(a) The Board of Trustees:
(1) May invest and reinvest the assets of the Boynton Beach Police Officers’ Pension Fund in annuity and life insurance contracts of life insurance companies in amounts sufficient to provide, in whole or in part, the benefits to which all the participants in the Pension Fund shall be entitled under the provisions of this article, and pay the initial and subsequent premiums thereon from the integral part of the fund. If current state contributions are adequate to fund minimum requirements of F.S. Chapter 185, additional state funds may be used to provide benefits that exceed requirements of F.S. Chapter 185.
(2) Shall have the power and authority to invest and reinvest the monies of the fund, and to hold, purchase, sell, assign, transfer and dispose of any securities and investments held in the fund, including the power and authority to employ counseling or investment management services. The aim of the investment policies shall be to preserve the integrity and security of fund principal, to maintain a balanced investment portfolio, to maintain and enhance the value of the fund principal, and to secure the maximum total return on investments that is consonant with safety of principal; provided that such investments and re-investments shall be limited only by the investments permitted by the investment policy guidelines adopted by the Board in accordance with Florida law, notwithstanding the provisions of Section
18-221 of the code. Further, notwithstanding the foregoing, investments in foreign investments are limited in accordance with F.S. Section 185.06(1)(b)4. The Board must discharge these duties with respect to the plan solely in the interest of the participants and beneficiaries and: (i) for the exclusive purpose of providing benefits to participants and their beneficiaries and defraying reasonable expenses of administering the plan; (ii) 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 like character and with like aims; and (iii) by diversifying the investments of the plan so as to minimize the risk of large losses, unless under the circumstances it is clearly prudent not to do so.
(3) May issue drafts upon the Boynton Beach Police Officers Pension Fund pursuant to this article and rules and regulations prescribed by the Board of Trustees. All such drafts shall be consecutively numbered and shall be signed by the chairman and secretary of the Board or their designee and shall state upon their faces the purpose for which the drafts are drawn. The City Treasurer shall retain such drafts when paid, as permanent vouchers for disbursements made, and no money shall be otherwise drawn from the fund.
(4) May convert into cash any securities of the Fund as it may deem advisable, having regard for the cash requirements of the fund.
(5) Shall keep a complete record of all receipts and disbursements, and of its acts and proceedings.
(6) 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 such nominee as it may direct, but the books and records shall at all times show that all investments are part of the fund.
(b) The sole and exclusive administration of, and the responsibilities for, the proper operation of the retirement fund and for making effective the provisions of this chapter are vested in the Board of Trustees.
(c) The Board of Trustees shall retain a professionally qualified independent consultant who shall evaluate the performance of any existing professional money manager and shall make recommendations to the Board of Trustees regarding the selection of money managers, if necessary. The term “professionally qualified independent consultant” shall have the meaning as set forth in F.S. Section 185.06(5)(b).
(d) The Board of Trustees may employ such independent professional, technical or other advisers as may be needed to fulfill the Board’s responsibilities under this Pension Plan. These professionals include but are not limited to: legal counsel, actuary and certified public accountants. If the Board chooses to use the city’s legal counsel, actuary or other professional, technical or other advisers, it must do so only under terms and conditions acceptable to the Board.
(e) Notwithstanding anything else in this subsection and as provided in F.S. Section 215.473, the Board of Trustees must identify and publicly report any direct or indirect holdings it may have in any scrutinized company, as defined in that section. Beginning January 1, 2010, the Board must proceed to sell, redeem, divest, or withdraw all publicly traded securities it may have directly in that company. The divestiture of any such security must be completed by September 10, 2010. The Board and its named officers of investment advisors may not be deemed to have breached their fiduciary duty in any action taken to dispose of any such security, and the Board shall have satisfactorily discharged the fiduciary duties of loyalty, prudence, and sole and exclusive benefit to the participants of the pension fund and their beneficiaries if the actions it takes are consistent with the duties imposed by F.S. Section 215.473, as provided for in F.S. Section 185.06(7) and the manner of disposition, if any, is reasonable as to the means chosen. For purposes of determining which companies are scrutinized companies, the Board may utilize the list of scrutinized companies as developed by the Florida State Board of Administration. No person may bring any civil, criminal, or administrative action against the Board of Trustees or any employee, officer, director, or advisor of such pension fund based upon the divestiture of any security pursuant to this subsection.
(Ord. 10-005, § 2, 2-2-10)
