IRON MOUNTAIN — The city’s retiree health insurance trust fund will invest up to 65% of its assets in the stock market under a policy approved Monday by the city council.

The city plans to contribute $138,000 annually to the fund for at least 30 years to help meet a retiree health insurance liability estimated at $30 million. The fund was established last year to help comply with a 2017 state law that sets guidelines to identify pensions and retirement health plans that are underfunded.

Although the city has been operating on a pay-as-you-go basis for retiree health benefits, it does have $400,000 set aside that can be tapped to provide initial payments to the dedicated fund, City Manager Jordan Stanchina said.

The investment policy for the Post-Employment Health Care Trust Fund will be similar to what’s in place for the city’s Police and Fire Pension fund, but it will operate under its own board, Stanchina explained.

As approved Monday, the board will consist of City Clerk-Treasurer Isaac Micheau, Mayor Dale Alessandrini and council member Ken Clawson.

The city will purchase exchange traded funds, consisting of stocks or bonds, often tracking an underlying index. The maximum equity exposure will be 65% of the plan’s assets.

By self-managing the fund — as it has in recent years with the Police and Fire Pension fund — the city can save on commissions and fees, Stanchina explained. The return on police and fire pension investments last year was 23%, which was slightly better than the Dow index gain of 22%.

The city began phasing out retiree health benefits for new employees in 2009.

In other action, the council:

— Agreed to seek bids to remove 20 or more dead trees identified throughout the city. Contracting the project, estimated at $5,000 to $10,000, will allow public works staff to concentrate on other pressing tasks, Stanchina said. All of the wood, except the stumps, will be removed by the contractor. The city will bid the stump grinding later.

— Learned from Virginia Feleppa of the Iron Mountain Tree Board that a grant-aided project will result in 18 trees being planted along A Street.

— Heard Stanchina report that weather conditions are contributing to a difficult season for potholes. Entrances near Wal-Mart off of South Stephenson Avenue are the responsibility of the property owners, he noted. “We take a lot of heat for that, but it’s not ours,” he said.

— Authorized seeking bids for lift station repairs at Crystal Lake Boulevard and Pelham Street.

— Reappointed Theresa Giuliani to a three-year term on the Iron Mountain Board of Review.

— Approved a contribution of $2,000 to Iron Mountain-Kingsford Community Schools for its summer recreation program.

— Approved a charitable gaming license for Friends of the Iron Mountain Downtown Development Authority. The group intends to conduct 50/50 raffles as part of its fundraising.