Steps to Join the Pooled Trust
Before you get started, contact VML/VACo Finance so we can guide you through the process. We will provide background information for decision makers and electronic copies of the documents you will need to execute to become a participant. Simply contact us, and we’ll get in touch with everything you’ll need.
Joining the VACo/VML Pooled OPEB Trust requires just three steps:
1. Adopt an ordinance/resolution.
- Localities & School Divisions: The enabling legislation approved by the General Assembly authorizes localities and school divisions to form an OPEB trust by adoption of an ordinance/resolution. Our model ordinance/resolution accomplishes this and serves as the vehicle for the locality or school division to agree to become a participant in the VACo/VML Pooled OPEB Trust.
- Other Political Subdivisions: Other political subdivisions (e.g., authorities and commissions) should adopt a resolution to form an OPEB trust and agree to become a participant in the VACo/VML Pooled OPEB Trust. In addition, political subdivisions other than localities and school divisions are required to seek authorization from at least one of the governing bodies that appoints its Board of Directors in whole or in part.
- Joint participation by multiple political subdivisions: The governing body of any county, city, or town may enter into an agreement with its elected school board, and/or a political subdivision whose board members it appoints in whole or in part, to join the pooled trust as a single participant.
2. Create a Local Finance Board or Designate the Deferred Compensation Board.
- Through the ordinance or resolution, the governing body creates a local finance board to fulfill the Participating Employer’s trustee responsibilities in overseeing its OPEB investments. A political subdivision that has established a deferred compensation board (or retirement board) may designate such board to serve in the role of Local Finance Board if it chooses – most have found this the easiest way to comply with the Local Finance Board requirement.
3. Convene the Local Finance Board and execute a Trust Joinder Agreement.
- The Trust Joinder Agreement is the official agreement between the VACo/VML Pooled OPEB Trust Board of Trustees and the Local Finance Board establishing the governmental entity’s participation in the pooled trust.
Please be sure to contact us so we can provide you with the necessary documents and guide you through the process.