§ 36-12.1-26 - Internal revenue code qualification. - Rhode Island Statutes

SECTION 36-12.1-26

   § 36-12.1-26  Internal revenue codequalification. – (a) Intent. It is intended that the OPEB System and the Rhode IslandOPEB System Trust satisfy the requirements of § 115 or § 501(c)(9) ofthe Internal Revenue Code of 1986 as amended from time to time, 26 U.S.C.§§ 115, 501(c)(9) -, (hereinafter referred to as the "Code"), in formand operation, to the extent that those requirements apply to a governmentaluse trust under § 115 or a voluntary employee benefit association under§ 501(c)(9) of the Code. To this end, the following provisions shall beapplicable, administered, and interpreted in a manner consistent withmaintaining the tax qualification of the OPEB System, and shall supersede anyconflicting provisions of chapters 12, 12.1 and 12.2 of this title, [ofchapter 16 of title 16, or of chapter 21 of title 45].

   (b) Exclusive benefit. All funds of the OPEB Systemshall be held in one or more trusts as provided in § 36-12.1-21 or ifpermitted, in accordance with § 401(f) of the code [26 U.S.C. §401(f)], in one or more custodial accounts treated as trusts or acombination thereof. Under any trust or custodial account, it shall beimpossible at any time prior to the satisfaction of all liabilities withrespect to employees and their beneficiaries, for any part of the corpus orincome to be used for, or diverted to, purposes other than the payment of OPEBallowances and other post employment benefits to Retired Employees and theirbeneficiaries.