Trust History, Structure and Governance

About Arizona Local Government Employee Benefit Trust (AZLGEBT)

AZLGEBT was formed on July 01, 1994 by Graham, Greenlee and Santa Cruz counties – three of Arizona’s smallest rural county governments. La Paz Cunty joined in 1998 and Apache and Gila became members in 1999. Coverage was extended to Arizona Counties three affiliated service organizations, the County Supervisors Association (CSA), Arizona Counties Insurance Pools (ACIP) and Arizona Association of Counties (AACo) on July 01, 2014. Membership in the Trust is for three-year terms with initial and renewal membership applications subject to affirmative vote of the Trustees.

The Trust is governed by a Board of Trustees comprised of one Trustee and one Alternate Trustee from each member county. Each entity has one equal vote in matters before the Trust, with Alternate Trustees voting only in the absence of their County’s Trustee. AZLGEBT operates in accordance with its Declaration of Trust, Bylaws and Arizona law and regulation applicable to public entity pools. The Trust is audited annually by an independent auditor retained by the Trust and examined every five years by the Arizona Department of Insurance.

AZLGEBT does not have employees. Instead, the various operational components including legal, actuarial, audit, network leasing, Wellness, claims administration, prescription benefit management and case management, as well as overall plan management services, are contracted out to a range of vendor partners. This structure helps drive down operating expense while enhancing Trustees’ flexibility to maintain responsive vendors and adapt to the changing environment in which AZLGEBT operates.