(a) Creation of Group 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 a combined, common or commingled trust fund known as the Montgomery County Group Trust for the commingling of assets of any retirement plan and any retiree health benefit trust created by the County under this Chapter.
(b) Purpose. The Montgomery County Group Trust is established solely for the purpose of creating a 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 of the Montgomery County Group Trust. No employee benefit plan trust must be deemed to have an individual ownership interest in any asset held by 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 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.
(c) Participation in Group Trust. The Board of Investment Trustees may 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.
(d) Implementation and Administration Authority. The Board of Investment Trustees established under Article III and the Consolidated Retiree Health Benefits Trust Board of Trustees established under Article XI must have the authority to:
(1) implement the Montgomery County Group Trust, as authorized by subsection (a), after consulting any other participating retirement plan trust or retiree health benefits trust with a separate Board of Trustees;
(2) develop and maintain the Montgomery County Group Trust;
(3) modify or amend the terms of the Montgomery County Group Trust; and
(4) retain any service providers it deems appropriate to carry out these actions.
The terms of the Montgomery County Group Trust must be contained in a written document.
(e) Custodian. The Director of Finance must serve as the custodian of the Montgomery County Group Trust and must give bond with a surety and for a period and in an amount as the Boards determine. If the Boards approve, the Director of Finance 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 of the Group Trust.
(f) 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 of the Montgomery County Group Trust. The Trustees may take administrative action by joint action taken at a meeting, by unanimous written consent, or by any other method as set forth in the Montgomery County Group Trust Declaration of Trust approved in writing by both Trustees. The Trustees may appoint a directed Trustee.
(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.
(h) Delegation of 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 a Trustee, the Executive Director or a similarly situated Montgomery County employee to execute instruments on behalf of the Montgomery County Group Trust.
(i) Withdrawal of 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 by 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 of the effective date of the withdrawal.
(j) Termination of 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 of providing benefits to members and beneficiaries and defraying reasonable expenses of administering each respective employee benefit plan trust and the Montgomery County Group Trust.
(k) Procurement. Chapter 11B does not apply to the procurement of goods and services for the Montgomery County Group Trust. (, §1.)
