Chairpersons; Officers; Check Writing; Administrative Services; Other Agents and Counsel.
Ann Arbor City Code § 1:623
in effect1:623. - Chairpersons; Officers; Check Writing; Administrative Services; Other Agents and Counsel.
(1) Chairpersons and Secretary. At its meeting in February of each year, the Board shall elect from its membership a chairperson, vice chairperson and secretary.
(2) Finance Officer. The Board shall appoint a finance officer who shall administer the Trust Fund's investment portfolio consistent with Board direction. Such finance officer may, at the Board's discretion, be the City's chief financial officer, who would then perform the same duties with respect to the Trust Fund that he/she is required by the Ann Arbor City Charter to perform respecting the general funds and accounts of the City.
(3) Custodian. The City Treasurer shall be the Treasurer of the Retirement System. The City Treasurer shall be the Custodian of the assets of the Retirement System unless the Board designates a corporate custodian. To be eligible for designation, a corporate custodian shall be a custodian bank which is a member of the federal reserve system or a clearing corporation or such other custodial service provider as permitted by the provisions of P.A. 1965, No. 314, as amended, being Section 38.1132 et seq. of MCLA. [38.1140f]
The Custodian shall accept and receive all sums of money deposited with it from time to time pursuant to the terms of this Retirement Ordinance, and shall hold and administer those monies and the increment earnings and income thereon in the Trust Fund for the exclusive benefit of Members and their Beneficiaries.
All payments from funds of the Retirement System under the custody of the City Treasurer (or a corporate Custodian, as the case may be) shall be authorized in advance by a specific or continuing resolution of the Board of Trustees. At least 2 signatures authorized by resolution of the Board shall be required for any disbursements made by checks, vouchers, direct deposit or electronic funds transfer. A duly attested copy of each resolution designating such individuals and bearing upon its face specimen signatures of those individuals shall be filed with the Treasurer and the Board's designated custodial service provider.
No Retirement System disbursements shall be permitted unless it shall have been previously authorized by the Board. A duly attested copy of each resolution authorizing payment from funds of the Retirement System under the custody of a corporate custodian shall be filed with the Treasurer. As the Treasurer of the Retirement System, the City Treasurer shall have unrestricted access to the records of all Retirement System financial activity, expenditures and revenues.
(4) Legal. The Board shall appoint a Legal Advisor.
(5) Services. The Board shall have the authority to employ an Executive Director for the Retirement System upon such terms and conditions as determined by the Board. The Executive Director shall serve in a ministerial and non-fiduciary capacity. The individual in this position shall have no discretionary authority regarding a claim for benefits under the Retirement System and no discretionary authority or control over Retirement System assets. Subject to the foregoing, the Board, by resolution, may delegate to the Executive Director responsibility for ministerial and non-fiduciary administration of the Retirement System. No delegation under this provision shall be construed as a delegation of the Board's fiduciary responsibility to the Retirement System, its Members, Retirants or Beneficiaries. The Board may employ an Executive Director pursuant to subsection (6)(a), (b), (c) or (d).
(6) The Board may employ, retain, or utilize such professional, clerical and other services as are necessary for the proper operation of the Retirement System in any of the following manner:
(a) Subject to the provisions of Section 5.18 of the Ann Arbor City Charter, City employees, upon the request of the Board, may be assigned to the Retirement System for the proper operation of the Retirement System. Said employees shall be subject to the supervision of the Board. The Board shall have the authority to establish job descriptions and promulgate rules and regulations appropriate for the Retirement System in addition to those adopted by City Council under Sections 5.18(b) and 5.18(d) of the Ann Arbor City Charter for City employees supervised by the Board. The supervision of City employees by the Board shall not serve to impair the authority and responsibility of the City Administrator under the Ann Arbor City Charter for personnel services. The Board shall annually reimburse the City for the actual costs of these employees as determined by a method jointly agreed upon by the Board and the City.
(b) The Board may employ individuals as it deems reasonably necessary for the proper operation of the Retirement System as employees of the Retirement System. An individual hired under this subsection shall not be considered an employee of the City for any purposes. Employees of the Retirement System shall be subject to the supervision, rules and regulations of the Board. It shall be the sole responsibility of the Board to comply with all federal, state and local law and regulations. The Board may enter into an agreement with the City to provide reasonable benefit(s) to Board employees which are comparable to the benefit(s) and provided by the City to its non-union employees. In that event, the Board shall reimburse the City for said costs, if any. The City shall be under no obligation to enter into, maintain or in any manner modify, amend or otherwise alter its contract with City benefit service provider(s) to allow coverage of the Board's employees in the event of a request by the Board for the provision of benefit(s) to the Board's employees under the City's benefit plan(s).
(c) The Board may utilize City staff for such functions as personnel administration, accounting, banking, payroll services and purchasing and the Board shall comply with all established City control procedures and policies related to these services. The Board shall reimburse the City for the actual costs of these services as determined by a method jointly agreed upon by the Board and the City.
(d) The Board may contract with professional, clerical or other service providers as it deems necessary for the proper operation of the Retirement System. These Service providers may include, but shall not be limited to, investment advisors and consultants, custodial banks which are Members of the Federal Reserve System, actuaries, auditors and legal counsel. A Service provider under this subsection shall be an independent contractor and not an employee of the Retirement System or the City for any purposes. The Board shall have the authority to enter into contracts, or retainer agreements, and to pay reasonable compensation and expenses for Services rendered with the current or accumulated income of the Retirement System.
(e) No person or entity employed pursuant to this section 1:623(6)(a), (b), (c) and (d) who is not otherwise a fiduciary as defined under Public Act 314 (such as an investment advisor, for example, and not by way of limitation), shall serve as a fiduciary of the Retirement System nor shall the Board delegate any of its fiduciary duties to such person or entity.
(7) The Board shall have the authority to lease or purchase such real or personal property, facilities, equipment and supplies as it deems necessary for the proper operation of the Retirement System. The Board shall obtain insurance it deems necessary to protect the property, assets, Trustees and staff of the Retirement System. To the extent that the Board may list the City as an additional insured party, the Board, upon written notification from the City, shall list the City as an additional insured party provided; however, the City shall pay for any additional costs required for the City to be listed as such.
(Ord. No. 16-28, § 1, 1-3-17)
Source: City of Ann Arbor, Michigan, Code (Municode Library, library.municode.com)URL: https://library.municode.com/mi/ann_arbor/codes/code_of_ordinances?nodeId=TITIAD_CH18EMRESY_1_623CHOFCHWRADSEOTAGCOFetched: 11/8/2026