§ 12-16. Finances and fund management.

(a)

Establishment and operation of trust fund.

(1)

As part of the plan there is hereby established a trust fund, into which shall be deposited all of the contributions and assets whatsoever attributable to the plan.

(2)

The supervision of the fund (and assets thereof) and the responsibility for custodianship shall be vested in the board. Payment of benefits and disbursements from the fund shall be made by the disbursing agent on authorization from the board.

(3)

The board may hire and appoint such persons, agents or entities (including corporate fiduciaries) as in its discretion may be required or advisable to the performance of custodial and investment duties hereunder. The board may enter into agency, investment advisory and custodial agreements as it deems appropriate.

(4)

All funds and securities of the plan may be commingled in the fund, provided that accurate records are maintained at all times reflecting the financial composition of the fund including accurate accounts and entries regarding the following:

a.

Amounts of accumulated contributions of members on both an individual and aggregate account basis, and

b.

Receipts and disbursements, and

c.

Benefit payments, and

d.

All monies, funds and assets whatsoever attributable to contributions and deposits from the city, and

e.

All interest, dividends and gains (or losses) whatsoever,

f.

Such other entries as may be properly required so as to reflect a clear and complete financial report of the fund.

(5)

It shall be impossible, at any time prior to the satisfaction of all liabilities with respect to covered employees and their beneficiaries under the trust, for any part of the principal or income of the trust to be used for, or diverted to, purposes other than for the exclusive benefit, of the employees or their beneficiaries except for usual and customary charges and expenses associated with the operation and management of the plan and fund.

(Ord. No. 2001-105, § 1, 4-3-01)