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HomeMy WebLinkAbout8 CalPERS disbursements Agenda Item # 8 .........................__.. Public U-61ity District CONSENT To: Board of Directors From: Mary Chapman Date: November 19, 2008 Subject: CaIPERS Other Post Employment Benefit Deposits - Delegation of Authority to Request Disbursements 1. WHY THIS MATTER IS BEFORE THE BOARD Only the Board can adopt resolutions. 2. HISTORY Government Accounting Standards. Board accounting rule number 45 (GASB 45) requires government agencies to accrue retiree insurance benefits during an employee's work life. This obligation is referred to as Other Post Employment Benefits (OPEB). In November, 2007 the Board of Directors approved participation in the CalPERS California Employers' Retiree Benefit Trust (CERBT) to accept deposits for the District's OPEB obligations. NRECA performed an actuarial analysis for the District to determine the District's unfunded liability for retiree benefits and calculated the District's annual contribution. The District chose to fund the accrued liability so that sufficient funds would be available to pay retiree insurance benefits when they are needed. 3. NEW INFORMATION CalPERS allows the District to periodically submit to be reimbursed for the premiums paid during the fiscal year for current retirees. In order to submit for reimbursement, the Board needs to authorize certain employees to request reimbursement. For reimbursement requests of $10,000 or less, only one authorized person needs to sign a disbursement request form. If the request is greater than $10,000, then two authorized persons need to sign the disbursement request form. 4. FISCAL IMPACT There is no fiscal impact from approving the attached resolution. 5. RECOMMENDATION Approve the attached resolution titled CalPERS Delegation of Authority to Request Disbursements authorizing the General Manager and the Treasurer to request disbursements from the District's California Employers' Retiree Benefit Trust (CERBT) employer account for reimbursement of retiree post employment benefits paid by the District during the fiscal year. Mary C a Michael D. Holley Administrative Services Manager General Manager TRUCKEE DONNER WIN 1W Resolution No. 2008 - DELEGATION OF AUTHORITY TO REQUEST DISBURSEMENTS FROM THE OTHER POST EMPLOYMENT PRE-FUNDING PLAN WHEREAS, on November 7, 2007 the Board of Directors of the Truckee Donner Public Utility District entered into an agreement with CalPERS to participate in the California Employer's Retiree Benefit Trust Program ("CERBT") to pre-fund the District's post employment benefits obligations through CalPERS; and WHEREAS, periodically the District has an actuarial analysis performed to establish its annual required contribution amount; and WHEREAS, CalPERS has established a method for its plan participants to be reimbursed out of the annual pre-funded contributions for retiree payments made during the year; and WHEREAS, CaIPERS requires the Board of Directors to identify those employee positions who are authorized to submit Retiree Benefit Trust Disbursement Request forms for reimbursement. NOW THEREFORE, BE IT RESOLVED, that the Board of Directors of the Truckee Donner Public Utility District does hereby authorize the General Manager and the Treasurer to request reimbursements of retiree benefits paid from the pre-funded plan; BE IT FURTHER RESOLVED, that the Assistant Treasurer is authorized to request reimbursements in the absence of the Treasurer. PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within the District on November 19, 2008 by the following roll call vote: AYES: ABSTAIN: NOES: ABSENT: TRUCKEE DONNER PUBLIC UTILITY DISTRICT By Tim F. Taylor, President ATTEST: Michael D. Holley, Clerk of the Board