Okla. Stat. tit. 19, § 19-953.1

excess of 675,000.

A. The board of trustees shall discharge their duties with

respect to the retirement 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

retirement 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 retirement 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 retirement system.

B. The monies of the retirement system shall be invested only

in assets eligible for the investment of funds of legal reserve life

insurance companies in this state as provided for in Sections 1602

through 1611, 1613 through 1620, and 1622 through 1624 of Title 36

of the Oklahoma Statutes. The term "admitted assets" shall mean the

amount of the monies of the retirement system and the provisions

relating to limitation of investments as a percentage of surplus and

loans to policyholders shall be inapplicable with respect to

investment of the monies of the retirement system. The monies of

the retirement system may be invested in certificates of

indebtedness or such other enforceable evidences of obligation as

may be utilized in the rights-of-way acquisitions by the Department

of Transportation. The monies of the retirement system may also be

invested in bonds secured by first mortgages, pass-through

securities and insured participation certificates representing

Oklahoma Statutes - Title 19. Counties and County Officers Page 484

interests in first mortgages or insured mortgage pass-through

certificates on one-to four-family residences located within this

state.

C. The board of trustees may procure insurance indemnifying the

members of the board of trustees from personal loss or

accountability from liability resulting from a member's action or

inaction as a member of the board of trustees.

D. The board of trustees may establish an investment committee.

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

members of the board of trustees appointed by the chair of the board

of trustees. The committee shall make recommendations to the full

board of trustees on all matters related to the choice of custodians

and managers of the assets of the retirement 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 board of trustees in any

circumstances whatsoever. No recommendation of the committee shall

have effect as an action of the board of trustees nor take effect

without the approval of the board of trustees as provided by law.

E. The board of trustees may retain qualified investment

managers to provide for the investment of the monies of the

retirement system. The investment managers shall be chosen by a

solicitation of proposals on a competitive bid basis pursuant to

standards set by the board of trustees. Subject to the overall

investment guidelines set by the board of trustees, the investment

managers shall have full discretion in the management of those

monies of the retirement system allocated to the investment

managers. The board of trustees shall manage those monies not

specifically allocated to the investment managers. The monies of

the retirement 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
nagement of those

monies of the retirement system allocated to the investment

managers. The board of trustees shall manage those monies not

specifically allocated to the investment managers. The monies of

the retirement 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.

F. Funds and revenues for investment by the investment managers

or the board of trustees may be placed with a custodian selected by

the board of trustees. The custodian shall be a bank or trust

company offering pension fund master trustee and master custodial

services. The custodian shall be chosen by a solicitation of

proposals on a competitive bid basis pursuant to standards set by

the board of trustees. In compliance with the investment policy

guidelines of the board of trustees, the custodian bank or trust

company shall be contractually responsible for ensuring that all

monies of the retirement system are invested in income-producing

investment vehicles at all times. If a custodian bank or trust

Oklahoma Statutes - Title 19. Counties and County Officers Page 485

company has not received direction from the investment managers of

the retirement system as to the investment of the monies of the

retirement system in specific investment vehicles, the custodian

bank or trust company shall be contractually responsible to the

board of trustees for investing the monies in appropriately

collateralized short-term interest-bearing investment vehicles.

G. By November 1, 1989, and prior to August 1 of each year

thereafter, the board of trustees shall develop a written investment

plan for the retirement system.

H. After July 1 and before October 1 of each year, the board of

trustees shall publish widely an annual report presented in simple

and easily understood language. The report shall be submitted to

the board of county commissioners, and to the individual members of

the retirement system. The annual report shall cover the operation

of the retirement system during the past fiscal year, including

income, disbursements, and the financial condition of the retirement

system at the end of the fiscal year. The annual report shall also

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 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 board of trustees. The annual report shall be written in such a

manner as to permit a readily understandable means for analyzing the

financial condition and performance of the retirement system for the

fiscal year.

I. The requirements of this section shall apply to retirement

funds and systems in counties which have a population in excess of

six hundred seventy-five thousand (675,000) according to the latest

Federal Decennial Census.