Central Valley Retiree Medical Trust

“There shall be a maximum of nine trustee positions on the board of trustees. Until such time as there are nine participating labor organizations, there will be vacant positions on the board of trustees, but such vacancies shall not deter the board of trustees from taking action. The executive board of the plan sponsor shall appoint one trustee. Until the maximum number of trustee positions are filled, each additional participating labor organization shall have the right to select one trustee. Selection of a trustee shall be done according to the terms of the bylaws, and at the cost, of the participating labor organization of which the trustee is a member, for selection of its governing board and its appointments, or other actions, including any special rules for trustee selection that the labor organization might adopt. There shall be no more than one trustee from any participating labor organization. Each person elected or appointed as trustee shall be an active member of a participating labor organization (or a retiree who was an active member until retirement) and a participating employee in one of the trust's benefit plans. In the event of early termination of a trustee's term, due to resignation, death, disqualification, automatic termination, termination of appointment by appointing entity or other cause, the executive board of the participating labor organization that selected the trustee shall appoint a successor trustee to finish the remainder of the prior trustee's term.”

“The trust agreement reserves limited authority for the plan sponsor to receive notice or approve of mergers, terminations and trust agreement amendments.”

“The trust has no separate committees.”

“The chairman of the board of trustees reviews form 990 for completeness and accuracy, and compares the amounts to trust's audited financial statements for consistency, before signing and filing.”

“The board of trustees meets regularly to review and monitor trust activities. The trust has a stand-alone conflict of interest policy which requires the trustees to review the policy on an annual basis and to disclose potential conflict of interest as soon as it is discovered to the board. In particular, the trustee shall disclose a conflict of interest prior to any board decision on the matter related to the conflict of interest. Upon the trustee's first attendance at a board meeting, the trustee shall submit a signed conflict of interest disclosure to the board, on a form approved by the board, and shall have the duty to update such disclosures upon discovering a change. There have been no incidences of any conflict in the current year.”

“The trust's financial information in the form of summary annual report is provided to participants on an annual basis. A full set of financial statements and trust governing documents are available to participants upon request.”

“The trust does not have information regarding the compensation received by the three trustees from the city of modesto and the stanislaus consolidated fire protection district ("the employers"). The three members of the board of trustees are paid police officers or firefighters of the employers. They are employed by the employers and receive all of their compensation solely connected to their duties as police officers or firefighters of the employers. In their role as trustees, they are fiduciaries and subject to legal prohibitions against self-dealing. They serve on a volunteer basis as trust fiduciaries; they do not receive any additional compensation from the employers or any other party for their services on the board of trustees. Further, the trust has a conflict of interest policy, which requires trustees to disclose any financial arrangements that would create a conflict of interest. Section 7(a) of the conflict of interest policy of the trust, restated january 1, 2013, states the following: "a trustee shall have a duty to disclose to the board any conflict of interest as soon as it is discovered by the trustee. In particular, the trustee shall disclose a conflict of interest prior to any board or committee decision on the matter related to the conflict of interest. Upon the trustee's first attendance at a board meeting, the trustee shall submit a signed conflict of interest disclosure to the board, on a form approved by the board, and shall have the duty to update such disclosures upon discovering a change." the policy also requires regular disclosure in written form of "any entities in which you [the trustee] presently have a compensation arrangement that may present an actual or potential conflict of interest. Note also that the disclosure of compensation requested on the form 990 would cause additional administrative burden by requiring the trust to collect this information annually, since the trustees' compensation as police officers or firefighters varies from year to year, and from trustee to trustee. Finally, and very importantly, the form 990 is public information. It is likely that requiring the disclosure of compensation will dissuade police officers or firefighters from volunteering to serve on the board. The trust would then have to spend trust assets to hire a professional trustee. Please contact the trust office if you would like further information, and/or would like to discuss this further. The trustees want to be cooperative with the irs, but requesting this compensation information is problematic for the reasons stated above.”

“No compensation is paid to any trustees or officers. The trust has no employees.”

“Third party administrator 178,582. Actuarial fees 5,000. Consulting 498.”

“The board of trustees assumes the responsibility for oversight of the audit of its financial statements. There is no separate audit committee.”