RESOLUTION NO. 2026-037
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON
APPROVING THE ADOPTION OF THE MULTIPLE EMPLOYER
OPEB/PENSION 115 TRUST ADMINISTERED BY SHUSTER ADVISORY
GROUP, LLC
SECTION 1. Recitals.
A. 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.
B. The City of Vernon (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 (IRC), 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.
C. Alta Trust Company satisfies the Trustee requirements under IRC Section 115.
D. 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.
E. The City’s adoption and operation of the Trust has no effect on any current or former employee’s entitlement to post-employment benefits.
F. The terms and conditions of post-employment benefit entitlement, if any, are governed by contracts separate from and independent of the Trust.
G. The City Council has prudently set aside funds for prefunding for OPEB liability.
H. 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.
I. The City reserves the right to make contributions, if any, to the Trust.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS:
SECTION 2. The City Council of the City of Vernon hereby finds and determines that the above recitals are true and correct.
SECTION 3. The City Council hereby adopts the Shuster Multiple Employer OPEB/Pension 115 Trust, effective August 4, 2026.
Resolution No. 2026-037
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SECTION 4. The City Council hereby authorizes the transfer of assets from the City of Vernon California Employers’ Retiree Benefit Trust (CERBT) Program to the Trust.
SECTION 5. The City Council hereby authorizes the appointment of Alta Trust Company as Trustee and Charles Schwab Trust Bank as custodian of the Trust and deposited assets. The transfer of assets is contingent upon the acceptance of Alta Trust Company as Trustee and Charles Schwab Trust Bank as custodian.
SECTION 6. Based upon representations made by Shuster Advisory Group, LLC and Alta Trust Company, and the review and recommendation of City staff, the City Council certifies that the Trust satisfies the requirements of Section 115 of the IRC and that all assets held by that trust shall qualify as “plan assets” that are irrevocably dedicated to the prefunding of OPEB obligations.
SECTION 7. The City Council hereby appoints the City Administrator, or the City Administrator’s designee, as the City’s Administrator for the Trust.
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.
SECTION 9. The City’s Administrator is hereby authorized to transfer assets from the City of Vernon CERBT Program to the Trust.
SECTION 10: That this Resolution shall be effective August 4, 2026.
SECTION 11. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end, the provisions of this Resolution are declared to be severable.
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Resolution No. 2026-037
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SECTION 12. The City Clerk, or Deputy City Clerk, shall certify the passage and adoption of this resolution and enter it into the book of original resolutions.
APPROVED AND ADOPTED August 4, 2026.
MELISSA YBARRA, Mayor
ATTEST:
GENOVEVA ROCHA, City Clerk
APPROVED AS TO FORM:
ZAYNAH MOUSSA-MILWARD,
City Attorney
Resolution No. 2026-037
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CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF VERNON )
I do hereby certify that the attached is a true copy of Resolution No. 2026-037 that was passed and adopted at the Regular Meeting held on August 4, 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
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GENOVEVA ROCHA, City Clerk