CONSENT AGENDA REQUEST
Board of Supervisors Meeting Date:
A Resolution to Adopt a Trust for Other Post-Employment Benefits
The objective is to establish a trust for the purpose of accumulating and investing assets to fund post-employment benefits other than pensions in accordance with Section 15.2-1544 of the Code of Virginia.
To ensure compliance with a financial reporting standard issued by the Governmental Accounting Standards Board (referred to as GASB 45), the County contracted with Bolton Partner’s, Inc. who conducted an actuarial study of the County and Schools’ retiree insurance benefit programs. The lowest cost option for the County is to establish a trust fund which allows for the investment in historically higher yielding investments in a long-term portfolio.
The Virginia Municipal League (VML) and Virginia Association of Counties (VACo) created the only pooled investment option currently available in Virginia. The advantages of the County joining this pooled trust are:
n Can use a higher discount rate resulting in lower contributions to the trust
n Administrative ease (Quarterly Finance Sub-Committee meetings)
n Reduced investment risk with larger, more sophisticated Counties investing in pool
n Reduced administrative costs versus investing on our own
Requested Action of the Board of Supervisors:
Consider adoption of the attached resolution and appoint Sally Murray as the citizen member required by the Code of Virginia and Paul A. Hawkins “Andy Hawkins”, Schools Budget Director and Ari Sky, County Budget Director as additional citizen members for the term ending June 30, 2010.
Financial Impacts Analysis:
Fiscal Year 2009 Contribution to the Trust of $488,000 from the Health Insurance Internal Service.
Identify any other Departments, Organizations or Individuals that would be affected by this request:
All departments and schools receiving retiree insurance benefits.