M&C Review


COUNCIL ACTION:  Approved on 10/10/2017 

DATE: 10/10/2017 REFERENCE NO.: **G-19127 LOG NAME: 13OPEB TRUST INVESTMENT POLICY AND STRATEGY
CODE: G TYPE: CONSENT PUBLIC HEARING: NO
SUBJECT:   Adopt Investment Policy and Strategy for the City of Fort Worth's Retirement Health Care Trust (ALL COUNCIL DISTRICTS)

RECOMMENDATION:

It is recommended that the City Council adopt the attached City of Fort Worth Investment Policy and Strategy for the City's Other Post-Employment Benefits (OPEB) Trust related to Retirement Health Care.

 
DISCUSSION:

The purpose of this Mayor and Council Communication (M&C) is to take action to establish an investment policy and strategy for the Other Post-Employment Benefits (OPEB) Trust. The OPEB Trust was established by the Fort Worth City Council by Resolution No. 3779-08-2009.  Since establishment, the Trust has been managed by an Investment Guideline signed by the City and the Trustee at the time of creation. The Financial Management Services Department recommends that the City establish a formal policy to manage the OPEB investment portfolio.

The purpose of this document is to provide the Trustee and Investment Manager with a set of objectives, parameters and guidelines to assist in the administration of the Trust; to guide investment managers in structuring portfolios consistent with desired performance result and acceptable risk levels; to ensure the assets are managed in a prudent fashion and to provide the framework for all investment activities related to the Trust.

The Investment Committee reviewed the proposed policy and recommends its adoption.  Going forward the Fort Worth OPEB Trust Investment Policy will be presented to the City Council for review and readoption at least annually.

This M&C does not request approval of a contract with a business entity.

 
FISCAL INFORMATION/CERTIFICATION:

The Director of Finance certifies that the OPEB Investment Policy and Strategy provides the foundation for solid fiscal management of the Trust portfolio. The policy provides guidance on appropriate investment practices ensuring long-term financial success for the OPEB Trust.

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Submitted for City Manager's Office by:
Susan Alanis (8180)
Originating Department Head:
Aaron Bovos (8517)
Additional Information Contact:
John Samford (2318)

 
 
ATTACHMENTS
  OPEB Investment Policy and Strategy.pdf