On March 9, 2022, LAFCO approved the annexation and dissolution of ECCFPD. On July 1, 2022, CCCFPD will assume the duties and obligations of ECCFPD as its successor agency, except that CCCFPD will not assume any of ECCFPD’s collective bargaining agreements, its express or implied contracts for retiree health/OPEB for its active employees, or any other employment agreements with its active employees. On that date, ECCFPD employees will become CCCFPD employees. CCCFPD will begin providing post-employment health benefits to current ECCFPD retirees and those future retirees from the CCCFPD who once were ECCFPD employees.  
  
ECCFPD established an OPEB trust fund with PARS to fund post-retirement benefits for employees and retirees. As of January 31, 2022, it was estimated that there was approximately $6,094,980.69 in ECCFPD’s PARS OPEB account. The County also has an OBEB trust with PARS to fund post-retirement health benefits of its employees and retirees. As permitted under the trust agreement between the County and PARS, CCCFPD is a participant in the County’s trust and has a subaccount within the County’s trust fund.   
  
To facilitate the transfer of funds to CCCFPD as its successor agency, ECCFPD passed Resolution 2022-14 on May 11, 2022, which delegates program administrative duties associated with its PARS trust fund to the County of Contra Costa and authorizes the transfer of its OPEB assets to “CCCFPD’s account, or any other appropriate account or subaccount, under the County’s PARS OPEB Trust Program.”  

Failure to approve this action will impact CCCFPD’s ability to fund post-retirement benefits for its employees and retirees, including former employees and retirees of ECCFP, by preventing CCCERA from accessing ECCFPD’s OPEB money held with PARS.