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Home My WebLink About09-11-17-2h - Resolution - 09/11/2017 RESOLUTION NO. 09-11-17-2h A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COLLEGE STATION, TEXAS, ADOPTING THE PUBLIC AGENCY RETIREMENT SERVICES (PARS) PUBLIC AGENCY POST- RETIREMENT HEALTH CARE PLAN, APPOINTING A PLAN ADMINISTRATOR FOR THE PLAN, AND DELEGATING AUTHORITY TO THE PLAN ADMINISTRATOR WHEREAS,the City Council of the City of College Station,Texas, determines it to be in the best interest of the City of College Station, Texas, (the "City") to participate in the PARS Public Agencies Post- Retirement Health Care Plan Trust (the "Program") to fund post-employment benefits for its employees as specified in the City's policies; and WHEREAS, the City is eligible to participate in the Program, a tax-exempt trust and plan 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 Texas; 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 BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION, TEXAS: PART 1: That the City Council hereby adopts the PARS Public Agencies Post-Retirement Health Care Plan Trust, including the PARS Public Agencies Post-Retirement Health Care Plan, effective September 11, 2017. PART 2: That the City Council hereby appoints Jeff Kersten, Assistant City Manager, or his successor or his designee, as the City's Plan Administrator for the Program; and PART 3: That the City Council hereby authorizes the City's Plan Administrator 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. PART 4: That this resolution shall take effect immediately from and after its passage. RESOLUTION NO.09-11-17-2h Page 2 of 2 ADOPTED this eleventh day of September, A.D. 2017. ATTEST. C APPRO D: ‘ — A- s,, r / City Secr-tar A rOR APPROVED: (fat i9e.641/"A2 11/ City Attorney AGENCY RETIREMENT SERVICES TRUSTED SOLUTIONS. LASTING RESULTS. MEMORANDUM DATE: October 11, 2017 TO: Michael De Haven Treasury Manager City of College Station 1101 Texas Avenue College Station,TX 77840 FROM: Shauna Volcan Vice President, Plan Implementation RE: City of College Station PARS Post-Retirement Health Care Plan Enclosed please find for your files a fully executed original of the Adoption Agreement to the City of College Station PARS Post-Retirement Health Care Plan. 4350 Von Karman Ave.,Ste. 100 Newport Beach,CA 92660-2043 800.540.6369 fax 800.660.8057 www.pars.org ADOPTION AGREEMENT for the PRHCP SECTION 115 TRUST A.1.1. Trust agreement with U.S. Bank National Association (the"Bank")(the"Trust Agreement"): PRHCP Section 115 Trust. Public Agencies Post-Retirement Health Care Plan—Trust Agreement, effective November 1, 2005, as amended and restated as of May 16, 2007 No guaranty that payments or reimbursements to employees, former employees, or retirees will be tax-free. The Trust has obtained a ruling from the Internal Revenue Service concerning only the federal tax treatment of the Trust's income. That ruling may not be cited or relied upon by the Employer whatsoever as precedent concerning any matter relating to the Employer's health plan(s) (including post-retirement health plans). In particular, that ruling has no effect on whether contributions to the Employer's health plan(s) or payments from the Employer's health plans (including reimbursements of medical expenses) are excludible from the gross income of employees, former employees, or retirees, under the Internal Revenue Code. The federal income tax consequences to employees, former employees, and retirees depend on the terms and operation of the Employer's health plan(s). (The plan document is the Public Agencies Post-Retirement Health Care Plan—Master Plan Document, as amended and restated as of May 16, 2007 (the"Plan Document"). A.1.2. Plan: Public Agencies Post-Retirement Health Care Plan, as adopted by the City of College Station A.1.3. Plan's effective date: September 11, 2017 A.2.1. Employer or Agency, as the case may be(the"Employer"): Name: City of College Station U.S. mail address: 1101 Texas Avenue, College Station, TX 77840 Phone number: (979)764-3500 EIN: 74-6000534 Fiscal year end: September 30 A.2.2. Plan Administrator Position at Employer: Assistant City Manager Incumbent: Jeff Kersten U.S. mail address: 1101 Texas Avenue, College Station, TX 77840 Phone number: (979)764-3510 Email address: jkersten(cr�cstx.gov Page 1 of 3 EXI-IIBIT"A"TO PUBLIC AGENCIES POST-RETIREMENT HEALTH CARE PLAN TRUST AGREEMENT A.3.1 Adoption. The Employer hereby: A.3.1.1.Adopts the Trust Agreement as part of the Plan and agrees to be bound by the Trust Agreement's terms, effective as of the Employer's signature date below and subject to the investment approach selected below. A.3.1.2.(i) Adopts the Plan Document and agrees to be bound by the Plan Document's terms, effective as of the Employer's signature date below and (ii) acknowledges that the determination of Eligible Employees and Eligible Dependents is finally and conclusively made by the Employer according to the Employer's applicable policies and collective bargaining agreements. A.3.1.3.Ratifies, affirms, and approves Employer's appointment of Phase II Systems as Trust Administrator and represents and warrants that attached hereto is a fully-executed original of Employer's Agreement for Administrative Services with Phase II Systems, d/b/a Public Agency Retirement Services (PARS). A.3.1.4.Agrees that capitalized terms used herein but not defined herein shall have the same meaning attributed to them as in the Trust Agreement or Plan Document, as the case may be. A.4.0. The Employer hereby represents and warrants that: A.4.0.1. Authorizing Law. Employer has reviewed with its legal counsel and has determined that Employer is authorized to establish the Plan and to establish a financial-institution trust (separate and apart from the state)for the Plan, including the authority to adopt the Trust Agreement. A.4.0.2. Authorizing Resolution. Attached hereto is a certified copy of a resolution of the Employer's governing body authorizing the adoption of the Trust Agreement as part of the Plan and authorizing the appointment of the Plan Administrator designated by position of employment at the Employer to act on the Employer's behalf in all matters relating to the trust. A.4.0.3. Tax Status. The Plan is a "governmental plan" as defined in Section 414(d) of the Internal Revenue Code of 1986, as amended; is a "Section 401(a)(24) governmental plan" as defined in Revenue Ruling 2011-1; and is not subject to Federal income taxation. The Plan's governing document expressly provides that it is irrevocably impossible for any part of the corpus or income of the Plan to be used for, or diverted to, purposes other than for the exclusive benefit of the Plan participants and their beneficiaries. (In addition, the Employer hereby acknowledges that the Plan is prohibited from assigning any part of its equity or interest in the trust.) A.4.1. Investment Approach. Trust assets are invested in the discretion of(check one and only one of the following boxes): Discretionary investment approach: /The The Bank, subject to Exhibit A (Investment Strategy Selection and Disclosure Form), attached hereto. Page 2 of 3 EXHIBIT"A"TO PUBLIC AGENCIES POST-RETIREMENT HEALTH CARE PLAN TRUST AGREEMENT Directed investment approach: o The Plan Administrator. o The following registered investment adviser, bank (other than the Bank), or insurance company(a"Third-Party Manager"): . The Employer hereby represents and warrants that attached hereto is an executed copy of the agreement with the above appointed Third Party Manager. CITY 0 COLLEGE STATION By: ,' I 1 A.teft. Jeff' e' !-.171 Its: Assistant City Manager Date: q- (5 - (7 Accepted by: PHASE II SYSTEMS, DBA PUBLIC AGENCY RETIREMENT SERVICES 'ARS) By: Daniel Johnson' Its: President Date: �.tfr7 U.S. BANK NAT ONAL ASSOCIATION By: Susan M. Hug Its: Vice President and Relationship Manager Date: I . Page 3 of 3 EXHIBIT"A"TO PUBLIC AGENCIES POST-RETIREMENT HEALTH CARE PLAN TRUST AGREEMENT