HomeMy WebLinkAboutCity of Meridian Benefits Trust Agreement and Bylaws AmendedHUMAN RESOURCES DEPARTMENT
MEMORANDUM
DATE: 10/29/19
TO: MAYOR DEWEERD AND MEMBERS OF CITY COUNCIL
FROM: CHRISTENA BARNEY, HUMAN RESOURCES GENERALIST
RE: AMENDED TRUST DOCUMENTS
Attached is amended City of Meridian Employee Benefits Trust Agreement and By-Laws for your
consideration and approval.
After the Department of Insurance completed their review of the se documents, they suggested the
following additions:
Addition to the Trust Agreement:
7.1 POLITICAL CONTRIBUTIONS PROHIBITED. No Trustee shall make or knowingly permit the
making, directly or indirectly, of any political contribution by or from the Trust.
Addition to the By-Laws:
3.1 CONFLICT OF INTEREST.
a. In the event an individual Trustee has a conflict of interest because of his/her duties as a
Trustee and his/her employment with the City (a “Conflict”), the Trustee shall recuse himself/herself from all
matters relating to the Trust’s deliberations and decisions on the specific issues involving the Conflict. The
Trustee shall exercise reasonable judgment in determining whether a Conflict exists.
If you have any additional questions or concerns, please feel free to contact me.
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CITY OF MERIDIAN
EMPLOYEE BENEFITS PLAN
TRUST AGREEMENT
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CITY OF MERIDIAN
EMPLOYEE BENEFITS PLAN TRUST AGREEMENT
This City of Meridian Employee Benefits Plan Trust Agreement (“Trust Agreement”) is made
and entered into effective ____________, 2019, by the City of Meridian. The purpose of the Trust
governed by this Trust Agreement is to provide health care benefits on behalf of and for the benefit of
City of Meridian employees and their Beneficiaries.
NOW, THEREFORE, the undersigned hereby adopt this Trust Agreement as follows:
1. ESTABLISHMENT OF TRUST
1.1 EMPLOYER. The City of Meridian is defined as the Plan Sponsor and “Employer.”
“Employer” shall include any successor corporation, and any other subsidiary, affiliate or controlled
business which adopts the Plan.
1.2 ESTABLISHMENT AND NAME OF TRUST. The Employer hereby establishes an
employee benefit plan trust (the “Trust”). The Trust may also be referred to as the City of Meridian
Employee Benefits Plan Trust.
1.3 TRUSTEE RESPONSIBILITIES. The Trustees (i) accept the trusteeship, and (ii)
declare that they will receive and hold the Fund assets as Trustees under the Trust Agreement for the
uses, purposes, and trusts set forth in the Trust Agreement.
1.4 PURPOSES OF TRUST. The City of Meridian established a Benefits Plan (“Plan”) to
provide for the payment of Eligible Expenses incurred by Plan Participants for certain services. The
purposes of the Trust are:
a. to receive, in advance, all contributions to the Plan,
b. to hold, manage, invest and reinvest the Trust property and all income from the
property, in accordance with the terms of this Trust, and
c. to make distributions from the Trust Fund in such amounts and to such person or
persons as the Plan Administrator shall direct to provide for the payment of (i) Covered Medical
Expenses, (ii) Covered Dental Expenses, (iii) Covered Pharmacy Expenses (iv) Covered Vision
Expenses incurred by Plan Participants.
d. to be responsible for the Trust’s long-term financial stability; to make decisions within
the confines of the budgeted funds, the law, and governing rules regarding such things as plan design,
who are covered individuals, PEHP plan offerings, Wellness programs, and other health related
programs.
1.5 EFFECTIVE DATE. The Trust shall be effective as of January 1, 2020.
1.6 PARTICIPATION IN THE TRUST. Participation in the Trust by the Employer may
be discontinued by the Employer by giving thirty-one day’s advance notice in writing to the Trustees by
registered certified mail at their last known address. Such discontinuation shall be effective as of the
thirty-first day after the receipt of such notice by the Trustees.
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1.7 IRREVOCABILITY OF THE TRUST. The Employer reserves no right or authority
to alter, amend, revoke or terminate the transfer in Trust.
2. ADMINISTRATION AND DISPOSITION OF TRUST FUND
2.1 CLAIMS. The Trustees, or any person or persons designated by them, may (i) pass upon
the validity of claims for Benefits under the Plan, and (ii) in payment of valid claims in the amounts
approved, authorize payments upon the Fund. The Trustees shall not be considered the agents of the
Plan Administrator.
2.2 COLLECTION. The Trustees shall (i) require all Employer and Employee
Contributions to be paid in advance and that they are to be deposited in and disbursed from a Trust
Fund(s) duly established under this irrevocable Trust Agreement; (ii) make any necessary refunds or
adjustments, and (iii) maintain such monies in a Trust Account in the Trust Fund’s name. In order to
carry out the purposes of this Trust, the Trustees (i) shall specify the exact time and manner in which
the payment of Contributions to the Fund are to be made, and (ii) shall be required to notify the
contributing Employer and Employees in writing of these requirements.
2.3 STATEMENT. The Plan shall furnish to each employee-beneficiary of the Plan a
written statement or schedule adequately and clearly stating all benefits currently allowable under the
Plan, together with all applicable restrictions, limitations, and exclusions, and the procedure for filing a
claim for benefits, in accordance with Idaho Code §41-4004(1)(d).
2.4 ACTUARIALLY SOUND. The assets and income of the Trust Fund shall at all times
be reasonably adequate to provide for full payment of all benefits promised to beneficiaries by the Plan
and to cover all other costs of operation, in accordance with Idaho Code §41-4004(1)(e). The initial
contribution rates to the Trust Fund shall be calculated by a qualified actuary and shall include a
reasonable provision for adverse deviation and a reasonable contribution to the surplus.
2.5 EXPENSES, RESERVES, AND TAXES. The Trustees shall:
a. pay or provide for (i) the payment of all reasonable and necessary expenses of collecting
the Employer and Employee Contributions and administering the affairs of the Trust and Fund, including
all expenses which may be incurred in connection with the establishment of the Trust and Fund, (ii) the
employment of administrative, legal, expert and clerical assistance, and (iii) the leasing of premises and
the purchase or lease of the materials, supplies and equipment which the Trustees, in their discretion,
find necessary or appropriate in the performance of their duties;
b. establish the following reserves: (i) a reserve in amount as certified by a member of the
American Academy of Actuaries as being necessary for payment of all claims against the trust fund for
benefits, including both claims reported and not yet paid and claims incurred but not yet reported; (ii)
if, under the Plan, periodic contributions to the Trust Fund have been paid in advance or are payable less
frequently than monthly, there shall be a reserve for unearned contributions as computed pro rata on the
basis of the unexpired portion of the period for which the contribution has been paid , and (iii) if future
claims payments plus future costs of operation are greater than future contributions plus current reserves,
there shall be a reserve in an amount equal to future claims payments plus future costs of operation, less
future contributions, less current reserves;
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c. pay any federal, state or local tax which may be properly levied against the Fund or
Benefits paid;
d. establish and maintain in its Trust Fund a surplus equal to at least (i) the equivalence of
three (3) months of contributions for the current year plan; or, (ii) one hundred ten percent (110%) of
the difference between the total dollar aggregate stop-loss attachment point plus costs of operation and
the total dollar expected contributions for the current plan year. Up to one-third of the surplus required
by this Section 2.5(d) may be funded by a clean, irrevocable letter of credit, in a form acceptable to the
Director of the Idaho Department of Insurance, issued in favor of the trust fund by a federally or state-
chartered bank having a branch office in Idaho. Such irrevocable letter of credit cannot be guaranteed
by pledge of any of the plan assets. The funding cannot be in the form of prepaid contributions or other
loan or associated with an offsetting liability.
2.6 INVESTMENTS AND FINANCIAL TRANSACTIONS. All funds and assets
received by the Trustees in accordance with this Trust Agreement shall be Trust Funds and shall be
deposited by the Trustees in bank or banks that the Trustees designate for that purpose. All withdrawals,
drafts, or checks of Trust Funds from such bank or banks shall be effective only upon the signature or
countersignature of duly authorized Trustees. The Trustees may invest and reinvest any part of the Trust
Fund not required for current expenditures; provided however, such investments shall be made and held
in the name of the Trust Fund, and the interest and yield thereon shall inure to the account of the Trust
Fund. No investment shall be made unless authorized in writing by the Trustee and so shown in the
records of the Trust Fund. All investments shall be made in accordance with Idaho Code §41-4009.
2.7 TRUST LIABILITY. The Trust Fund shall be legally liable for payment of all
applicable benefits stated in the statement or schedule of benefits in effect at the time a claim thereunder
arises. Funds in the trust are fiduciary funds, and are not liable for any obligation of any employer
participant in the plan, nor subject to garnishment or levy for the obligation of any beneficiary. All
funds and moneys received by the Plan and all funds billed and paid as contributions to the Trust Fund
shall be timely deposited in the trust account and shall be held in no other name than the name of the
self-funded plan.
2.8 INTEREST. The Trust shall not be required to pay interest on Employer or Employee
contributions to the Fund. Interest accrued on Trust funds shall remain in Trust not inconsistent with
the provisions of this Agreement.
2.9 SPENDTHRIFT CLAUSE. No Trust Funds shall be:
a. assigned or encumbered by any Participant;
b. attached by or subjected to the interference or control of any creditor of any
Participant or the Employer; or
c. reached by any legal or equitable process in satisfaction of any debt or liability of
any Participant prior to its actual receipt by such Participant.
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3. TRUSTEES.
3.1 TRUSTEES. The Trust shall be administered by no less than three (3) and no more than
five (5) Trustee positions. Each Trustee shall be a voting member.
3.2 INITIAL TRUSTEES. The initial Trustees are:
(i) William L.M. Nary
(ii) Alexander Ronald Freitag
(iii) Eric Kent Strolberg
(iv) Christena Ann Barney
The Trustees shall be allowed to appoint ex-officio members or administrative staff as needed, upon
notification to City Council.
3.3 TRUST OFFICERS. The Trustees establish the positions of Chair and Vice-Chair. The
Chair and Vice-Chair shall be elected by a majority vote of the Trustees. The Chair and Vice-Chair
shall be elected at the first regular Trust meeting in November of each year and shall assume the
responsibilities of their positions at the meeting in which they are elected.
3.4 TERM. Each Trustee shall serve until the Trustee’s death, incapacity, resignation,
removal, or separation from City employment, whichever comes first.
3.5 RESIGNATION. A Trustee may resign from all further duty or responsibility upon
giving (30) thirty days’ notice in writing to the Mayor and Chair or such shorter notice as the Mayor
may accept as sufficient. The notice shall state a date when the Trustee’s resignation shall take effect.
The resignation shall take effect on the date specified in the notice unless a successor Trustee shall have
been appointed at an earlier date, in which event the resignation shall take effect immediately upon the
appointment of the successor Trustee.
3.6 REMOVAL. A Trustee may be removed from office at any time by a majority vote of
the City Council, notice of which shall be sent by registered or certified mail and which shall state a date
when the removal shall take effect.
3.7 SUCCESSOR TRUSTEE. In the event a Trustee is no longer able to act under the
terms of this Trust Agreement, resigns, is removed or comes to the end of their term, a successor Trustee
shall be appointed by action of the City Council. Until the appointment of the successor Trustee, the
remaining Trustees by majority vote shall have full power to act.
3.8 POWERS OF SUCCESSOR TRUSTEE. A successor Trustee shall become vested
with all the property, rights, powers, and duties of a Trustee upon (i) appointment as a successor Trustee,
and (ii) acceptance by such successor Trustee of the trusteeship in a writing filed with the Trustees.
3.10 ACTION AND MEETINGS. Except as provided in section 3.7, any action taken by
the Trustees under this Agreement shall the vote of a least three (3) Trustees. Any one of the Trustees
may call a meeting of the Trustees at any time, in person, by telephone or by e -mail, by giving at least
forty-eight (48) hours written or e-mailed notice of the time and place of the meeting to the remaining
Trustees. The Trustees may conduct ministerial and administrative duties (e.g. paying legitimately
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presented bills) by voting via e-mail, without notice, but a record of such action must be made and
stored, pursuant to applicable law.
3.11 TRUST AUTHORIZATION. Any instrument in writing made by formal action of the
Trustees, the Fund and the Trustees shall be bound by the signature of any two authorized Trustees. All
persons, partnerships, corporations, associations, and the Plan Administrator may rely on the signature
of the Trustees as duly authorizing the instrument in accordance with the Trust Agreement.
3.12 VOTING. Each Trustee shall have one vote on all matters in any meeting of the
Trustees.
3.13 POWERS. The Trustees have all powers provided by the Idaho Uniform Trustee’s
Powers Act, as amended, and any other statute or rule of law. In addition, the Trustees may exercise all
rights or privileges granted to them by provisions of the Plan and may agree to any alteration,
modification or amendment of the Plan. The Trustees will notify the City Council of any and all
alterations, modifications or amendment to the Plan. Persons dealing with the Trustees shall not be
required to inquire into the authority of the Trustees with regard to any dealings in connection with the
Plan.
3.14 INTERPRETATION OF TRUST AGREEMENT. The Trustees shall have the power
to construe the provisions of the Trust Agreement. Any construction adopted by the Trustees in good
faith consistent with the provisions of the Plan shall be binding upon the Employees, the Employer, the
Plan Administrator and all others claiming by or through any of them by assignment, bequest or
otherwise.
3.15 COMPENSATION OF TRUSTEES. The Trustees shall serve without compensation
from the Trust for services rendered in such capacity, but all reaso nable expenses specifically incurred
in the performance of the Trustee’s duties pursuant to this Plan shall be paid out of the Trust Funds.
Trustees are governed by a fiduciary duty as imposed by State law and any applicable Federal law while
incurring expenses associated with their performance as Trustees pursuant to this Plan.
3.16 PAYMENT OF ADMINISTRATIVE EXPENSES. All reasonable expenses
specifically incurred in administering the Plan, including but not limited to administrative fees and
expenses owing to any third party administrative service provider, actuary, consultant, accountant,
specialist, or other person or organization that may be employed by the Trustee in connection with the
administration of the Plan, shall be paid out of Trust assets, and, if Trust assets are insufficient, by the
Employer. Trustees are governed by a fiduciary duty imposed by Federal and State law as well as the
City’s Ethics Policies while incurring expenses associated with the administration of this Plan.
3.17 BYLAWS. The Trustees may promulgate such bylaws as may, in their discretion, be
proper and necessary for the sound and efficient administration of the Trust.
3.18 LIABILITY. To the extent permitted by law, neither the Trustee nor any other person
shall incur any personal liability for any acts or for failure to act within the scope and course of their
duties as Trustees except for willful misconduct or willful breach of this Plan.
3.19 BOOKS AND RECORDS. The Trustees shall cause full and accurate records and
accounts to be entered and maintained during all times of the existence of the Trust covering all financial
transactions and affairs of the Trust Fund. Any audit of the Plan or Trust shall be completed
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independently of any other entity. Within ninety (90) days after close of a fiscal year of the Plan, the
Trustees shall prepare an annual statement in writing summarizing the financial transactions of the Trust
Fund for such fiscal year and the financial condition of the Trust at the end of such year in accordance
with the requirements I.C. §§ 41-401, et al, and with generally accepted accounting principles. The
statement shall be in a form acceptable to the Director of the Idaho Department of Insurance and include
such information as prescribed by the Director. The financial information included therein shall be
certified by the accountant who audited such information. The Trustees shall promptly deliver a copy of
the statement to Employer and keep a copy thereof on file in the business office from which the Plan is
operated. Such statement shall be available for review by any Beneficiary at all reasonable times for a
period of not less than three (3) years from the date of the statement. If the plan is managed by a third-
party administrator, such statement shall be available at the administrative offices of the Employer. The
Plan's annual statement shall be accompanied by the certified actuarial opinion described in I.C. § 41-
4010. Such annual statement shall be prepared in accordance with actuarial standard of practice no. 28.
The Plan shall require that the qualified actuary retain the actuarial work papers until the Department of
Insurance has filed an examination report of the Plan covering the period of the actuarial opinion but no
longer than seven (7) years from the date of such opinion. On or before expiration of such ninety (90)
day period the Trustees shall file an original of the annual statement and certified actuarial opinion with
the Director in a form prescribed by the Director. The Trustees shall pay a filing fee as necessary. The
Trustees shall also file quarterly supplemental unaudited financial reports and other periodic
supplemental unaudited financial reports in a form and at the times prescribed by the Director.
3.20 BONDING. The Trustees shall obtain a fidelity bond, or coverage deemed by the
Director of the Idaho Department of Insurance to be equivalent to a fidelity bond, in the name of the
Plan, the purpose of which is to protect against acts of fraud and dishonesty by the Plan’s Trustees,
directors, officers and employees in connection with the Trust Fund or Plan. Such bond shall be in an
amount equal to the greater of ten percent (10%) of the contributions received by the Plan or ten percent
(10%) of the benefits paid during the preceding calendar year. If the Plan was not in operation during
the preceding calendar year, the bond shall be in an amount equal to ten percent (10%) of the
contributions projected to be received by the Plan during its first year of operation. The amount of any
bond required under this section shall be not less than twenty-five thousand dollars ($25,000) or more
than five hundred thousand dollars ($500,000).
4. AMENDMENTS
4.1 ENTIRE AGREEMENT. This Trust Agreement constitutes the entire agreement
between the undersigned Employer and the Trustees and shall not be deemed to be varied, altered or
amended by any other statement, representation or agreement by or between any person or persons
whomsoever, whether written, oral or implied in any way, except as provided in this Agreement.
4.2 AMENDMENT. This Agreement may be amended to any extent at any time or from
time to time by the majority vote of all the Trustees then acting under this Agreement and with approval
by City Council. However, no amendment shall divert the Fund as then constituted, or any part of the
fund, to a purpose other than as set forth in this Agreement.
4.3 NOTICE. The Trustees shall (i) immediately notify the Employer, the claims
administrator and all other interested parties of any amendment to this Agreement, and (ii) execute any
instrument or instruments in connection with the Amendment.
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5. TERMINATION OF THE TRUST
5.1 APPLICATION OF FUNDS. In the event of termination of the Trust, the Trustees
shall apply the Fund to the continuation of providing Benefits and to provide for payment of reasonable
and necessary expenses incurred in termination of the Fund, until the Fund is exhausted. In the event of
termination, the Employer shall cause the Fund and the Employee Contributions to be carried out for
the purposes of the Trust as provided in this Agreement.
5.2 DISSOLUTION. Upon termination of the Trust, the Trustees shall immediately notify
the Employer and shall continue as Trustees for the purposes of dissolution and may take any action
which may be appropriate or required.
5.3 TERMINATION. Upon Trustees terminating the Trust, or if the Director of the Idaho
Department of Insurance upon examination finds the Trust to be insolvent where the Plan is unable to
pay its obligations when due or that its assets do not exceed its liabilities, the Trustees shall proceed in
a manner consistent with the law, including but not limited to Idaho Code §41-4019.
5.4 LIQUIDATION. Whether terminated by election of the Trustees or by the Director of
the Idaho Department of Insurance, upon termination of the registration of the Plan, the Trust Fund shall
be liquidated in accordance with Idaho Code §41-4019.
6. DEFINITIONS
6.1 BENEFITS. The term “Benefits” means the amount payable by the Plan for Covered
Expenses.
6.2 CONTRIBUTIONS. The term “Contributions” means payments by the Employer or
Employees to the Trustees for the purposes of the Fund as defined in Section 1.4.
6.3 COVERED EXPENSES. The term “Covered Expenses” means expenses for services
that will be reimbursed in accordance with the Plan.
6.4 DEPENDENT. The term “Dependent” means a Participant other than an Employee who
is an Eligible Dependent as specified in the Eligibility to Participate Section of the Plan Document.
6.5 ELIGIBLE EMPLOYEE. The term “Eligible Employee” means an individual who
works for the Employer on a regular or non-regular basis in the usual course of the Employer’s business,
working at least the number of hours in the Employer’s normal work week, but not less than 30 hours
per week. Eligible Employees shall not include individuals compensated by commissions only, seasonal
employees of less than 6 months duration, contractors, agents, employees of temporary employment
agencies and all others not considered an employee of the Employer.
6.6 EMPLOYEE. The term “Employee” means any individual who is considered to be in
an employer-employee relationship with the Employer and is eligible for benefits under the Plan. The
term “Employee” includes “former employees” for the purpose of allowing continued eligibility for
Benefits under the Plan (i) for the remainder of the month in which a Participant ceases to be employed
by the Employer, or if longer, the period during which a former employee has elected to continue
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coverage following termination of employment, as provided by the Public Health Service Act, or (ii) as
allowed by the Plan.
6.7 EMPLOYER. The term “Employer” means the City of Meridian. “Employer” shall
also include any successor corporation, and any other subsidiary, affiliate or controlled business which
adopts the Plan.
6.8 TRUST FUND OR FUND. The term “Trust Fund” or “Fund” means the Trust estate
created by this Agreement and shall consist of all funds or assets of the Trust including an y bank
accounts or savings accounts or certificates together with all investments made and held by the Trustees
for receipt of contributions of employer and employees and payment of or with respect to health care
service for participants according to Idaho Code §41-4002.
6.9 PARTICIPANT. The term “Participant” means any Employee or Dependent who has
met the eligibility requirements set forth in the Plan and who, in a timely manner, has made all required
contributions.
6.10 PLAN. The term “Plan” means the City of Meridian Employee Benefits Plan established
by the employer as of January 1, 2020, and any subsequent Amendments.
6.11 PLAN ADMINISTRATOR. The term “Plan Administrator” means the person or firm
appointed by the Trustees who has the authority and responsibility to manage and direct the
administration and/or payment of claims for the Plan. The Plan Administrator must be licensed and
bonded as an administrator pursuant to chapter 9, title 41, Idaho Code.
6.12 PLAN YEAR. The term “Plan Year” means the period beginning on the Effective Date
and ending on December 31, 2020, and the 12-month period ending on each December 31 thereafter.
6.13 TRUSTEES. The term “Trustees” means the persons designated as Trustees in this Trust
Agreement together with their successors are the Trustees of this Trust Fund according to Idaho Code
§41-4002(19).
7. MISCELLANEOUS PROVISIONS
7.1 PAYROLL INFORMATION. The Employer shall promptly furnish to the Trustees on
demand such payroll information and data with respect to the individual Employees benefiting from this
Agreement that the Trustees may require in connection with the administration of the Trust and the Plan.
Payroll information and data shall be limited in nature to matters such as name, classification, social
security number, amount of wages paid and hours worked. The Trustees, or their authorized
representatives, may examine the pertinent payroll records of the Employer with respect to the individual
Employees benefiting from this Agreement whenever an examination is deemed necessary or advisable
by the Trustees in connection with the proper administration of the Trust and the Plan.
7.2 PARTICIPANT CLAIMS. No Participant, nor any person claiming by or through a
Participant, Employer, person, partnership, corporation or association, nor any person entity claiming
by or through any one of them by reason of assignment, bequest or any other means shall have any right,
title or interest in the Fund or any part of the Fund. However, any participant who is actually covered
by a Plan is entitled, subject to the terms and conditions of the Plan, to the benefits provided under the
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Plan in the amount and to the extent provided in the Plan. Each employee/beneficiary of the Plan will
be provided with a written statement or schedule adequately and clearly stating all benefits currently
allowable under the Plan together with all applicable restrictions, limitations and exclusions, and the
procedure for filing a claim for benefits.
7.3 THIRD PARTIES. No person, partnership, corporation or association dealing with the
Trustees shall be required (i) to see to the application of any funds or property of the Trust, (ii) to see
that the terms of the Trust have been complied with, or (iii) to inquire into the necessity or expediency
of any act of the Trustees. Every instrument effected by the Trustees shall be conclusive in favor of any
person, partnership, corporation relying on such instrument that:
a. at the time of the delivery of the instrument the Trust was in full force and effect;
b. the instrument was effected in accordance with the terms and conditions of this
Agreement; and
c. the Trustees were duly authorized and empowered to execute the instrument.
7.4 PARTIES TO AGREEMENT. No person or entity other than the Trustees or their
lawful successors and the Employer shall be considered a party to this Trust Agreement.
7.5 POLITICAL CONTRIBUTIONS PROHIBITED. No Trustee shall make or
knowingly permit the making, directly or indirectly, of any political contribution by or from the Trust.
8. SITUS AND CONSTRUCTION OF TRUST
8.1 SITUS. The Trust is accepted by the Trustees in the State of Idaho and all questions
pertaining to its validity, construction and administration shall be determined in accordance with laws
of that State.
8.2 GOVERNING LAW, JURISDICTION, AND VENUE. This Agreement shall be
construed and interpreted in accordance with the laws of the State of Idaho. The parties agree tha t the
courts of Idaho shall have exclusive jurisdiction and agree that Ada County, Idaho is the proper venue.
8.3 SEVERABILITY. The invalidity of any portion of this Agreement, as determined by a
court of competent jurisdiction, shall not affect the validity of any other portion of this Agreement.
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Now, therefore, this Trust Agreement is effective as of the date first set forth above:
CITY OF MERIDIAN
Date: to - 2O(Q B31:
Its Mayor
61
INITIAL TRUSTEES:
Date:
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William Lloyd Mossman Nary
Date: ' -QOIq
Alexander Ronald Freitag
Date: 14 -
Eric Kent Strolberg
OAJR
Date: U
Christena Ann Barney
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CITY OF MERIDIAN EMPLOYEE BENEFITS PLAN
TRUST BYLAWS
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i
TABLE OF CONTENTS
ESTABLISHMENT AND PURPOSES OF THE TRUST .............................................1
AUTHORIZATION ................................................................................................................................... 1
PURPOSES OF TRUST ............................................................................................................................. 1
TRUST MEMBERSHIP ...................................................................................................1
TRUSTEE POSITIONS ............................................................................................................................. 1
RESIGNATION ......................................................................................................................................... 1
REMOVAL ................................................................................................................................................ 2
SUCCESSOR TRUSTEE ........................................................................................................................... 2
POWERS OF SUCCESSOR TRUSTEE .................................................................................................... 2
SUBCOMMITTEES .................................................................................................................................. 2
COMPENSATION OF TRUSTEE ............................................................................................................ 2
TRUSTEE LIABILITY .............................................................................................................................. 2
TRUSTEE RESPONSIBILITIES ....................................................................................3
TRUSTEE RESPONSIBILITIES ............................................................................................................... 3
TRUSTEE CLAIMS .................................................................................................................................. 3
COLLECTION ........................................................................................................................................... 3
EXPENSES, RESERVES, AND TAXES .................................................................................................. 3
INVESTMENTS ........................................................................................................................................ 4
TRUST POWERS ...................................................................................................................................... 4
INTERPRETATION OF TRUST AGREEMENT ..................................................................................... 4
BOOKS AND RECORDS.......................................................................................................................... 4
TRUST AUTHORIZATION ...................................................................................................................... 5
TRUST OFFICERS ...........................................................................................................5
CHAIR AND VICE-CHAIR ELECTIONS ............................................................................................... 5
CHAIR RESPONSIBILITIES .................................................................................................................... 5
VICE-CHAIR RESPONSIBILITIES ......................................................................................................... 6
CHAIR AND VICE-CHAIR TERMS ........................................................................................................ 6
MEETINGS ........................................................................................................................6
REGULAR AND SPECIAL MEETINGS ................................................................................................. 6
MEETING DATES .................................................................................................................................... 7
TRUSTEE MEETING LOCATION .......................................................................................................... 7
EXECUTIVE SESSIONS .......................................................................................................................... 7
AGENDA PREPARATION AND FORMAT .................................................................7
AGENDA PREPARATION ....................................................................................................................... 7
AGENDA FORMAT .................................................................................................................................. 8
ORDERLY CONDUCT OF MEETINGS .................................................................................................. 8
QUORUM .................................................................................................................................................. 8
VOTING ..................................................................................................................................................... 8
RULES OF ORDER ................................................................................................................................... 9
MINUTES .................................................................................................................................................. 9
PUBLIC PARTICIPATION AT TRUST MEETINGS .............................................................................. 9
ROLES AND RESPONSIBILITIES ..............................................................................10
MAYOR AND CITY COUNCIL ..............................................................................................................10
EMPLOYEE UNIONS ..............................................................................................................................11
CITY EMPLOYEES .................................................................................................................................11
ADMINISTRATIVE SUPPORT...............................................................................................................11
OUTSIDE CONSULTANTS ....................................................................................................................11
AMENDING BY-LAWS .................................................................................................12
EXHIBIT A.......................................................................................................................13
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1. ESTABLISHMENT AND PURPOSES OF THE TRUST
1.1 AUTHORIZATION. The City of Meridian adopted by majority vote of the
City Council on September 3, 2019, creating a City of Meridian Employee Benefits Plan
Trust and approving the City of Meridian Employee Benefits Plan Trust Agreement (“Trust
Agreement”), attached hereto as Exhibit A. The defined terms contained in these Bylaws
have the same meaning as those same defined terms in the Trust Agreement.
These Bylaws are created pursuant to section 3.17 of the Trust Agreement, which
authorizes the Trustees to “promulgate such rules and regulations as may, in their
discretion, be proper and necessary for the sound and efficient administration of the Trust.”
The effective date of the Trust is January 1, 2020.
1.2 PURPOSES OF TRUST. The City of Meridian established a Benefits Plan
(“Plan”) to provide for the payment of Eligible Expenses incurred by Plan Participants for
certain services. The purposes of the Trust are:
a. to receive, in advance, all contributions to the Plan,
b. to hold, manage, invest and reinvest the Trust property and all income from
the property, in accordance with the terms of this Trust, and
c. to make distributions from the Trust Fund in such amounts and to such
person or persons as the Plan Administrator shall direct to provide for the payment of (i)
Covered Medical Expenses, (ii) Covered Dental Expenses, (iii) Covered Pharmacy
Expenses (iv) Covered Vision Expenses incurred by Plan Participants.
d. to be responsible for the Trust’s long-term financial stability; to make
decisions within the confines of the budgeted funds, the law, and governing rules regarding
such things as plan design, who are covered individuals, PEHP plan offerings, Wellness
programs, and other health related programs.
2. TRUST MEMBERSHIP
2.1 TRUSTEE POSITIONS. The Health Insurance Trust is comprised of three
to five voting members, primarily, but not limited to, Benefits Committee personnel.
2.2 TERM. All Trustees will serve until the Trustee’s death, incapacity,
resignation, removal, or separation from City employment, whichever comes first.
2.3 RESIGNATION. A Trustee may resign from all further duty or
responsibility upon giving (30) thirty days notice in writing to the Mayor and Chair or
Vice-Chair or such shorter notice as the Mayor may accept as sufficient. The notice shall
state a date when the Trustee’s resignation shall take effect. The resignation shall take
effect on the date specified in the notice unless a successor Trustee shall have been
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appointed at an earlier date, in which event the resignation shall take effect immedi ately
upon the appointment of the successor Trustee. (Trust Agreement 3.5).
2.4 REMOVAL. A Trustee may be removed from office at any time by a
majority vote of the City Council, notice of which shall be sent by registered or certified
mail and which shall state a date when the removal shall take effect. (Trust Agreement 3.6).
2.5 SUCCESSOR TRUSTEE. In the event a Trustee is no longer able to act
under the terms of this Trust Agreement, resigns, is removed or comes to the end of their
term, a successor Trustee shall be appointed by the City Council. The Mayor, by signed
written notice, shall transmit such appointments to the City Council for approval. Until the
appointment of the successor Trustee, the remaining Trustees by majority vote shall have
full power to act.
2.6 POWERS OF SUCCESSOR TRUSTEE. A successor Trustee shall become
vested with all the property, rights, powers, and duties of a Trustee upon (i) appointment
as a successor Trustee, and (ii) acceptance by such successor Trustee of the trusteeship in
a writing filed with the Trustees. (Trust Agreement 3.9).
2.7 SUBCOMMITTEES. The Trust may determine that a subcommittee or
subcommittees are necessary to effectively conduct the business of the Trust. The
subcommittees shall be organized on an as needed basis and may be temporary or
permanent. The role of the subcommittee is to study, review, and make recommendations
to the full Trust concerning policy, issues, or situations before the Trust.
2.8 COMPENSATION OF TRUSTEES. The Trustees shall serve without
compensation from the Trust for services rendered in such capacity, but all reasonable
expenses specifically incurred in the performance of the Trustee’s duties pursuant to this
Plan shall be paid out of Trust Funds. Trustees are governed by fiduciary duties as imposed
by State law and any applicable Federal law while incurring expenses associated with their
performance as Trustees pursuant to this Plan.
2.9 TRUSTEE LIABILITY. To the extent permitted by law, neither the Trustee
nor any other person shall incur any personal liability for any acts or for failure to act within
the scope and course of their duties as Trustees except for willful misconduct or willful
breach of this Plan.
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3. TRUSTEE RESPONSIBILITIES
3.1 TRUSTEE RESPONSIBILITIES. The Trustees (i) accept the trusteeship,
and (ii) declare that they will receive and hold the Fund assets as Trustees under the Trust
Agreement for the uses, purposes, and trusts set forth in the Trust Agreement.
3.2 VALIDITY OF CLAIMS. The Trustees, or any person or persons
designated by them, may (i) pass upon the validity of claims for Benefits under the Plan,
and (ii) in payment of valid claims in the amounts approved, authorize payments upon the
Fund. The Trustees shall not be considered the agents of the Plan Administrator.
3.3 COLLECTION. The Trustees shall (i) require all Employer and Employee
Contributions to be paid in advance and that they are deposited and disbursed from a Trust
Fund(s) duly established under the irrevocable Trust Agreement; (ii) make any necessary
refund or adjustments, and (iii) maintain such monies in a Trust Account in the Trust
Fund’s name. In order to carry out the purposes of this Trust, the Trustees (i) shall specify
the exact time and manner in which the payment of Contributions to the Fund are to be
made, and (ii) shall be required to notify the contributing Employers and Employees in
writing of these requirements.
3.4 EXPENSES, RESERVES, AND TAXES The Trustees shall:
a. pay or provide for (i) the payment of all reasonable and necessary expenses
of collecting the Employer and Employee Contributions and administering the affairs of
the Trust and Fund, including all expenses which may be incurred in connection with the
establishment of the Trust and Fund, (ii) the employment of administrative, legal, expert
and clerical assistance, and (iii) the leasing of premises and the purchase or lease of the
materials, supplies and equipment which the Trustees, in their discretion, find necessary or
appropriate in the performance of their duties;
b. establish the following reserves: (i) a reserve in amount as certified by a
member of the American Academy of Actuaries as being necessary for payment of all
claims against the trust fund for benefits, including both claims reported and not yet paid
and claims incurred but not yet reported; (ii) if, under the Plan, periodic contributions to
the Trust Fund have been paid in advance or are payable less frequently than monthly, there
shall be a reserve for unearned contributions as computed pro rata on the basis of the
unexpired portion of the period for which the contribution has been paid, and (iii) if future
claims payments plus future costs of operation are greater than future contributions plus
current reserves, there shall be a reserve in an amount equal to future claims payments plus
future costs of operation, less future contributions, less current reserves;
c. pay any federal, state or local tax which may be properly levied against the
Fund or Benefits paid;
d. establish and maintain in its Trust Fund surplus equal to at least (i) the
equivalence of three (3) months of contributions for the current year plan; or, (ii) one
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hundred ten percent (110%) of the difference between the total dollar aggregate stop -loss
attachment point plus costs of operation and the total dollar expected contributions for the
current plan year. Up to one-third of the surplus required by this Section 2.5(d) may be
funded by a clean, irrevocable letter of credit, in a form acceptable to the Director of the
Idaho Department of Insurance, issued in favor of the trust fund by a federally or state -
chartered bank having a branch office in Idaho. Such irrevocable letter of credit cannot be
guaranteed by pledge of any of the plan assets. The funding cannot be in the form of prepaid
contributions or other loan or associated with an offsetting liability.
3.5 INVESTMENTS. All funds and assets received by the Trustees in
accordance with this Trust Agreement shall be Trust Funds and shall be deposited by the
Trustees in bank or banks that the Trustees designate for that purpose. All withdrawals,
drafts, or checks of Trust Funds from such bank or banks shall be effective only upon the
signature or countersignature of duly authorized Trustees. The Trustees may invest and
reinvest any part of the Trust Fund not required for current expenditures; provided
however, such investments shall be made and held in the name of the Trust Fund, and the
interest and yield thereon shall inure to the account of the Trust Fund. No investment shall
be made unless authorized in writing by the Trustee and so shown in the records of the
Trust Fund. All investments shall be made in accordance with Idaho Code §41-4009.
3.6 TRUST POWERS. The Trustee has all powers provided by the Idaho
Uniform Trustee’s Powers Act, as amended, and any other statute or rule of law. In
addition, the Trustees may exercise all rights or privileges granted to them by provisions
of the Plan and may agree to any alteration, modification or amendment of the Plan. The
Trustees will notify the City Council of any and all alterations, modifications or
amendment to the Plan. Persons dealing with the Trustees shall not be required to inquire
into the authority of the Trustees with regard to any dealings in connection with the Plan.
3.7 INTERPRETATION OF TRUST AGREEMENT. The Trustees shall have
the power to construe the provisions of the Trust Agreement. Any construction adopted
by the Trustees in good faith consistent with the provisions of the Plan shall be binding
upon the Employees, the Employer, the Plan Administrator and all others claiming by or
through any of them by assignment, bequest or otherwise.
3.8 BOOKS AND RECORDS. The Trustees shall cause full and accurate
records and accounts to be entered and maintained during all times of the existence of the
Trust covering all financial transactions and affairs of the Trust Fund. Any audit of the Plan
or Trust shall be completed independently of any other entity. Within ninety (90) days after
close of a fiscal year of the Plan, the Trustee shall prepare an annual statement in writing
summarizing the financial transactions of the Trust Fund for such fiscal year and the
financial condition of the Trust at the end of such year in accordance with the requirements
I.C. §§ 41-401, et al, and with generally accepted accounting principles. The statement
shall be in a form acceptable to the Director of the Idaho Department of Insurance and
include such information as prescribed by the Director. The financial information included
therein shall be certified by the accountant who audited such information. The Trustee shall
promptly deliver a copy of the statement to Employer and keep a copy thereof on file in
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the business office from which the Plan is operated. Such statement shall be available for
review by any Beneficiary at all reasonable times for a period of not less than three (3)
years from the date of the statement. If the plan is managed by a third-party administrator,
such statement shall be available at the administrative offices of the Employer. The Plan's
annual statement shall be accompanied by the certified actuarial opinion described in I.C.
§ 41-4010. Such annual statement shall be prepared in accordance with actuarial standard
of practice no. 28. The Plan shall require that the qualified actuary retain the actuarial work
papers until the Department of Insurance has filed an examination report of the Plan
covering the period of the actuarial opinion but no longer than seven (7) years from the
date of such opinion. On or before expiration of such ninety (90) day period the Trustee
shall file an original of the annual statement and certified actuarial opinion with the
Director in a form prescribed by the Director. The Trustee shall pay a filing fee as
necessary. The Trustee shall also file quarterly supplemental unaudited financial reports
and other periodic supplemental unaudited financial reports in a form and at the times
prescribed by the Director.
3.9 TRUST AUTHORIZATION. Any instrument in writing made by formal
action of the Trustees, the Fund and the Trustees shall be bound by the signature of any
two authorized Trustees. All persons, partnerships, corporations, associations, and the Plan
Administrator may rely on the signature of the Trustees as duly authorizing the instrument
in accordance with the Trust Agreement.
3.10 CONFLICT OF INTEREST.
a. In the event an individual Trustee has a conflict of interest because of his/her
duties as a Trustee and his/her employment with the City (a “Conflict”), the Trustee shall
recuse himself/herself from all matters relating to the Trust’s deliberations and decisions
on the specific issues involving the Conflict. The Trustee shall exercise reasonable
judgment in determining whether a Conflict exists.
b. In the event that a Conflict exists that a Trustee does not recognize under
3.10(a), the Trustees may, by a majority vote of the Trustees not subject to the Conflict,
declare a Conflict and require a Trustee to recuse himself/herself in accordance with
3.10(a).
4. TRUST OFFICERS
4.1 CHAIR AND VICE-CHAIR ELECTIONS. The Trustees establish the
positions of Chair and Vice-Chair. The Chair and Vice-Chair shall be elected by a majority
vote of the Trustees. The Chair and Vice-Chair shall be elected at the first regular Trust
meeting of the applicable year and shall assume the responsibilities of their positions at the
meeting in which they are elected.
4.2 CHAIR RESPONSIBILITIES. The Chair is responsible for the following
duties:
a. Set the agenda for the quarterly trustee meetings.
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b. Preside over the monthly or scheduled trustee meetings.
c. Announce the business before the trustees in the order in which it is to be
acted upon.
d. State and put to vote all questions which are regularly moved or necessarily
arise in the course of proceedings and to announce the result of the vote.
e. Enforce on all occasions the observance of order and decorum among the
trustees.
f. Decide all questions of order (subject to appeal to the committee by any two
members) and to inform the trustees when necessary, or when referred to for the purpose,
on a point of order or practice.
g. Authenticate, by signature, when necessary, all the acts, orders, and
proceedings of the Trust and in general to represent and stand for the Trust declaring its
will in all things obeying its commands.
h. Ensure effective operation of the Trust and its committees in conformity
with the highest standards of governance.
i. Ensure effective communication with stakeholders, which include City
Council, Mayor and employees, as well as other relevant constituencies and that the views
of these groups are understood by the Trust. This includes presenting information to
Council and other groups as needed.
j. Set the agenda, style and tone of Trust discussions to promote constructive
debate and effective decision making.
k. Ensure all sub-committees are properly established, composed and
operated.
l. Prepare an annual report for the City Council.
4.3 VICE-CHAIR RESPONSIBILITIES. The Vice-Chair will perform the
Chair’s responsibilities at the Chair’s request or absence.
4.4 CHAIR AND VICE-CHAIR TERMS. The Chair and Vice-Chair will serve
two-year terms and will be selected by majority vote of the Trustees. The Chair and Vice-
Chair can be removed from their respective positions by majority vote of the Trustees.
Trustees can be appointed consecutively to an Officer position.
5. MEETINGS
5.1 REGULAR AND SPECIAL MEETINGS. The Trustees shall transact all
business at official meetings of the Trustees. These may be either regular or special
meetings, defined as follows:
a. Regular Meeting – A regular Trustee meeting is the usual, official legal-
action meeting, scheduled and held regularly.
b. Special Meeting – A special Trustee meeting is an official legal-action
meeting called between regular meetings to consider specifically identified topics.
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Every Trust meeting shall be open to the public except as provided for by Idaho law and
shall be called to order by the Chair, or in the Chair’s absence, by the Vice-Chair. Trust
meetings shall be posted in accordance with Idaho law.
5.2 MEETING DATES
a. Regular Meetings. There shall be a regular meeting of the Trustees held on
a quarterly basis. A regular meeting may be rescheduled or canceled by agreement of a
majority of Trustees.
b. Special Meetings. Any one Trustees may call a special meeting of the
Trustees at any time, in person, by telephone or by e-mail, by giving at least forty-eight
(48) hours written or e-mailed notice of the time and place of the meeting to the remaining
Trustees. The Trustees may conduct ministerial and administrative duties by voting via e-
mail, without notice, but a record of such action must be made and stored, pursuant to
applicable law.
5.3 TRUSTEE MEETING LOCATION
The regular Trustee meeting will be held at Meridian City Hall or in another
designated location.
5.4 EXECUTIVE SESSIONS. The Trustees may conduct executive sessions
that are closed to the public after the following requirements have been followed:
a. The Trustees have first been convened in an open meeting.
b. The executive session is authorized by a roll call vote in open session.
c. The executive session is authorized under the provisions of Idaho law.
The Trustees shall reconvene the open meeting after an executive session prior to
adjourning the meeting.
6. AGENDA PREPARATION AND FORMAT
6.1 AGENDA PREPARATION.
a. Regular Meetings: The Chair is responsible for placing all items on the
agenda of regular meetings. The Chair or Trustees, depending on the agenda item, are
responsible for providing the back-up material for each agenda item and for bringing to the
attention of the Chair items to be included on the agenda at future Trustee meetings. The
agenda and accompanying supporting material shall be distributed to Trustees by 5:00 p.m.
on the Friday prior to the scheduled Trustee meeting except in emergency or special
situations. Copies of the agenda are available to the media, public and staff.
b. Special Meetings. Whenever possible, the procedures for agenda
preparation and dissemination used for regular meetings will be used for special meetings.
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c. These procedures may be altered by the Chair during an emergency or when
compliance would be impractical. However, the Chair shall comply with all legal
requirements when scheduling meetings and preparing the agenda.
6.2 AGENDA FORMAT.
The Trustees shall follow the order of business set up by the agenda unless the order
is altered at the discretion of the Chair. For regular Trustee meetings, the following format
is used:
Call to order, roll call
a. Approval of minutes
b. Consent grouping
c. Reports
d. Action Items
e. Discussion Items
f. Public Participation
g. Adjournment
A notice of executive session and the need to reconvene to regular meeting will be
included as necessary.
The consent grouping on the agenda is used for those items which usually do not
require discussion or explanation as to the reason for Trustee action. Any Trustee may
require the withdrawal of any item under the consent grouping for independent
consideration. Consent agenda items may be removed for discussion and debate by any
Trustee by notifying the Chair twenty-four (24) hours before the regular Trustee meeting,
or by a majority of the Trustees present at the meeting.
7. MEETING PROCEDURES
7.1 ORDERLY CONDUCT OF MEETINGS. The Chair is responsible for the
orderly conduct of Trust meetings and shall rule on such matters as the time to be allowed
for public discussion, the appropriateness of the subject being presented, and the suitability
of the time for such a presentation. All such rulings are subject to review by the Trustees
at a subsequent meeting, properly noticed, as long as the matter is included on the agenda.
7.2 QUORUM. A quorum is defined as at least three (3) Trustees. In the event
that a quorum is not present within fifteen (15) minutes after the scheduled start time, the
meeting may be canceled and another meeting may be scheduled with due and proper
notices in accordance with these rules.
7.3 VOTING. Votes on all motions shall be by ayes and nays. No secret ballots
shall be used. Each Trustee shall have one vote on all matters in any meeting of the
Trustees. Any action taken by the Trustees shall be taken by the vote of not less than three
(3) Trustees. Motions will be recorded accurately. If there is any ambiguity, the Chair will
seek clarification of the motion. The Chair or any Trustee may call for a roll call vote.
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Unless such vote is called for, action may be taken by voice vote in which event, unless a
Trust member expresses that he/she is abstaining from voting or voices a dissenting vote,
members will be presumed to have voted for passage of the motion and their votes will be
so recorded.
7.4 RULES OF ORDER. The Trustees prescribe rules for its meetings as
follows:
a. The Trust shall hold a regular quarterly meeting and may hold other
meetings as often as called. The Trust may also cancel scheduled meetings.
b. Each action item shall require a motion, and all motions shall require
seconding.
c. The Chair may make or second motions, and may vote on all motions.
d. A motion to adjourn is in order at any time. Such a motion shall require a
second and a majority vote. No discussion is in order.
e. A motion to table is in order at any time. Such a motion requires a second
and is limited to being considered only once on any given agenda item. No discussion is
in order.
f. Rules of order may be subject to suspension only upon a majority vote of
the members of the Trust present at a meeting.
g. In matters of procedure not covered by law or policy, the Trustees shall be
guided by Roberts’ Rules of Order.
h. During Trustee meetings, Trustees will turn off or silence cell phones.
i. Trust meetings will start and end on time.
j. Trustees will arrive on time or notify the Chair if they will be late to a Trust
meeting.
k. Trustees will arrive prepared to conduct Trust business at Trust meetings.
l. Trustees will avoid sidebars, will support Trust decisions, will treat each
other as colleagues, and will assume good intentions.
7.5 MINUTES. Minutes shall be kept of all regular and special Trust ee
meetings. Complete written minutes of each Trustee meeting are available for public
review in Human Resources. The minutes for the most recent Trustee meeting will be
available for review on the day that the agenda and supporting documentation is sent to
Trustees in preparation for the next regularly scheduled Trustee meeting. The Trustees
will take action at a subsequent meeting to amend and/or approve minutes. Minutes of
regular or special meetings will be distributed to all Trustees prior to the next meeting. The
Trust Secretary shall keep a written record of those Trustees present and those absent at all
official Trustee meetings. The Trust Secretary shall also keep an official written record of
all proceedings and actions of the Trust. The Trustees may vote to audio or video record
minutes of any or all meetings.
7.6 PUBLIC PARTICIPATION AT TRUST MEETINGS. All regular and
special meetings of the Trustees shall be open to the public. As part of each agenda, there
will be an opportunity for public participation.
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The Trustees desire to hear viewpoints of City employees and consider the
responsible presentation of these viewpoints vital to the efficient operation of the
Trust. The Trust also recognizes its responsibility to conduct its business in an orderly and
efficient manner. The Trust therefore establishes the following procedures:
a. The Chair shall be responsible for recognizing speakers, maintaining proper
order, and adherence to any time limit set. The Trustees may not discuss, consider or make
decisions on any matter not on the agenda. However, questions asked by a public
participant will be answered in writing within fifteen (15) working days if feasible by the
Chair or designee. Questions requiring investigation may take longer to respond to;
however, the public participant will be notified of the delay.
b. If considered necessary, the Chair shall set a time limit on the length of the
comment period. The comments of each speaker shall be no more than three (3) minutes
per topic unless the speaker requests additional time and unless the time limit is waived b y
the Chair. Trustees may ask for clarification or make comments in response to the speaker's
remarks but shall not enter into deliberation or debate. Interruptions, defamatory remarks
or other interference with the orderly conduct of Trustee business will not be
permitted. The Chair shall terminate the speaker's privilege if, after being called to order,
the improper conduct or remarks persist.
c. Public participants shall not be recognized by the Chair while the Trustees
conduct its official business.
d. Individuals that want to address the Trust will sign up to do so at the
beginning of each Trust meeting and will indicate the topic they will be addressing.
8. ROLES AND RESPONSIBILITIES
Within the confines of applicable laws and City policies and regulations, the Trustees
define their role and responsibilities with the following groups.
8.1 MAYOR AND CITY COUNCIL
Within the confines of the law, the Council established the health insurance trust
and appointed Trustees. Pursuant to the Trust Agreement, the Trustees serve at the pleasure
of the Council. The City Council is responsible for deciding if the City offers its employees
health insurance and health related benefits. Based on this decision, the Trustees make
budget requests to the Council who has sole discretion in determining the Trust’s budget
and appropriating approved budget amounts. Additionally, the Council decides premium
allocation between the employer and employees. This decision may be made upon
recommendation from a designated group or committee. Once budget funds are allocated,
the Trustees are responsible for long term financial stability; for making decisions within
the confines of the budgeted funds; the law, and governing rules regarding such things as
plan design, who are covered individuals, PEHP plan offerings, Wellness programs, and
other health related programs.
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8.2 EMPLOYEE UNIONS. The Trustees are not a negotiating body and
consequently do not negotiate with employee unions. The Trustees are responsible for
overall premium establishment. Unions have the opportunity to give input regarding
member’s health related needs and desires, plan design, coverage, offerings, etc. The
Trustees consider union requests relating to plan design, coverage, offerings, etc. The
Trustees serve as a source of information for the unions on health-related issues.
8.3 CITY EMPLOYEES. The Trustees have a fiduciary responsibility to
maintain a financially sound Trust Fund. The Trustees will coordinate with the Benefits
Committee as to plan design and benefits options. Trustees are responsible for
communicating with employees the components of the Employee Benefits Plan and
educating employees about health care options. The Trustees will use established
communication processes or will create others as needed. The Trustees will encourage
employees to use established communication processes.
Employees are responsible for communicating their concerns and preferences for
all health care related issues through appropriate groups such as WBT, EAC, and the
Wellness Committee or through individual Trustees.
8.4 ADMINISTRATIVE SUPPORT. The Trustees provide direction to Human
Resources related to Trust functions. The Trustees propose programs, costs, and budget,
and are responsible for budget related to functions of the Trust.
Human Resources is responsible for providing the following support to the Trust:
secretarial support, subject matter expertise, liaison with consultants/contractors, providing
financial reports, completing financial transactions, underwriting analysis with benefits
consultant (evaluate numbers from the third-party administrator), regulatory compliance,
administration of benefits, advising employees, liaison with State Department of Insurance.
Trustees will prepare a budget for the Department of Finance to incorporate into
the City’s overall budget. Trustees control and administer the Trust budget. The
Trust/Trustees should be treated like a department in the budget process.
8.5 OUTSIDE CONSULTANTS. The term “Outside Consultants” is broadly
defined to include the benefit consultant, third party administrator, actuary, external
auditor, etc. Regarding the benefit consultant, they are responsible for:
a. Plan Benchmarking
b. Financial Analysis
c. Renewal Analysis
d. Assist with vendor relationships, as requested
e. Assist with employee advocacy/problem resolution, as requested
f. Contract reviews, as requested
g. Attend Health Plan Trustee meetings, as requested
h. Advise on legal compliance to include COBRA, HIPAA, Medicare, etc.
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i. Benefit Plan Consulting
j. Employee Information Meetings
k. Attending City Council Meetings
AMENDMENT.
These Bylaws may be amended at any regular meeting of the Trustees by a majority vote
of the voting membership of the Trust. The Chair shall report any amendments to the
Bylaws to the Mayor and City Council.
These Bylaws are adopted on this ____ day of ________, 20____ by the undersigned
Trustees.
INITIAL TRUSTEES:
____________________________________
William Lloyd Mossman Nary
____________________________________
Alexander Ronald Freitag
____________________________________
Eric Kent Strolberg
____________________________________
Christena Ann Barney
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EXHIBIT A
Trust Agreement
See attached.
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