(A) As part of the system there is hereby established the fund, into which shall be deposited all of the contributions and assets whatsoever attributable to the system. The actual custody and supervision of the fund, and assets thereof, shall be vested in the Pension Board. Payment of benefits and disbursements from the fund shall be made only on authorization from the Pension Board.
('58 Code, § 11.58)
(B) The Pension Board may hire and appoint those persons, agents, entities, including corporate fiduciaries, or attorneys as in its discretion may be required or advisable to enable it to perform its custodial and investment duties hereunder. Further, the Pension Board may enter into agency, investment, advisory, and custodial agreements for the purpose of securing investment and custodianship services for the system and fund.
('58 Code, § 11.59) (Ord. 75-80, passed 9-16-75)
(C) All funds and securities of the system may be commingled in the fund, provided accurate records are maintained at all times reflecting the financial composition of the fund, including accurate current accounts and entries as regards the following.
(1) Current amounts of accumulated contributions of employees on both an individual and aggregate account basis.
(2) Receipts and disbursements.
(3) Payments to retirees.
(4) Current amounts clearly reflecting all moneys, funds, and assets whatsoever attributable to contributions and deposits from the city, including a valuation of all these, as well as other, assets of the fund on a market value basis.
(5) All interest, dividends, gains, or losses whatsoever.
(6) Other entries properly required so as to reflect a clear and complete financial report of the fund.
('58 Code, § 11.60) (Ord. 75-84, passed 9-16-75)
(D) The Board of Pension Trustees shall have the following investment powers and authority.
(1) The trustee shall invest and reinvest the funds in those securities or in that property, real or personal, wherever situated, as the trustee shall deem advisable, including but not limited to, stocks, common or preferred, bonds, and mortgages, and other evidences of indebtedness or ownership, although these may not be of the character permitted for trustees’ investment by the laws of the state. The Board shall identify and publicly report any direct or indirect holdings it may have in any scrutinized company, as defined in Florida Statutes, Section 215.473, and proceed to sell, redeem, divest, or withdraw all publicly traded securities it may have in such company beginning January 1, 2010 and shall thereafter be prohibited from purchasing or holding such securities. The divestiture of any such security must be completed by September 30, 2010. In accordance with Ch. 2009-97, Laws of Florida, no person may bring any civil, criminal, or administrative action against the Board or any employee, officer, director, or advisor of such Board based upon the divestiture of any security pursuant to this paragraph. The Board of Pension Trustees shall be vested with full legal title to the fund. All contributions from time to time paid into the fund, and the income thereof, without distinction between principal and income, shall be held and administered by the Board or its agent in the fund and the Board shall not be required to segregate or invest separately any portion of the fund.
(2) The Board may retain in cash and keep unproductive of income that amount of the fund as it may deem advisable, having regard for the cash requirements of the system.
(3) Neither the Board nor any person or entity shall be liable for the making, retention, or sale of any investment or reinvestment made as herein provided, nor for any loss or diminishment of the fund, except that due to his or its own negligence, willful misconduct, or lack of good faith.
(4) The Board may cause any investment in securities held by it to be registered in or transferred into its name as trustee or into the name of the nominee it may direct, or it may retain them unregistered and in the form permitting transferability, but the books and records shall at all times show that all investments are part of the fund.
(5) The Board is empowered, but is not required, to vote on any stocks, bonds, or securities of any corporation, association, or trust and to give general or specific proxies or powers of attorney with or without power of substitution; to participate in mergers, reorganizations, recapitalizations, consolidations, and similar transactions with respect to the securities; to deposit the stock or other securities in any voting trust or any protective or like committee or with the trustees or with depositaries designated thereby; to amortize or fail to amortize any part or all of the premium or discount resulting from the acquisition or disposition of assets; and generally, to exercise any of the powers of an owner with respect to stocks, bonds, or other investments comprising the fund which it may deem to be to the best interest of the fund to exercise.
(6) The Board shall not be required to make any inventory or appraisal or report to any court, not to secure any order of court for the exercise of any power herein contained.
(7) Where any action which the Board is required to take or any duty or function which it is required to perform either under the terms herein or under the general law applicable to it as trustee under this agreement, can reasonably be taken or performed only after receipt by it from a member, the city or any person or entity, of specific information, certification, direction, or instructions, the Board shall incur no liability in failing to take the action or perform the duty or function until the information, certification, direction, or instruction has been received by it.
(8) Any overpayments or underpayments from the fund to a retired member or beneficiary caused by errors of computation shall be adjusted with interest at the rate per annum approved by the Board. Overpayments shall be charged against retirement payments next succeeding the correction. Underpayments shall be made up from the trust fund.
(9) The Board shall sustain no liability whatsoever for the sufficiency of the fund to meet the payments and benefits herein provided for and shall be under no duty or obligation to inquire into the sufficiency of the payments made into the fund by the city.
(10) In any application to, or proceeding or action in the courts, only the city and the Board shall be necessary parties, and no member or other person having an interest in the fund shall be entitled to any notice of service or process. Any judgment entered in such a proceeding or action shall be conclusive upon all persons.
('58 Code, § 11.61)
(E) Any of the foregoing powers and functions reposed in the Board may be performed and carried out by the Board through duly-authorized agents, provided the Board at all times maintains supervision over the acts of any agent. Further, legal title to the fund shall always remain in the Board of Pension Trustees.
('58 Code, § 11.62)
(F) No change in any of the provisions of the system shall be made without the approval of a majority of the Board of Trustees.
('58 Code, § 11.63)
(Ord. 72-59, passed 8-15-72; Am. Ord. 73-11, passed 1-3-73; Am. Ord. 2010-33, passed 6-22-10)
Cross-reference:
Required state reports, see § 34.072