§ 1. Board of Trustees  

Latest version.
  • a) The general administration and responsibility for the proper operation of the retirement system shall be vested in a board of trustees. The board of trustees shall consist of eleven members:

    i. Six members with qualifications specified in subsection (b) shall be appointed by the Mayor with the advice and consent of Council.

    ii. Four members, who may be members of the system, shall be elected by deferred retirees and members, as defined in Sections 203-1-M1 and 203-3, who are not currently receiving a retirement benefit.

    iii. One member, who may be a member of the system, shall be elected by persons who are receiving retirement allowances, optional benefits or survivor benefits from the system.

    b) The Mayor shall appoint a nominating committee to recruit and recommend candidates for appointment to the board. The appointed members of the board shall have the following qualifications:

    i. Baccalaureate degree from an accredited college or university in finance, economics, business or other field of study involving financial management.

    ii. A minimum of ten years experience in pension administration, pension actuarial practice, institutional investment management, employee benefits/investment law, banking, asset/liability management for an insurance company, or university or college professor with a focus on fiduciary or trust fund law or a quantitative background in financial theory or actuarial math. The member shall also possess high levels of expertise and experience with the administration of public and/or private defined benefit plans.

    iii. The appointed member shall not be a current or former City employee; a current or former elected or appointed City official; a participant, retiree, or beneficiary in the retirement system; a representative from any union representing City employees; or an immediate relative or spouse of a City employee or City retiree.

    iv. The appointed member shall not have any business, personal, or family interests related to the City or the retirement system that would constitute a conflict of interest, or that would create the appearance of a conflict of interest, with the duties of a trustee.

    v. Residency shall not be considered as a qualification for a member.

    c) Board members shall serve four-year terms, except that:

    i. when the Mayor makes initial appointments to the board under this Article, the Mayor shall appoint two members to serve four-year terms, two members to serve three-year terms, and two members to serve two-year terms.

    ii. for the initial election of the board members elected pursuant to subsection a (ii) of this section, the two candidates with the highest vote totals shall serve four-year terms and the other two candidates with the next highest vote totals shall serve two-year terms.

    d) Each board member may serve up to three four-year terms, except that persons serving three-year or two-year terms upon the initial appointments to the board may serve the initial term and two subsequent four-year terms.

    e) Each board member shall hold office from the first date of the term until the end of the term for which the member was appointed. Any member appointed to fill a vacancy occurring before the expiration of the term for which the member's predecessor was appointed shall hold office for the remainder of the unexpired term. Any member shall continue in office after the expiration date of the member's term until the member's successor takes office, or until a period of thirty days has elapsed, whichever occurs first.

    i. Appointed members: A vacancy on the board shall be filled in the same manner as the original appointment; however, if the vacancy is not filled within ninety days, the board members may appoint a member to complete the unexpired term.

    ii. Elected members: If the remaining portion of the unexpired term is six months or less, the position will remain vacant until the next regularly-scheduled election. If the remaining portion of the unexpired term is more than six months, the entity whose representative position is vacant shall nominate candidates to fill the unexpired term. The board shall choose a member to fill the vacancy from the nominated candidates in accordance with rules promulgated by the board regarding vacancies of more than six months.

    f) An entity authorized to appoint or elect a member under subsection (a) shall remove its appointee or representative from the board for any act of misconduct involving the trustee's duties, including breach of fiduciary duty and failure to properly discharge the duties of the trustee, to the extent permitted by state law.

    g) The board shall meet regularly and shall convene other meetings at the request of the chairperson or a majority of the members. A member who fails to attend at least three-fifths of the regular and special meetings of the board during any two-year period forfeits membership on the board.

    h) The board shall report to Council quarterly on the following issues:

    i. Success at meeting the investment and funding objectives.

    ii. Investment performance and attribution.

    iii. Compliance with conflict of interest and ethics policies.

    iv. Compliance with benefit delivery policies.

    v. Results of external and internal audit findings and follow-up efforts.

    vi. Board member attendance, travel, and educational efforts.

    i) The board shall vote to disqualify any candidate from seeking election to the board or any member from remaining as a board trustee for any of the following reasons:

    i. Finding of dishonesty in any civil proceeding or disciplinary decision.

    ii. Conviction of a felony for an act committed while the candidate or member was an adult.

    iii. Failure to comply with election requirements established by the board.

(Amended by Ord. No. 31-1957, eff. Mar. 1, 1957; a. Ord. No. 406-1957, eff. Oct. 23, 1957; a. Ord. No. 472-1957, eff. Dec. 11, 1957; a. Ord. No. 360-1967, eff. Oct. 13, 1967; a. Ord. No. 114-1976, eff. Mar. 24, 1976; a. Ord. No. 415-1976, eff. Sept. 9, 1976; a. Ord. No. 299-1979, eff. Aug. 4, 1979; a. Ord. No. 398-1988, eff. Nov. 4, 1988; a. Ord. No. 481-1991, eff. Dec. 27, 1991; Emer. Ord. No. 0366-2007, § 1, eff. Oct. 10, 2007; Emer. Ord. No. 311-2010, § 1, eff. Aug. 4, 2010; Emer. Ord. No. 0035-2010, § 1, eff. Sept. 9, 2010)