§ 18-405. Retirement board.

(a)

Established.

(1)

The plan shall be administered under the direction of a retirement board in which is vested authority to determine eligibility for membership in the plan for both retirement and health benefits, as well as the responsibility for the proper operation of the retirement plan, all such authority to be exercised in ways consistent with this division. The retirement board may, in administering the benefits payable under plan, conclusively rely upon the statements and representations sworn to or acknowledged before one authorized to administer oaths, in the form of affidavits, certificates, or other similar proof offered by members, spouses or beneficiaries with regard to eligibility for benefits, amount of benefits, membership, marital status, and other matters affecting rights or privileges under the plan.

(2)

The retirement board shall consist of five (5) voting members, all of whom shall be appointed by the mayor. At least one (1) of the appointed members shall be an active employee and at least one (1) of the appointed members shall be either a retired member or a deferred member. The terms of office shall be six (6) years, and the members of the retirement board shall be eligible for reappointment. Any vacancy in the membership of the retirement board shall be promptly filled for the unexpired portion of the term by appointment by the mayor. Vacancies occurring by reason of the expiration of the term of any member shall be promptly filled by the mayor. Members of the retirement board shall not receive compensation from the city for their services as such members. No member shall by reason of membership on the retirement board forfeit or be denied the right to any compensation, salary, or other remuneration to which the member is entitled for other services rendered by the member.

(b)

Additional powers. In addition to the general authority granted to the retirement board to carry out and administer the plan and the trust assets, and in no way in limitation of such authority, the board shall have the following powers:

(1)

The authority to determine membership status, eligibility for retirement, death and health benefits, and the amount of credited service and salary to be used in calculating benefits pursuant to this article.

(2)

The authority to accept or reject on behalf of the plan any moneys or properties received in the form of donations, gifts, appropriations, bequests, forfeitures or otherwise, or income derived therefrom.

(3)

The authority to recover from benefit recipients, through legal process or benefit offset, any benefits or premiums improperly paid to them or on behalf of them to which they or their beneficiaries are not entitled, and to assess interest on such money at the general statutory rate. When a benefit offset is not available as a means to collect, the plan may employ any collection method available, including assigning such accounts to private counsel or private collection agencies. If a legal suit is brought, then reasonable collection costs, attorney's fees, and legal expenses shall be added to the amount due. In the case of dishonored bank drafts and other negotiable instruments, in addition to the fee provided for below, the plan may pursue all remedies provided for in the Colorado Revised Statutes. Whenever any account or debt due the plan becomes delinquent and is referred for collection, the following collection fees will be added to the original debt amount:

Amount of Debt	Collection Fee
$0.01 to $50.00	$20.00
$50.01 to $100.00	30.00
$100.01 to $150.00	40.00
$150.01 to $200.00	60.00
$200.01 to $300.00	80.00
$300.01 and above	30% of the debt amount

 

The benefit recipient or their beneficiary(ies) shall be liable for repayment of the total of the amount outstanding plus the collection fee. The plan may, at its option, waive the collection fee for good cause shown.

(4)

The authority to use and hold property in a nominee partnership composed of trustees or employees of the plan, designated by the board through appropriate motion or resolution, to facilitate sale and exchange transactions. The partners of the nominee partnership may be insured against liability which arises out of or in connection with performance of duties on behalf of the plan.

(5)

The authority and discretion to hold discussions in executive sessions, called by a two-thirds ( 2/3 ) vote of a quorum of the board, which shall be closed to the public, regarding investments, financial matters (excluding matters required to be reported by this article), litigation, potential litigation or personnel matters, or other matters under the law in which an executive session is authorized to be held.

(6)

The authority to hold title to interests, including the fee simple absolute, in real property, either for its administrative office needs, or for investment, in either the name of the plan or in the name of a title-holding organization, including a corporation, created and controlled by the retirement board for the purpose of holding title to interests in real property.

(7)

The authority to adopt its own rules of procedure and by-laws for conducting business, including the establishment of committees made up of board members or board members and staff members as the board deems necessary. If a committee created by the board consists of a majority of board members, the open meetings laws shall apply, unless the matter to be discussed is subject to the executive session rules listed in subsection (b)(5) above.

(8)

The authority to establish and administer, through the promulgation of rules and regulations, a qualified governmental excess benefit arrangement that satisfies the requirements of section 415(m) of the Internal Revenue Code, in order to provide to retired members such retirement benefits as would otherwise be payable under the plan, but for the application of the limitations on benefits of section 415(b) of the Internal Revenue Code. The benefits payable under this subsection shall be paid from contributions that otherwise would be made to the trust fund pursuant to section 18-407. In lieu of deposit in the trust, an amount determined by the board, upon the advice of its actuaries, to be necessary to pay benefits and reasonable and necessary expenses shall be paid monthly to the credit of an account or grantor trust established for this purpose. The board reserves the right to amend or terminate this arrangement at any time. Such action may be retroactive to the extent that the board deems such action necessary to maintain the tax-qualified or funded status of the plan or the status of this arrangement as a qualified governmental excess benefit arrangement.

(9)

The authority to administer other or related employee benefit plans for the employer, including, but not limited to, early retirement incentive programs and deferred retirement option plans.

(10)

The authority to file an action in interpleader with the district court for the Second Judicial District of the State of Colorado, in those instances in which multiple claimants having differing interests contest the right to, or amount of, benefits.

(11)

The authority to sue or be sued in its own name or in the name of the plan.

(12)

The authority and power to construe disputed or doubtful terms in the plan.

(c)

Meetings and notices.

(1)

Regular meetings of the retirement board shall be held on regular business days chosen by the retirement board.

(2)

An annual meeting shall be held immediately following a regular meeting during a month designated and publicized in advance by the board.

(3)

Special meetings may be called by not less than two (2) retirement board members and shall be held on a regular business day as chosen by the retirement board. Notice of the date of special meetings shall be transmitted to each member of the retirement board within a reasonable period of time before such meetings are held.

(4)

All meetings of the retirement board shall be public and shall be held in the offices of the retirement plan unless another location within the city is selected by the board by giving notice thereof in advance. All notices shall be published and provided in accordance with the open meetings laws and shall be posted on the plan's Internet website at least one (1) week before each meeting indicating the time and place of the meeting. Three (3) members of the retirement board shall constitute a quorum at any meeting, and each member shall be entitled to one (1) vote. Annually the retirement board shall elect one (1) of its members to preside over the board and its meetings as chairperson, and to perform such related duties as may be required by the retirement board. The retirement board shall also elect another member as vice-chair to perform those duties in the absence of the member routinely presiding.

(d)

Advisory committee.

(1)

Composition. The advisory committee shall be composed of three (3) members elected by the membership and one (1) member who is appointed by the career service board. At least one (1) elected member must be a retired member of the plan and at least one (1) elected member must be an active member of the plan who has five (5) years or more credited service. The member who is appointed by the career service board must either be a career service board member or an administrative staff member of the office of human resources. The term of office for all advisory committee members shall be three (3) years.

(2)

a.

Elections. Each year, one (1) of the three (3) elected members shall be elected for a three-year term to the advisory committee in accordance with the election procedures authorized by the retirement board. This elected member shall be announced at a regular board meeting following the election, and assume office on the July 1st immediately following the election.

b.

The member appointed by the career service board designated prior to, and assume office effective on, July 1 in the year in which a term expires. Any vacancy in the appointed advisory committee position shall be promptly filled by the career service board for the unexpired portion of the term.

(3)

Vacancy of office. If an advisory committee member should vacate the office before the term expires, the office shall be filled by the person receiving the second highest number of votes at the election immediately preceding the vacancy who meets the qualifications of this division. The person appointed to fill the vacated office shall serve until the next regular election where the office shall be filled by the person receiving the second highest number of votes at that election who meets the qualifications of this division.

(4)

Re-election. All advisory committee members shall be eligible for re-election.

(5)

Role of advisory committee members. The duty and function of the advisory committee shall be to present to the retirement board, but not to trustees or investment managers, suggestions and questions which are in the interest of the general membership of the plan.

(e)

Executive director.

(1)

The retirement board shall hire an executive director, who, subject to the policy direction of the board, shall be the managing and chief administrative officer of the plan, and as such, shall have charge of the retirement office and all accounts and records of the plan. Such accounts and records, other than personnel documents, membership files and records, and financial and investment records which are confidential under the Colorado Open Records Law, as well as temporary notes and drafts or documents in process but not finalized or adopted, shall be available for public inspection during regular business hours. A member's file and records may be inspected during regular business hours by that member or the member's duly authorized representative upon notice in writing to the retirement office, and upon making an appointment for such inspection.

(2)

The executive director shall:

a.

Have the authority to employ, supervise and dismiss the employees of the retirement office. All employees of the retirement office shall be paid salaries comparable to Office of Human Resources recommendations for similar job classifications.

b.

Be the secretary of the retirement board and shall keep the records of its proceedings.

c.

Make all disbursements from the trust fund in accordance with the provisions of this article.

d.

Apply and enforce all provisions of this article and of the rules and regulations of the retirement board pertinent to the operation of the retirement plan.

e.

Sign and execute all contracts for the plan as required by this article or as authorized by the retirement board.

f.

Prepare, execute and file all documents pertaining to the retirement plan as required by the Internal Revenue Service or by any other regulatory agency of government having jurisdiction.

g.

Obtain a determination from the commissioner of the Internal Revenue Service that the plan and all amendments to the plan that could affect the qualification of the plan are qualified under section 401(a) of the Internal Revenue Code, and the trust fund is exempt under section 501(a) of the Internal Revenue Code.

(f)

Advisors. The retirement board shall have the authority to retain such actuaries, consultants, attorneys and advisors by contract or otherwise as may be deemed necessary and advisable. The city attorney shall provide legal counsel to the plan, in an advisory or representative capacity, upon request of the board.

(g)

Rules and regulations; adoption and amendment of the plan. The board shall adopt an investment policy setting forth policies for investment of the trust and general standards for investment managers to follow. The board may also adopt its own rules of conduct and procedure, and by-laws governing its operations. As the need arises, because of changes in the applicable governing law, including this division and the Internal Revenue Code, or as deemed necessary by the board, the board may modify, from time to time, the investment policy and the rules and by-laws governing its conduct and the operations of the plan. The board shall be responsible for the resolution or settlement of claims or disputes, for the formation and adoption of rules and regulations pertinent to the operations of the retirement plan and for recommendations to the city council for amendments to the plan when, in the judgment of the retirement board, such changes are necessary or desirable. No recommendations for an amendment to the plan which may affect the cost of or contributions to the plan shall be made to the mayor and city council unless accompanied by a report from the plan's actuary clearly setting forth the effect of such amendment on future contributions by the city and by the employees.

(h)

Reports.

(1)

The retirement board shall submit a quarterly report, on a timely basis, to the mayor and to the city council on the financial status of the trust fund, a summary of any important decisions made by the retirement board during the quarter, including membership changes in the board or the advisory committee, the performance of the trust fund's investments, and on the performance of the trustees or investment managers. This report shall be compiled by a consultant who is an expert in the area of investment performance reporting.

(2)

The board shall cause to be made, once each year, a complete audit of the trust fund, including the health benefits account, and shall furnish to the mayor, the city council and the city auditor a written report showing the result of such audit.

(3)

An annual report of the retirement board to the membership shall be made available to all members.

(i)

Public records. Unless otherwise excepted, all official reports called for in this division shall be public documents under the Colorado Open Records Laws and shall be available for inspection at the retirement plan office.

Exceptions:

(1)

If disclosure of financial information would be likely to impair the plan's ability to gain necessary information or to cause substantial harm to the competitive financial position of the person providing the information, the financial information shall be deemed confidential under the statutory exemptions regarding public records currently codified in part 2 of article 72, title 24, Colorado Revised Statutes.

(2)

A record received, prepared, used or retained by an investment fiduciary in connection with an investment or potential investment of the plan that relates to investment information pertaining to a portfolio company in which the investment fiduciary has invested or has considered an investment or that relates to investment information whether prepared by or for the investment fiduciary regarding loans and assets directly owned by the investment fiduciary is exempt from the disclosure requirements of the public records law.

(3)

If a public record described in this subsection is an agreement or instrument to which an investment fiduciary is a party, only those parts of the public record that contain investment information are exempt from the disclosure requirements of the public records law.

(4)

"Investment information" means information that has not been publicly disseminated or that is unavailable from other sources, the release of which might cause a portfolio company or an investment fiduciary significant competitive harm. Investment information includes, but is not limited to, financial performance data and projections, financial statements, lists of co-investors and their level of investment, product and market data, rent rolls and leases.

(5)

Member records. All information contained in individual records of members, former members, inactive members, retired members, benefit recipients and their dependents, shall be confidential and shall not be disclosed to anyone except insofar as may be necessary for the administration of this article, or upon order of a court of competent jurisdiction, or upon written authorization by the member.

(j)

Bond for diversion of funds. If, in the course of the operation of the plan, it shall become possible for funds or other assets of the trust fund to be diverted to the use of any member of the board or employee of the plan, the board shall give bond to the city with a sufficient responsible surety company approved by the mayor in such sums as are recommended by the retirement board and approved by the mayor.

(k)

Liability for misconduct. The retirement board and individual members thereof shall not be liable to the sponsor, an employer, the membership (individually or collectively), or the beneficiaries (individually or collectively) of the plan for mere errors of judgment in administering the plan or the trust, provided that the board or individual members of the board, as the case may be, shall be subject to removal by the mayor, and shall be liable for their willful default, misconduct, or gross negligence, in administering the plan or the trust resulting in loss or injury to the trust and members and beneficiaries thereof; however, none of the members of the retirement board shall be responsible or liable for the acts or omissions of any other of the members of the board, of any predecessor, or of a custodian, agent, depository, or counsel selected with reasonable care. Further, the board may, through operating rules or otherwise, provide for standards of conduct for board members and plan staff, indemnify actions undertaken in good faith, authorize the settlement of disputes, and purchase fiduciary insurance.

(Ord. No. 960-05, § 1, 12-19-05; Ord. No. 349-11, § 2, 6-20-11; Ord. No. 350-11, § 3, 6-20-11; Ord. No. 661-12, § 3, 12-26-12; Ord. No. 567-13, § 2, 11-12-13; Ord. No. 700-14, § 1, 11-24-14; Ord. No. 591-15, § 3, 9-21-15; Ord. No. 1123-16, § 2, 12-5-16; Ord. No. 1007-17, § 2, 10-2-17; Ord. No. 1248-18, § 2, 11-19-18)