§ 18-91. Investments.

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

(1)

The fund may be invested and reinvested in such securities or property, real or personal, wherever situated and of whatsoever kind, as shall be approved by the board of trustees, including but not limited to stocks, common or preferred, bonds, obligations of the city, and other evidences of indebtedness or ownership. At no time shall the investment in common stocks exceed seventy (70) percent of the market value of the total assets in the fund.

(2)

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 cash requirements of the system.

(3)

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.

(4)

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.

(5)

The board of trustees 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 or substitution; to participate in mergers, reorganizations, recapitulations, consolidations, and similar transactions with respect to such securities; to deposit such stock or other securities in any voting trust of any protective or like committee or with the trustees or with depositaries designated thereby; 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.

(6)

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.

(7)

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

(8)

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 fund.

(9)

In any application to or proceeding or action in the courts, only the city and the board shall be necessary parties. Any judgment entered in such a proceeding or action shall be conclusive upon all persons.

(10)

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 of any such agent.

(Code 1964, § 9A-27(d); Ord. No. 1840, § 1, 5-20-92; Ord. No. 2107, § 1, 9-18-96; Ord. No. 2304, § 3, 8-27-2003)