Okla. Stat. tit. 19, § 19-953.1A

675,000 or less.

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

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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 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.

C. 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.

D. The board of trustees shall 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

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 board of trustees shall be placed with a custodian selected

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

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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

company has not received direction from the investment managers of

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

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

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.

F. Prior to August 1 of each year, the board of trustees shall

develop a written investment plan for the retirement system.

G. The board of trustees shall compile a quarterly financial

report of all the funds of the system on a fiscal year basis. 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 report shall be distributed to the board of county

commissioners.

H. After July 1 and before December 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 do not have a population in

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excess of six hundred seventy-five thousand (675,000) according to

the latest Federal Decennial Census.