§ 3.85.020. Administration of the retirement system.

A.

The sole and exclusive administration of, and the responsibility for, the proper and effective operation of the retirement system is vested in a board of trustees. The board shall administer the system as set forth in this chapter and shall be the final authority in all matters pertaining to the application, interpretation and administration of the provisions of this chapter.

B.

The board of trustees shall consist of nine persons who shall serve three year terms. Three shall be municipal representatives; three shall be police representatives and three shall be fire representatives. The municipal representatives shall serve at the pleasure of the mayor. Election of member trustees shall be by popular vote of the active and retired members, excluding survivors and alternate payees. The names of the persons elected shall be submitted to the mayor for appointment consistent with the terms of the Municipal Charter. There shall be no limitation to the number of terms to which a representative may serve. A trustee shall continue to serve until a replacement is seated, except in the case of a trustee removed in accordance with subsection C. of this section. In the event of a vacancy among the member trustees, a replacement trustee shall be elected and appointed in the manner set forth above, and shall serve the unexpired term of the member replaced.

C.

The board may remove a trustee for good cause by a vote of three-fourths of the trustees who are not the subject of the removal proceeding. For the purposes of this section, good cause shall mean fraudulent or dishonest acts, gross neglect of duty, or gross abuse of authority. In order to remove a trustee, a written statement must be filed with the board by a co-trustee setting forth with specificity the grounds for removal. The accused trustee may respond in writing within 30 days of receipt of the notice calling for his or her removal. Within 30 days after the receipt of any response or the expiration of the response period, whichever shall occur first, the board shall conduct an evidentiary hearing to determine the existence of the grounds for removal. The trustee or trustees making the charge shall be responsible for presenting the evidence or argument in favor of removal. The burden of proof shall be on the accusing party. The accused trustee shall be permitted to present evidence in defense of his or her actions and may be represented at the meeting by counsel, provided the cost of counsel shall be borne by the accused trustee. In the event the trustee is exonerated, the trustee shall be reimbursed for the reasonable cost of the defense. Following the presentation of all evidence and argument, the trustees who are not the subject of the removal proceeding shall vote to sustain or deny the charges. The decision of the board is final and binding on all parties.

D.

Five members of the board shall constitute a quorum for the transaction of business and shall have full power to act under the terms of the plan. Five concurring votes shall be required for the board to take action, except in the case of a significant financial impact decision, in which case, seven concurring votes shall be required. A significant financial impact decision shall occur in any of the following circumstances:

1.

Change of actuarial assumptions;

2.

Adoption of the actuarial valuation;

3.

Appointment or termination of the actuary;

4.

Change in the investment policy/asset allocation of the system;

5.

Settlement of litigation affecting the actuarial soundness of the system;

6.

Appointment or termination of the pension legal counsel;

7.

Appointment or termination of any investment advisors;

8.

The recommendation to the assembly of benefit enhancements exceeding the reserve parameters of this chapter;

9.

Forgiveness of benefit overpayment amounts in excess of $5,000.00 in the case of an individual error or $15,000.00, in the aggregate, in the case of common errors involving more than person;

10.

Any other decision which the board by seven concurring votes deems to be a significant financial decision. Any such determination under this provision shall mean that a particular policy shall become incorporated into this section until such time as the board, by seven concurring votes decides to repeal the policy or decides that it is no longer a significant financial decision.

E.

Within a two-year period following the enactment of this chapter, the board shall have the authority to hire a third party mediator/facilitator to resolve any disputes regarding the intent of sub-paragraph (D)(10) of this section.

F.

All trustees shall serve without compensation, but they shall be reimbursed from the system for all necessary expenses authorized by the board. Trustees appointed from among the membership shall be eligible to receive reimbursement for reasonable expenses, including but not limited to mileage, not to exceed $100.00 per meeting. For those trustees actively employed by the municipality as a police officer or firefighter, reimbursement shall apply only for meetings which occur outside of the trustee's normal working hours for the municipality. Employee members may attend meetings on duty with no loss of pay or benefits. Meetings not on duty shall not be considered as time worked. The board shall, by uniform rule, establish a policy for reimbursement for travel and other expenditures incurred by trustees in the course of their duties.

G.

The board shall have the authority to make and amend such uniform rules and regulations and adopt and amend such uniform policies and procedures, consistent with the provisions of this chapter, and to take such action as they deem necessary to carry out the provisions of the system. All decisions of the board of trustees made in good faith shall be final, binding and conclusive on all parties, consistent with the provisions of this chapter.

H.

In the event that a trustee is contacted by an attorney, not employed by the board in connection with a board-related matter, who is acting as an advocate on behalf of another for benefits or in litigation related to the system, the trustee shall promptly report the communication to the director, who in turn, shall forward the communication to the board's legal counsel and the executive committee of the board. No matter which has been the subject of confidential attorney-client communications between the board and its legal counsel or which has been the subject of an executive session shall be communicated to an attorney not employed by the board without the advice and consent of the board's legal counsel.

*who is acting as an advocate on behalf of another for benefits or in litigation relating to the system.

I.

The board of trustees shall be deemed the fiduciary of the system and shall discharge its responsibilities solely in the interest of the members and beneficiaries of the system for the exclusive purpose of providing benefits to the members and their beneficiaries and to defray the reasonable expenses of the system. The trustees shall exercise those fiduciary responsibilities with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a similar character and with similar aims.

J.

A board member may not participate in any decision to be made by the board if that board member is not impartial. A board member is not impartial if that board member fails to meet the requirements of AMC 1.15 or AMC 4.05.110 or otherwise has a conflict of interest or relationship whether financial or otherwise with any party which could reasonably be expected to influence that member's judgment concerning the matter then before the board. A board member may not knowingly engage in ex parte communications with any party regarding a claim pending before the board. Any board member who participates in such communication shall disclose the nature and substance of those communications to the board and the board shall determine the board member's further participation in the adjudication of that matter. The provisions of this section shall also apply to the conduct of hearings by the disability committee created in this chapter.

K.

The board shall have the authority to establish an executive committee which shall consist of three members of the board. One member of the executive committee shall be the current chairperson and two persons, each of whom shall represent a different constituency on the board than the chairperson and chosen by the trustees from that constituency. The executive committee shall have the authority to act, between meetings of the board of trustees, for the purpose of providing day-to-day direction to the administrator and staff on ministerial matters not required to go to the board of trustees; to provide instructions to counsel in litigation matters where it is not practical to assemble a regular meeting of the board; and to provide instruction to the director on matters relating to investment decisions where there is insufficient time to assemble the board of trustees. All matters relating to instructions to counsel and investment decisions shall be reported to the board at its ensuing meeting and shall be subject to ratification or amendment by the board.

(AO No. 2000-65, § 3, 4-18-00; AO No. 2002-54, § 2, 3-19-02)