYSIS:
At the May meeting, Council directed staff to draft a resolution to participate in the Section 115 Retirement Trust and prepare an agreement with PARS to administer the City’s pension rate stabilization program.
This is the resolution required to adopt the PARS Public Agencies Post-Employment Benefits Trust as of June 14, 2022, appoint the City Administrator as the Plan Administrator, and authorizes him to execute PARS documents on behalf of the City in order to maintain the City’s participation in and compliance of the Plan.
FISCAL IMPACT:
None at this time.
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RIPON APPROVING THE ADOPTION OF THE PUBLIC
AGENCIES POST-EMPLOYMENT BENEFITS TRUST
ADMINISTERED BY PUBLIC AGENCY RETIREMENT
SERVICES (PARS)
WHEREAS, PARS has made available the PARS Public Agencies Post-Employment Benefits Trust (the “Program”) for the purpose of pre-funding pension obligations and/or OPEB obligations; and
WHEREAS, the City of Ripon (“City”) is eligible to participate in the Program, a taxexempt 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 is a taxexempt trust under the relevant statutory provisions of the State of California; and WHEREAS, the City’s adoption and operation of the Program 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 Program; and WHEREAS, the City’s funding of the Program 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 Program.
NOW THEREFORE, BE IT RESOLVED THAT:
1. The City Council hereby adopts the PARS Public Agencies Post-Employment Benefits Trust, effective June 14, 2022; and
2. The City Council hereby appoints the City Administrator, or his/her successor or his/her designee as the City’s Plan Administrator for the Program; and
3. The City’s Plan Administrator is hereby authorized to execute the PARS 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 Program and to maintain compliance of 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 Program.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Ripon this 14th day of June, 2022, by the following vote:
THE CITY OF RIPON,
A Municipal Corporation
By ________________________________
DEAN UECKER, Mayor
ATTEST:
By: ___________________________
LISA ROOS, City Clerk