[Ord. No. 768, 7/14/2022]
As used in this Part 12, the following terms shall have the
meanings indicated:
The custody account maintained under this plan by the designated
custodian for the assets of the plan.
The securities, cash, and other property the employer contributes,
or causes to be contributed, from time to time, including contributions
made under the plan and amounts the employer causes to be transferred
to the account from another funding medium maintained for the plan;
investments and reinvestments thereof; and income thereon, as provided
herein.
Beneficiaries of participants (as defined below).
OPEB as described in detail in the collective bargaining
agreements between the Township and the Warminster Township Police
Benevolent Association, AFCSME unit 1598 and AFSCME unit 2289.
The Warminster Township Board of Supervisors.
The Internal Revenue Code of 1986, as amended.
A financial institution that holds securities for safekeeping
to prevent them from being stolen or lost.
The agreement made between the Township and the custodian
to hold the plan's assets.
An individual who performs services for the employer and
who has been designated as eligible to participate in, and receive
benefits under, the plan.
Warminster Township.
A periodic written analysis of the plan's cash-flow
history, short-term financial needs, long-term financial needs, sources
of money for plan administration expenses, expected levels and timing
of contributions, expected levels and timing of distributions, liquidity
needs (including but not limited to the anticipated liquidity required
to make benefit distributions), employer's ability to provide
future funding, and other significant information which could affect
cash-flow or the exercise of discretion to manage the assets.
The Governmental Accounting Standards Board.
The written investment objectives, policies, strategies,
and restrictions for the account (or for any sub-accounts therein),
including but not limited to proxy-voting guidelines, as amended from
time to time.
A recommendation, or a suggestion to engage in or refrain
from taking a particular course of action, as to:
The advisability of acquiring, holding, disposing of, or exchanging
any asset or any securities or other investment property; or
The guidelines, the funding policy, the permissible investments
set forth in the trust agreement, the composition of the plan's
portfolio, or the selection of persons to provide investment advice
or investment management services with respect to the assets.
The Investment Advisers Act of 1940, as amended.
Any person or firm (other than the custodian) which:
Has the power to manage, acquire, or dispose of any asset of
a plan;
Is registered as an investment adviser under the Investment
Advisers Act or is a bank as defined in the Investment Advisers Act
or is an insurance company qualified to manage, acquire, or dispose
of any asset of a plan under the laws of more than one state;
Has acknowledged, in writing, that it is a fiduciary with respect
to the plan; and
Has been appointed to manage assets as provided under the plan.
The Internal Revenue Service.
Any freeze order, garnishment, levy, restraining order, search
warrant, subpoena, writ of attachment or execution, bankruptcy court
order, receivership order, or similar order relating to the account.
Other post-employment benefits other than pension.
The Other Post-Employment Benefits other than Pension Plan.
Plan participants.
The plan established to pay OPEB, as herein set forth and
as the same may hereafter be amended.
The person or entity appointed by the Board of Supervisors
to administer the plan and trust.
The Warminster Township OPEB Trust as defined under § 1-1204 of the plan.
The Board or any other agency or person appointed by the
Board to serve in that capacity.
[Ord. No. 768, 7/14/2022]
There is hereby established the Warminster Other Post-Employment
Benefit Plan (plan), the purpose of which will be to ensure the accurate
payment of OPEB provided by the employer, and to establish a trust
fund where assets may be accumulated to offset the cost of those benefits.
[Ord. No. 768, 7/14/2022]
1.
Plan name: "Warminster Township Other Post-Employment Benefits Plan"
("plan").
2.
Plan description. The plan is a single-employer defined benefit plan
to provide for retiree benefits, other than pension, as are defined
in the collectively bargained agreements between the Township of Warminster
and the respective bargaining units of covered employees.
3.
Benefits include only OPEB as described in detail in the collective
bargaining agreements between the Township and the Warminster Township
Police Benevolent Association, AFCSME unit 1598 and AFSCME unit 2289.
The plan administrator is the party responsible for maintenance of
files and records detailing the OPEB provided to eligible retirees
of the Township. The establishment of this plan and funding of the
trust associated with it does not create, nor is it intended to create,
a right or promise to OPEB for any individual employee, retiree, or
beneficiary.
4.
Plan administrator. The Township Manager shall serve as plan administrator
and shall be shall be responsible for ensuring that all benefits of
the plan are paid according to the provisions of the plan to each
beneficiary and/or to any insurer or other provider of benefits. The
plan administrator shall determine the amounts due and payable for
the cost of benefits provided and shall pay from trust assets only
the portion of those costs approved by the trustees. The plan administrator
is authorized to disburse amounts in respect of benefits from the
trust:
[Ord. No. 768, 7/14/2022]
1.
Purpose: to establish an entity separate from the Township where
contributions can be made and set aside for the exclusive benefit
of the plan participants and their beneficiaries and not of the Township.
2.
Name: the "Warminster Township OPEB Trust" ("trust").
3.
The principal of the trust, together with any earning thereon, shall
be held by the trustees in an account separate and apart from any
assets of the Township.
4.
The trust assets shall be held by the trustees at all times and shall
not be considered funds or assets of the Township for any purpose.
Neither plan administrator, nor employer, nor any benefit administrator,
nor any entity associated with plan administrator, employer or any
benefit administrator, shall have any legal or equitable interest
in the trust or assets of the trust.
5.
Assets held in the trust are not subject to the claims of creditors
of the plan administrator, benefits administrator, employer, plan
participants, beneficiaries, or the plan.
6.
Beneficiaries shall have no preferred claim, lien, or encumbrance
of any kind on, or security interest in, or any beneficial interest
in any particular assets of the trust.
7.
Except to the extent allowed by law, the expectation of any beneficiary
to receive any benefits is not subject to attachment or garnishment
or other legal process by any creditor of any such beneficiary, nor
shall any beneficiary have the right to alienate, anticipate, commute,
pledge, encumber or assign any benefit until same shall have been
paid.
8.
All trust assets and all income thereon are dedicated to, and shall
be used for, the exclusive purpose of paying benefits of plan participants
and their beneficiaries, and for paying the reasonable and ordinary
expenses of administering the trust. At no time will any trust assets
be used for, or diverted to, any other purposes.
9.
Contributions. As soon as is practical after the adoption of this
plan and appointment of the custodian and investment advisor, the
plan administrator is directed to make an initial contribution to
the custodian of $1,500,000 from monies currently committed for this
purpose in the general fund of the Township. At its sole discretion,
the employer from time to time and at any time may make (or cause
to be made) additional contributions of cash or other assets acceptable
to the custodian of the trust, from employer funds, employee contributions
or any other source. Neither the custodian, nor any Beneficiary, nor
any party to or any other entity referred to in this plan shall have
any right to compel such additional contributions.
All such contributions and all income thereon are irrevocably
dedicated to, and shall be used for the exclusive purpose of paying
the cost of, benefits provided plan participants and beneficiaries
and for paying expenses of administering the trust.
10.
The assets of this trust are to be taken into account for purposes
of GASB 75. Contributions to the trust may constitute all or part
of an employer's unfunded accrued liability for benefits.
11.
The principal of the trust, together with any earning thereon, are
exempt from federal income taxation under Section 115 of the IRC Code.
12.
Amendment and termination.
A.
The Board reserves the right to alter, amend, or terminate the trust
at any time and for any reason without the consent of the trustees
or any other person, provided that no amendment affecting the rights,
duties, or responsibilities of the trustees shall be adopted without
the execution of the trustees to the amendment. Any such amendment
shall become effective as of the date provided in the amendment, if
requiring the trustees' execution, or delivery of the amendment
to the trustees, if the trustees' execution is not required.
B.
Upon termination of the trust, any amount of employer contributions,
plus accrued earnings thereon, remaining in the accounts shall be
used to continue to pay benefits under the plan. In the event that
the plan terminates at the same time or before this trust is terminated,
and the employer fails to maintain any other plans, the trust shall
automatically terminate and remaining assets shall be used for the
satisfaction of all liabilities under all plans to provide such benefits.
Upon such satisfaction of the plan liabilities, any amount of employer
contributions, plus accrued earnings thereon, remaining in the accounts
shall be returned to the employer.
[Ord. No. 768, 7/14/2022]
1.
Appointment. The Board of Supervisors shall serve as the trustees
of the trust, without compensation. The Board may appoint an agency
or other persons to serve as trustees, at which time the Board will
cease to serve in that capacity.
2.
Name: "Warminster Township OPEB Trust Board of Trustees."
3.
Duties and responsibilities of the trustees:
A.
General.
(1)
Establish and maintain an account with a custodian where the
assets of the trust will be held according to the provisions noted
above.
(2)
Oversee a regular selection process for service providers to
the trust including the investment advisor, custodian, and legal counsel,
as deemed necessary.
(3)
Oversee the activities of the plan administrator ensuring that
all disbursements from the trust are in accordance with the plan and
that all contributions made to the plan are promptly deposited with
the custodian.
B.
Investments.
(1)
Investment manager. The trustees will appoint and oversee the
activities of the trust investment manager ensuring that investments
are made:
(a)
Solely in the interest of, and for the exclusive purposes of,
providing for funding of benefits for participants and their beneficiaries,
minimizing employer contributions thereto, and defraying reasonable
expenses of administering the trust;
(b)
With the care, skill, prudence and diligence under the circumstances
then prevailing that a prudent person acting in a like capacity and
familiar with these matters would use in the conduct of an enterprise
of a like character and with like aims; and
(c)
By diversifying the investments of the trust so as to minimize
the risk of loss and to maximize the rate of return, unless under
the circumstances it is clearly prudent not to do so.
(2)
Investment policy. The trustees will establish a written statement
of investment policy. At least annually, the trustees will evaluate
the appropriateness of the policy and, based on such evaluation, either
confirm the terms of the policy as then in effect, or amend the investment
policy as appropriate. The investment policy will achieve the following:
(a)
Document investment objectives, performance expectations and
investment guidelines for assets under the trust;
(b)
Establish an appropriate investment strategy for managing all
assets under the trust, including an investment time horizon, risk
tolerance ranges and asset allocation to provide sufficient diversification
and overall return over the long-term time horizon of the trust;
(c)
Establish investment guidelines to control overall risk and
liquidity;
(d)
Establish periodic performance reporting requirements that will
effectively monitor investment results and ensure that the investment
policy is being followed; and
(e)
Comply with all fiduciary, prudence, due diligence and legal
requirements for the investment of assets under the trust.
C.
The trustees will take all other actions deemed prudent in its fiduciary
capacity as a fiduciary and in the furtherance of the duties and responsibilities
delegated under this chapter. In addition, the trustees may perform
any other activities consistent with this chapter and governing law
as the trustees deem necessary or appropriate.
4.
Resources.
A.
Expenses which are reimbursable in accordance with Township policy
and state law;
B.
The trustees will have access to Township resources, including but
not limited to internal advisors within the Township to assist the
trustees in carrying out their fiduciary duties and responsibilities
to the trust;
C.
The trustees may engage any service providers to assist in the performance
of their duties and responsibilities, including but not limited to
consultants, legal counsel or other providers; and
D.
The trustees may utilize funds under the trust to pay reasonable
expenses of the trust, including but not limited to compensation of
any service provider to the trust appointed by trustees or the Township,
unless such expenses are paid directly by the Township.
5.
Monitoring and reporting. At least quarterly, the trustees will do
the following:
A.
Monitor compliance with the investment policy for the trust;
B.
Review and assess the performance of any service providers appointed
by the trustees or the Township to perform services related to the
trust; and
C.
Deliver a report to the Township Board of Supervisors setting out
the results of the trustees' evaluation of the two preceding
items.
6.
Meetings.
A.
Regular meetings. Regular meetings of the trustees shall be held
annually.
B.
Special meetings. Special meetings of the trustees may be called
periodically, as needed, to address special topics and to review the
quarterly reports of the custodian and investment manager. If the
Board has not appointed an agency or other persons to serve as trustees,
the meetings may take place during the regularly scheduled meetings
of the Board of Supervisors.
C.
Quorum. Three members of the trustees constitute a quorum. A vote
of a majority of the trustees shall be required for action. Action
may be taken by motion.
D.
Agenda. Agendas shall be prepared and distributed to trustees a minimum
of five calendar days in advance of the scheduled meetings. Trustees
may request an item to be included on the agenda by contacting the
plan administrator.
E.
Minutes. The plan administrator or Township Secretary shall cause
to be recorded in the minutes the time and place of each meeting of
the trustees, the names of trustees present, all official acts of
the trustees, the votes given by trustees except when the action is
unanimous, and when requested by a trustee's dissent or approval
with his or her reasons, and shall cause the minutes to be written
forthwith and presented for approval at the next regular meeting.
The approved minutes shall form part of the permanent records of the
trustees.
F.
Committees. The Board may appoint committees, comprised of trustees
and nonmembers, as may be deemed necessary to carry out the business
of the trustees.
G.
Execution of documents. Any documents required to be executed on
behalf of the trustees may be executed by the plan administrator.
7.
Accountability.
A.
Annual reports. The trustees shall submit an annual report (fiscal
year) of performance to the Township within 90 days after the end
of the fiscal year. An audit of the financial statements of the trust
will be conducted by an independent certified public accountant appointed
by the Board of Supervisors.
B.
Review of financial information. The trustees shall periodically
receive reports from the plan administrator, investment manager, and
actuary and shall review all key financial information to ensure that
resources are used and actions taken in compliance with the plan and
the approved investment policy statement. The trustees shall review
all audits and similar information to ensure compliance with financial
control practices and accounting rules.
8.
Conflicts of interest. A trustee shall not engage in any employment,
activity or enterprise for compensation which is inconsistent, incompatible,
in conflict with or inimical to his or her fiduciary duties, functions
or responsibilities to the OPEB Trust. Trustees shall not perform
any work, service or counsel for compensation outside of his or her
OPEB Trust responsibilities where any part of his or her efforts will
be subject to approval by the trustees.
