§ 16-2-9.5 - Other post-employment benefits – OPEB trusts. - Rhode Island Statutes

SECTION 16-2-9.5

   § 16-2-9.5  Other post-employment benefits– OPEB trusts. – (a) Notwithstanding the provisions of any general or special law, or theprovisions of any municipality's home rule charter, to the contrary, forpurposes of funding any unfunded liability for other post-employment benefitsincluding, but not limited to, health care and dental care benefits hereinafterreferred to as ("OPEB") in accordance with government accounting standardsboard statements 43 and 45, a school district, acting by its business manageror superintendent, upon an approving resolution of the school committee orschool board as applicable, may enter into a trust agreement between the schooldistrict and a corporate trustee which shall be a bank or trust company doingbusiness in the state. This trust agreement shall be in any form deemed properby the business manager or superintendent, and shall be executed by itsbusiness manager or superintendent and countersigned by the chair of the schoolcommittee of the school district. It shall be lawful for any bank or trustcompany doing business in the state to act as a depository or trustee underthis trust agreement, and to furnish indemnification and pledge securities thatmay be required by any school district.

   (b) OPEB trust funds shall be credited with all amountsappropriated or otherwise made available by the school district for thepurposes of meeting the current and future OPEB costs payable by the schooldistrict. OPEB trust funds shall also be credited with all amounts contributedor otherwise made available by employees of the school district for the purposeof meeting future OPEB costs payable by the school district. Amounts in an OPEBtrust fund, including any earnings or interest accruing from the investment ofthese amounts, shall be expended only for the payment of the costs payable bythe school district for OPEB or as otherwise permitted by the terms of thetrust and applicable law. The business manager or superintendent, asapplicable, shall invest or reinvest the amounts in the OPEB trust fund in anyinvestment permitted for the state pension funds consistent with the investmentpolicies of the state general treasurer's office.

   (c) School districts are hereby authorized to enter intoagreements, trusts, contracts, and other arrangements with the state and any ofits departments, agencies, boards or commissions relating to the execution,management or operation of the OPEB trust funds, including, but not limited to,investments, and the state and its department, agencies, boards and commissionsare hereby authorized to enter into such agreements, contracts and otherarrangements with school districts. Notwithstanding any provisions of anygeneral or special law or principle of equity to the contrary, the state shallhave no liability to any school district for entering into such agreements. Aschool district may employ any qualified bank, trust company, corporation, firmor person to advise it on the investment of the OPEB trust fund and may payfrom the OPEB trust fund for this advice and other services. Procurement forthese services shall be subject to the procurement procedures and rulesgoverning school districts in state law.

   (d) Nothing contained herein will prevent any school districtfrom entering into agreements with other school districts per § 16-2-9.2for the purposes of jointly pooling their investments or collectively enteringinto an agreement with a corporate trustee, as defined in subsection (a) ofthis section.

   (e) Nothing herein shall be construed to exempt OPEB trustsfrom the Rhode Island Access to Public Records Act, RIGL 38-2-1 et seq.