CC RESOLUTION 5580RESOLUTION NO. 5580
A RESOLUTION APPROVING THE TERMINATION OF THE
CALIFORNIA EMPLOYERS' RETIREE BENEFIT TRUST (CERBT)
PROGRAM AND TRANSFER OF ASSETS TO THE MULTIPLE
EMPLOYER OPEB/PENSION 115 TRUST ADMINISTERED BY
SHUSTER ADVISORY GROUP, LLC
The City of El Segundo does resolve as follows:
SECTION 1.. Findings. The City Council finds and declares as follows:
A. The City of El Segundo ("City") is eligible to participate in a tax-exempt trust
performing an essential governmental function within the meaning of
Section 115 of the Internal Revenue Code, as amended, and the
Regulations issued there under, and the Trust is a tax-exempt trust under
the relevant statutory provisions of the State of California.
B. Shuster Advisory Group, LLC ("Shuster") has made available the Multiple
Employer OPEB/Pension 115 Trust (Trust) for the purpose of pre -funding
pension obligations and/or OPEB obligations.
C. Alta Trust Company satisfies the Trustee requirements under IRS Section
115.
D. All qualified assets currently held in the City's California Employers' Retiree
Benefit Trust (CERBT) are irrevocably dedicated to prefunding the City's
OPEB obligations.
E. The City's adoption and operation of the Trust has no effect on any current
or former employee's entitlement to post -employment benefits.
F. The terms and conditions of post -employment benefit entitlement, if any,
are governed by contracts separate from and independent of the Trust.
G. The City Council has prudently set aside funds for the OPEB liability.
H. The City's funding of the Trust does not, and is not intended to, create any
new vested right to any benefit nor strengthen any existing vested right.
I. The City reserves the right to make contributions, if any, to the Trust.
J. On December 6, 2022, the City Council adopted Resolution No. 5379 to
adopt the Shuster Multiple Employer OPEB/Pension 115 Trust and transfer
the City's Pension Stabilization Trust to Shuster, Charles Schwab Trust
Bank ("Charles Schwab"), and Alta Trust Company.
SECTION 2. Approval; Authorization.
A. The City Council authorizes the termination of the City of El Segundo
California Employers' Retiree Benefit Trust ("CERBT") Program, services,
administration, and investment contracts with the California Public
Employees' Retirement System and California Public Employees'
Retirement System Board of Administration ("CaIPERS").
B. The City Council authorizes the appointment of Alta Trust Company as
successor Trustee and Charles Schwab Trust Bank as custodian of the
OPEB assets. The transfer of assets is contingent upon the acceptance of
the successor Trustee and custodian.
C. The City Council certifies that the successor trust satisfies the requirements
of Section 115 of the Internal Revenue Code and that all assets held by that
trust shall qualify as "plan assets" that are irrevocably dedicated to the
prefunding of OPEB obligations.
D. The City Council authorizes the liquidation and transfer of all assets to
Charles Schwab Trust Bank, as soon as administratively practicable, on a
date mutually agreed upon by the City and CaIPERS.
E. Upon the complete transfer of all assets, CaIPERS is removed as trust
administrator, trustee, and investment manager.
F. The City Council appoints the City Manager, or his/her successor or his/her
designee as the City's Administrator for the Trust.
G. The City's Administrator is hereby authorized to execute the legal and
administrative documents on behalf of the City and to take whatever
additional actions are necessary to maintain the City's participation in the
Trust and to maintain compliance with any relevant regulation issued or as
may be issued; therefore, authorizing him/her to take whatever additional
actions are required to administer the City's Trust.
SECTION 3. Severability. If any part of this Resolution or its application is
deemed invalid by a court of competent jurisdiction, the City Council intends that such
invalidity will not affect the effectiveness of the remaining provisions or applications and,
to this end, the provisions of this Resolution are severable.
SECTION 4. Electronic Signatures. This Resolution may be executed with
electronic signatures in accordance with Government Code § 16.5. Such electronic
signatures will be treated in all respects as having the same effect as an original signature.
SECTION 5. Signature Authority. The Mayor, or presiding officer, is hereby
authorized to affix his signature to this Resolution signifying its adoption by the City
Council of the City of El Segundo, and the City Clerk, or her duly appointed deputy, is
directed to attest thereto.
RESOLUTION NO. 5580
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SECTION 6. Effective Date. This Resolution will take effect immediately upon
adoption and will remain in effect unless repealed or superseded.
SECTION 7. City Clerk Direction. The City Clerk will certify to the passage and
adoption of this Resolution, enter it in the City's book of original Resolutions, and make a
record of this action in the meeting's minutes.
PASSED AND ADOPTED this 20t" day of January, 2026.
ris Pimentel, Mayor
ATTEST;.
Sus rua .CW��el
APPROVEI,�. TO FO
Mark D. Hen ley, City Attorney
RESOLUTION NO. 5580
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CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF EL SEGUNDO )
I, Susan Truax, City Clerk of the City of El Segundo, California, do hereby certify that the
whole number of members of the City Council of said City is five; that the foregoing
Resolution No. 5580 was duly passed, approved, and adopted by said City Council at a
regular meeting held on the 20t" day of January, 2026, approved and signed by the Mayor,
and attested to by the City Clerk, by the following vote:
AYES: Mayor Pimentel, Mayor Pro Tern Baldino, Council Member Giroux and
Council Member Keldorf
NOES: None
ABSENT: Council Member Boyles
ABSTAIN: None
WITNESS MY HAND THE OFFICIAL SEAL OF SAID CITY this 20t" day of January, 2026.
Susan Truax, City Clerk
of the City of El Segundo,
California
RESOLUTION NO. 5580
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