                                 CODE OF VIRGINIA

CREATION OF LOCAL FINANCE BOARDS TO MANAGE THE ASSETS OF POSTEMPLOYMENT BENEFITS
TRUST OR EQUIVALENT ARRANGEMENT; COMPOSITION OF SUCH BOARDS; ALTERNATIVES TO
SUCH BOARDS; LIABILITY; AND REMOVAL FROM OFFICE (§ 15.2-1547)

Except as otherwise provided herein, the governing body of any county, city, or
town that establishes a trust, trusts, or equivalent arrangements for
postemployment benefits other than pensions pursuant to this article also shall
create a finance board to serve as trustee of such a trust, trusts, or
equivalent arrangements and to manage and invest the assets of that trust,
trusts, or equivalent arrangements. Such a finance board shall be composed of at
least three members who shall include the chief financial officer of the
locality, the treasurer of the locality, and at least one other additional
person who shall be a citizen of the Commonwealth with proven integrity,
business ability, and demonstrated experience in cash management and in
investments. If the locality does not have a chief financial officer or a
treasurer, then that position may be filled by the chief administrative officer
of the locality or by a citizen who meets the qualifications set forth above.
The citizen member shall be appointed initially by the governing body of the
locality for a term of two years and if more than one citizen is appointed to
serve on any such board, then the local governing body may appoint those
citizens for staggered terms of one and two years. Subsequent appointments shall
be for two-year terms or to fill the balance of any unexpired term. The finance
board shall annually elect one of its members as chairman and another as
vice-chairman. The finance board shall meet at least four times a year, and a
majority of the members shall constitute a quorum.
		Any school board of a local school division or the governing body of any other
political subdivision that establishes its own postemployment benefits trust,
trusts, or equivalent arrangements pursuant to this article shall create a
finance board to serve as trustee of such a trust, trusts, or equivalent
arrangements and to manage and invest the assets of that trust, trusts, or
equivalent arrangements. Such a finance board shall be composed of at least
three members consisting of the chief administrative officer of the entity, the
chief financial officer of the entity, and at least one additional person who
shall be a citizen of the Commonwealth and who meets the qualifications set
forth above. The citizen member shall be appointed initially by the governing
body of the locality for a term of two years and if more than one citizen is
appointed to serve on any such board, then the local governing body may appoint
those citizens for staggered terms of one and two years. Subsequent appointments
shall be for two-year terms or to fill the balance of any unexpired term. The
finance board shall annually elect one of its members as chairman and another as
vice-chairman. The finance board shall meet at least four times a year, and a
majority of the members shall constitute a quorum.
		Alternatively, and in lieu of establishing the finance board as described in
this section, the governing body of any county, city, or town, school division
or other political subdivision that has established a retirement board or
deferred compensation board to manage pension benefits provided to or for its
active and former employees may designate that retirement board or deferred
compensation board to serve as trustee and to manage the assets of a trust or
equivalent arrangement established pursuant to this article. Any such retirement
board or deferred compensation board shall have all the powers and duties of the
finance board described in this article, mutatis mutandis.
		Except in the case of gross negligence or intentional misconduct, any member
of a finance board established pursuant to this section, any director of finance
or another appointed official with a similarly named position, or any member of
a retirement board, who is acting in accordance with the provisions of this
article, shall not incur any liability for investment losses suffered by a trust
established pursuant to this article. Members of any such finance board shall be
subject to removal from office as set forth in §§ 24.2-230 through 24.2-238.

HISTORY: 2007, c. 710.