Agenda Item 8
May 4,2010
Introduction
MEMORANDUM
TO:
FROM:
SUBJECT:
County Council
Robert
H. Drummer, Senior Legislative Attorney
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Introduction:
Bill 31-10, Board of Investment Trustees - Membership
Bill 31-10, Board of Investment Trustees - Membership, sponsored by the Council
President at the request of the County Executive, is scheduled to be introduced on May 4,2010.
A public hearing is tentatively scheduled for June 15 at 1:30 p.m.
Bill 31-10 revises the composition of the Board of Investment Trustees by providing that
the representative of the police bargaining unit serve on the Board indefinitely rather than for a
fixed term. The Bill would implement the recently negotiated collective bargaining agreement
between the Fraternal Order of Police and the County Executive. Bill 19-09, enacted on May
13,
2009, provided similar indefinite terms for the representatives designated by MCGEO and the
IAFF.
This packet contains:
Bill 31-10
Legislative Request Report
Memo from County Executive
Circle #
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Bill No.
31-10
Concerning:
Board of Investment
Trustees - Membership
Revised: April 23, 2010 Draft No. _1_
Introduced:
May 4,2010
Expires:
November 4,2011
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date:
...!N..!.:o::.!.n!.:::e~
_ _ _ _ __
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council President at the Request of the County Executive
AN
ACT
to:
(1)
(2)
(3)
add an additional member of the Board of Trustees with an indefinite term of
office and delete a member with a definite term of office;
amend the law establishing the Board of Investment Trustees; and
generally amend the law regarding the employees' retirement system.
By amending
Montgomery County Code
Chapter 33, Personnel and Human Resources
Section 33-59
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* * *
Heading or defined term.
Added to existing law by original bill.
Deletedfrom existing law by original bill.
Added by amendment.
Deletedfrom existing law or the bill by amendment.
Existing law unaffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
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Bill 31-10
Sec.
1.
Section 33-59 is amended as follows:
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33-59. Board of Investment Trustees
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(b)
~ennbership.
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(3)
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The County Executive nnust appoint [2]
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voting certified
ennployee organization representatives, subject to County
Council confirnnation, as nnennbers of the Board, who serve
indefinitely while each rennains the designee of the certified
ennployee representative. These trustees nnust not vote on any
nnatter involving the County deferred connpensation plan.
These trustees should be:
(A)
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one
representative
nonninated
by
the
ennployee
organizations certified as the representative of the Office,
Professional, and Technical (OPT) and Service, Labor
and Trades (SL T) bargaining units; [and]
(B)
one
representative
nonninated
by
the
ennployee
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organization certified as the representative for the fire
and rescue ennployee
unit[.]~
and
(Q
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one
representative
nonninated
Qy
the
ennployee
organization certified as the representative for the police
ennployee bargaining unit under Article V.
(4)
The following [7]
.Q
trustees nnust be appointed by the
Executive and confirnned by the Council:
(A)
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[One active County ennployee who is a nnennber of an
ennployee organization certified under Article V, and
who is a vested nnennber of the retirennent systenn, or an
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Bill 31-10
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individual recommended by the employee organization
certified under Article V.
The employee organization
may recommend 3 to 5 individuals for the respective
trustee position.
Before appointing this trustee, the
Executive must consider, and should select from, the
individuals recommended by the employee organization.
The Executive must notify the Council when appointing
an individual not recommended by an employee
organization. A 3-year term for this trustee ends on
March 1 of every third year after each trustee is
confirmed by the Council. Any trustee appointed under
this subparagraph must not vote on any matter involving
the County deferred compensation plan.]
An active County employee who is a vested member of
the retirement system and the Merit System, and not a
member of a collective bargaining unit. A 3-year term
for this trustee ends on March 1 of every third year after
the trustee is confirmed by the Council.
[(C)]
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A retired County employee who is a member of
the retirement system. Before appointing this trustee, the
Executive must consider, and should select from, a list of
3 to 5 individuals recommended by the Montgomery
County Retired Employees' Association. The Executive
must notify the Council when nominating an individual
not recommended by the Association. A 3-year term for
this trustee ends on March 1 of every third year after the
trustee is confirmed by the Council.
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Bill 31-10
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[(D)]{g
Two persons recommended by the Council who
are knowledgeable in pensions, investments, or financial
matters. A 3-year term for these trustees ends on March
1 of every third year after each trustee is confirmed by
the Council.
[(E)]@
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Two individuals knowledgeable in penSIOns,
investments, or financial matters. Before nominating
these trustees, the Executive must consider, and should
select from, individuals recommended by citizens or
countywide
citizens'
groups.
An
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individual
recommended by a citizens' group need not be a member
of the group. The Executive must notify the Council
when nominating an individual not recommended by a
citizens' group. A 3-year term for these trustees ends on
March 1 of every third year after each trustee is
confirmed by the Council.
[(4)]
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A trustee appointed under paragraph (3) continues to
serve after the trustee's term ends until the Council confirms a
successor, but the term for each position is not affected by any
holdover. A trustee who, after appointment and before the end
of a term, is no longer qualified for the trustee's position is
removed from the Board by operation of law.
[(5)]
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The Executive must not appoint as a trustee any person
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who furnishes, or is employed by a firm that furnishes, to
pension funds and other institutional investors the kind of
investment services purchased by the Board.
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*
*
*
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LEGISLATIVE REQUEST REPORT
Bill 31-10
Personnel Retirement Board ofInvestment Trustees
DESCRIPTION:
The requested legislation revises the composition of the Board of
Investment Trustees by providing that the representative of the police
bargaining unit serve on the Board indeftnitely rather than for a ftxed tenn.
The recently negotiated collective bargaining agreement between the
Fraternal Order of Police and the County provides that the police bargaining
unit representative appointed by the County Executive to the Board of
Investment Trustees serve indeftnitely while remaining the designee of the
FOP.
PROBLEM:
GOALS AND
OBJECTIVES:
To implement a provision of the collective bargaining agreement with the
FOP.
COORDINATION:
Office of Human Resources
FISCAL IMPACT:
Office of Management and Budget
ECONOMIC
IMPACT:
EVALUATION:
ftscal impact statement to be provided at a later date
nla
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OFFICE OF THE COCNTY EXECUTIVE
Isiah Leggett
County Executive
ROCKVILLE, MARYLAND 20850
MEMORANDUM
April 19, 2010
TO:
Nancy Floreen, President
Montgomery County Council
.
"")
FROM:
SUBJECT:
lsiah
Leggett, County Executive
~~
/J
Bill to Amend the Composition of the Board of Investment Trustees
I am attaching for Council introduction a Bill which would amend the law
regarding the composition of the Board of Investment Trustees by providing that the police
bargaining unit representative appointed by the County Executive to the Board of Investment
Trustees, subject to County Council
confirmatio~,
serve indefinitely while remaining the designee
of the certified employee organization rather than for a fixed term. This legislation does not
change the size of the Board of Investment Trustees and places the representative of the police
bargaining unit in parity with the representatives of the Office, Professional, and Technical
(OPT), and the Service, Labor and Trades (SLT) bargaining units and the fire and rescue
employee bargaining unit who serve on the Board indefinitely. This bill results from an
agreement with the Fraternal Order of Police Montgomery County Lodge #35, Inc. during recent
collective bargaining. A fiscal impact statement will be provided to the Council at a later date.
Attachments
IL:
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