11.01 GENERAL PROVISIONS

11.02 HEALTH CARE BENEFIT PLAN

11.03 DECLARATION OF TRUST

11.01 GENERAL PROVISIONS

a. Purpose.

The purpose of the Plan and Trust is to provide health insurance benefits upon retirement for eligible Public Safety Dispatchers, Public Safety Officers, Public Safety Sergeants, Public Safety Lieutenants and Building and Finance Clerks in accordance with the requirements of the collective bargaining agreements between the VILLAGE OF BEVERLY HILLS and the collective bargaining representatives identified on Exhibit A attached hereto and incorporated herein, (the "Agreements") for the welfare of those members of such units retiring on or after the respective effective dates therein listed and, their respective beneficiaries, the "eligible retirees and beneficiaries."

The Plan and Trust taken as a whole shall constitute a "voluntary employees' beneficiary association" (VEBA) under Section 501(c)(9) of the Internal Revenue Code of 1986, as amended, and is created for the exclusive purpose of providing benefits through policies issued by duly licensed commercial insurance companies, through a fund of self?insurance, or through any other lawful means of providing group health insurance. The Village of Beverly Hills intends the benefits to be provided by the establishment and maintenance of a trust fund in conformance with all applicable federal statutes and regulations, state, and local law.

The trust shall enter into insurance agreements, and modify, alter or amend such agreements from time to time, with commercial insurance carriers, health maintenance organizations, preferred provider organizations or any other qualified entity currently existing or created for the purpose of providing benefits under the Plan.

b. Short Title.

This Ordinance may be known and cited as the Village of Beverly Hills Retiree Health Benefits Plan and Trust ("Plan and Trust").

c. Interpretation and Law; Construction.

The Plan is intended to qualify as an accident and health plan and a group health plan under applicable provisions of the current Internal Revenue Code, (Sections 105 and 106), the regulations promulgated under each, and applicable Federal and Michigan law. Where not governed by Michigan law, this Plan shall be construed and enforced according to the applicable federal laws, and all provisions hereof shall be administered according to such federal laws. If any provisions of the Plan shall be for any reason invalid or unenforceable, the remaining provisions nevertheless shall be carried into effect.

Neither the establishment of the Plan nor the Trust nor any modification thereof, nor the creation of any fund or account, nor the payment of any benefits, shall be construed as giving to any person covered under the Plan and Trust or other person any legal or equitable right against the Village of Beverly Hills, its elected or appointed officials or employees, or the Trustee, except as may otherwise be provided in this ordinance.

Neither the Village of Beverly Hills nor the Trustees shall be responsible for the validity of any insurance agreement issued in connection with the Plan or Trust or for the failure on the part of the insurer to make payments provided by such insurance agreement, or for the action of any person which may delay payment or render an insurance agreement null and void or unenforceable in whole or in part.

11.02 HEALTH CARE BENEFIT PLAN

a. Commencement of Benefit.

Subject to all applicable provisions of the Plan and/or insurance agreement, a participant shall commence eligibility for benefits from the Plan on the first day he or she satisfies the eligibility requirements provided the participant has enrolled for coverage on such date.

b. Enrollment.

The Village of Beverly Hills shall give each Participant timely written notice of his or her eligibility and his or her right to enroll for coverage under the Plan. A Participant or Retiree may enroll for coverage on a form or forms provided by and filed with the Village of Beverly Hills. In connection with his or her enrollment for coverage, the Participant or Retiree shall furnish all pertinent information requested by the Village of Beverly Hills, Plan Administrator and/or the Insurance Carrier, including but not limited to the names, relationships and birth dates of the participant's or Retiree's Spouse and eligible Dependents, and any pertinent Medicare Part A and B information of any Participant, Retiree, Spouse and/or eligible Dependent, and the Plan Administrator or the Insurance Carrier may rely upon all such forms and information furnished.

11.03 DECLARATION OF TRUST

a. Irrevocable VEBA Trust, Established.

The VEBA Trust established in this chapter shall be irrevocable and shall conform to all applicable sections of the Internal Revenue Code, the Collective Bargaining Agreements, the statement of purpose of this ordinance, and all statutes, ordinances, rules, regulations, arbitrators' awards and judicial decisions interpreting the foregoing provisions.

The Trust shall consist of Village of Beverly Hills contributions, any contributions which may be paid by active employees of the Village, eligible Retirees and other beneficiaries, all investments made or held under Trust, and all income therefrom, both received and accrued, and any other property, which may be received or held by reason of this Trust.

b. Investment of Trust Assets.

The trustee shall invest the assets of the trust in accordance with the Public Employee Retirement System Investment Act, 1965 PA 314, MCL 38.1132 to 38.1140.

c. Use of Trust Assets.

(1) No part of the net earnings of the Trust may inure to the benefit of any participant, Retiree or other beneficiary other than by benefit payments. The Trust assets shall not be used for or diverted to purposes other than to provide the benefits contemplated under the Plan for the exclusive benefit of eligible Retirees and their Spouses and eligible Dependents, except any administrative expenses for which the Trust is liable. A portion of net earnings may be used for payment for reasonable and necessary professional services, costs and expenses related to assisting the Trustees and Trust Administrator in the operation of the Trust. The Trustees shall determine what costs, fees and professional services are reasonable and necessary.

(2) All income, profits, recoveries, contributions, forfeitures and any and all monies, securities and properties of any kind at anytime received or held by the Trustees hereunder, shall become part of the Trust when received, and shall be held for the use and purposes hereof.

d. Funding.

(1) For the purpose of creating and maintaining a fund for the payment of health care benefits payable as provided in this ordinance, the Village of Beverly Hills shall be required to pay to the Trust such amounts as may be required by the Agreements and such additional amounts, if any, determined appropriate by the Village Council.

e. Trustee.

The general administration, management and responsibility for the proper operation of the Trust and for making effective and construing the provisions of the Trust shall be vested in the trustee identified by this section, consistent with applicable state and federal laws and regulations. A Trustee or other fiduciary under the Trust shall discharge his or her duties with respect to the Trust solely in the interest of the participants and qualified beneficiaries for the exclusive purpose of providing benefits to Participants and qualified beneficiaries and paying reasonable expenses of administering the Trust. A Trustee shall discharge his or her duties with the care, skill, and caution under the circumstances then prevailing, which a prudent person, acting in a like capacity and familiar with those matters, would use in the conduct of an activity of like character and purpose.

The Treasurer of the Village of Beverly Hills shall be the trustee hereunder and his or her term as trustee shall be concurrent with his or her term in office as Treasurer of the Village of Beverly Hills.