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<br />8A <br />Page 9 <br /> <br />o Establishment of IRC 115 "essential governmental function" trust accounts for <br />prefunding multi employer trusts for OPEB liabilities <br />o Establishment of IRC 115 "integral part" trusts for prefunding single employer <br />OPEB liabilities <br />o Operation of "self insured" retiree health plans established by meet and confer <br />between labor and management <br /> <br />. Recommend GASB Standards 43 and 45 be clarified to permit trust fund accounts for <br />OPEB to also be revocable for the single purpose of pre-payment of OPEB debt service. <br />This could be accomplished by GASB permission to use revocable trust funds to deposit <br />bond proceeds used to pre-fund OPEB unfunded liability (preference would be to deposit <br />bond proceeds in a revocable trust fund). <br /> <br />We would continue depositing the Annual Required Contributions (ARC) to an irrevocable <br />trust fund), and consideration of different amortization periods based on plans for funding. <br /> <br />. Seek clarification in stale statute, the Internal Revenue Code, and GASB regulations that <br />OPEB trust funds may be used for both benefit payments and for early retirement of debt <br />used to establish the OPEB trust. <br /> <br />. Develop informational materials, in simple language, regarding what are GASB 43 and 45 <br />obligations, and what issues public agencies should consider when planning for <br />compliance. <br /> <br />. Develop informational materials regarding what types of indebtedness options are <br />available to public agencies to pre-fund OPEB trust accounts, including legal <br />requirements for each. <br /> <br />· Develop informational materials regarding what types of federal and state arrangements <br />are available for agencies to pre-fund for OPEB costs. <br /> <br />. Develop informational materials regarding retiree health care and actuarial "best <br />practices" approaches by employers and unions for management and control of OPEB <br />costs. <br /> <br />. Seek clarification in state law, and if necessary from Federal Bankruptcy law, that <br />creditors cannot attach assets in OPEB trusts. <br /> <br />What's Next <br /> <br />The remaining PEBC meetings will focus on examining recommendations for the final report. The <br />commission must conclude its work by Dec. 31. Updates to the commission's work and its final. <br />report will be issued through Priority Focus and the League of California Cities' Web site, <br />www.cacities.orq. <br /> <br />Handouts for HCD Prop. 1C Funding Stakeholder Meetings Now Available <br /> <br />The California Department of Housing and Community Development (HCD) recently updated its <br />list for workshops and stakeholder meetings regarding Proposition 1C funding. To access the <br />schedule, visit www.hcg.c.8.qov/fa/bond!?:.h.!!Il!. <br /> <br />Of particular note to cities are meetings on the Infilllncentive Grant Program. The first meeting <br />for that program is scheduled for Oct. 18, in Fresno. Now posted on the HCD Web site -- <br />www.hcd.c<U]ov/fa/il9L - are handouts for the Infilllncentive Grant Program stakeholder meeting, <br />including an outline of the program, a memo on the meetings and comments from the public and <br />program statutes and commentary that includes questions HCD will be asking at the meeting. <br /> <br />For further information, contact HCD Director of Legislation Jolena Voorhis at (916) 323-0169. <br /> <br />9 <br />