Okla. Stat. tit. 11, § 11-49-100.9

A. The Oklahoma Firefighters Pension and Retirement Board shall

discharge their duties with respect to the System solely in the

interest of the participants and beneficiaries and:

1. For the exclusive purpose of:

a. providing benefits to participants and their

beneficiaries, and

b. defraying reasonable expenses of administering the

System;

2. 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;

3. By diversifying the investments of the System so as to

minimize the risk of large losses, unless under the circumstances it

is clearly prudent not to do so; and

4. In accordance with the laws, documents and instruments

governing the System.

B. The State Board may procure insurance indemnifying the

members of the State Board from personal loss or accountability from

liability resulting from a member's action or inaction as a member

of the State Board.

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C. The State Board may establish an investment committee. The

investment committee shall be composed of not more than five (5)

members of the State Board appointed by the chairman of the State

Board. The committee shall make recommendations to the full State

Board on all matters related to the choice of custodians and

managers of the assets of the System, on the establishment of

investment and fund management guidelines, and in planning future

investment policy. The committee shall have no authority to act on

behalf of the State Board in any circumstances whatsoever. No

recommendation of the committee shall have effect as an action of

the State Board nor take effect without the approval of the State

Board as provided by law.

D. The Board shall retain qualified investment managers to

provide for the investment of the monies of the System. The

investment managers shall be chosen by a solicitation of proposals

on a competitive bid basis pursuant to standards set by the State

Board. Subject to the overall investment guidelines set by the

State Board, the investment managers shall have full discretion in

the management of those monies of the System allocated to the

investment managers. The State Board shall manage those monies not

specifically allocated to the investment managers. The monies of

the System allocated to the investment managers shall be actively

managed by the investment managers, which may include selling

investments and realizing losses if such action is considered

advantageous to longer term return maximization. Because of the

total return objective, no distinction shall be made for management

and performance evaluation purposes between realized and unrealized

capital gains and losses.

E. Funds and revenues for investment by the investment managers

or the State Board shall be placed with a custodian selected by the

State Board. The custodian shall be a bank or trust company

offering pension fund master trustee and master custodial services

and any related custodial agreement or trust agreement is

incorporated herein by reference. The custodian shall be chosen by

a solicitation of proposals on a competitive bid basis pursuant to

standards set by the State Board. In compliance with the investment

policy guidelines of the State Board, the custodian bank or trust

company shall be contractually responsible for ensuring that all

monies of the System are invested in income-producing investment

vehicles at all times. If a custodian bank or trust company has not

received direction from the investment managers of the System as to

the investment of the monies of the System in specific investment

vehicles, the custodian bank or trust company shall be contractually

responsible to the State Board for investing the monies in
monies of the System are invested in income-producing investment

vehicles at all times. If a custodian bank or trust company has not

received direction from the investment managers of the System as to

the investment of the monies of the System in specific investment

vehicles, the custodian bank or trust company shall be contractually

responsible to the State Board for investing the monies in

appropriately collateralized short-term interest-bearing investment

vehicles. Any assets of the System may be invested in a collective

investment fund or group trust that satisfies the requirements of

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Revenue Ruling 81-100, as further amended by Revenue Ruling 2004-67,

Revenue Ruling 2008-40, and Revenue Ruling 2011-1, and as

subsequently amended by future guidance. Each such collective

investment fund or group trust is adopted, with respect to any

monies invested therein, as part of the System, its trust, and

custodial account and each such declaration of trust or trust

agreement and related adoption, participation, investment

management, subtrust or other agreements, as amended from time to

time, with respect to any monies invested therein, are incorporated

by reference into the System, its trust agreement(s) or custodial

agreement(s), upon approval by the State Board.

F. By November 1, 1988, and prior to August 1 of each year

thereafter, the State Board shall develop a written investment plan

for the System.

G. The State Board shall compile a quarterly financial report

of all the funds of the System on a fiscal year basis. The report

shall be compiled pursuant to uniform reporting standards prescribed

by the Oklahoma State Pension Commission for all state retirement

systems. The report shall include several relevant measures of

investment value, including acquisition cost and current fair market

value with appropriate summaries of total holdings and returns. The

report shall contain combined and individual rate of returns of the

investment managers by category of investment, over periods of time.

The State Board shall include in the quarterly reports all

commissions, fees or payments for investment services performed on

behalf of the State Board. The report shall be distributed to the

Governor, the Oklahoma State Pension Commission, the Legislative

Service Bureau, the Speaker of the House of Representatives and the

President Pro Tempore of the Senate.

H. After July 1 and before December 1 of each year, the State

Board shall publish widely an annual report presented in simple and

easily understood language pursuant to uniform reporting standards

prescribed by the Oklahoma State Pension Commission for all state

retirement systems. The report shall be submitted to the Governor,

the Speaker of the House of Representatives, the President Pro

Tempore of the Senate, the Oklahoma State Pension Commission and the

members of the System. The annual report shall cover the operation

of the System during the past fiscal year, including income,

disbursements, and the financial condition of the System at the end

of the fiscal year. The annual report shall also contain the

information issued in the quarterly reports required pursuant to

subsection G of this section as well as a summary of the results of

the most recent actuarial valuation to include total assets, total

liabilities, unfunded liability or over funded status, contributions

and any other information deemed relevant by the State Board. The

annual report shall be written in such a manner as to permit a

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readily understandable means for analyzing the financial condition

and performance of the System for the fiscal year.

I. Effective July 1, 2000, the State Board is hereby authorized

to do all acts and things necessary and proper to carry out the

purpose of the System and to make the least costly amendments and
ch a manner as to permit a

Oklahoma Statutes - Title 11. Cities and Towns Page 525

readily understandable means for analyzing the financial condition

and performance of the System for the fiscal year.

I. Effective July 1, 2000, the State Board is hereby authorized

to do all acts and things necessary and proper to carry out the

purpose of the System and to make the least costly amendments and

changes, if any, as may be necessary to qualify the System under the

applicable sections of the Internal Revenue Code of 1986, as

amended.