(b) The Postretirement Health Benefits Trust Fund shall be established as a tax-exempt trust, in accordance with § 115 of the Internal Revenue Code or other applicable federal statute.

(c) The purpose of the Postretirement Health Benefits Trust Fund is to assist the State in financing the postretirement health insurance subsidy, as specified in § 2-508 of this article.

(d) The Postretirement Health Benefits Trust Fund shall consist of any funds appropriated to the Postretirement Health Benefits Trust Fund, whether directly or through the budgets of any State agency.

(e) After June 1, 2008, any funds deposited into the Dedicated Purpose Account in fiscal year 2007 and fiscal year 2008 that were appropriated in Chapter 216 of the Acts of 2006 or Chapter 487 of the Acts of 2007 (H.B. 50) for the purpose of defraying the future costs associated with retirement benefits for State employees, may be deposited into the Postretirement Health Benefits Trust Fund.

(f) (1) The Board of Trustees are the trustees of the Postretirement Health Benefits Trust Fund.

(2) Notwithstanding any other provision of law:

(i) the Board of Trustees shall have full power to invest and manage the assets of the Postretirement Health Benefits Trust Fund to achieve the statutory purpose of the Fund; and

(ii) each member of the Board of Trustees shall discharge the member’s duties with respect to the Postretirement Health Benefits Trust Fund as a fiduciary and be indemnified in accordance with the provisions of Title 21, Subtitle 2 of this article.

(3) The Board of Trustees may incur reasonable investment expenses payable from the assets of the Postretirement Health Benefits Trust Fund, and in accordance with § 21-315(d) of this article, for:

(i) services of managers to invest the assets of the Postretirement Health Benefits Trust Fund;

(ii) services of one or more duly qualified banks or trust companies for the safe custody of the investments and banking services; and

(iii) any other service that the Board of Trustees deems reasonable and necessary in connection with the investments of the Postretirement Health Benefits Trust Fund.

(4) (i) The Board of Trustees may incur reasonable administrative expenses payable from the assets of the Postretirement Health Benefits Trust Fund.

(ii) Administrative expenses paid under subparagraph (i) of this paragraph may not exceed $100,000 annually.

(5) The Board of Trustees is not subject to Division II of the State Finance and Procurement Article for:

(i) obtaining services of managers to invest the assets of the Postretirement Health Benefits Trust Fund; and

(ii) expenditures to manage, maintain, and enhance the value of the assets of the Postretirement Health Benefits Trust Fund.

(g) To the extent possible, the assets of the Postretirement Health Benefits Trust Fund shall be invested in the same manner as those of the several systems.

(h) Prior to fiscal year 2009, no payments may be made from the Postretirement Health Benefits Trust Fund.

(i) Beginning in fiscal year 2009, the Board of Trustees may transfer an amount from the Postretirement Health Benefits Trust Fund to the Department of Budget and Management, subject to appropriation in the State budget, for the sole purpose of assisting in the payment of the State’s postretirement health insurance subsidy.

(j) On or before October 1, 2009, and on or before October 1 thereafter, the Board of Trustees shall publish an annual consolidated report that includes:

(1) the fiscal transactions of the Postretirement Health Benefits Trust Fund for the preceding fiscal year; and

(2) the amount of the accumulated cash, securities, and other assets of the Postretirement Health Benefits Trust Fund.

(k) The Board of Trustees may adopt a trust document and regulations to carry out this title.