§ 2.64.180 — Investments

2.64.180 - Investments.

All moneys, securities and other property of the fund shall be kept separate from other funds of the city. All moneys necessary for payment of monthly pension benefits and expenses of administering the fund shall be deposited with the bank depository. The board of trustees may use another third party custodian for purposes of maintaining pension assets. The board of trustees may invest all or any part of the fund which is in excess of normal requirements for pensions, benefits, expenses and repayment of contributions. In making investments the board shall discharge its duties solely in the interest of the fund's participants and beneficiaries and shall exercise its judgment in accordance with the "prudent person" standard of fiduciary responsibilities set forth in Section 802.203 of Title 8 of the Texas Government Code, adhere to the provisions of the "prudent investor rule" of Chapter 117 of the Texas Trust Code, and shall otherwise comply with all applicable state and federal laws. All investments shall be made in the name of the board of trustees of the fund, or an equivalent designation showing that the investment belongs to the fund. Provided, however, in the event that the statutory provisions or standards set forth above cease to exist under state law, the board shall continue to invest and manage plan assets in accordance with the "prudent person" standard of fiduciary responsibilities by considering the purposes, terms, distribution requirements and other circumstances of the plan. In satisfying this standard, the board shall exercise reasonable care, skill and caution. Investments shall be diversified so as to minimize the risk of large losses, unless in light of such circumstances, it is clearly prudent not to do so. The board shall manage the plan assets at all times for the exclusive purpose of providing benefits to plan participants, retirees, and beneficiaries, and to defray reasonable expenses of administering the plan. The board shall avoid managing the assets in any way that might reflect, or appear to reflect, a conflict of interest between the plan and any past or present member of the board, members of the city council or city employees, or any employee or agent of the board. In addition, the board shall continue to adhere to the "prudent investor rule" standard by evaluating individual assets not in isolation but in the context of the plan's portfolio as a whole and as a part of an overall investment strategy having risk and return objectives reasonably suited to the plan, and comply with all applicable state and federal laws.

(Ord. 16619 § 6, 2007; Ord. 12953, 1996: Ord. 12727, 1996; Ord. 10897 (part), 1992; prior code § 17-5) (Ord. No. 17637, § 4, 8-30-2011)