HomeMy WebLinkAboutReso 85-22 Public Agencies Post Employment Benefits TrustRESOLUTION NO. 85-22
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA
APPROVING THE ADOPTION OF THE
PUBLIC AGENCIES POST -EMPLOYMENT BENEFITS TRUST
ADMINISTERED BY PUBLIC AGENCY RETIREMENT SERVICES (PARS)
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, PARS has made available the PARS Public Agencies Post -Employment
Benefits Trust (the "Program") for the purpose of prefunding pension obligations and/or Other
Post -Employment Benefit (OPEB) obligations; and
WHEREAS, the City convened a selection committee including members of City Council
and a member of the Citizens Finance Advisory Committee to review available pension trusts and
the committee recommended PARS as the preferred provider; and
WHEREAS, the City has an existing OPEB Trust managed by MissionSquare Retirement,
and the selection committee recommends moving those funds to PARS for lower fees and ease
of administration; and
WHEREAS, the City is eligible to participate in the PARS 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'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
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.
NOW THEREFORE, BE IT RESOLVED THAT the City Council of the City of Morro Bay does
hereby:
1. The City Council hereby adopts the PARS Public Agencies Post -Employment Benefits
Trust, effective September 27, 2022; and
2. 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; and
3. 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; and
4. The City Manager is hereby authorized to take actions necessary to dissolve the existing
OPEB Trust with MissionSquare Retirement and to move funds to an OPEB Trust with
PARS; and
5. The City Council hereby directs the City Manager to select the original allocations for the
Trust investments as follows based on the selection committee's recommendation: Capital
Appreciation HighMark PLUS for the OPEB Trust and Balanced HighMark PLUS for the
Pension Trust; and authorized the City Manager as Plan Administrator to make changes
in the future as needed to implement City fiscal goals.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof
held on the 27' day of September 2022 by the following vote:
AYES: Headding, Addis, Barton, Ford,
NOES: None
ABSENT: None
7"EST:
A SWANSON, City Clerk
Heller
JOHN A NG, Mayor