62.1-129.2 - Trust for postemployment benefits authorized; administration.

§ 62.1-129.2. Trust for postemployment benefits authorized; administration.

A. The Authority is hereby authorized to establish and maintain a trust orequivalent arrangement for the purpose of accumulating and investing assetsto fund postemployment benefits other than pensions, as defined herein. Suchtrust or equivalent arrangement shall be irrevocable; the assets of suchtrust or similar arrangement shall be dedicated to providing benefits toretirees and their beneficiaries in accordance with the terms of the plan orprograms providing postemployment benefits other than pensions; and theassets of such trust or equivalent arrangement shall be exempt from taxationand execution, attachment, garnishment or any other process against theAuthority or a retiree or beneficiary. The funds of the trust or similararrangement shall be deemed separate, and independent trust funds shall besegregated from all other funds of the Authority, and shall be invested andadministered solely in the interests of the active or former employees (andtheir dependents or beneficiaries) entitled to postemployment benefits otherthan pensions covered by the Fund.

B. The Authority may make appropriations to any such trust or equivalentarrangement, and the Authority may require active and former employeescovered by a postemployment benefit program to contribute to the trust orequivalent arrangement through payments or deductions from their wages,salaries, or pensions.

C. Nothing in this section shall be construed to inhibit the Authority'sright to revise or discontinue its plans or programs providing suchpostemployment benefits other than pensions for its active and formerofficers and employees as it may deem necessary. If all plans or programsproviding such postemployment benefits other than pensions for which thetrust or equivalent arrangement is established are repealed or terminated bythe Authority, then there shall be no continuing responsibility for theAuthority to continue to make appropriations to such trust or equivalentarrangement, and the assets of such trust or equivalent arrangement shall beused to provide any benefits continuing to be due to active or formeremployees (and their dependents or beneficiaries) under such plans orprograms. If there are no active or former employees (or dependents orbeneficiaries) due a benefit under any plan or program providing suchpostemployment benefits other than pensions for which the trust or equivalentarrangement was established, then any remaining assets may revert to theAuthority.

D. Postemployment benefits other than pensions shall be defined by theAuthority pursuant to applicable accounting standards and law. Such benefitsmay include, but are not limited to, medical, prescription drug, dental,vision, hearing, life or accident insurance (not provided through a pensionplan), long-term care benefits, long-term disability benefits (not coveredunder a pension plan) provided to individuals who have terminated theirservice and to the dependents of such individuals, and may be provided bypurchasing insurance, by a program of self-insurance, or by a combination ofboth. However, postemployment benefits other than pensions shall not includedefined benefit pension plans for retirees and eligible dependents ofretirees, termination benefits or other pension benefits. Such postemploymentbenefits other than pensions may be provided to the officers and employees orto their dependents, estates, or designated beneficiaries. Any benefitsarising from any postemployment benefits other than pension programs shall beclearly defined and strictly construed.

E. Notwithstanding any other provision of law, the moneys and other propertycomprising the trust or equivalent arrangement established hereunder and themoneys or other properties comprising the retirement program establishedpursuant to § 51.1-126.4 shall be invested, reinvested and managed by theAuthority or the trust company or bank having powers of a trust companywithin or without the Commonwealth who is selected by the Board to act as atrustee for the fund, with the care, skill, prudence and diligence under thecircumstances then prevailing that a prudent person acting in a like capacityand familiar with such matters would use in the conduct of an enterprise oflike character and with the same aims. Such investments shall be diversifiedso as to minimize the risk of large losses unless under the circumstances itis clearly prudent not to do so. Such investments shall not be limited byChapter 45 (§ 2.2-4500 et seq.) of Title 2.2.

(2008, cc. 597, 622.)