Sec. 102-145. Administration and retirement board.
(a) Created. There is created the board of trustees of the employees' retirement system which shall have the responsibilities, duties and authorities as set forth in this section and this article.
(b) Membership. The board shall consist of the following trustees:
(1) Three participants who are employees of the City, elected by employees of city who are participants of the plan. The general employees' retirement plan administrative staff shall be eligible to vote but shall not be eligible to be elected.
(2) Three qualified electors of the City, appointed to the board by the city council, who have resided at least one year in the City. Such appointees shall not be employees or officials of the City, appointed or elected, or persons who are receiving benefits under the plan.
(3) One member who is a resident of the city and has been such for at least one year, to be selected by the members elected or appointed under subsections (b)(1) and (2) of this section.
In addition, the following persons or their designees shall be nonvoting members of the board, automatically entitled to membership on the board by virtue of their office and employment with the City: the city manager, the director of human resources, and the director of finance.
All members of the board shall serve without compensation for their service on the board, except each member shall be paid any necessary expenses incurred in performing duties as authorized by the board.
(c) Plan administrator. A plan administrator shall be appointed by the board. The plan administrator shall serve at the pleasure of the board and shall perform such duties as the board shall, from time to time, assign to the plan administrator. The board shall allocate funds from the plan for the plan administrator's salary and for any support staff and other administrative expenses approved by the board. As the chief staff officer for the board, the plan administrator shall be the secretary of the retirement board and shall keep the record of its proceedings.
(d) Election and term of voting members. The plan administrator shall conduct an election during October of each year for the selection of voting members of the board who are participants in the plan and elected under subsection (b)(1) of this section. Such members shall be elected by employees of the city who are participants in the plan for a three-year term commencing on January 1 following such election. Every employee who wishes to be a candidate for the board shall file a written announcement of candidacy with the plan administrator not less than 30 days prior to the announced election date. Any employee member of the board shall cease to be a board member immediately upon termination of employment with the City. Whenever a vacancy occurs on the board of an elected employee member of the board, the board shall select a participant who is an employee of the City to fill the unexpired term of that member. The appointment shall be made within 60 days from the date of the vacancy.
(e) Terms of members appointed by city council. The term of office of any appointee of the city council shall be for a period of three years commencing on January 1 following appointment. If a city council appointee vacancy occurs on the board, the city council shall select a new member to fill the unexpired term of that member.
(f) Terms of members selected by board. The term of office of any member of the board selected by the board shall be for a period of three years commencing on January 1 following selection. If a vacancy occurs on the board among such selected members, the remaining board members shall select a new member to fill the unexpired term of the member for which the vacancy occurred. The selection shall be made within 60 days from the date of vacancy.
(g) Administrative duties and powers. The members of the board shall select from their members a chairperson and a vice-chairperson, and shall adopt rules to govern the conduct of business of the board, provided that such board shall meet not less than once each calendar month and provided, further, that the chairperson shall call a meeting of the board whenever requested to do so in writing by three members of the board who are eligible to vote. The board shall prepare a financial report in writing at least once a year and submit the report to the city council and to each participant of the plan, which report shall show the total amounts of money received, the total amounts of money disbursed, an investment report, the financial condition of the plan and any recommendations for improvements in the plan. Such report shall be made by July 31 of each year. Other powers and duties shall be as follows:
(1) The board shall provide for an independent audit of all funds of the plan to be made not less than once annually by a certified public accountant.
(2) The board shall establish rules governing the removal of members of the board. Whenever removal of any appointee member of the board is recommended by the board for violation of such rules and regulations, the recommendation shall be reported immediately to the city council, in order that the council may take appropriate action.
(3) The board shall provide for an actuarial review of the plan to be made not less than once annually by an actuary.
(4) The city attorney shall be the legal consultant for the board. The board may retain outside legal counsel who shall serve under the direction of the board.
(5) The board shall have such powers as may be necessary to discharge its duties under this article, including but not by way of limitation the following powers and duties:
a. Construe and interpret the plan, decide all questions of eligibility and determine the amount, manner and time of payment of any benefits under this article.
b. Prescribe procedures to be followed by distributees in obtaining benefits.
c. Make a determination as to the right of any person to a benefit and afford any person dissatisfied with such determination the right to a hearing thereon with reasonable notice thereof.
d. Receive from the city and from participants such information as shall be necessary for the proper administration of the plan.
e. If the plan is terminated, report in a timely manner to all necessary parties all available information regarding benefits and amounts to be distributed to each participant and beneficiary.
f. The board shall set all actuarial assumptions and methods, including the assumptions and methods used for the terms "actuarial accrued liability," "actuarial value of assets," "annual required contribution," "fair value of assets," "normal cost" and "funded ratio."
The board shall have no power to add to, subtract from or modify any of the terms of the plan, unless amended pursuant to section 102-151, nor to change or add to any benefits provided by the plan nor to waive or fail to apply any requirements of eligibility for a pension under the plan.
(h) Authority. The employees' retirement system board shall be vested with jurisdiction to determine eligibility for membership in the plan and for benefits under the plan, as well as general administration, management and responsibility for the proper operation of the pension plan, the supervising of investment of funds held in the trust fund subject to any limitations contained in this article, and the board shall have authority to contract with any person authorized to do business in the state for these purposes.
(i) Duties and powers as trustee.
(1) Duties. In addition to any duty or responsibility otherwise imposed on the board by law or this chapter, the board shall:
a. Perform all of its trustee functions with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims.
b. Hold and administer the trust fund in trust, provided the board may appoint a custodian to hold the trust fund on behalf of the board.
c. Cooperate with and furnish the necessary information for such performance measuring services as the board may retain, from time to time, to monitor the investment activities of the trust fund.
d. Maintain, with the assistance of the custodian, accurate and detailed accounts of all investments, receipts, disbursements and all other transactions affecting all or any portion of the trust fund.
e. Pay from the trust fund all taxes of any and all kinds whatsoever that may be levied or assessed under existing or future laws upon or in respect of the trust fund or its income except that the trust shall not pay the tax on a prohibited transaction.
f. Take no action which would adversely affect the tax-exempt status of the trust. The board may demand assurances satisfactory to it that any action which it is directed to take will not adversely affect the tax-exempt status.
g. Conduct periodic reviews of the funding policy and notify the investment manager of any anticipated significant changes in the number or composition of participants or any other matter which would have a significant impact on expected cash flow.
The board shall have no duty to inquire into the accuracy or sufficiency of any contribution to the trust fund, or its source.
(2) Powers. The board shall have the power and authority in the control of the trust fund, all consistent with direction by an investment manager according to subsection 102-148(c)(2), to:
a. Purchase or subscribe for and retain any securities or other property, and sell, exchange, convey, transfer or otherwise dispose of any securities or other property held by it by private contract or at public auction. No person dealing with the board shall be bound to see to the application of the purchase money or to inquire into the validity, expedience or propriety of any such sale or other disposition.
b. Cause any securities or other property to be registered in its own name or in the name of its nominee without designating such as trust property, and hold any investments in bearer form, but the books and records of the board shall at all times show that all such investments are part of the trust fund. Any such registration or holding by the board shall not relieve it from its responsibility for the safe custody and disposition of the trust fund in accordance with the terms and provisions of this trust agreement.
c. Hold cash, uninvested, for such length of time as the board may deem prudent and in the best interests of the trust created hereby without liability for interest thereon.
d. Make, execute, acknowledge and deliver any and all documents of transfer and conveyance, including but not limited to deeds, leases, mortgages, conveyances, contracts, waivers and releases, and any and all other instruments that may be necessary or appropriate to carry out the powers granted in this section.
e. Employ suitable agents and counsel and pay their reasonable expenses and compensation.
f. Act at any time and in any jurisdiction without bond or other security to ensure the faithful performance of its duties.
g. Continue to have and to exercise, after the termination of the plan and until final distribution, all of the title, powers, discretions, rights and duties conferred or imposed upon the board under this section or by law.
h. Commence or defend suits or legal or administrative proceedings and settle, compromise or submit to arbitration any claims, debts or damages due or owing to or from the trust fund; provided, however, the board shall not be required to institute suit or maintain any litigation to collect the proceeds of any insurance or other contract forming a part of the trust fund unless the trust fund holds sufficient funds for this purpose or unless the board has been indemnified to its satisfaction for its counsel fees, costs, disbursements and all other expenses and liabilities to which it may be subjected by such suit; provided, further, that the board may utilize the proceeds of any contract to meet expenses incurred in enforcing payment of such contract.
(j) Authorization of pension payments. The board shall issue directions to the custodian of the trust concerning all benefits which are to be paid from the trust pursuant to the provisions of the plan. Wherever and whenever it is provided in this article for payments or distributions to be made, whether in money or otherwise, the payments or distributions shall be made to the participant or beneficiary, as the case may be, except as otherwise provided below in this section. Deposit to the account of a participant or beneficiary in any bank or trust company selected by the participant or beneficiary under this article shall be deemed payment into the participant or beneficiary's hands.
If prior claim for any amount owing to a participant or beneficiary is made by a duly qualified guardian or legal representative, the board shall direct the custodian to pay the amount to which the participant or beneficiary is entitled to such guardian or legal representative. Any payments so made shall be a complete discharge of all liabilities under the plan with respect to such payments and the board shall not be obliged to see to the proper application or expenditure of any payment so made.
(k) Payment of expenses. All expenses incident to the administration, termination or protection of the plan and trust, including but not limited to reasonable expenses of the board, actuarial, legal, accounting, custodian, investment manager and consultant fees and reasonable premiums for bonds and fiduciary liability insurance shall be paid by the custodian from the trust and, until paid, shall constitute a first and prior claim and lien against such fund.
(l) Indemnification. The board and the individual members thereof or any employee of the board performing duties therefor shall be indemnified by the city against any and all liabilities arising by reason of any act or failure to act made in good faith pursuant to the provisions of the plan, including expenses reasonably incurred in the defense of any claim relating thereto.
(m) Unclaimed benefits. During the time when a benefit under this article is payable to any participant or beneficiary, the board, shall mail by registered or certified mail to such person at the last known address a written demand for the current address or for satisfactory evidence of the person's continued life or both. If such information is not furnished to the board within three months from the mailing of such demand, the board may, in its sole discretion, declare such benefit or any unpaid portion thereof suspended. Failure to furnish such information shall not result in the forfeiture of any nonforfeitable benefits, and any such declaration by the board shall later be revoked upon a receipt of the requested information by the board. If payment of benefits to a participant or beneficiary is suspended after the participant's normal retirement date due to failure of the participant or beneficiary to furnish such information or to claim a benefit, the amount of the participant's or beneficiary's benefit payments suspended after the participant's normal retirement date shall be paid as an actuarially equivalent increase to any benefit payments later made to the participant or beneficiary.
(n) Errors. Should an error in the records result in an incorrect benefit being paid, the board shall correct the record and insofar as practicable see that the correct benefit is paid. The board is authorized to recover from ineligible benefit recipients or persons who received moneys on behalf of ineligible benefit recipients, through legal process or benefit offset, any benefits paid to them to which they are not entitled, and to assess interest on such moneys.
(o) Construction. The plan shall be construed according to the laws of the state and the City, where it is made and where it shall be enforced. The plan and trust shall each form a part of the other by reference and terms shall be used therein interchangeably.
(p) Confidentiality. Records of members, former members, inactive members, and benefit recipients and their dependents which specifically identify financial information of such persons shall be kept confidential. (Code 1979, §§ 8-157, 8-158; Ord. No. 2011-29, § 8, 9-12-2011; Ord. No. 2003-63, § 3, 9-29-2003; Ord. No. 2001-81, § 5, 1-7-2002; Ord. No. 95-53, exhibit A (§ 15-51), 9-11-1995)
Editor's note: Ord. No. 2003-63, § 1, adopted Sept. 29, 2003 states "Effective June 30, 2003, the term "employee" shall include the administrative staff of the general employees' retirement plan."