                                 CODE OF VIRGINIA

TRUST FOR POSTEMPLOYMENT BENEFITS AUTHORIZED; ADMINISTRATION (§ 2.2-2203.4)

A. The Authority is hereby authorized to establish and maintain a trust or
equivalent arrangement for the purpose of accumulating and investing assets to
fund postemployment benefits other than pensions, as defined herein. Such trust
or equivalent arrangement shall be irrevocable. The assets of such trust or
similar arrangement (i) shall be dedicated to providing benefits to retirees and
their beneficiaries in accordance with the terms of the plan or programs
providing postemployment benefits other than pensions and (ii) shall be exempt
from taxation and execution, attachment, garnishment, or any other process
against the Authority or a retiree or beneficiary. The funds of the trust or
similar arrangement shall be deemed separate and independent trust funds, shall
be segregated from all other funds of the Authority, and shall be invested and
administered solely in the interests of the active or former employees (and
their dependents or beneficiaries) entitled to postemployment benefits other
than pensions.

B. The Authority may make appropriations to any such trust or equivalent
arrangement, and the Authority may require active and former employees covered
by a postemployment benefit program to contribute to the trust or equivalent
arrangement through payments or deductions from their wages, salaries, or
pensions.

C. Nothing in this section shall be construed to inhibit the Authority&#8217;s
right to revise or discontinue its plans or programs providing such
postemployment benefits other than pensions for its active and former officers
and employees as it may deem necessary. If all plans or programs providing such
postemployment benefits other than pensions for which the trust or equivalent
arrangement is established are repealed or terminated by the Authority, then
there shall be no continuing responsibility of the Authority to continue to make
appropriations to such trust or equivalent arrangement, and the assets of such
trust or equivalent arrangement shall be used to provide any benefits continuing
to be due to active or former employees (and their dependents or beneficiaries)
under such plans or programs. If there are no active or former employees (or
dependents or beneficiaries) due a benefit under any plan or program providing
such postemployment benefits other than pensions for which the trust or
equivalent arrangement was established, then any remaining assets may revert to
the Authority.

D. Postemployment benefits other than pensions shall be defined by the Authority
pursuant to applicable accounting standards and law. Such benefits may include,
but are not limited to, medical, prescription drug, dental, vision, hearing,
life, or accident insurance (not provided through a pension plan), long-term
care benefits, and long-term disability benefits (not covered under a pension
plan) provided to individuals who have terminated their service and to the
dependents of such individuals, and may be provided by purchasing insurance, by
a program of self-insurance, or by a combination of both. However,
postemployment benefits other than pensions shall not include defined benefit
pension plans for retirees and eligible dependents of retirees, termination
benefits, or other pension benefits. Such postemployment benefits other than
pensions may be provided to the officers and employees or to their dependents,
estates, or designated beneficiaries. Any benefits arising from any
postemployment benefits other than pension programs shall be clearly defined and
strictly construed.

E. Notwithstanding any other provision of law, the moneys and other property
comprising the trust or equivalent arrangement established hereunder shall be
invested, reinvested, and managed by the Authority or the trust company or bank
having powers of a trust company within or without the Commonwealth that is
selected by the Board to act as a trustee for the trust or equivalent
arrangement with the care, skill, prudence, and diligence under the
circumstances then prevailing that a prudent person acting in a like capacity
and familiar with such matters would use in the conduct of an enterprise of like
character and with the same aims. Such investments shall be diversified so as to
minimize the risk of large losses unless under the circumstances it is clearly
prudent not to do so. Such investments shall not be limited by Chapter 45
(&#xA7; 2.2-4500 et seq.).

HISTORY: 2012, cc. 779, 817.