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HomeMy WebLinkAbout10 CalPERS Post Employee Benifits Agenda Item # 10 TRUCK� DONNER Public Utility District Memorandum To: Board of Directors From: Mary Chapman, Administrative Services Manager Date: October 24, 2007 SUBJECT: Authorization to enter into an agreement with CaIPERS to participate in the California Employer's Retiree Benefit Trust Program ("CERBT") to prefund the District's post employment benefits obligations through CalPERS. 1. WHY THIS ITEM IS BEFORE THE BOARD By January 1, 2008, the District needs to have established an irrevocable trust fund for the investment of funds for Other Post Retirement Employee Benefits (OPEB's) as required by GASB 45 and the Board's direction to staff in Resolution 2001-07 passed on January 17, 2007. 2. HISTORY On January 17, 2007, the Board adopted Resolution No. 2007-01 ADOPTING GOVERNMENTAL ACCOUNTING STANDARDS BOARD NO. 45: ACCOUNTING AND FINANCIAL REPORTING BY EMPLOYERS FOR POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (copy attached). The resolution authorizes two things: 1) The Board of Directors does hereby adopt GASB No. 45 — Accounting and Financial Reporting by Employers for Post Employment Benefits other than pension; and instruct staff to accumulate funds in a designated fund toward this purpose in the actuarially determined amount. 2) That during 2007, the Board will establish an irrevocable trust fund for the investment of the funds for future costs for post retirement employee benefits (OPEB's). Each month during 2007, staff has been setting aside in a board designated restricted fund 1/12th of the total annual liability of $198,800. We had been told by staff members of CalPERS that they were working on legislation (AB 554 Hernandez) which would allow CalPERS to act as Trustee for local governments that had OPEB obligations for retiree health benefits. We have been watching AB 554 all summer long. 3. NEW INFORMATION On October 17, 2007 we received notice from CalPERS that AB 554 had been signed into law by the governor. This legislation allows local government employers to join the California Employer's Retirement Benefit Trust (CERBT) to prefund their OPEB obligations even if they don't contract with CalPERS for health benefits. This was excellent news. The other good news is that CalPERS uses a 7.75% discount rate for calculating the unfunded liability. Our previous actuarial review by NRECA used a 4% discount rate. Once the funds are placed in an irrevocable trust where they can be invested over a longer period of time, a higher discount rate can be used. CalPERS performance record on a rolling ten year basis is 10+%for their pension investments. As a result of this performance, the CalPERS Board of Administration authorized the use of 7.75% for both pension and OPEB liability calculations. The staff at CalPERS is always monitoring the asset allocation of these funds and may recommend changes at least every 2 years. Using the higher discount rate of 7.75% means that our unfunded liability will be lower and our annual contribution will be reduced. CalPERS requires that the District have an updated actuarial evaluation done using their assumptions in order to participate in the Trust. Staff has asked NRECA to prepare an updated actuarial evaluation using the CalPERS assumptions. 4. GOALS AND OBJECTIVES RELATING TO THIS ITEM Objective 4—Manage the District in a responsible manner. Goal 4.1 District will conduct its business in a lawful and ethical way. Objective 6—Manage the District in an effective, efficient and fiscally responsible manner. Goal 6.3 District will provide work conditions and procedures that encourage employee growth, productivity and retention. Goal 6.6 Develop appropriate financial procedures to assure responsible financial management. 5. RECOMMENDATION A) That the Board adopt the attached resolution authorizing the board President to execute the agreement with CaIPERS entitled: "California Employer's Retiree Benefit Trust Program ("CERBT") Agreement and Election of Truckee Donner Public Utility District to Prefund Other Post Employment Benefits through CaIPERS." B) That the Board authorizes staff to obtain an updated actuarial report using the CalPERS assumptions. C) That the Board authorize the Treasurer to transfer to the above designated Trust deposits totaling $198,800 plus accrued interest from the current board designated restricted fund for prefunded payments made during 2007. D) That the Treasurer or the General Manager are authorized to request disbursements from the Trust to reimburse the District for retiree insurance premiums paid by the District. Mary Chapma Jo L. Ulric Administrative Services Manager/ In rim General Manager Treasurer IIII�IIIIII�U III ICI IIIIIEI�III iIIIN IIIII�,I�I IIIE�II Public Utility District Resolution No. 2007- AUTHORIZATION TO ENTER INTO AN AGREEMENT WITH CALPERS TO PARTICIPATE IN THE CALIFORNIA EMPLOYER'S RETIREE BENEFIT TRUST PROGRAM ("CERBT") TO PREFUND THE DISTRICT'S POST EMPLOYMENT BENEFITS OBLIGATIONS THROUGH CALPERS WHEREAS, the Board of Directors of the Truckee Donner Public Utility District is required to follow Government Accounting Standards Board 45 (GASB 45) accounting rules relating to the accounting for Other Post Employment Benefits (OPEB's) beginning January 1, 2008; and WHEREAS, the Board of Directors adopted GASB 45 in Resolution 2007-01 on January 17, 2007 effective beginning in 2007 and directed staff to accumulate funds in a designated restricted fund for the annual actuarially determined amount to prefund the District's OPEB obligations; and WHEREAS, the Board determined that it would establish an irrevocable trust fund for the investment of the OPEB obligation by the January 1, 2008 deadline; and WHEREAS, Governor Schwarzenegger signed AB 554 on October 10, 2007 authorizing that local governments could participate in the California Employer's Retiree Benefit Trust Program ("CERBT') to prefund their OPEB obligations through CalPERS; and WHEREAS, the District and CalPERS are required to jointly execute a document called Agreement and Election of Truckee Donner Public Utility District To Prefund Other Post Employment Benefits Through CalPERS; and WHEREAS, the District is required to provide CalPERS with an updated actuarial report using CaIPERS assumptions to calculate the District's unfunded liability and its annual contribution to meet the requirements of GASB 45. NOW THEREFORE, BE IT RESOLVED, that the Board of Directors of the Truckee Donner Public Utility District does hereby choose to participate in the California Employer's Retiree Benefit Trust Program ("CERBT') and authorizes the Board President to execute the the Agreement and Election of Truckee Donner Public Utility District To Prefund Other Post Employment Benefits Through CalPERS and any other required documents to set up the program; BE IT FURTHER RESOLVED, that the Board of Directors authorizes staff to obtain an updated actuarial report using the CalPERS assumptions; BE IT FURTHER RESOLVED, that the Board authorizes the Treasurer to transfer to the CalPERS Trust all funds set aside in the board designated restricted fund during 2007 including accrued interest; BE IT FURTHER RESOLVED, that the Treasurer and the General Manager are authorized to request reimbursements from the Trust for retiree premiums paid by the District for health insurance. PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within the District on by the following roll call vote: AYES: ABSTAIN: NOES: ABSENT: TRUCKEE DONNER PUBLIC UTILITY DISTRICT By Tim F. Taylor, President ATTEST: John L Ulrich, Clerk of the Board e CALIFORNIA EMPLOYER'S RETIREE BENEFIT TRUST PROGRAM ("CERBT") AGREEMENT AND ELECTION OF TRUCKEE DONNER PUBLIC UTILITY DISTRICT (NAME OF EMPLOYER) TO PREFUND OTHER POST EMPLOYMENT BENEFITS THROUGH CaIPERS WHEREAS (1) Government Code Section 22940 establishes in the State Treasury the Annuitants' Health Care Coverage Fund for the prefunding of health care coverage for annuitants (Prefunding Plan); and WHEREAS (2) The California Public Employees' Retirement System (CaIPERS) Board of Administration (Board) has sole and exclusive control and power over the administration and investment of the Prefunding Plan(sometimes also referred to as CERBT), the purposes of which include, but are not limited to (i) receiving contributions from participating employers and establishing separate Employer Prefunding Accounts in the Prefunding Plan for the performance of an essential governmental function (ii) investing contributed amounts and income thereon, if any, in order to receive yield on, the funds and (iii) disbursing contributed amounts and income thereon, if any, to pay for costs of administration of the Prefunding Plan and to pay for health care costs or other post employment benefits in accordance with the terms of participating employers' plans; and WHEREAS (3) (NAME OF EMPLOYER) (Employer) desires to participate in the Prefunding Plan upon the terms and conditions set by the Board and as set forth herein; and WHEREAS (4) Employer may participate in the Prefunding Plan upon (i) approval by the Board and (ii) filing a duly adopted and executed Agreement and Election to Prefund Other Post Employment Benefits (Agreement) as provided in the terms and conditions of the Agreement; and WHEREAS (5) The Prefunding Plan is a trust fund that is intended to perform an essential governmental function within the meaning of Section 115 of the Internal Revenue Code as an agent multiple-employer plan as defined in Governmental Accounting Standards Board (GASB) Statement No. 43 consisting of an aggregation of single-employer plans, with pooled administrative and investment functions; Rev.2/7/2007:Rev 6/1812007,Rev 10/1012007 NOW, THEREFORE, BE IT RESOLVED THAT EMPLOYER HEREBY MAKES THE FOLLOWING REPRESENTATION AND WARRANTY AND THAT THE BOARD AND EMPLOYER AGREE TO THE FOLLOWING TERMS AND CONDITIONS: A. Representation and Warranty Employer represents and warrants that it is a political subdivision of the State of California or an entity whose income is excluded from gross income under Section 115 (1) of the Internal Revenue Code. B. Adoption and Approval of the Agreement; Effective Date; Amendment (1) Employer's governing body shall elect to participate in the Prefunding Plan by adopting this Agreement and filing with the CalPERS Board a true and correct original or certified copy of this Agreement as follows: Filing by mail, send to: CalPERS Constituent Relations Office CERBT (OPEB) P.O. Box 942709 Sacramento, CA 94229-2709 Filing in person, deliver to: CalPERS Mailroom Attn: Employer Services Division 400 Q Street Sacramento, CA 95814 (2) Upon receipt of the executed Agreement, and after approval by the Board, the Board shall fix an effective date and shall promptly notify Employer of the effective date of the Agreement. (3) The terms of this Agreement may be amended only in writing upon the agreement of both CalPERS and Employer, except as otherwise provided herein. Any such amendment or modification to this Agreement shall be adopted and executed in the same manner as required for the Agreement. Upon receipt of the executed amendment or modification, the Board shall fix the effective date of the amendment or modification. (4) The Board shall institute such procedures and processes as it deems necessary to administer the Prefunding Plan, to carry out the purposes of this Agreement, and to maintain the tax exempt status of the Prefunding Plan. Employer agrees to follow such procedures and processes. Rev 10/10f2007 7 C. Actuarial Valuation and Employer Contributions (1) Employer shall provide to the Board an actuarial valuation report on the basis of the actuarial assumptions and methods prescribed by the Board. Such report shall be for the Board's use in financial reporting, shall be prepared at least as often as the minimum frequency required by GASB Statement No. 43, and shall be: (a) prepared and signed by a Fellow or Associate of the Society of Actuaries who is also a Member of the American Academy of Actuaries or a person with equivalent qualifications acceptable to the Board; (b) prepared in accordance with generally accepted actuarial practice and GASB Statement Nos. 43 and 45; and, (c) provided to the Board prior to the Board's acceptance of contributions for the valuation period or as otherwise required by the Board. (2) The Board may reject any actuarial valuation report submitted to it, but shall not unreasonably do so. In the event that the Board determines, in its sole discretion, that the actuarial valuation report is not suitable for use in the Board's financial statements or if Employer fails to provide a required actuarial valuation, the Board may obtain, at Employer's expense, an actuarial valuation that meets the Board's financial reporting needs. The Board may recover from Employer the cost of obtaining such actuarial valuation by billing and collecting from Employer or by deducting the amount from Employer's account in the Prefunding Plan. (3) Employer shall notify the Board of the amount and time of contributions which contributions shall be made in the manner established by the Board. (4) Employer contributions to the Prefunding Plan may be limited to the amount necessary to fully fund Employer's actuarial present value of total projected benefits, as supported by the actuarial valuation acceptable to the Board. As used throughout this document, the meaning of the term "actuarial present value of total projected benefits" is as defined in GASB Statement No. 45. If Employer's contribution causes its assets in the Prefunding Plan to exceed the amount required to fully fund the actuarial present value of total projected benefits, the Board may refuse to accept the contribution. (5) Any Employer contribution will be at least $5000 or be equal to Employer's Annual Required Contribution as that term is defined in GASB Statement No. 45. Contributions can be made at any time following the seventh day after the effective date of the Agreement provided that Employer has first complied with the requirements of Paragraph C. Rev 10/10/2007 3 D. Administration of Accounts, Investments, Allocation of Income (1) The Board has established the Prefunding Plan as an agent plan consisting of an aggregation of single-employer plans, with pooled administrative and investment functions, under the terms of which separate accounts will be maintained for each employer so that Employer's assets will provide benefits only under employer's plan. (2) All Employer contributions and assets attributable to Employer contributions shall be separately accounted for in the Prefunding Plan (Employer's Prefunding Account). (3) Employer's Prefunding Account assets may be aggregated with prefunding account assets of other employers and may be co-invested by the Board in any asset classes appropriate for a Section 115 Trust. (4) The Board may deduct the costs of administration of the Prefunding Plan from the investment income or Employer's Prefunding Account in a manner determined by the Board. (5) Investment income shall be allocated among employers and posted to Employer's Prefunding Account as determined by the Board but no less frequently than annually. (6) If Employer's assets in the Prefunding Plan exceed the amount required to fully fund the actuarial present value of total projected benefits, the Board, in compliance with applicable accounting and legal requirements, may return such excess to Employer. E. Reports and Statements (1) Employer shall submit with each contribution a contribution report in the form and containing the information prescribed by the Board. (2) The Board shall prepare and provide a statement of Employer's Prefunding Account at least annually reflecting the balance in Employer's Prefunding Account, contributions made during the period and income allocated during the period, and such other information as the Board determines. F. Disbursements (1) Employer may receive disbursements not to exceed the annual premium and other costs of post employment healthcare benefits and other post employment benefits. (2) Employer shall notify CaIPERS in writing in the manner specified by CaiPERS of the persons authorized to request disbursements from the Prefunding Plan on behalf of Employer. Rev 10110/2007 4 (3) Employer's request for disbursement shall be in writing signed by Employer's authorized representative, in accordance with procedures established by the Board. The Board may require that Employer certify or otherwise establish that the monies will be used for the purposes of the Prefunding Plan. (4) Requests for disbursements that satisfy the requirements of paragraphs (2) and (3) that are received on or after the first of a month will be processed by the 1 Vh of the following month. (For example, a disbursement request received on or between March 1 st and March 31 st will be processed by April 15th; and a disbursement request received on or between April 1 st and April 30th will be processed by May 15th.) (5) CalPERS shall not be liable for amounts disbursed in error if it has acted upon the instruction of an individual authorized by Employer to request disbursements. In the event of any other erroneous disbursement, the extent of CaIPERS' liability shall be the actual dollar amount of the disbursement, plus interest at the actual earnings rate but not less than zero. (6) No disbursement shall be made from the Prefunding Plan which exceeds the balance in Employer's Prefunding Account. G. Costs of Administration Employer shall pay its share of the costs of administration of the Prefunding Plan, as determined by the Board. H. Termination of Employer Participation in Prefunding Plan (1) The Board may terminate Employer's participation in the Prefunding Plan if: (a) Employer gives written notice to the Board of its election to terminate; (b) The Board finds that Employer fails to satisfy the terms and conditions of this Agreement or of the Board's rules or regulations. (2) If Employer's participation in the Prefunding Plan terminates for any of the foregoing reasons, all assets in Employer's Prefunding Account shall remain in the Prefunding Plan, except as otherwise provided below, and shall continue to be invested and accrue income as provided in Paragraph D. (3) After Employer's participation in the Prefunding Plan terminates, Employer may not make contributions to the Prefunding Plan. Rev 10/10/2007 5 (4) After Employer's participation in the Prefunding Plan terminates, disbursements from Employer's Prefunding Account may continue upon Employer's instruction or otherwise in accordance with the terms of this Agreement. (5) After thirty-six (36) months have elapsed from the effective date of this Agreement: (a) Employer may request a trustee to trustee transfer of the assets in Employer's Prefunding Account. Upon satisfactory showing to the Board that the transfer will satisfy applicable requirements of the Internal Revenue Code and the Board's fiduciary duties, then the Board shall effect the transfer within one hundred twenty (120) days. The amount to be transferred shall be the amount in the Employers Prefunding Account as of the disbursement date and shall include investment earnings up to the investment earnings allocation date immediately preceding the disbursement date. In no event shall the investment earnings allocation date precede the transfer by more than 120 days. (b) Employer may request a disbursement of the assets in Employer's Prefunding Account. Upon satisfactory showing to the Board that all of Employers obligations for payment of post employment health care benefits and other post employment benefits and reasonable administrative costs of the Board have been satisfied, then the Board shall effect the disbursement within one hundred twenty (120) days. The amount to be disbursed shall be the amount in the Employer's Prefunding Account as of the disbursement date and shall include investment earnings up to the investment earnings allocation date immediately preceding the disbursement date. In no event shall the investment earnings allocation date precede the disbursement by more than 120 days. (6) After Employer's participation in the Prefunding Plan terminates and at such time that no assets remain in Employers Prefunding Account, this Agreement shall terminate. (7) if, for any reason, the Board terminates the Prefunding Plan, the assets in Employer's Prefunding Account shall be paid to Employer after retention of(i) amounts sufficient to pay post employment health care benefits and other post employment benefits to annuitants for current and future annuitants, and (ii) amounts sufficient to pay reasonable administrative costs of the Board. (8) If Employer ceases to exist but Employer's Prefunding Plan continues to exist and if no provision has been made by Employer for ongoing payments to pay post employment health care benefits and other post employment benefits to annuitants for current and future annuitants, the Board is authorized to and shall appoint a third party administrator to cant' out Employers Prefunding Plan. Any and all costs associated Rev 10/10/2007 6 with such appointment shall be paid from the assets attributable to contributions by Employer. (9) If Employer should breach the representation and warranty set forth in Paragraph A., the Board shall take whatever action it deems necessary to preserve the tax-exempt status of the Prefunding Plan. 1. General Provisions (1) Books and Records. Employer shall keep accurate books and records connected with the performance of this Agreement. Employer shall ensure that books and records of subcontractors, suppliers, and other providers shall also be accurately maintained. Such books and records shall be kept in a secure location at the Employer's office(s) and shall be available for inspection and copying by CalPERS and its representatives at any time. (2) Audit. (a) During and for three years after the term of this Agreement, Employer shall permit the Bureau of State Audits, CaIPERS, and its authorized representatives, and such consultants and specialists as needed, at all reasonable times during normal business hours to inspect and copy, at the, expense of CaIPERS, books and records of Employer relating to its performance of this Agreement. (b) Employer shall be subject to examination and audit by the Bureau of State Audits, CalPERS, and its authorized representatives, and such consultants and specialists as needed, during the term of this Agreement and for three years after final payment under this Agreement. Any examination or audit shall be confined to those matters connected with the performance of this Agreement, including, but not limited to, the costs of administering this Agreement. Employer shall cooperate fully with the Bureau of State Audits, CaIPERS, and its authorized representatives, and such consultants and specialists as needed, in connection with any examination or audit. All adjustments, payments, and/or reimbursements determined to be necessary by any examination or audit shall be made promptly by the appropriate party. (3) Notice. (a) Any notice, approval, or other communication required or permitted under this Agreement will be given in the English language and will be deemed received as follows: Rev 10110/2007 7 1. Personal delivery. When personally delivered to the recipient. Notice is effective on delivery. 2. First Class Mail. When mailed first class to the last address of the recipient known to the party giving notice. Notice is effective three delivery days after deposit in a United States Postal Service office or mailbox. 3. Certified mail. When mailed certified mail, return receipt requested. Notice is effective on receipt, if delivery is confirmed by a return receipt. 4. Overnight Delivery. When delivered by an overnight delivery service, charges prepaid or charged to the sender's account, Notice is effective on delivery, if delivery is confirmed by the delivery service. 5. Telex or Facsimile Transmission. When sent by telex or fax to the last telex or fax number of the recipient known to the party giving notice. Notice is effective on receipt, provided that (i) a duplicate copy of the notice is promptly given by first-class or certified mail or by overnight delivery, or(ii) the receiving party delivers a written confirmation of receipt. Any notice given by telex or fax shall be deemed received on the next business day if it is received after 5:00 p.m. (recipient's time) or on a nonbusiness day. 6. E-mail transmission. When sent by e-mail using software that provides unmodifiable proof(i) that the message was sent, (ii) that the message was delivered to the recipient's information processing system, and (iii) of the time and date the message was delivered to the recipient along with a verifiable electronic record of the exact content of the message sent. Addresses for the purpose of giving notice are as shown in Paragraph B.(1) of this Agreement. (b) Any correctly addressed notice that is refused, unclaimed, or undeliverable because of an act or omission of the party to be notified shall be deemed effective as of the first date that said notice was refused, unclaimed, or deemed undeliverable by the postal authorities, messenger or overnight delivery service. (c) Any party may change its address, telex, fax number, or e-mail address by giving the other party notice of the change in any manner permitted by this Agreement. Rev 10/10/2007 8 P (d) All notices, requests, demands, amendments, modifications or other communications under this Agreement shall be in writing. Notice shall be sufficient for all such purposes if personally delivered, sent by first class, registered or certified mail, return receipt requested, delivery by courier with receipt of delivery, facsimile transmission with written confirmation of receipt by recipient, or e-mail delivery with verifiable and unmodifiable proof of content and time and date of sending by sender and delivery to recipient. Notice is effective on confirmed receipt by recipient or 3 business days after sending, whichever is sooner. (4) Modification This Agreement may be supplemented, amended, or modified only by the mutual agreement of the parties. No supplement, amendment, or modification of this Agreement shall be binding unless it is in writing and signed by the party to be charged. (5) Survival All representations, warranties, and covenants contained in this Agreement, or in any instrument, certificate, exhibit, or other writing intended by the parties to be a part of their Agreement shall survive the termination of this Agreement until such time as all amounts in Employer's Prefunding Account have been disbursed. (6) Waiver No waiver of a breach, failure of any condition, or any right or remedy contained in or granted by the provisions of this Agreement shall be effective unless it is in writing and signed by the party waiving the breach, failure, right, or remedy. No waiver of any breach, failure, right, or remedy shall be deemed a waiver of any other breach, failure, right, or remedy, whether or not similar, nor shall any waiver constitute a continuing waiver unless the writing so specifies. (7) Necessary Acts, Further Assurances The parties shall at their own cost and expense execute and deliver such further documents and instruments and shall take such other actions as may be reasonably required or appropriate to evidence or carry out the intent and purposes of this Agreement. Rev 10/10/2007 9 A majority vote of Employer's Governing Body at a public meeting held on the day of the month of 2007, authorized entering into this Agreement. Signature of the Presiding Officer: Printed Name of the Presiding Officer: Name of Governing Body: Name of Employer: Date: BOARD OF ADMINISTRATION CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM BY KENNETH W. MARZION ACTUARIAL AND EMPLOYER SERVICES BRANCH CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM To be completed by CalPERS The effective date of this Agreement is: Rev 10110/2007 10 .fir' .a3 Publicr;r i Resolution No. 2007 - 01 ADOPTING GOVERNMENTAL ACCOUNTING STANDARDS BOARD No. 45: ACCOUNTING AND FINANCIAL REPORTING BY EMPLOYERS FOR POSTEMPLOYEMENT BENEFITS OTHER THAN PENSIONS WHEREAS, Governmental Accounting Standards Board (GASB) has issued Statement No. 45 which addresses the accounting and reporting for certain "other" post retirement employee benefits (OPEB's); and WHEREAS, the District provides for certain payments towards retiree's health insurance; and WHEREAS, GASB requires that the District recognize, in its financial statements, the cost for the future health insurance premiums for current employees earned during their employment and/or an accrued liability for any unfunded costs. WHEREAS, the Board of Directors needs to comply with the new GASB No. 45 ruling no later than 2008; and WHEREAS, the Board of Directors needs to establish an irrevocable trust fund to accumulate funds for future costs for this benefit and that these funds be invested in a longer-term instrument in order to maximize interest earnings; WHEREAS, the Board of Directors has included and will continue to include an amount in the annual District budget designated for the post retirement employee benefits (OPEB's) fund; NOW, THEREFORE, the Board of the District does hereby resolve as follows: 1. The Board of Directors does hereby adopt GASB NO. 45- Accounting and Financial Reporting by Employers for Post employment benefits other than pension; and instruct staff to accumulate funds in a designated fund toward this purpose in the actuarially determined amount. 2. That during 2007, the Board will establish an irrevocable trust fund for the investment of the funds for future costs for post retirement employee benefits (OPEB's). 1 Resolution 2007-01, GASB 45 PASSED AND ADOPTED by the Board of Directors of the Truckee Donner Public Utility District in a meeting duly called and held within said District on the 17t' day of January, 2007 by the following roll call vote: AYES: Directors Aguera, Hemig, Sutton, Taylor and Thomason ABSTAIN: None NOES: None ABSENT: None TRUCKEE,DONNER PUB4C UTILITY DISTRICT By x _ - Tim F. Taylor, President 'r_ ATTEST t Peter L. Holzmeister, Clerk of the Board 2 Resolution 2007-01, GASB 45