[HISTORY: Adopted by the Town Council of the Town of Smithfield 9-4-2012 by Ord. No.
2012-08. Amendments noted where applicable.]
A.
There shall be established a fund, separate and apart from the general
revenues of the Town of Smithfield, known as the "Other Post-Employment
Benefits Trust Fund," herein referred to as the "OPEB Trust Fund."
This fund may be separated into subaccounts for funding and reporting
purposes.
B.
The OPEB Trust Fund is hereby established to provide the Town with
a fund into which monies may be deposited from time to time, to provide
funds to pay the Town's liability for payment of premiums and/or
related expenses in connection with health care, dental care, and
other benefits for its employees after retirement, which include,
but are not limited to, medical, dental, vision, life insurance, disability
insurance and any other OPEB benefits, whether optional or mandatory,
in effect now or to be in effect in the future, at the time of retirement.
C.
The OPEB Trust Fund shall be administered by the OPEB Board as hereinafter
provided. Such OPEB Trust Fund shall consist of:
(1)
All funds appropriated or otherwise made available by the Town for
the purposes of meeting the current and future OPEB costs payable
by the Town.
(2)
Amounts contributed or otherwise made available by employees of the
Town for the purposes of meeting future OPEB costs payable by the
Town.
(3)
All interest, dividends and other income derived from the above.
The OPEB Board shall be composed of the Smithfield Town Manager,
the Smithfield Finance Director, and the Smithfield School Department
Business Manager.
A.
The OPEB Board shall be responsible for the general administration,
investment and maintenance of the OPEB Trust Fund and for the payment
from the fund of insurance premiums and/or other post-employment benefits
as directed by the Financial Town Meeting. The OPEB Board may, from
time to time, adopt rules and regulations for its administration,
and for the conduct and transaction of business affairs. The OPEB
Board shall have such power as may be necessary to discharge its 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 collective bargaining provisions, and its determination
of all questions shall be binding upon all participants or any others
concerned, subject to existing collective bargaining provisions. All
matters falling outside of the scope of the powers and duties of the
OPEB Board and not otherwise provided for herein shall be referred
to the Town Council, which shall have the power to act thereon.
B.
Meetings of the OPEB Board shall be conducted in accordance with
the Rhode Island Open Meetings Act. The records of the OPEB Board
shall be subject to the Rhode Island Access to Public Records Act.
A.
The OPEB Board shall have, with respect to all monies and properties
of the OPEB Trust Fund at any time held by it, the power in its discretion
to invest and reinvest in any investment permitted for the Town and
State of Rhode Island pension funds. Investments must be consistent
with the prudent person rule and the investment policies of the Town
and the Rhode Island General Treasurer. The OPEB Board shall also
be empowered to make such payments from the OPEB Trust Fund as are
herein provided.
B.
The OPEB Board shall have power and authority, with the approval
of the Town Council, to agree with a bank or trust company which is
licensed in the State of Rhode Island, to serve as its agent in keeping
custody of the monies and securities in such fund, in keeping accounts
and for other related duties in connection with the administration
of the OPEB Trust Fund; and it is further authorized, with the approval
of the Town Council, to agree with such bank or trust company to act
as its agent in the investment of the OPEB Trust Fund and otherwise
to assist in its management, and to pay for any of such foregoing
services. Procurement for these services shall be subject to the procurement
procedures and rules governing Rhode Island municipalities. There
shall be an investment policy, adopted by the Town Council, governing
the investment of the OPEB Trust Fund.
The Town Council may, in its discretion, employ one or more
qualified consultants, actuaries, accountants, attorneys or other
professionals at such times as are necessary or advisable to assure
the maintenance of the OPEB Trust Fund. An actuary shall perform an
actuarial valuation of the Town's OPEB liabilities and funding
schedule, as required by and in accordance with Government Accounting
Standards Board Statements 43 and 45, for the purposes thereof, and
may assist with the administration of the OPEB Trust Fund. The expenses
of the consultants will be payable from the OPEB Trust Fund unless
otherwise directed by the Town Council.
The OPEB Board shall use ordinary care and reasonable diligence
in the performance of its duty and its members shall not 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.
No part of the OPEB Trust 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 OPEB Trust Fund shall
be void and of no force and effect.
To the extent a distribution has been made from the OPEB Trust
Fund that was based on incorrect or inaccurate information received
by the OPEB Board at the time, or resulted in an overpayment, the
OPEB Board shall use its best efforts to apply such overpayment to
the next succeeding payment due or otherwise receive a credit, and
deposit any refund received, into the OPEB Trust Fund to the extent
of such overpayment.
At any time, the Smithfield Finance Director may submit a statement
or invoice for premiums and/or other allowable related costs due during
such fiscal period for post-employment benefits due retired employees
of the Town, which statement shall include the amount to be paid from
the OPEB Trust Fund. The OPEB Board shall make arrangements to withdraw
from the OPEB Trust Fund an amount sufficient to pay such expenditures
due.
The OPEB Board shall comply with all applicable provisions of
Rhode Island law which relate to other post-employment benefits, including
G.L. §§ 45-21-65 and 16-2-9.5. Any provision of this
chapter which is inconsistent with any provision of federal or state
law shall be deemed stricken from this chapter without affecting the
validity or enforceability of the remaining provisions of this chapter.
