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Sec. 20-126. - Establishment of post retirement benefits fund.#
(a)
There shall be established a fund, separate and apart from the general revenues of the town, known as "post retirement benefits fund."
(b)
The post retirement benefits fund is hereby established to provide the town with a fund into which funds shall be deposited from time to time, but at least annually, to provide funds to pay the town's liability for payment of insurance premiums in connection with medical and other benefits for its employees after retirement which includes, but is not limited to medical, dental, vision, life insurance, disability insurance and other benefits, whether optional or mandatory, in effect now or to be in effect in the future, at the time of retirement.
(c)
The post retirement benefits fund shall be administered by a board of trustees as hereinafter provided. Such post retirement benefits fund shall consist of:
(1)
All monies and securities deposited therein by the treasurer designated to be deposited therein by the town administrator upon the recommendation of the treasurer, subject to town council approval.
(2)
All interest, dividends and other income derived from the above.
(d)
The town will pay into the post retirement benefits fund the percentage designated by the trustees of the total sum needed to provide the benefits as set forth in this article. Such sum is based on the certified actuarial report as prepared by an independent actuarial firm.
(Ord. No. 2005-17, 5-3-05)
Sec. 20-127. - Board of trustees.#
(a)
The board of trustees of the post retirement benefits fund shall consist of five members; one of whom shall be appointed by the town administrator; three of whom shall be appointed by the town council; and the treasurer/finance director then in office, or his or her designee.
(b)
All appointees shall be financially literate and at least two of the three town council appointees shall have educational training, experience or strong working backgrounds in investment management, pension, accounting or finance or otherwise demonstrate an ability to understand and faithfully execute the duties of the board of trustees. Residence in the town is preferable, but not mandatory.
(c)
Members appointed by the town council and the town administrator shall serve for three-year staggered terms. Of the initial members appointed under this section, one member shall be designated to serve a one-year term, two shall be designated to serve a two-year term, and one shall be designated to serve a three-year term. No member shall serve more than three consecutive terms.
(d)
A member will continue as a trustee until the earliest of:
(1)
His/her removal or replacement by the town council or town administrator (or, in the case of the town treasurer, when he/she ceases to be the incumbent of that office);
(2)
His/her resignation in writing is delivered to the town council or town administrator;
(3)
His/her death, disability or incapacity to serve;
(4)
Expiration of his/her term;
(5)
His/her conviction of a felony or crime of moral turpitude;
(6)
Upon his/her absence from two consecutive regular meetings without the consent of the chairperson.
(e)
If, at any time, there shall be a vacancy in the membership of the trustees, the remaining trustees shall not act until such vacancy is filled by action of the town council or town administrator (or the swearing-in of a succeeding or temporary town treasurer). The compensation, if any, and expenses incurred by the trustees in the fulfillment of their duties hereunder shall be paid by the town from the assets of the post retirement benefits fund.
(f)
The trustees shall meet at least once in each fiscal year, and more frequently as requested by a majority of the trustees as may be required. An agenda of each meeting shall be prepared by the town treasurer and circulated to each trustee prior to the meeting date and posted in accordance with the Open Meeting Law Statute.
(Ord. No. 2005-17, 5-3-05; Ord. No. 2010-10, 6-16-10)
Sec. 20-128. - Responsibilities.#
The trustees shall be responsible for the general administration, investment and maintenance of the post retirement benefits fund and for the payment of insurance premiums from it in amounts sufficient to satisfy the town's obligation for post retirement medical benefits. The trustees may, from time to time, adopt bylaws, rules and regulations for its administration, and for the conduct and transaction of their business affairs as trustees. They shall have such power as may be necessary to discharge their duties, including, but not limited to, the power to interpret and construe the provisions hereof, determine all questions of date of retirement, eligibility, duration of service, continuity of service, dates of birth, participation or retirement, and similar related matters subject to existing contract provisions, and their determination of all questions shall be binding upon all participants or any others concerned subject to existing contract provisions. All matters falling outside of the scope of the powers and duties of the trustees and not otherwise provided for herein shall be referred to the town council which shall have the power to act thereon.
(Ord. No. 2005-17, 5-3-05)
Sec. 20-129. - Fiscal powers.#
(a)
The board of trustees shall have, with respect to all monies and properties of the post retirement benefits fund, at any time held by them, power in their discretion to invest and reinvest in any personal property, including but not by way of limitation, common or preferred stocks, bonds, certificates of deposit, interest or participation, mutual funds, and other forms of security or investment without being limited in any respect by statute or court rule or decision of any jurisdiction now or hereafter in force purporting to limit or otherwise affect investments by trustees and without regard to the proportion such property, or properties of a similar character so held or thereafter acquired, may bear to the entire amount of the post retirement benefits fund, and to make such payment from such post retirement benefits fund as herein provided.
(b)
The board of trustees shall have power and authority, in their discretion, to have a bank or trust company which is licensed in the state, or any other financial institution, to serve as their agent in keeping custody of the monies and securities in such fund, in keeping accounts and for other duties in connection with the administration of the post retirement benefits fund; and they are further authorized, in their discretion, to employ such bank or trust company or financial institution as agent in the investment of the post retirement benefits fund and otherwise to assist in its management, and to pay for any of such foregoing services. There shall be no liability on the part of the trustees in the management of the post retirement benefits fund by such an agent selected by them in good faith.
(Ord. No. 2005-17, 5-3-05)
Sec. 20-130. - Consultants.#
The trustees shall have the power in their discretion to employ one or more consultants, actuaries, accountants, attorneys or other professionals at such times as are necessary or advisable to assure the maintenance of the post retirement benefits fund on a sound actuarial basis, which professionals shall make periodic actuarial computations for the purposes thereof, and to assist with the administration of the post retirement benefits fund. The expenses of the consultants will be payable from the post retirement benefits fund unless otherwise authorized by the town council.
(Ord. No. 2005-17, 5-3-05)
Sec. 20-131. - Liability.#
(a)
The trustees shall use ordinary care and reasonable diligence in the performance of their duty and no trustee shall be personally liable for any error of omission or commission unless such error results from his or her own gross negligence, willful misconduct or lack of good faith; nor shall any trustee be personally liable for any act of any other trustee or trustees.
(Ord. No. 2005-17, 5-3-05)
Sec. 20-132. - Fund assets not subject to sale, encumbrance, etc.#
No part of the post retirement benefits fund assets shall be subject, in any manner, to sale, transfer, alienation, pledge, assignment, attachment, or any other encumbrance, whether voluntary or involuntary, by operation of law or court order. Any attempt to sell, transfer, alienate, pledge, assign or otherwise encumber the assets of the post retirement benefits fund shall be void and of no force and effect.
(Ord. No. 2005-17, 5-3-05)
Sec. 20-133. - Mistakes resulting in incorrect payments.#
To the extent a distribution has been made from the post retirement benefits fund that (a) was based on incorrect or inaccurate information received by trustees at the time or (b) resulted in an overpayment, the trustees shall use their best efforts to apply such overpayment to the next succeeding payment due or otherwise receive a credit, or deposit any refund received, into the post retirement benefits fund to the extent of such overpayment.
(Ord. No. 2005-17, 5-3-05)
Sec. 20-134. - Obligation of employees to contribute to post retirement benefits fund.#
On or after July 1, 2005, each employee of the town shall be required to contribute to the post retirement benefits fund, as a condition to such employee's continued employment with the town and right to receive the medical benefits from the town after such employee's retirement for which the post retirement benefits fund was established, a percentage of the insurance premium to be paid by the town in connection with the medical and other benefits to be provided employees after retirement based upon a percentage of such employee's wages. Such amount, if not otherwise determined by an applicable collective bargaining agreement or employment contract, shall equal up to one-half of the actuarially deferred cost of such post retirement benefit. Otherwise, such contribution shall be equal to the co-pay provisions established in accordance with existing collective bargaining agreements or employment contracts in effect.
(Ord. No. 2005-17, 5-3-05)
Sec. 20-135. - Distributions from the post retirement benefits fund.#
At any time, but not more frequently than monthly, the treasurer shall submit a statement or invoice for premiums due during such fiscal period for medical benefits due retired employees of the town, which statement shall include the amount to be paid from the post retirement benefits fund. The trustees shall make arrangements to withdraw from the post retirement benefits fund an amount sufficient to pay such premiums due and forward such funds to the treasurer no later than ten days prior to the premium due date(s).
(Ord. No. 2005-17, 5-3-05)