§ 12-46. Fund management and investments.

(a)

The plan is hereby established as an irrevocable trust fund into which shall be deposited all of the assets of the plan of every kind and description.

(b)

The actual custody and supervision of the fund shall be vested in the board. All assets of the plan may be commingled, provided that accurate records are maintained at all times reflecting the financial composition of the fund, including accurate accounts regarding the following:

(1)

Current amounts of accumulated contributions of members, both on an individual and aggregate basis;

(2)

Receipts and disbursements;

(3)

Benefits payments;

(4)

All contributions from the city;

(5)

All contributions from the State of Florida pursuant to Chapter 175, Florida Statutes;

(6)

All interest, dividends, gains and losses from investment;

(7)

Such other entries as may be required for a clear, complete financial report of the status of the fund.

(c)

The board shall establish a written investment policy, with the advice and counsel of such advisors as the board deems necessary, and said investment policy shall set forth the types of securities and other types of investments into which shall be placed the assets of the fund. The policy shall further set forth appropriate limitations on those investments, including, but not limited to, anticipated rate of return, quality of investment, class of investment and acceptable risk. The fund may be invested and reinvested without limitation in such securities or property, real or personal, wherever situated and of whatsoever kind, as the board deems appropriate, including, but not limited to:

(1)

Bonds, notes, or other obligations of the United States or any of its agencies, or those guaranteed by the United States or for which the credit of the United States is pledged for the payment of the principal and interest or dividends thereof;

(2)

Accounts or certificates of deposit in any bank or other financial institution incorporated under the laws of the State of Florida, or any national bank organized under the laws of the United States, or authorized to do business and situated in the State of Florida, to the extent that such certificates of deposit are secured by the deposits of securities of the United States government;

(3)

Notes secured by first mortgages on real property insured or guaranteed by the Federal Housing Administration or the Veterans Administration;

(4)

Interest-bearing obligations with a fixed maturity of any corporation organized under the laws of the United States, any state or organized territory of the United States and the District of Columbia; provided that such obligations are rated by at least two (2) nationally recognized ratings services in any one (1) of the four (4) highest classifications approved by the comptroller of the currency for the investment of funds of national banks or, if only one (1) nationally recognized ratings service shall rate such obligations, such ratings service must have rated such obligation in any one (1) of the three (3) highest rating classifications as set forth in this subsection;

(5)

Bonds issued by the State of Israel;

(6)

Real estate, which may be in the form of commingled ownership

(7)

Common stock, preferred stock and interest-bearing obligations of domestic corporations having an option to convert into common stock issued by a corporation organized under the laws of the United States, any state or organized territory of the United States and the District of Columbia. The board of trustees shall determine the per centage of the portfolio to be held in equities.

(8)

Foreign securities, not to exceed twenty-five (25) per cent of the portfolio, on a market-value basis. The investment cap on foreign securities may not be revised, amended, increased, or repealed except as provided by general law.

(9)

Any other investment permitted by law.

(10)

Assets of the fund may be invested in a tax-exempt group trust that has been determined by the Internal Revenue Service to be a pooled fund arrangement pursuant to Revenue Ruling 81-100, as modified by Revenue Rulings 2004-67 and 2011-1, that is operated or maintained exclusively for the commingling and collective investment of monies. In such case, the terms of the group trust shall be adopted as part of this Plan.

(d)

The board shall, in consultation with its investment advisors, determine the per centage of each type of investment to be held.

(e)

The board shall be authorized to retain one (1) or more money managers for the management of property held in the plan, and the board shall make available the plan assets to such money managers for investment and reinvestment in accordance with the terms of this article and the investment policies established by the board. Any such money manager contracting with the board for the investment of its assets shall be deemed a fiduciary of the plan.

(f)

The board shall have a continuing duty to observe and evaluate the performance of any money manager retained by the board. The board shall, in selecting a money manager or other investment counsel, exercise all judgement and care in the circumstances then prevailing which persons of prudence, discretion and intelligence exercise in the management of their own affairs.

(g)

The board shall require that any money manager or other agent 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 such trust property, and the board shall further require that all accounts, books and records pertaining thereto be open for inspecting and audit at all reasonable times by the city, the board or its designees.

(h)

The board shall also keep accurate and detailed accounts of all investments, receipts, disbursements or other transactions pertaining to the trust property and all accounts, books and records pertaining thereto shall be open to inspection and audit at all reasonable times by the city or its designees.

(i)

The board of trustees shall be authorized to enter into an agreement with the board of trustees of any other city defined benefit retirement plan for the purpose of comingling assets for investment purposes.

(Ord. No. 2003-101, § 2(Art. VI), 3-4-03; Ord. No. 2010-100, § 2, 2-2-10; Ord. No. 2015-103, § 2, 4-1-15)