§ 2-50. Finances and fund management.

(a)

Establishment and operation of fund:

(1)

As part of the system there is hereby established the fund, into which shall be deposited all of the contributions and assets whatsoever attributable to the system.

(2)

The actual custody and supervision of the fund (and assets thereof) shall be vested in the board of trustees. Payment of benefits and disbursements from the fund shall be made by the disbursing agent on authorization from the board.

(3)

The board may hire and appoint such persons, agents or entities (including corporate fiduciaries) as in its discretion may be required or advisable to enable it to perform custodial and investment duties hereunder; provided further, the board may enter into agency, investment advisory and custodial agreements for the purpose of securing investments and custodianship services for the system and fund.

(4)

All funds and securities of the system may be commingled in the fund, provided that accurate records are maintained at all times reflecting the financial composition of the fund, including accurate current accounts and entries as regards the following:

a.

Current amounts of accumulated contributions of members on both and individual and aggregate account basis;

b.

Receipts and disbursements;

c.

Benefit payments;

d.

All monies, funds and assets whatsoever attributable to contributions and deposits from the city;

e.

All interest, dividends and gains (or losses) whatsoever; and

f.

Such other entries as may be properly required so as to reflect a clear and complete financial report of the fund.

(b)

Powers of board of trustees. The board of trustees shall have the following investment powers and authority:

(1)

The board of trustees shall be vested with full legal title to said fund, subject however, and in any event, to the authority and power of the city council to amend or terminate this trust, provided that no amendment or fund termination shall ever result in the use of any assets of this fund except for the payment of regular expenses and benefits under this system. All contributions from time to time paid into the fund, and the income thereof, without distinction between principal and income, shall be held and administered by the board or its agent in the fund and the board shall not be required to segregate or invest separately any portion of the fund.

(2)

The fund may be invested and reinvested in such securities or property, real or personal, wherever situated and of whatever kind, as shall be approved by the board of trustees, including but not limited to stocks, common or preferred, and bonds, and other evidences of indebtedness or ownership.

(3)

The board of trustees may retain in cash and keep, unproductive of income, such amount of the fund as it may deem advisable, having regard for the cash requirements of the system.

(4)

No person or entity shall be liable for the making, retention or sale of any investment or reinvestment made as herein provided, nor for any loss or diminishment of the fund, except that due to his or its own negligence, willful misconduct or lack of good faith.

(5)

The board may cause any investment in securities held by it to be registered in or transferred into its name as trustee or into the name of such nominee as it may direct, or it may retain them unregistered and in form permitting transferability, but the books and records shall at all times show that all investments are part of the trust fund.

(6)

The board is empowered, but is not required, to vote upon any stocks, bonds or securities of any corporation, association or trust and to give general or specific proxies or powers of attorney with or without power of substitution; to participate in mergers, reorganizations, recapitalizations, consolidations and similar transactions with respect to such securities; to deposit such stock or other securities in any voting trust or any protective or like committee, or with the trustees or with depositories designated thereby; to amortize or fall to amortize any part or all of the premium or discount resulting from the acquisition or disposition of assets; and generally, to exercise any of the powers of an owner with respect to stocks, bonds or other investments comprising the fund which it may deem to be to the best interest of the fund to exercise.

(7)

The board shall not be required to make any inventory or appraisal or report to any court, nor to secure any order of court for the exercise of any power herein contained.

(8)

Where any action which the board is required to take or any duty or function which it is required to perform, either under the terms herein or under the general law applicable to it as trustee under this division, can reasonably be taken or performed only after receipt by it from a member, the city or any other entity of specific information, certification, direction or instructions, the board shall be free of liability in falling to take such action or perform such duty or function until such information, certification, direction or instruction has been received by it.

(9)

Any overpayments or underpayments from the fund to a member or beneficiary caused by errors of computation shall be adjusted with interest at a rate per annum approved by the board. Overpayments shall be charged against payments next succeeding the correction. Underpayments shall be made up from the trust fund.

(10)

The board shall sustain no liability whatsoever for the sufficiency of the fund to meet the payments and benefits herein provided for.

(11)

In any application to or proceeding or action in the courts, only the city and the board shall be necessary parties, and no member or other person having an interest in the fund shall be entitled to any notice of service or process. Any judgment entered in such a proceeding or action shall be conclusive upon all persons.

(12)

Any of the foregoing powers and functions reposed in the board may be performed or carried out by the board through duly authorized agents, provided that the board at all times requires of and reviews reports to any such agent; provided further, that legal title to said fund shall always remain in the board of trustees.

(13)

Assets of the fund may be invested in a tax-exempt group trust that has been determined by the Internal Revenue Service to be a pooled fund arrangement pursuant to Revenue Ruling 81-100, as modified by Revenue Rulings 2004-67 and 2011-1, that is operated or maintained exclusively for the commingling and collective investment of monies. In such case, the terms of the group trust shall be adopted as part of this plan.

(Ord. No. 00O-6-33, § 1, 6-26-00; Ord. No. 14O-02-109, § 1, 3-10-14)