Pasadena Police Retired Medical Trust

“There are seven trustees, six of whom are selected by the members of the pasadena police officers association and one of whom is appointed by the board of directors of the association. In the event of early termination of appointment, resignation or death of a trustee, the board of directors of the pasadena police officers association shall select a successor trustee for the remainder of that term. The appointment of a trustee may be terminated at any time by the entity which originally made the appointment, according to such entity's internal rules, procedures or practices.”

“The trust agreement reserves limited authority for the plan sponsor to make decisions regarding changes to the composition of the board of trustees and to receive notice or approve of mergers, terminations and trust agreement amendments.”

“The trust has no separate committees.”

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

“The board of trustees meet regularly to review and monitor trust activities. All board members are covered by the conflict of interest policy which shall be reviewed by the board of trustees annually. 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 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 a summary annual report is provided to participants on an annual basis. A full set of financial statements and plan and trust governing documents are available to participants upon request.”

“The trust does not have information regarding the compensation received by the trustees from the city of pasadena (the city). The members of the board of trustees are paid police officers of the city. They are employed by the city and receive all of their compensation solely connected to their duties as police officers of the city. 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 city 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, effective november 13, 2007 as amended, 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 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 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.”

“The trust's document retention and destruction policy is covered in the article vi, section 11 of the trust agreement.”

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

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