Title
Trial Courts: Superior Court of Los Angeles County Establishment of an Irrevocable Other Post- Employment Benefits (OPEB) Trust (Action Required)
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Summary
The Judicial Council Finance staff recommended approving the Superior Court of Los Angeles County’s request to establish a qualified irrevocable trust with the Los Angeles County Employees Retirement Association to prefund its Other Post-Employment Benefits (OPEB) trust, effective immediately. Prior Judicial Council action required the Judicial Council to approve a trial court’s establishment of an OPEB qualified irrevocable trust with a provider of such trust and investment services other than the California Public Employees’ Retirement System (CalPERS) or Public Agency Retirement Services (PARS). The initial contribution to the OPEB trust is expected to be approximately $21 million.
Recommendation
The Judicial Council Finance Staff recommended that the Judicial Council approve the Superior Court of Los Angeles County’s request to use the Los Angeles County Employees Retirement Association (LACERA) OPEB Trust as trustee and investment services provider for the prefunding of the court’s OPEB liabilities. The court seeks to establish a tax-exempt qualified irrevocable trust during fiscal year 2015-2016 as a participant under Los Angeles County’s agreement with the LACERA OPEB Trust. The court has selected the LACERA OPEB Trust as an appropriate extension of its employee pension and employee benefits relationship with the County of Los Angeles.