Investment of funds - Conditions and restrictions.
San José Municipal Code § 3.24.350
in effect3.24.350 - Investment of funds - Conditions and restrictions.
The board shall invest and reinvest the moneys in the retirement fund in accordance with the following standards:
A. The assets of the retirement plan are trust funds and shall be held for the exclusive purposes of providing benefits to members of the plan and their beneficiaries and defraying reasonable expenses of administering the system.
B. The board shall discharge its duties with respect to the system solely in the interest of, and for the exclusive purposes of providing benefits to, members of the system and their beneficiaries, minimizing city and member contributions to the retirement fund, and defraying reasonable expenses of administering the system. The board's duty to the members and their beneficiaries shall take precedence over any other duty.
C. The board shall discharge its duties with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with these matters would use in the conduct of an enterprise of like character and with like aims.
D. The board shall diversify the investments of the system so as to minimize the risk of loss and to maximize the rate of return, unless under the circumstances it is clearly prudent not to do so.
(Prior code § 2904.58; Ords. 19988, 21144, 21606, 22509, 23559, 25092.)
Source: City of San José, Municipal Code (Municode Library, library.municode.com)URL: https://library.municode.com/ca/san_jose/codes/code_of_ordinances?nodeId=TIT3PE_IIREPL_CH3.24RESYSUJU11951_PT4REFU_3.24.350INFUONREFetched: 11/1/2026