Title
Request for Approval to allow for the investment of funds held in the Retiree Health Care Benefit Trust
Body
Whereas, PA 149 of 1999, MCL 38.1211-38.1216, provides for the creation of a public employees health care fund to assist with prefunding retiree health care benefits; and
Whereas, the Act also provides for the administration of the fund, authorization of investment of the assets and prescribes the power and duties of certain public officers; and
Whereas, the City Council believes that it is prudent public policy to plan and finance retiree health benefits when earned so that there are sufficient resources to pay those health care benefits when employees retire; and
Whereas, the City Council also believes that failing to set aside adequate funds when the employee earns the retiree health benefit places an undue financial burden on future budgets.
Be It Further Resolved, that the City Council has established a Retiree Health Care Trust Fund for the specific purpose of accumulating funds to provide for the funding of health care benefits for retirees and beneficiaries based on eligibility criteria established by the City Council from time to time; and
Be It Further Resolved, the City’s Director of Finance; the City Assessor/Treasurer; one City Councilmember and two City Residents, appointed by City Council, are Co-Trustees and investment fiduciaries for the Retiree Health Care Trust Fund; and
Be It Further Resolved, withdrawals from this Retiree Health Care Trust Fund may be made solely for (1) the payment of health care premiums payable on behalf of qualified persons who shall be the Plan participants and beneficiaries (designated by the Plan) and (2) the payment of expenses of administration of the Retiree Health Care Trust Fund; and
Be It Further Resolved, the Mayor is charged with the responsibility for authorizing payment of health care premiums and administrative expenses from the Retiree Health Care Trust Fund in accordance with budgets ...
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