Board approves creation of OPEB trust and names chief business official plan administrator
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Summary
Trust resolution to establish a public agencies post-employment benefits (OPEB) trust was approved 4–0; board also appointed the chief business official as plan administrator and selected a balanced investment portfolio through PARS.
The board approved Resolution No. 18 to establish a public agencies post‑employment benefits (OPEB) trust administered by Public Agency Retirement Services (PARS) and named the district’s chief business official as the plan administrator.
Staff explained the resolution is the first step to open the trust and does not require an immediate deposit. The district will select a balanced investment portfolio and use PARS for account administration. Staff described the expected annual fee rate and noted historical average returns from PARS' balanced portfolios.
Ryan from PARS was available via Zoom for board questions. Trustees asked for clarity on fees and expected returns; staff and the PARS representative discussed volatility over one‑year periods and longer‑term historical averages. The board approved the resolution by roll call (motion from Casey Raboy, seconded by Matthew Ward; vote 4–0).
Board materials noted estimated five‑year historical returns and an annual fee of about 0.323% on invested balances; staff said they consulted auditors and financial advisers in preparing the recommendation.
Next steps include opening the account, finalizing portfolio selections, and returning to the board with planned deposits or policy updates as appropriate.