§ 45-21-65 - Other post-employment benefits – OPEB trusts.
SECTION 45-21-65
§ 45-21-65 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 municipality, acting by its treasurer or directorof finance, upon an approving resolution of the city or town council or agencyboard as applicable, may enter into a trust agreement between the municipalityand a corporate trustee which shall be a bank or trust company doing businessin the state. This trust agreement shall be in any form deemed proper by thetreasurer or director of finance of the municipality, and shall be executed byits treasurer or director of finance and countersigned by its mayor orpresident of the town council. It shall be lawful for any bank or trust companydoing business in the state to act as a depository or trustee under this trustagreement, and to furnish indemnification and pledge securities that may berequired by any municipality.
(b) OPEB trust funds shall be credited with all amountsappropriated or otherwise made available by the municipality for the purposesof meeting the current and future OPEB costs payable by the municipality. OPEBtrust funds shall also be credited with all amounts contributed or otherwisemade available by employees of the municipality for the purpose of meetingfuture OPEB costs payable by the municipality. Amounts in an OPEB trust fund,including any earnings or interest accruing from the investment of theseamounts, shall be expended only for the payment of the costs payable by themunicipality for OPEB or as otherwise permitted by the terms of the trust andapplicable law. The director of finance or treasurer, as applicable, shallinvest and reinvest the amounts in the OPEB trust fund not needed for currentdisbursement in any investment permitted for the municipality's pension fundsconsistent with the prudent person rule and investment policies of themunicipality, if any.
(c) Municipalities 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 departments, agencies, boards andcommissions are hereby authorized to enter into such agreements, contracts andother arrangements with municipalities. Notwithstanding any provisions of anygeneral or special law or principle of equity to the contrary, the state shallhave no liability to any municipality for entering into such agreements. Amunicipality may employ any qualified bank, trust company, corporation, firm orperson to advise it on the investment of the OPEB trust fund and may pay fromthe OPEB trust fund for this advice and other services. Procurement for theseservices shall be subject to the procurement procedures and rules governingmunicipalities in the state.
(d) Any OPEB trusts that have been created by municipalitiesand are in effect on the date hereof are hereby ratified and confirmed.
(e) Nothing herein shall be construed to exempt OPEB trustsfrom the Rhode Island Access to Public Records Act, RIGL 38-2-1 et seq.