HomeMy WebLinkAboutRES NO 029-2022RESOLUTION NO. 02 .g ® 2 02 2
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
BAKERSFIELD APPROVING THE ADOPTION OF THE PUBLIC
AGENCIES POST -EMPLOYMENT BENEFITS TRUST
ADMINISTERED BY PUBLIC AGENCY RETIREMENT SERVICES
(PARS)
WHEREAS, the City of Bakersfield (the "City") is currently participating in the
Public Agencies Post -Retirement Health Care Plan Trust for the pre -funding of its
retiree health benefits and other postemployment benefits other than pension
benefits ("OPEB"); and
WHEREAS, the City desires to set aside funds for the purpose of pre -funding
its CalPERS pension obligation that will be held in trust for the exclusive purpose of
making future contributions of the City's required pension contributions and any
employer contributions in excess of such required contributions at the discretion
of the City; and
WHEREAS, PARS has made available the Public Agencies Post -Employment
Benefits Trust (the "Program") for the purpose of pre -funding both pension
obligations and/or OPEB obligations as specified in the City's plans, policies
and/or applicable collective bargaining agreements; and
WHEREAS, the City is eligible to participate in the Program, a tax-exempt
trust performing an essential governmental function within the meaning of Section
115 of the Internal Revenue Code, as amended, and the Regulations issued there
under, and is a tax-exempt trust under the relevant statutory provisions of the State
of California; and
WHEREAS, the City can manage the pre -funding of its pension and OPEB
obligations in a single trust under this Program, thereby gaining administrative and
cost efficiencies; and
WHEREAS, the City's adoption and operation of the Program has no effect
on any current or former employee's entitlement to post -employment benefits;
and
WHEREAS, the terms and conditions of post -employment benefit
entitlement, if any, are governed by contracts separate from and independent
of the Program; and
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WHEREAS, the City's funding of the Program does not, and is not intended
to, create any new vested right to any benefit nor strengthen any existing vested
right; and
WHEREAS, the City reserves the right to make contributions, if any, to the
Program; and
WHEREAS, the City adopted Resolution No. 008-07 on January 17, 2007
adopting the PARS trust agreement, the Post -Retirement Health Care Master Plan
document, and the Investment Guidelines for the trust assets; and
WHEREAS, the City desires approval of a new Investment Guidelines
Document to expand the investment opportunities available to maximize
investment returns in the trust while still maintaining a moderately conservative
approach. The change will provide more fixed income (debt security) options
and a more active management approach as opposed to index -based options.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Bakersfield as follows:
1. The above recitals are true and correct and incorporated by
reference herein.
2. The City Council hereby adopts the Public Agencies Post -
Employment Benefits Trust, effective. MAR 0 2 2022
3. The City Council hereby approves the updated Investment
Guidelines Document for assets held in the Trust.
4. The City Council hereby appoints the City Manager, or his/her
successor or his/her designee as the City's Plan Administrator for the Program.
5. The City's Plan Administrator is hereby authorized to execute the
PARS 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 Program and to maintain compliance of 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 Program.
6. The City Council, in accordance with Section 3.3 of the Public
Agencies Post -Retirement Health Care Plan Trust adopted effective January 17,
2007, hereby authorizes the withdrawal from said trust and directs the transfer of
City assets held in said trust to the OPEB Account established in the name of the
City under the Public Agencies Post -Employment Benefits Trust, adopted herewith.
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HEREBY CERTIFY that the foregoing Resolution was passed and adopted
by the Council of the City of Bakersfield at a regular meeting thereof held on
.MAR 0 /- 2022 , by the following vote:
YES COUNCIL MEMBER ARIAS, GONZALES, WEIR, SMITH, FREEMAN, GRAY, PARLIER
NOES: COUNCIL MEMBER
ABSTAIN: COUNCIL MEMBER
ABSENT: COUNCIL MEMBER
quui6i��"
J LIE DRIMAKIS, MMC
CITY CLERK and Ex Officio Clerk of
the Council of the City of Bakersfield
APPROVED MAR o 1 7n97
By A1001 o2l
WEN GOH
Mayor
APPROVED AS TO FORM:
VIRGINIA GENNARO
City Attorney
By
JOSHUA H. RUDNICK
Deputy City Attorney
Attachments: Exhibit A
JHR/ag
S:\Accounting\Admin\Admin Reporis\PARS Combo Trust Reso.docx
s
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