HomeMy WebLinkAboutResolution No. 09-7140 - Approve Agmt & election to pre-fund post employment benefits through PERSRESOLUTION NO. 09-7140
A RESOLUTION APPROVING AN AGREEMENT AND ELECTION TO PRE-FUND
OTHER POST EMPLOYMENT BENEFITS (OPEB) THROUGH CALPERS;
AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT; AND
AUTHORIZING THE CITY MANAGER TO TAKE OTHER ACTIONS REQUIRED BY
CALPERS.
WHEREAS, the City of Downey manages a retiree health benefit program (Program)
that pays some of the health insurance premium for retired City employees who meet the
eligibility requirements of the program; and
WHEREAS, it is in the City’s best interests to comply with Governmental Accounting
Standards Board Statement No. 45 (GASB 45), which requires annual payments on unfunded
portions of the actuarial costs of retire benefits and disclosure in the City’s Comprehensive
Annual Financial Report Footnotes of unfunded annual required contributions; and
WHEREAS, GASB 45 requires that the City fund the accrued liability of the program by
placing it in an irrevocable trust dedicated to paying the costs of the program and investing
funds needed in future years; and
WHEREAS, the California Public Employees Retirement System (CaIPERS) has created
the California Employers' Retiree Benefit Trust Fund (CERBT) to assist public agencies’
compliance with GASB 45 and to manage investment of contracting agencies reserve set aside
to fund the costs of other post-employment benefits; and
(WHEREAS, CaIPERS requires the governing body of a public agency, by resolution, to
approve an agreement with CaIPERS to participate in CERBT and a delegation of authority to
specific staff to request disbursement of funds needed for Program costs;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DOWNEY DOES
RESOLVE AS FOLLOWS:
SECTION 1.The agreement with CaIPERS to participate in the Trust is approved.
SECTION 2. The City Manager is authorized to execute the agreement and any
implementing or modifying documents as required by CaIPERS.
SECTION 3. The City Council delegates to the City Manager and Finance Director the
authority to request disbursements from the Trust for the expenses of the program and to certify
as to the purpose for which the disbursed fund will be used.
SECTION 4. The Finance Director is authorized to transfer the available balance in the
City’s Employee Benefits Fund to the CERBT when necessary and prudent.
SECTION 5 The City Clerk shall certify to the adoption of this Resolution.
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RESOLUTION NO. 09-7140
PAGE TWO
APPROVED AND ADOPTED this 23'd day of June, 2009
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ATTEST:
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KATHLEEN L. MiDSTOKKE, City Clerk
I HEREBY CERTIFY that the foregoing Resolution was adopted by the City Council of
the City of Downey at a regular meeting held on the 23'd day of June, 2009 by the following
vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN
Council Members: Bayer, Brossmer, Gafin, Marquez, Mayor Guerra
Council Member: None
Council Member: None
Council Member: None
KATHLEEN L. MIDSTOKKE, City Clerk