CC Resolution No. 18-048 Approving the Adoption of a Public Agencies Post-Employment Benefits Trust Administered by a Third-Party Administrator to be Selected by the Audit CommitteeRESOLUTION NO. 18-048
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
APPROVING THE ADOPTION OF A
PUBLIC AGENCIES POST-EMPLOYMENT BENEFITS TRUST
ADMINISTERED BY A THIRD-PARTY ADMINISTRATOR TO BE SELECTED BY THE
AUDIT COMMITTEE
WHEREAS, the City of Cupertino (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, the City is eligible to participate in a Post-Employment Benefits Trust (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'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.
WHEREAS, the City's Audit Committee shall select the third-party administrator of the
Program and oversee the Program.
NOW, THEREFORE, BE IT RESOLVED that:
1. The City Council hereby adopts the Public Agencies Post-Employment Benefits Trust,
effective May 15, 2018; and
2. The City Council hereby appoints the Director of Administrative Services, or his/her
successor or his/her designee as the City's Plan Administrator for the Program; and
Resolution No. 18-048
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3. The City's Plan Administrator is hereby authorized to execute legal and
administrative documents with the third-party administrator selected by the Audit
Committee 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.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Cupertino this 15th day of May 2018, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Members of the City Council
Paul, Sinks, Chang, Scharf, Vaidhyanathan
None
None
None
APPROVED:
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Grace Schmidt, City Clerk Darcy Paul, Mayor,
City of Cupertino
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