(a)   The retirement board shall be the trustees of the assets of the Firefighters' Pension Fund. The board shall have full and independent power to invest and reinvest the monies and assets of the fund and to hold, purchase, sell, assign, transfer and dispose of any securities and investments of the fund.
   (b)   The board shall establish a written investment policy, with the advice and counsel of the advisors as the board deems necessary, and the investment policy shall set forth the types of investments into which shall be placed the assets of the pension fund. The policy shall further set forth appropriate provisions with respect to those investments, including, but not limited to, the anticipated rate of return, quality of investment, class of investment, maturity and liquidity, cash reserves and acceptable risk. The investment policy shall be reviewed by the board periodically.
   (c)   The board shall have the authority to invest and reinvest the assets of the pension fund in the securities, investment vehicles or property, wherever situated and of whatever kinds, as shall be approved by the board and in accordance with the investment policy adopted by the board. The board may engage investment counsel or investment advisors in contract for investment advice when they deem it necessary.
   (d)   The board may select one or more funding agents or investment counsel for the management of the assets of the fund. The selection and the appointment of the funding agent or investment counsel shall be made by the board, and the board shall have the right to determine the form and substance of each and every agreement under which the funds are to be held and managed by the funding agents or investment counsel, provided that the agreement shall not be inconsistent with the provisions of this subchapter.
      (1)   The board shall require that any funding agent or investment counsel who has custody or control of any property of the plan to keep accurate and detailed accounts of all investments, receipts, disbursements and other transactions pertaining to trust property, and shall further require that all accounts, books and records pertaining thereto be open for inspection and audit at all reasonable times by the board or its designees and the city finance department or its designees. The board shall also be authorized to have conducted an independent audit at the expense of the fund.
      (2)   The board may retain the services of a qualified independent investment consultant who shall, at least on a semiannual basis, report on the relative performance of the fund's funding agent or investment counsel and recommend to the board the retention or replacement of the managers. A qualified independent investment consultant shall have the qualifications and experience as determined by the board from time to time.
   (e)   (1)   The board shall, in selecting a funding agent or other investment counsel or advisor, exercise all judgment and care in the circumstances then prevailing which persons of prudence, discretion and intelligence exercise in the management of their own affairs. Any funding agent or other investment counsel or advisor shall have a minimum of five years of experience.
      (2)   For the purposes of this section, the following definitions shall apply unless the context clearly indicates or requires a different meaning:
         FUNDING AGENT. A corporate or individual trustee or trustees, insurance company or companies authorized to do business in the state, or combination thereof.
         INVESTMENT ADVISOR. A corporation or individual who has registered with the United States Securities and Exchange Commission as an investment advisor and is authorized to do business in the state.
         INVESTMENT COUNSEL. A corporation or individual authorized to do business under the Federal Investment Advisors Act of 1940, being 15 U.S.C. §§ 80b1 through 80-b-21, as amended from time to time, and authorized to do business in the state.
   (f)   The board of trustees may, unless restricted by law, transfer all or any portion of the assets of the pension fund to a collective or common group trust, as permitted under Revenue Ruling 81-100, Revenue Ruling 2011-1, Notice 2012-6, and Revenue Ruling 2014-24 (or subsequent guidance), that is operated or maintained exclusively for the commingling and collective investment of monies, provided that the funds in the group trust consist exclusively of trust assets held under plans qualified under § 401(a) of the Internal Revenue Code, individual retirement accounts that are exempt under § 408(e) of the Internal Revenue Code, eligible governmental plans that meet the requirements of § 457(b) of the Internal Revenue Code, and governmental plans under § 401(a)(24) of the Internal Revenue Code. For this purpose, a trust includes a custodial account or separate tax-favored account maintained by an insurance company that is treated as a trust under § 401(f) or under § 457(g)(3) of the Internal Revenue Code.
   (g)   Any collective or common group trust to which assets of the pension fund are transferred pursuant to the above shall be adopted by the board of trustees as part of the plan by executing appropriate participation, adoption agreements, and/or trust agreements with the group trust's trustee.
   (h)   The separate account maintained by the group trust for the plan shall not be used for, or diverted to, any purpose other than for the exclusive benefit of the members and beneficiaries of the plan.
   (i)   For purposes of valuation, the value of the separate account maintained by the group trust for the plan shall be the fair market value of the portion of the group trust held for the plan, determined in accordance with generally recognized valuation procedures.
   (j)   All assets of the pension fund shall be held for the sole purpose of meeting disbursements for annuities, pensions and other payments authorized by this subchapter and shall be used for no other purpose.
(1957 Rev. Ords., § 2.1133; 1992 Code, § 35-113)  (Ord. 2649, passed 11-17-1969; Ord. 105-09, passed 12-7-2009; Ord. 118-16, passed 12-20-2016)