Part 5 — COMPOSITION, POWERS AND DUTIES OF THE TRUSTEES

A.

The board of administration for the federated city employees retirement system shall serve as the trustees of this trust. The appointment and term of trustees shall be made pursuant to Part 10 of Chapter 2.08.

B.

By acceptance of their continued appointment to the board of administration of the federated city employees retirement plan, the trustees have agreed to accept this trust and to perform the duties of the trustees prescribed hereunder.

(Ord. 28914.)

In administering the trust, the trustees shall have such power and authority, including discretion with respect to the exercise of that power and authority, as may be necessary, advisable, desirable, or

convenient to the trustees, in its sole discretion as a fiduciary subject to the provisions of this chapter, and consistent with Part 10 of Chapter 2.08, plus all powers and duties given to them by the provisions of Chapter 3.28, including the power and authority:

A.

To enforce rules and regulations with respect to the trust not inconsistent with the trust, GASB 43 or GASB 45, IRC Section 115 or applicable law;

B.

To determine, consistent with the applicable laws, rules or regulations, all questions of law or fact that may arise as to any person or entity claiming rights under the trust;

C.

Subject to and consistent with GASB 43 and GASB 45, IRC Section 115 and applicable law, to construe and interpret the trust and to correct any defect, supply any omission, or reconcile any inconsistency in the trust;

D.

To adopt and amend investment policies, guidelines, restrictions, and requirements;

E.

To utilize trust assets for the provision of health and welfare benefits in accordance with this chapter, for retirees and dependents who are eligible for a benefit as determined under Parts 16 and 17 of Chapter 3.28 and any other health and welfare benefits as approved by the city council and the payment of reasonable expenses of the plan and the trust;

F.

To implement termination of trusteeship and transfer of assets to successor trustees as permitted by law;

G.

To employ and contract with actuaries, auditors, accountants, investment advisers, investment brokers, other consultants, medical personnel, and other agents and employees;

H.

To collect and disburse all investment proceeds under the trust;

I.

To provide for and promulgate all the regulations and forms that are deemed as necessary or desirable in fulfilling its purposes of assisting in funding health and welfare benefits and in maintaining proper records and accountings consistent with GASB 43 and GASB 45 and Internal Revenue Service requirements;

J.

To bring and defend actions, sue and be sued, and plead and be impleaded;

K.

To expend funds for the reasonable expenses of the trustees while engaged in the performance of their duties, including entering into agreements and expending funds for investment related services selected by the trustees;

L.

To employ insurance companies, banks, trust companies, and/or investment brokers as agents for the keeping of records and the receipt and disbursement of funds held by or due to the trustees;

M.

To exercise generally any of the powers of an owner with respect to all or any part of the trust fund;

N.

To administer or require oaths and affirmations, to issue subpoenas to compel the attendance of witnesses or the production of books, papers and documents, and to take and hear testimony concerning any matter pending before the trustees. If any person so subpoenaed neglects or refuses to appear or produce any book, paper or document as required by said subpoena, or shall refuse to testify before the trustees or answer any questions which a majority of the trustees decides to be proper and pertinent, the trustees shall have the power to initiate proceedings in the proper court to have such person declared guilty of contempt. The chief of police shall, on request of the trustee, have such subpoenas served by a police officer or officers; and

O.

To take all actions consistent with this chapter necessary or appropriate to administer or carry out the purposes of the trust; provided, however, the trustees need not take any action unless in its opinion there are sufficient trust assets available for the expense thereof.

(Ord. 28914.)

In addition to the powers stated in Section 3.52.410, the trustees may from time to time delegate to an investment manager, custodian or committee formed by the trustees certain of its fiduciary responsibilities under the trust. Any such investment manager, custodian of or committee shall remain a fiduciary until such delegation is revoked by the trustees, which revocation may be without cause and without advance notice. Such individual, committee, or organization shall have such power and authority with respect to such delegated fiduciary responsibilities as the trustees have under the trust.

(Ord. 28914.)

The trustees' responsibilities and liabilities shall be subject to the following limitations:

A.

The trustees shall have no duties other than those expressly set forth in this chapter and those imposed on the trustees by applicable laws.

B.

The trustees shall be responsible only for money and property actually received by the trust, and then to the extent described in this chapter.

C.

The trustees shall have no responsibility or duty to define the specific design of the health and welfare benefits, including but not limited to, selecting providers; nor shall the trustees be responsible for establishing the health and welfare benefits, or for setting the amount of premium subsidy to be paid by the trust.

D.

The trustees shall not be responsible for any particular federal, state or local income, payroll or other tax consequence to the city or a retiree, spouse, or dependent, and shall not be responsible for any tax- reporting obligation relating to payments or disbursements to such persons.

E.

The trustees shall not be responsible for the correctness of any determination of payments to, or disbursements from, the trust fund.

F.

No trustee shall have any liability for the acts or omissions of any predecessor or successor in office.

G.

The trustees shall have no liability for: (i) the acts or omissions of any investment manager; (ii) the acts or omissions of any insurance company; (iii) the acts or omissions of any investment fund; (iv) the acts or omissions of any custodian; or (vi) the acts or omissions of any contractor, vendor, actuary or other service provider.

(Ord. 28914.)

The trustees may rely upon a certification of the administrator with respect to any instruction, direction, or approval of such administrator and may continue to rely upon such certification until a subsequent certification is filed with the trustees. The trustees shall have no duty to make any investigation or inquiry as to any statement contained in any such writing but may accept the same as fully authorized.

(Ord. 28914.)

The trustees shall be protected further in relying upon a written certification that purports to be from any custodian, investment manager, insurance company, or mutual fund as to the person or persons authorized to give instructions or directions on behalf of such custodian, investment manager, insurance company or mutual fund and continue to rely upon such certification until a subsequent written certification is filed with the trustees.

(Ord. 28914.)