Sec. 102-148. Trust.
(a) Establishment and purpose. Under this article, the city establishes with the board a trust which shall consist of all property of the plan, together with all interest, income and profits which accrue on such property, all of which shall be held, managed and administered in trust pursuant to this article. The plan assets held in trust shall constitute the "trust fund," as defined in section 102-137. The board accepts the trust created under this section and agrees to perform the duties, responsibilities and obligations required of it by this chapter. The sole purpose of the trust fund is to provide benefits for participants and their beneficiaries and to defray reasonable expenses of administering and operating the plan and trust. No part of the trust fund shall be used for or be diverted to another purpose by operation of the trust, by its natural termination, by the exercise of any power of revocation or amendment, by the happening of any contingency, by collateral arrangement or by any other means, except upon termination of the plan and satisfaction of trust expenses and all liabilities to participants and their beneficiaries.
(b) Control of trust fund. The board shall have the power to control the trust fund and to do all such acts, to take all such proceedings, and to exercise all such rights and privileges, although not specifically mentioned in this article, as the board may deem necessary or advisable to administer the trust fund or to carry out the purposes of the trust.
(c) Management of trust fund. The management, including the acquisition and disposition of property comprising the trust fund, shall be as follows:
(1) Board. The board shall have exclusive responsibility, discretion and authority with respect to management of the trust fund, consistent with the plan, except as to those portions of the trust fund for which the board has appointed an investment manager according to section 102-147. The board's authority to manage the trust fund absent appointment of an investment manager according to section 102-147 shall not impose upon the board any duty to exercise such authority instead of appointing an investment manager for all or any portion of the trust fund.
(2) Investment manager. An investment manager shall have the authority, by written direction of the board, to direct the investment of that portion of the trust fund with respect to which it has been appointed an investment manager pursuant to section 102-147, in a manner consistent with the trust, the plan and applicable law.
(3) Investment in city property. No part of the trust fund may be invested in the bonds, notes, other obligations, or any other property, real or personal, of the City.
(d) Amendment of trust. The city shall have the right at any time and from time to time to amend the trust provisions of this article:
(1) In such manner as it may deem necessary or advisable in order to cause the trust and the plan to qualify or continue to qualify under the provisions of Internal Revenue Code section 401(a) and be exempt from taxation under the terms of Internal Revenue Code section 501(a), and any such amendment may by its terms be retroactive to the extent permitted by applicable law; and
(2) In any other manner; however, no such amendment shall authorize or permit any part of the trust fund to be used for or diverted to purposes other than to provide benefits for participants and their beneficiaries and to defray reasonable expenses of administering and operating the plan and trust, and no such amendment may cause or permit any portion of the trust fund to revert to or become the property of the City, except as permitted by section 102-152(d).
(e) Termination. The city shall have the right at any time to terminate the trust fund by delivering to the board written notice of such termination. Upon receipt of such notice, the board shall appraise the value of the trust fund, and the board shall allocate and distribute the trust fund in accordance with section 102-152. Upon making such final distribution, the board shall be discharged from all obligations under the trust.
(f) Individual's rights; acquittance. Neither the establishment of the trust fund created nor any modification thereof nor the creation of any fund or account nor the payment of any benefits shall be construed as giving to any person any legal or equitable right against the City or any officer or employee thereof, any investment manager, or the board except as provided by section 102-150. Under no circumstances shall the trust modify or affect the terms of employment of any participant.
(g) Exercise of authority by city. Whenever the City, under the terms of this trust, is permitted or required to do or perform any act or matter or thing, it shall be done and performed by its city council or by any officer or agent duly authorized by its city council. (Code 1979, § 15-54)