§ 11-13. Powers and duties.

(a)

The general administrative duties of each board shall be:

(1)

To maintain such records as are necessary for the financial accounting and reporting of a plan's funds;

(2)

To maintain such records as are necessary for the actuarial valuation of the plan, including investigation into the mortality, service and compensation experience of its members and beneficiaries;

(3)

To compile such other administrative or investment information as is necessary for the management of the plan;

(4)

To process, certify and/or respond to all correspondence, bills and statements received by the plan or board as well as all applications submitted to the board for benefits;

(5)

To establish and maintain communications with city departments and other local, state and federal governmental agencies as is necessary for the management of the plan, including preparing, filing and distributing such reports and information as are required by law to be prepared, filed or distributed on behalf of the plan;

(6)

To establish and perform such other functions as are necessary to manage and operate the plan or as otherwise required by law;

(7)

To make such rules and regulations as are necessary for the effective administration of the plan;

(8)

The secretary of each board shall keep a complete minutes book of the actions, proceedings or hearings of the board;

(9)

Each board shall provide an annual detailed statement to each of its members concerning the plan.

(b)

Each board shall be a legal entity which, in addition to the powers and responsibilities contained herein, has the power to bring and defend lawsuits of every kind, nature and description for the protection of the fund assets and for the protection of each board and the performance of its duties.

(c)

Each board shall be vested with full legal title to the retirement plan trust fund and shall hold the funds as an irrevocable trust to be applied in accordance with the provisions of this article. All payments made to each fund by the city, by the members of the plan, by the state, if applicable, any private donations or gifts and all assets whatsoever of each fund and its income, without distinction between principal and income, shall be held by each board in a single respective fund. The board members shall be the named fiduciaries of the fund and, in that capacity, shall hold, manage, control, and safeguard the fund solely in the interests of members of the plan in the following manner:

(1)

For the exclusive purpose of providing benefits to members and their designated beneficiaries and to defray reasonable expenses of administering the plan;

(2)

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;

(3)

Invest and reinvest plan funds as more particularly described in section 11-15;

(4)

By diversifying the investments of the fund so as to minimize the risk of loss, unless under particular circumstances it is clearly prudent not to do so;

(5)

To administer the plan funds in accordance with the laws, statutes, ordinances, rules and regulations of the board, documents and other instruments governing the fund.

(d)

Each board shall have the authority to retain its own legal counsel, accountants, actuaries, auditors, trustees, financial advisors and other professional consultants to assist the board in the performance of its trust duties. Each board may act without independent investigation upon the professional advice of advisors so retained.

(e)

Each board shall meet at least quarterly each year.

(f)

On or before May fifteenth of each year or a later date as may be authorized by the city manager, which date shall be no later than July first, the board shall certify to the city manager:

(1)

The amount of appropriation necessary to pay the normal costs and unfunded liability contributions to the plan for the next fiscal year;

(2)

The amount of appropriation requested to pay the noninvestment expenses of the plan for the next fiscal year.

(g)

Each year on or before March fifteenth each board, if applicable, shall submit the following information to the state department of management services in order for the plan to receive a share of the state funds for the then current calendar year; when any of these items would be identical with the corresponding item submitted for a previous year, it shall not be necessary to submit duplicate information, but the board should make reference to the item in such previous year's report:

(1)

A certified copy of each and every instrument constituting or evidencing the plan. This includes the formal plan, including all amendments, the trust agreement, copies of all insurance contracts, and formal announcement material;

(2)

An independent audit of each fund by a certified public accountant for the most recent fiscal year showing a detailed listing of assets and a statement of all income and disbursements during the year. Such income and disbursements must be reconciled with the assets at the beginning and end of the year;

(3)

A certified statement listing the investments of the plan and a description of the methods used in valuing the investments;

(4)

A statistical exhibit showing the total number of police officers, firefighters, or general employees, whichever is appropriate, the number included in the plan, and the number of ineligible persons classified according to the reasons for their being ineligible;

(5)

A certified statement describing the methods, factors, and actuarial assumption used in determining the cost of the plan;

(6)

A certified statement by an enrolled actuary showing the results of the latest triennial valuation of the plan and a copy of the detailed worksheets showing the computations used in arriving at the results;

(7)

A statement of the amount the city or other income source has contributed toward the plan for the most recent fiscal year and will contribute toward the plan for the current fiscal year.

(h)

Each board shall provide for an actuarial valuation of the plan at least once every three (3) years commencing from the last actuarial report of the plan. Such valuation shall be prepared by an enrolled actuary. These actuarial studies shall be conducted as more specifically described in section 11-14, and valuation shall be subject to the following:

(1)

The assets of the plan shall be valued at cost or market or on such other basis as may be approved by the division;

(2)

Minimum actuarial assumptions and methods to be used in valuing the liabilities will be provided by the department of management services and revised from time to time by it. The basis and methods used may not be less conservative than those set forth by the department of management services;

(3)

A report of the valuation, including actuarial assumptions and type and basis of funding, shall be made to the division within three (3) months after the date of valuation. If any benefits are insured with a commercial insurance company, the report should include a statement of the relationship of the plan benefits to the insured benefits and, in addition, the name of the insurer, basis of premium rates, mortality table, interest rate, and method used in valuing the benefits.

(i)

Each board shall have the authority to issue drafts upon the plan funds in accordance with the provisions of this article and the rules and regulations of the board. All such drafts shall be numbered consecutively, be signed by the chairman and secretary, and state upon their faces the purpose for which the drafts are drawn. The financial institution acting as the depository of plan fund shall retain such drafts when paid as permanent vouchers for disbursements made and shall provide a copy of same to the board. No monies shall otherwise be drawn from the plan funds.

(j)

Each board may convert any securities of the fund in order to fulfill the duties and responsibilities of the board.

(k)

Each board shall keep in convenient form such data as is necessary for an actuarial valuation of the plan and for checking the actuarial experience of the plan fund.

(l)

The sole and exclusive administration of and responsibility for the proper operations of the plan funds are vested in the board; however, nothing herein shall empower the board to amend the provisions of the plan without the approval of the city commission.

(m)

Neither the board nor any of its members shall be liable for making, retaining, or selling any investment or reinvestment made as herein provided, nor for any loss or diminishment of the fund, except that which is due to negligence, willful misconduct, or lack of good faith.

(n)

Prior to the first meeting of the city commission to consider any transaction which affects the board directly or indirectly concerning the pension fund, the city shall give timely notice to each pension board.

(Ord. No. 124-X-O, § 1(16-5), 9-12-89; Ord. No. 124-X-P, § 1, 12-18-90; Ord. No. 124-X-Y, § 2, 10-11-94; Ord. No. 124-X-99-B, § 1, 4-27-99)