Okla. Stat. tit. 47, § 47-2-303.1

Investment managers - Custodial services - Reports - Legal services

- Confidentiality.

A. The Oklahoma Law Enforcement Retirement Board shall

discharge its 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 Board may procure insurance indemnifying the members of

the Board from personal loss or accountability from liability

resulting from a member's action or inaction as a member of the

Board.

C. The Board may establish an investment committee. The

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

members of the Board appointed by the president of the Board. The

committee shall make recommendations to the full 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 Board

in any circumstances whatsoever. No recommendation of the committee

shall have effect as an action of the Board nor take effect without

the approval of the 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 Board.

Subject to the overall investment guidelines set by the Board, the

investment managers shall have full discretion in the management of

those monies of the System allocated to the investment managers.

The 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

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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. All assets of the System shall be held in trust for the

exclusive purpose of providing benefits for the members and

beneficiaries of the System, including defraying reasonable expenses

of administering the System, and shall not be encumbered for or

diverted to any other purposes. Funds and revenues for investment

by the investment managers or the Board shall be placed with a

custodian selected by the 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 Board. In compliance with the

investment policy guidelines of the 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
hosen by a solicitation of proposals on a competitive bid basis

pursuant to standards set by the Board. In compliance with the

investment policy guidelines of the 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 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 in a group trust provided the investment in such collective

investment fund or group trust is in compliance with the provisions

of Rev. Rul. 81-100, as further amended by Rev. Rul. 2004-67, Rev.

Rul. 2008-40, and Rev. Rul. 2011-1, or any successor ruling,

regulation, or similar pronouncement. 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

agreement, and the provisions of such trust agreement or such

declaration of trust 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 Board.

F. Prior to August 1 of each year, the Board shall develop a

written investment plan for the System.

G. The 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

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shall contain combined and individual rate of returns of the

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

The Board shall include in the quarterly reports all commissions,

fees or payments for investment services performed on behalf of the

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 October 31 of each year, the 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 Board. The annual

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

understandable means for analyzing the financial condition and
bsection 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 Board. 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 System for the fiscal year. The annual financial

statements must be audited and filed in accordance with the

requirements set forth for financial statement audits in Section

212A of Title 74 of the Oklahoma Statutes.

I. The Board may retain an attorney licensed to practice law in

this state. The attorney shall serve at the pleasure of the Board

for such compensation as set by the Board. The Attorney General

shall furnish such legal services as may be requested by the Board.

J. All information, documents and copies thereof contained in a

member's retirement file shall be given confidential treatment and

shall not be made public by the System without the prior written

consent of the member to which it pertains, but shall be subject

only to court order. Provided, the System, its employees or

attorneys, may use such records in defense of any action brought

against the System.

K. Effective July 1, 1999, the 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.

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L. The Executive Director and such employees of the System as

the Executive Director may designate are hereby authorized to

prepare certified copies of records of the System and every such

certified copy shall be admissible in any proceeding in any court in

like manner as the original thereof.

M. On or after July 1, 2011, the Board may permit, effective

for applicable notices, elections and consents provided or made for

a member, beneficiary, alternate payee or individual entitled to

benefits under the System, the use of electronic media to provide

applicable notices and make such elections and consents as described

in Section 1.401(a)-21 of the Income Tax Regulations.

N. The Board shall develop such procedures and may require such

information from the distributing plan as it deems necessary to

reasonably conclude that a potential rollover contribution is a

valid rollover contribution under Section 1.401(a)(31)-1, Q&A-

14(b)(2), of the Income Tax Regulations.