1. Policy No. 250
    2. Page 1 of 1
    3. FINANCE
    4. Fund Balance and Solvency
    5. Procedure No. 250P
    6. Page 1 of 1
    7. FINANCE
    8. Fund Balance and Solvency


     

     

     

     

     


    alt





    Policy No. 250





    Page 1 of 1





    FINANCE

     

     





    Fund Balance and Solvency

     

    Under Policy No. 220, the Trustees for the Everett School Employee Benefit Trust (“Trustees”) are responsible for ensuring that the Everett School Employee Benefit Trust (“Trust”) is managed:
    · effectively and prudently, in full compliance with law and the Trust.
    · for the exclusive purposes of providing benefits to participants in the Trust and defraying the costs of administering the Trust.


     

    The Trustees believe this responsibility includes the requirement that sufficient funds be retained to meet the Trust’s liquidity needs, which vary from time to time. To retain this a stable financial base and to comply with regulatory solvency requirements, the Trust needs to maintain a Trust fund balance sufficient to: (i) pay claims for benefits funded directly by the Trust, (ii) pay costs associated with administering the Trust, and (iii) provide financial reserves for unanticipated benefit and cost expenditures and/or revenue shortfalls of an emergency nature.

     

    The Trustees will develop and adopt procedures for carrying out this Policy.

     

    Reference:  200  Financial Policy

       220  Investment Guidelines and Rules

       250P  Fund Balance and Solvency

       

    Legal Reference:  WAC 80-65-040

     

     

    Proposed:  December 2010

    Approved:  





    Procedure No. 250P





    Page 1 of 1





    FINANCE

     





    Fund Balance and Solvency

     

    In order to retain a stable financial base and comply with regulatory solvency requirements, the Trustees shall:

     1.  Maintain sufficient funds to meet the Trust’s liquidity needs;
    2. Establish reserves in an amount equal to the sum of eight weeks of (i) claim costs for all benefits funded directly by the Trust, (ii) costs, and (iii) expenses;
    3. Maintain an aggregate stop-loss insurance policy with an attachment point set at or below one hundred twenty-five percent of annual expected claim costs for all benefits funded directly by the Trust; and
    4. In addition to establishing the reserves in item 2. above, establish by resolution an additional contingency reserve in an amount equal to the sum of (i) eight weeks of claims costs for all benefits funded directly by the Trust, (ii) costs, and (iii) expenses.


     

    In lieu of the requirements in 1., 2., 3. and 4. above, the Trustees may obtain an independent actuarial study and fund the Trust to the actuarially determined liability.

     

    If at any time during the end of a program year the requirements in 1. and 3., or 4. are not met, the Trustees shall notify the Washington State risk manager of the condition, and comply with the risk manager’s corrective action plan.

     

    Reference:  100.3P  Third Party Administrators, Consultants and Advisors

    200  Financial Policy

       220  Investment Guidelines and Rules

       250  Fund Balance and Solvency

       440  Reports

     

    Legal Reference:  WAC 82-65-040

     

     

    Proposed:   December 2010 January 2011  

    Approved:   

     



    Document comparison by Workshare Professional on Thursday, January 20, 2011 4:10:29 PM
    Input:
    Document 1 ID interwovenSite://PDX-MTIERS/Active/70374894/1 
    Description #70374894v1<Active> - Everett Fund Balance Policy 
    Document 2 ID interwovenSite://PDX-MTIERS/Active/70374894/2 
    Description #70374894v2<Active> - Everett Fund Balance Policy 
    Rendering set Standard
    Legend:
    Insertion
    Deletion
    Moved from
    Moved to
    Style change
    Format change
    Moved deletion
    Inserted cell  
    Deleted cell  
    Moved cell  
    Split/Merged cell  
    Padding cell   
    Statistics:
     Count
    Insertions
    7
    Deletions
    7
    Moved from
    0
    Moved to
    0
    Style change
    0
    Format changed
    0
    Total changes
    14

    Back to top



    70374894.1 70374894.2 0053709-00001