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ORIGINALLY
ADOPTED: 8-28-96 |
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DATE
AMENDED: 3-14-01 |
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SUBJECT:
Member Benefit Trust Fund |
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RESOLUTION
NUMBER: 050-96; 040-01 |
Member Benefit Fund Ordinance
Tribal
Code § 440
(a) AUTHORITY, PURPOSE AND SOURCE OF FUNDS.
(1)
The authority for this Ordinance is found in the Grand Ronde Constitution,
Article III, Section 1.
(2)
The purpose of the Member Benefit Trust Fund is to establish for the
benefit of the members of the Tribe Trust Funds for the purpose of
holding and managing such funds as are made available on behalf of
each member, pending their distribution at the request of each adult
member, or held on behalf of a minor in a fiduciary capacity until
each reaches the age of 21.
(3)
The source of funding for this Member Benefit Trust Fund will be revenues
derived from Timber sales on trust land held in the General Fund.
(b) BACKGROUND: As the governing body of the Tribe, the Tribal
Council is responsible to look after the social and economic well being
of Tribal members. The Council, in examining the needs of the membership
and the amounts of Tribal resources available has concluded that it
is in the best interest of the Tribe that a portion of Tribal revenues
be distributed in the form of a benefit to the enrolled members from
time to time. The Council has made provisions to set aside each adult
member's benefit amount in a pooled investment account to be invested
or withdrawn at the discretion of the member. It is in the best interest
of the minor members of the Tribe that these amounts are placed in a
minors' trust fund and held until they reach the age of 21, with the
exceptions listed in (g)(5)(A) & (B). It is the intent of the Council
that the Minors Trust Fund will be managed with the care of a reasonably
prudent person to provide members with resources upon reaching the age
of 21, to assist in education, or other important purpose. Such a program
is expected to contribute to individual self-sufficiency, which is a
stated value of the Tribe.
(c) DEFINITIONS:
(1)
"Age of Majority" shall mean twenty-one (21) years of age.
(2)
"Minor" shall mean a Tribal member who has not reached 21 years
of age.
(3)
"Member Benefit Savings Fund" shall mean the investments of those
benefit payments left by adult members for pooled investments.
(4)
"Minors' Trust Fund" shall mean the benefits payments being held
in Trust by the Tribe for Tribal minors in a pooled investment.
(5)
"Legal Guardian" shall mean the parent(s) with custody of the
minor or such other person who, by law, is responsible for the care
and custody of the minor.
(6)
"Debt to the Tribe" shall include, but not limited to debts such
as childcare, lease fees, rent or Tribal Court judgements due or awarded
to any arm of Tribal government, including but not limited to, Tribal
Housing Authority, Tribal Health Authority, Tribal Health and Wellness
Center, and Tribal social services programs. Other items may be added
at the discretion of the Tribal Council.
(d) MEMBER BENEFIT SAVINGS FUND AUTHORIZED.
(1)
Fund authorization: There is hereby authorized the Confederated
Tribes of Grand Ronde "Member Benefit Savings Fund". The Fund shall
be utilized to provide for the management and administration of the
funds held on behalf of the adult members of the Tribe pending their
ultimate disbursement at the request of an adult member. The fund
shall be established to account for each member's benefit and accumulated
earnings left in the custody of the Tribe, and shall be wholly governed
by the laws of the Tribe and will beheld as an Agency Fund.
(2)
Contributions to the Fund: The contributions to the Fund
shall be for the benefit of only those members living as of the date
of distribution. Contributions will be available only to those members
who designate a beneficiary or beneficiaries. Any member who designates
a beneficiary within one year of the annual distribution date of the
fund is eligible for a contribution upon the same terms as the other
fund participants who had made a timely beneficiary designation. Tribal
Council shall contribute such amounts as are made available from the
distributions of tribal revenues in the form of a member benefit,
which will be available to all members having reached the age of 21
by the date of distribution. At the discretion of the Tribal Council,
the fund may be authorized to accept voluntary contributions from
members to their accounts.
(3)
Custody: Contributions, assets and earnings of the Fund
shall be custodied in a bank account, brokerage account, or trust
account of an institutional trust company, or any combination thereof,
approved by the Tribal Council.
(4)
Management of fund assets and earnings: Assets placed in
the Fund shall be managed in accordance with an Investment Policy
Statement (IPS) adopted by the Tribal Council for the Tribal Social
Funds. The policy shall provide for optimum return on investment,
without unnecessary risk or exposure of the Fund. Fund assets shall
be invested through investment professionals selected by the Tribal
Council in any securities specifically allowed by the IPS. The fund
may be invested as a single pool, provided that the individual accounts
of each adult member shall be accounted for and each adult member's
account shall be credited with its proportionate share of all earnings.
(5)
Authorized uses of the Fund: The Fund may only be depleted
by withdrawals by members of their respective fund balances as provided
by this Ordinance.
(6)
Appropriation procedures: Funds shall be considered appropriated
and available on the date set forth in the resolution of the Tribal
Council or as provided above. No budget or appropriation actions shall
be required for distribution or withdrawal of the funds.
(7)
Margin Borrowing on or leveraging of Fund Assets: Provided
the Fund is custodied in a brokerage account governed by regulation
T limits on margin borrowing, the Tribal Council may authorize margin
borrowing in the Fund for the following purposes:
(A)
If funds are needed for immediate liquidity and current investments
are not sufficiently liquid to clear a required wire or check redemption.
(B)
In order to invest in short term secure instruments that have a
yield two percent or greater above the margin borrowing rate.
(8)
Reports: The Executive Officer shall provide an accounting
for the Fund, its receipts, earnings, and disbursements or withdrawals
by the 30th day following the end of each calendar quarter
to the Tribal Council. Within 30 days after the end of each calendar
quarter, the Executive Officer shall provide a written statement of
account to each adult member having an amount within their account
at any time during the quarter. Within 45 days after the end of each
calendar year, the Executive Officer shall provide each adult member
with a statement of account for the preceding year, including a report
of taxable earnings, gains, losses and distributions.
(e) MEMBER BENEFIT SAVINGS FUND POLICY.
(1)
Member Benefits invested pending withdrawal: The Tribe
will hold the amounts of any benefit distribution made available to
the members of the Tribe in fully invested funds managed in accordance
with the disciplines specified for the Tribal Social Funds until each
member requests withdrawal of such funds, and to credit each member's
account for its proportionate share of investment earnings, except
when said withdrawal occurs within the first 60 days after the distribution
date.
(2)
Cost of administering program: The Council may appropriate
from available Tribal funds, such amounts as may be required to administer
the investment program and accounts in order to provide a cost effective
program for members.
(3)
No Distribution Obligation: The Tribe may, but has no legal
obligation to, provide a distribution to the membership under this
Ordinance, and there is no anticipated benefit to the Tribe or the
Tribal Council as a result of any such payment. The Tribe, after considering
its fiduciary responsibilities, shall determine what amount, if any,
is available for distribution to the Tribal members in the form of
a benefit distribution under this Ordinance. Any such benefit distribution
shall be made in accordance with the provisions of a resolution that
is adopted by the Council authorizing a benefit distribution.
(4)
Eligibility.
(A)
Full Member Benefit Payment: The following requirements
must be met to be eligible for a full member benefit payment:
(i)
Be a Tribal Member living at any time during either:
(a)
the 14-month period immediately prior to the Distribution Date;
or
(b)
the period between the most recent prior Distribution Date and
the Distribution Date, which ever is shorter in duration.
(ii)
Not relinquished membership during this time period; and
(iii)
Have no outstanding debt owed to the Tribe.
(B)
Partial Member Benefit Payment: If a Tribal member has
an outstanding debt owed to the Tribe, the member is not eligible
to receive a full member benefit payment. However, if the amount
owed is less than the full member benefit payment the member may
receive a Partial Member Benefit Payment. The following requirements
must be met to be eligible:
(i)
Be a Tribal member living at any time during either:
(a)
the 14-month period immediately prior to the Distribution Date;
or
(b)
the period between the most recent prior Distribution Date and
the Distribution Date, which ever is shorter in duration.
(Ii)
Not relinquished membership during the relevant time period in
(i) above; and
(iii)
Any outstanding debt owed the Tribe is less than the Full Member
Benefit Payment.
(5)
Debt Off-Set: The Finance Officer (FO), or designee, shall
calculate the Full Member Benefit Payment amount and shall use this
amount as an off-set to the debt owed the Tribe. The indebted Tribal
member shall then be eligible to receive a Partial Member Benefit
payment equal to the difference between the amount due the Tribe and
the Full Member Benefit Payment.
(A)
Debtor List: Not later than May 1st of each year, the
Division Manager or Executive Director of each Tribal program, authority,
committee, commission, enterprise or any other arm of Tribal government
shall provide a list of indebted Tribal members to the FO, or designee,
including the amount of the debt.
(B)
Notice: Within 5 working days of receiving the lists,
the FO, or designee, shall issue a written notice each Tribal member
on the debtor lists. The notice shall be substantially in the following
form: "Tribal records show that you owe the [name of program] the
sum of $_____ as of May 1 , ____. Unless this amount is paid in
full immediately, you will not be eligible to receive the Full Member
Benefit Payment. The Financial Officer is authorized by the Member
Benefit Fund Ordinance to use all or any part of the Member Benefit
Payment as an offset to your outstanding debt to the Tribe.
If
the amount you owe is less than the Full Member Benefit Payment,
you will receive a Partial Member Benefit payment. If you believe
the amount shown is incorrect or have any other reason to question
the debt, you must submit a "Request for Administrative Review"
to the Financial Officer within 7 working days of the date of this
notice.
If
you do not submit a Request for Administrative Review, the amount
you owe will be offset by all or any part of the Full Member Benefit
payment."This notice shall be signed by the FO or designee.
(C)
Administrative Review by Financial Officer: If a Request
for Administrative Review is submitted within the time allowed,
the FO or designee, shall review the documentation and return a
written decision within 5 working days of the date the Request for
Administrative Review was submitted.
(D)
Appeal Procedure: If the debtor is not satisfied with
the decision made by the FO or designee, the debtor must submit
a Request for Appeal of Administrative Review to the EO or designee
within 3 working days of the date the FO or designee's written decision.
The EO or designee shall review the documents and render a written
decision within working 5 days of the date an appeal is submitted.
If no appeal is submitted, the decision of the FO or designee shall
be final.
(E)
Debt Credit: The FO or designee shall notify Tribal programs
and/or other enterprises of the amounts to be paid to each debtor
after funds are withheld from the member benefit payment.
(6)
Requests for withdrawal: Adult members may request to withdraw
such amounts as may be available to them in their Member Benefit Savings
Fund account. Those wishing to withdraw funds during any month will
be paid based on the balance as of the last day of the second month
immediately preceding the date of receipt of the withdrawal request.
Any funds remaining following a withdrawal will continue to accrue
earnings on the remaining balance.
(7)
Minimum Balance Payout: If the withdrawal requested causes
the Adult Member's balance to fall below $100, the entire balance
will be paid out, bringing the balance to -0-.
(8)
Distribution Waiver: Adult members are not required to
accept distributions and may, at their option, direct their distribution
to specific Tribal programs, Tribal permanent funds, or return it
to the General Fund.
(9)
Distribution upon death:
(A)
The Tribe will distribute any funds in a deceased Tribal Member's
Member Benefit Savings Fund account to the beneficiary or beneficiaries
designated by the deceased, or credit the amount to said beneficiary's
member account at the beneficiary's election, or if the beneficiary
is a member and a minor the funds shall be deposited into the minor's
individual trust fund account. If no beneficiary has been designated,
the amount will be returned to the Fund and become part of the following
year's appropriation and distribution.
(B)
The Tribe will directly distribute the amount to any beneficiary
who is not a member or if the non-member beneficiary is a minor,
to their legal guardian.
(C)
Distributions refused or not claimed by a designated beneficiary
within one year of the member's death will be distributed to the
deceased's estate.
(D)
When the distribution is made to a beneficiary, the beneficiary
may decide whether to retain the funds or request the funds be distributed
to another specific program or fund.
(10)
Distribution upon relinquishment:
(A)
The Tribe will hold any funds in a relinquished Tribal member's
Member Benefit Savings Fund account for a period of six (6) months
following the date of relinquishment, during which time, the relinquished
Tribal Member may request to withdraw such amounts as may be available
to them.
(B)
When the relinquished Tribal Member is a minor, any funds will remain
in their Minor's Trust Fund account until they reach the age of
2l. The relinquished Tribal Member will then have six (6) months
to withdraw such amounts as may be available to them.
(C)
Any funds not claimed by a relinquished Tribal Member will be returned
to the General Fund.
(11)
Resolution of disputes over distribution: The Tribal Court
shall have authority to hear all disputes over distributions arising
under this section. The decision of the Court is final.
(f) MINORS' TRUST FUND AUTHORIZED:
(1)
There is hereby authorized the Confederated Tribes of Grand Ronde
"Minors' Trust Fund". The Fund shall be used to provide for the management
and administration of the funds held on behalf of minor members of
the Tribe pending their ultimate disbursement to such members when
they reach the age of 21. The fund shall be established to account
for each members benefit and accumulated earnings and shall be held
as an expendable trust fund.
(2)
Contributions management and reporting: Subsection (d)(2) through
(8) shall govern contributions, custody, management, uses and reporting
of the Minor's Trust Fund, except as stated herein. Within 30 days
after the end of each calendar year, the EO shall provide a written
statement of account to the custodial parent or guardian of each minor
on whose behalf an account is held within the Fund.
(g) MINORS' TRUST FUND POLICY:
(1)
Minors' funds held in trust: The Tribe shall hold in trust,
for the benefit of each minor member of the Tribe, such amounts as
are made available for withdrawal by enrolled members of the Tribe
in the form of investment benefits, until each reaches the 21 years
of age, or as otherwise provided by this ordinance.
(2)
Normal distribution: Each minor shall be entitled to withdraw
his or her trust funds on the distribution date immediately following
his or her 21st birthday. Such distribution shall be by transfer to
the Tribal Member Benefit Savings Fund where the funds may be accessed
by each individual according to his or her needs.
(3)
Distribution date: Distribution dates of minor's trust
funds to the Member Benefit Savings Fund shall be the 1st
day of the second month of each calendar quarter (February 1, May
1, August 1 and November 1).
(4)
Distribution amount: The distribution amount shall be the
amount of each minors' trust account balance as of the last day of
the calendar quarter immediately preceding the distribution date.
(5)
Early withdrawal (if any):
(A)
Upon reaching the age of 18, members who have completed high school
or received their GED may petition for an early withdrawal of all
or a portion of the balance of trust funds held on their behalf
for the purpose of education or a down payment on a home. The withdrawals
will be made according to policies and rules governing these specific
instances only.
(B)
The Executive Officer or his authorized designee shall consider
each request on its own merits and shall authorize withdrawal of
such amounts as shall be determined appropriate in the circumstances.
No decision concerning any minor shall be considered to set precedent
or policy with regard to any other minor.
(6)
Distribution upon death of a minor: Upon reaching the age
of 18, members may designate beneficiary or beneficiaries. The Tribe
will distribute the fund to the beneficiary or beneficiaries designated
by the deceased. If no beneficiary has been designated or the member
dies before reaching the age of 18, the amount will be credited to
the parents of the deceased in equal shares.
(h) IMPLEMENTATION: This Ordinance shall be effective and
shall be implemented immediately upon its adoption. The EO shall be
responsible to provide for all necessary procedures to carry out its
provisions. The EO shall provide for review of this ordinance not less
than once each year and shall make recommendations for such changes
as are consistent with the intent of the Fund and as shall be warranted
to best secure the interests of the members and the Tribe.
I certify
this to be a true copy of the Confederated Tribes of the Grand Ronde
Community of Oregon Member Benefit Fund Ordinance.
Tribal Council Secretary
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