Agenda

Return

C.80

To:	Board of Supervisors
From:	David Twa, County Administrator
Date:	February 8, 2011

Contra

Costa

County

Subject:

County of Contra Costa Post-Employment Health Care Plan - Investment Policies and Guidelines Document

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 02/08/2011

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Gayle B. Uilkema, District II Supervisor
Mary N. Piepho, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:

Lisa Driscoll, County Finance Director (925) 335-1023

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: February 8, 2011
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

ADOPT County of Contra Costa Post-Employment Health Care Plan Investment Policies and Guidelines, as recommended by the Post Retirement Health Benefits Trust Agreement Advisory Body.

FISCAL IMPACT:

The result of the recommendations herein, if implemented, will have a positive impact on the County's Other Post
Employment Benefit (OPEB) liability and consequently overall fiscal stability and ability to deliver services.

BACKGROUND:

On December 14, 2010 the Board of Supervisors adopted Resolution No. 2010/579. The resolution provided for the transfer of assets from the County's Post Retirement Health Benefits Trust to the Public Agencies Retirement Services (PARS) Public Agencies Post-Retirement Health Care Plan Trust. In summary, the action authorized adoption of the PARS Trust, authorized the transfer of plan assets held in the County's Post Retirement Health Benefits Trust, directed that future contributions be made to the PARS Trust, and authorized the Plan Administrator (County Treasurer-Tax Collector) to take whatever actions are required to administer the County's PARS plan(s). The final action required is to formally establish an investment policy and guidelines for the investment of the County's other post employment benefit assets.

The Investment Policies and Guidelines Document (the "Document") is attached. The Document provides for the investment of the trust fund (the "Trust") of the Contra Costa County Post-Retirement Health Benefits Plan (the "Plan"). The purpose of the Document is to assist the Board and the investment managers it employs in effectively supervising, monitoring and evaluating the investment of the Plan's portfolio. The investment of the assets for the Trust shall be in accordance with applicable law. The Document defines the responsibilities, policies and guidelines for investment managers, including reporting requirements, investment objectives, asset allocations, investment guidelines, prohibited investments and the fund selection process.

The County has hired HighMark Capital Management, an investment advisor and subsidiary of Union Bank N.A., Trustee of the Public Agency Retirement Systems' Public Agencies Post-Retirement Health Care Plan Trust, to manage the Plan's portfolio beginning effectively January 2011. The Document serves as a contract for services between the County and the HighMark Capital Management.

CONSEQUENCE OF NEGATIVE ACTION:

County will not be able to provide investment policies and guidelines to Investment Advisor which will delay specified investments and negatively impact future earnings.

CHILDREN'S IMPACT STATEMENT:

None.