TITLE
Title
GUILFORD COUNTY LAW ENFORCEMENT OFFICERS' SPECIAL SEPARATION ALLOWANCE TRUST
end
SPONSOR
Sponsor
Reid Baker
end
BACKGROUND
Background
During fiscal year 1989, the County contributed $500,000 "seed money" to the Law Enforcement Officers' Special Separation Allowance Pension Trust Fund. The County has since reported the activity; consisting primarily of annual required contributions, investment returns and benefit payments, as well as, the financial position in this pension trust fund to segregate plan assets from those of the County and its creditors. In order to continue reporting plan assets in a pension trust fund, recent accounting standard changes effective for this fiscal year end require that the County establish an irrevocable trust, in which plan assets are dedicated to providing benefits to retirees and their beneficiaries in accordance with the terms of the plan and are legally protected from the creditors of the County or plan administrator. Authorization to establish and fund an irrevocable trust for this purpose is provided under NCGS 159-30.2. Included with this agenda are (1) Resolution Establishing the Guilford County Law Enforcement Officers’ Special Separation Allowance (LEOSSA) Trust and Authorizing the Chairman to Execute the Guilford County LEOSSA Trust Agreement; (2) Guilford County LEOSSA Trust Agreement; and (3) LEOSSA Trust Investment Policy.
end
RESOLUTION
Resolution
RESOLUTION ESTABLISHING THE GUILFORD COUNTY LOCAL GOVERNMENT LAW ENFORCEMENT OFFICERS' SPECIAL SEPARATION ALLOWANCE (LEOSSA) TRUST AND AUTHORIZING THE CHAIRMAN TO EXECUTE THE GUILFORD COUNTY LOCAL GOVERNMENT LEOSSA TRUST AGREEMENT
WHEREAS, Guilford County has established and maintains certain employee and retirement benefit plans that provide post-employment benefits, including but not limited to retirement benefits to the County's qualified sworn law enforcement officers as required by Article 12D of NC General Statute Chapter 143 in the form of a Separation Allowance; and,
WHEREAS, the Governmental Accounting Standards Board (GASB) has issued Statement 67, Statement 68 and Statement 34, which establish standards for accounting and financial reporting for state and local governmental employers that offer defined benefit pension plans; and,
WHEREAS, GASB Statement 67 and GASB Statement 68 require Guilford County to account for any LEOSSA unfunded actuarial accrued liability, i.e., the present value of separation benefits earned but not funded; and,
WHEREAS, as authorized by North Carolina General Statute Section 159-30.2, Guilford County wishes to establish an irrevocable trust pursuant to Section 115 of the Internal Revenue Code for the purpose of funding and pre-funding its obligations to provide separation allowance benefits to former qualified law enforcement officers under its retirement benefit plans in accordance with GASB Statement 67 and GASB Statement 68;
NOW, THEREFORE, BE IT RESOLVED, that the Guilford County Board of Commissioners hereby authorizes and approves the Guilford County Local Government LEOSSA Trust Agreement (the "Trust Agreement") in substantially the form attached hereto.
BE IT FURTHER RESOLVED, that the method of determining and selecting the Fund's Trustees is established in Article IV of the Trust Agreement in substantially the form attached hereto.
BE IT FURTHER RESOLVED, that the Board of Commissioners hereby authorizes the Chairman of the Board of Commissioners to execute and deliver the Trust Agreement in substantially the form attached hereto.
BE IT FINALLY RESOLVED, that this Resolution shall become effective when adopted, and that all resolutions and parts of resolutions in conflict with this Resolution are hereby repealed to the extent of the conflict.
PASSED AND ADOPTED by the Board of Commissioners of Guilford County, North Carolina, this 19th day of May, 2016.
end
BUDGET IMPACT
Budget Impact
NO ADDITIONAL COUNTY FUNDS REQUIRED
end
REQUESTED ACTION
Requested Action
Approve:
(1) Resolution Establishing the Guilford County Law Enforcement Officers’ Special Separation Allowance (LEOSSA) Trust and Authorizing the Chairman to Execute the Guilford County LEOSSA Trust Agreement,
(2) Guilford County LEOSSA Trust Agreement, and
(3) Guilford County LEOSSA Trust Investment Policy (Exhibit B of the Agreement).
Governmental Accounting Standards have recently changed effective for this fiscal year end to require the County to establish its own irrevocable trust in order to continue to report the Law Enforcement Officers’ Special Separation Allowance Plan in a pension trust fund.
end