Expedited Bill No.
11-17
Concerning: Retirement - Board of
Investment Trustees - Consolidated
Retiree Health Benefit Trust Board of
Trustees - Powers and Duties ­
Montgomery County Group Trust
Revised: April 25. 2017 Draft No. _2_
Introduced:
April 18. 2017
Enacted:
May 2. 2017
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date:
-'N~o~nU:<e
_ _ _ _ __
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Council President at the request of the County Executive
AN EXPEDITED ACT
to:
(1)
create a group trust to pennit the County's employee benefit trusts to invest through
one vehicle to create investment opportunities and efficiencies; and
(2)
generally amend the law regarding the Employees' Retirement System, Retirement
Savings Plan, Deferred Compensation Plan and Consolidated Retiree Health
Benefits Trust.
By amending
Montgomery County Code
Chapter 33, Personnel and Human Resources
Sections 33-60, 33-125, 33-145, and 33-162
By adding
Montgomery County Code
Chapter 33, Personnel and Human Resources
Section 33-170
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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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EXPEDITED BILL
No. 11-17
1
Sec.
1.
Sections 33-60, 33-125, 33-145 and 33-162 are amended and
Section 33-170 is added as follows:
33-60. The board ofinvestment trustees-Powers and duties.
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* *
(d)
section, the Board has the power to:
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Trustee powers.
Subject to the limitations under subsection (a)(2) ofthis
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(16) Pool all or any of the assets of the trust, from time to time, with
assets belonging to any other retirement plan trust or retiree health
benefit trust created
by
the County, and commingle such assets and
make joint or common investments and
9.illIY
joint accounts on
behalf of this trust and such other trust or trusts, allocating
undivided shares or interests in such investments or accounts or in
any pooled assets to the two or more trusts in accordance with their
respective interests. Consistent with its investment authority
in
this Article, the Board may also buy or sell any assets or undivided
interests in this trust or in any other trust with which the assets of
this trust may be pooled, to or from this trust or such other trusts at
such prices or valuations as the Board may determine.
ill} Do
all acts which
it
considers necessary and exercise any and all
powers of this article with respect to the management of the
retirement system, and in general, exercise all powers in the
management of the assets which an individual could exercise in
the management of property owned in the individual's own right
except for making an individual investment selection.
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33-125. Powers and duties of the Board.
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EXPEDITED BILL
No.
11-17
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*
(d)
may:
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*
Trustee powers.
Except as otherwise provided in this Division, the Board
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*
*
(16) pool all or any of the assets of the trust, from time to time, with
assets belonging to any other [qualified pension or profit sharing
trust] retirement plan trust or retiree health benefit trust created by
the County, and commingle such assets and make joint or common
investments and carry joint accounts on behalf of this trust and
such other trust or trusts, allocating undivided shares or interests in
such investments or accounts or in any pooled assets to the two or
more trusts in accordance with their respective interests.
Consistent with its investment authority, the [The] Board may also
buy or sell any assets or undivided interests in this trust or in any
other trust with which the assets of this trust may be pooled, to or
from this trust or such other trusts at such prices or valuations as
the Board may determine; and
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33-145. Powers and duties
of
the
board.
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(e)
Trustee powers.
Except as otherwise provided in this Article, the Board
may:
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*
*
(14) pool all or any ofthe assets ofthe deferred compensation plan trust
with assets belonging to any other [qualified pension or profit
sharing trust] retirement plan trust or retiree health benefit trust
created by the County. The Board may commingle the assets and
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EXPEDITED BILL
No. 11-17
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make joint or common investments and carry joint accounts on
behalf of the deferred compensation plan trust and one or more
other trusts, allocating undivided shares or interests in the
investments or accounts, or in any pooled assets, to the trusts
according to the trusts' respective interests. Consistent with its
investment authority in this Article, the [The] Board also may buy
or sell any assets or undivided interests in any trust where the assets
of the deferred compensation plan trust are pooled at the prices or
valuations that the Board determines; and
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33-162. Trust Fund management.
*
*
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(h)
may:
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Board Powers.
Except as otherwise provided in this Article, the Board
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*
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(13) hold, buy, transfer, surrender, and exercise all other incidents of
ownership of any insurance or annuity contract; [and]
(14) pool all or any of the assets of the trust, from time to time, with
assets belonging to any retirement plan trust or other retiree health
benefit trust created
Qy
the County. and commingle such assets and
make joint or common investments and
£.IDIY
joint accounts on
behalf of this trust and such other trust or trusts, allocating
undivided shares or interests in such investments or accounts or in
any pooled assets to the two or
~
trusts in accordance with their
respective interests. Consistent with the authority granted in this
Article, the Board may also buy or sell any assets or undivided
interests in this trust or in any other trust with which the assets of
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EXPEDITED BILL
No. 11-17
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this trust may be pooled, to or from this trust or such other trusts at
such prices or valuations as the Board may determine; and
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do any act that the Board finds necessary and exercise the power
ofthis Article to manage the Trust Fund. The Board may exercise
all powers to manage the assets that an individual could exercise
to manage property owned by that individual.
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*
33-170.
*
*
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Article XII. MONTGOMERY COUNTY GROUP TRUST.
Montgomery County Group Trust.
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W
Creation gfGroup Trust.
The Board of Investment Trustees established
under Article
III
and the Consolidated Retiree Health Benefits Trust
Board of Trustees established under Article XI may create
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combined,
common or commingled trust fund known as the Montgomery County
Group Trust for the commingling ofassets ofany retirement plan and any
retiree health benefit trust created
Qy
the County under this Chapter.
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Purpose.
The Montgomery County Group Trust is established solely for
the purpose of creating
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collective investment vehicle intended to create
investment opportunities and efficiencies for the investment of
Montgomery County's employee benefit plan trusts. The interests of
each investing trust must be accounted for separately and the assets
attributable to an investing trust must be held for the benefit of that trust
only within the general holdings ofthe Montgomery County Group Trust.
No employee benefit plan trust must be deemed to have an individual
ownership interest in any asset held
Qy
the Montgomery County Group
Trust. Instead, each employee benefit plan trust must have an undivided
ownership interest in the Montgomery County Group Trust, with each
trust owning an undivided ownership interest in its respective subtrust
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EXPEDITED BILL
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within the Montgomery County Group Trust, and must share
proportionately with all other employee benefit plan trusts participating
in the Montgomery County Group Trust in the net income, profits, and
losses thereof.
{f}
Participation in Group Trust.
The Board of Investment Trustees may
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elect to invest assets of the Employees' Retirement System, Retirement
Savings Plan, and/or Deferred Compensation Plan through the
Montgomery County Group Trust, and the Consolidated Retiree Health
Benefits Trust Board of Trustees may elect to invest assets of the
Consolidated Retiree Health Benefits Trust through the Montgomery
County Group Trust. Each board must discharge its duties with respect
to its respective employee benefit plan trust in accordance with the
provisions of Sections 33-61 or 33-163, as applicable, and this Section
33-170.
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Implementation and Administration Authority.
The Board of Investment
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Trustees established under Article III and the Consolidated Retiree
Health Benefits Trust Board of Trustees established under Article XI
must have the authority to:
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ill
implement the Montgomery County Group Trust, as authorized
Qy
subsection
ill1
after consulting any other participating retirement
plan trust or retiree health benefits trust with
f!
separate Board of
Trustees;
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ill
ill
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develop and maintain the Montgomery County Group Trust:
modify or amend the terms of the Montgomery County Group
Trust; and
retain any service providers it deems appro'priate to
fMfY
out these
actions.
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EXPEDITED BILL
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The tenns of the Montgomery County Group Trust must be contained in
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written document.
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Custodian.
The Director of Finance must serve as the custodian of the
Montgomery County Group Trust and must give bond with
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surety and
for
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period and in an amount as the Boards detennine. If the Boards
approve, the Director ofFinance may make written contracts with banks,
trust companies, insurance companies, or investment companies
authorized to do business in any state for the safe custody of investments,
banking services, the payment of benefits and expenses, and any other
function necessary to manage and safeguard the assets ofthe Group Trust.
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ill
Trustees.
The Chair of the Board of Investment Trustees and the Chair
of the Consolidated Retiree Health Trust Board of Trustees must be the
Trustees ofthe Montgomery County Group Trust. The Trustees may take
administrative action
Qy
joint action taken at
~
meeting,
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unanimous
written consent, or
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any other method as set forth in the Montgomery
County Group Trust Declaration of Trust approved in writing
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both
Trustees. The Trustees may appoint
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directed Trustee.
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(g)
Investment Authority.
The Board of Investment Trustees and the
Consolidated Retiree Health Benefits Trust Board of Trustees have the
authority to select the investments of the MontgomerY County Group
Trust consistent with the authority granted under Articles III, Article VIII.
Article IX and Article XI.
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(h)
Delegation gf Signature Authority.
In its written policies and
procedures, the Board of Investment Trustees and the Consolidated
Retiree Health Benefits Trust Board of Trustees may authorize
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Trustee, the Executive Director or
5!
similarly situated MontgomerY
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EXPEDITED BILL
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County employee to execute instruments on behalf of the Montgomery
County Group Trust.
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Withdrawal
gf
an Employee Benefit Plan Trust.
An
employee benefit
plan trust may withdraw, in whole or in part, from the Montgomery
County Group Trust at any time upon action
Qy
its board. The amount
distributed to the employee benefit plan trust upon the withdrawal in
whole or in part will be equal to the value of the employee benefit plan
trust, or part thereof, on the date as ofthe effective date ofthe withdrawal.
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Termination
gf
Group Trust.
Termination of an employee benefit plan
trust's participation in the Montgomery County Group Trust or an
employee benefit plan trust's interest in the Montgomery County Group
Trust must have no effect on the continuance of the Montgomery County
Group Trust with respect to any other employee benefit plan trust whose
participation or interest is not so terminated.
Notwithstanding this
Section, the County Council may terminate the Montgomery County
Group Trust at any time. If the Montgomery County Group Trust is
terminated, the assets of the Montgomery County Group Trust must be
returned to the board of the respective employee benefit plan trusts
participating in the Montgomery County Group Trust. Assets of the
Montgomery County Group Trust may only be used for the exclusive
purpose ofproviding benefits to members and beneficiaries and defraying
reasonable expenses of administering each respective employee benefit
plan trust and the Montgomery County Group Trust.
Procurement.
Chapter
11
B does not
rumlY
to the procurement of goods
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(k)
and services for the Montgomery County Group Trust.
Sec. 2.
Expedited Effective Date.
The Council declares that this legislation is necessary for the immediate
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EXPEDITED BILL
No.
11-17
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protection ofthe public interest. This Act takes effect on the date on which it becomes
law.
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EXPEDITED BILL
No.
11-17
Approved:
I
Roger" ytner, President, County Council
Approved:
Isiah Leggett, County Executive
This is a correct copy ofCouncil action.
Date
Linda M. Lauer, Clerk of the Council
Date
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