15-1225

15-1225. Postemployment benefits; trust
accounts; actuarial report

A. If the governing board offers postemployment benefits to school district
employees or to spouses and dependents of school district employees, or both, monies to
fund these benefits may be deposited in an other postemployment benefits fund or an other
postemployment benefits trust account, or both. Additional monies shall not be
legislatively appropriated specifically to provide any postemployment benefits offered by
a governing board.

B. An other postemployment benefits fund is a cash controlled fund as provided in
section 15-905, subsection N. The monies in the other postemployment benefits fund are
not subject to reversion, except that at the end of five years of no activity in the
fund, any remaining monies shall revert to the maintenance and operations fund.

C. An other postemployment benefits trust account established pursuant to
subsection A of this section shall meet all of the following conditions:

1. Contributions made by the school district into the trust account are
irrevocable.

2. The assets of the trust account shall be dedicated to providing benefits to
school district retirees and their beneficiaries in accordance with the terms of the
postemployment benefits plan.

3. Trust assets shall be legally protected from creditors of the school district or
the investment manager pursuant to subsection F of this section.

D. Current or prior year postemployment benefits liabilities may be paid from any
school district fund from which a school district may pay employee benefits into the
other postemployment benefits fund or trust account. Payments for current or prior year
liabilities paid into the other postemployment benefits fund or trust account shall be
treated as an expenditure from the originating school district fund.

E. The following expenditures may be made from an other postemployment benefits
fund or an other postemployment benefits trust account:

1. Administrative and management costs.

2. Payment of benefits.

F. An investment manager for an other postemployment benefits trust account
established pursuant to subsection A of this section shall be either:

1. A qualified investment manager appointed by the district governing board.

2. The manager of a public agency pool established pursuant to section 11-952.01.

G. The investment manager for an other postemployment benefits trust account may
invest and reinvest the monies in the account and may hold, purchase, sell, assign,
transfer and dispose of any of the securities and investments in which any of the trust
account monies are invested. The investment manager shall invest the monies in the trust
account in the same manner as the monies in the permanent state land fund pursuant to
section 35-314.01, except that not more than thirty per cent of the monies in the trust
account may be invested in equity securities at any time. The percentage of investment
shall be calculated at cost.

H. If applicable, each school district shall submit on or before September 1, 2009
to the joint legislative budget committee the most recent actuarial study of the school
district's existing other postemployment benefits offered by the school district and any
prospective other postemployment benefits contemplated to be offered by the school
district, including an analysis of defined contribution plans and defined benefits plans
if appropriate and if the defined contribution or defined benefit plans are used to
administer any other postemployment benefit. Each time a school district conducts a new
actuarial study of the school district's existing or prospective other postemployment
benefits, the school district shall submit the new study to the joint legislative budget
committee within thirty days of the completion of the study.

I. For the purposes of this section, postemployment benefits do not include
benefits provided by the Arizona state retirement system.