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13 <br />MEMORANDUM OF AGREEMENT <br />PROVISION OF HEALTH INSURANCE BENEFITS <br />for QUALIFIED RETIREES OF ORANGE PERSON CHATHAM MENTAL HEALTH, <br />DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE AUTHORITY <br />WHEREAS, effective July l, 2012 Orange, Person and Chatham <br />Counties will merge with the counties comprising PBH; and <br />WHEREAS, prior to the merger, Orange, Person and Chatham Counties <br />were the three counties that comprised Orange Person Chatham Mental <br />Health, Developmental Disabilities and Substance Abuse Authority d/b/a <br />OPC Area Program ("OPC"). <br />WHEREAS, certain qualified employees had retired from OPC and <br />therefore were receiving post retirement health insurance benefits as <br />set forth in policies approved by the OPC Board; and <br />WHEREAS, after the merger, OPC will be dissolved and will not be <br />an ongoing entity; and <br />WHEREAS, funds will be provided by OPC prior to the merger for <br />the purpose of funding the post retirement health insurance benefits <br />for qualified OPC retirees as shown on Exhibit A hereto; and <br />WHEREAS, County has agreed to handle the <br />administration of providing the retiree health insurance and therefore <br />County will take possession of the funds available for <br />same and County is willing to do so for no compensation <br />but also has no individual liability to provide these benefits in the <br />event the funds set aside for this purpose are exhausted; and <br />WHEREAS, County will provide a financial report to <br />each of the county managers of Orange, Person and Chatham Counties no <br />later than July 315t each year which will include at a minimum the <br />beginning balance of the fund, charges to the fund and the ending <br />balance of the fund; and <br />WHEREAS, in the event funds remain at the end of the obligations <br />set forth on Exhibit A, the excess funds shall remain with <br />County for its use and purposes but in the event the <br />funds are exhausted prior to the time retirees would no longer have <br />been eligible for coverage had OPC remained an ongoing entity, the <br />three counties to this Agreement will make up the shortfall, one-third <br />each. This shortfall sum will be paid to County within <br />thirty days of determination of a shortfall; and <br />WHEREAS, the county managers of each county are collectively <br />given the authority to make any necessary administrative decisions <br />regarding these funds with the exception of decisions regarding funds <br />being exhausted. <br />