Governs state and local public retirement systems
- Provides standards for a “governing body” of a system
- A governing body is the board of trustees, pension board or other governing body that “has the fiduciary responsibility for assets of the system and has the duties of overseeing the investment and expenditure of funds of the system and the administration of benefits of the system”
802 Subchapter B – Studies and Reports
Actuarial valuation; audits and accounting; complaints and correcting benefit payments
Section 802.201
“The governing body of a retirement system shall hold or cause to be held in trust the assets appropriated or dedicated to the system, for the benefit of the members and retirees of the system and their beneficiaries.”
Section 802.202
“The governing body of a public retirement system is responsible for management and administration of the funds of the system.”
Section 802.203
In making and supervising investments an investment manager or the governing body shall discharge its duties solely in the interest of the participants and beneficiaries . . .
- for the exclusive purposes of a) providing benefits to participants and their beneficiaries, and b) defraying reasonable expenses of administering the system
- With the care, skill, prudence, and diligence under the prevailing circumstances that a prudent person acting in a like capacity and familiar with matters of the type would use in the conduct of an enterprise with a like character and like aims
- By diversifying the investments of the system to minimize the risk of large losses, unless under the circumstances it is clearly prudent not to do so
- In accordance with the documents and instruments governing the system to the extent that the documents and instruments are consistent with this subchapter