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(a) The city of Sioux Falls Other Post Employment Benefits (OPEB) 115 Trust Fund Agreement established in this chapter effective January 1, 2017, shall be irrevocable and shall conform to all applicable sections of the Internal Revenue Code, the statement and purpose of this section, and all ordinances, rules, regulations interpreting the foregoing provisions.
(b) The 115 Trust shall consist of city contributions and may contain employee contributions. The 115 Trust shall be used as a funding vehicle whereby the trustee of the 115 Trust will accept contributions to the 115 Trust for holding and administration. The trustee will: (i) hold, invest, and reinvest the 115 Trust, and (ii) pay benefits from the 115 Trust solely to provide health and welfare benefits to retirees and eligible spouses and dependents of retirees entitled to health coverage under this chapter.
(c) The 115 Trust provides that in no event will Trust assets be distributed to or revert to any entity that is not a state, a political subdivision of a state, or an entity whose income is excluded from gross income under section 115 of the Internal Revenue Code. Contributions to fund the benefits under the 115 Trust shall be designated by the city. None of the contributions are elective or discretionary, directly or indirectly. The amount of the contributions is established by the city and is not subject to any election of the employees.
(Ord. 118-16, passed 12-20-2016)