Sec. 2-1505. Establishment of trust and fiduciary responsibilities.
A. The assets of the program, including all deferred compensation contributions, property, rights purchased with deferred compensation, and all income attributable to such assets, are held in trust by the Board for the exclusive benefit of participants and their beneficiaries. The trust is intended to be exempt from taxation under sections 401(a), 457(g) and 501(a) of the Internal Revenue Code of 1986, as amended.
B. The fiduciaries shall:
1. Act with the care, skill, prudence, and diligence under the circumstances then prevailing that a person acting in a like capacity and familiar with such matters would use in the conduct of an activity of like character and purpose in the sole interest of the participants and their beneficiaries.
2. Incur only costs that are appropriate and reasonable.
3. Act in accordance with the laws governing the program.
C. The fiduciaries, except for plans or providers of services to the program, shall not be responsible for any loss due to investment or failure of the investment funds and assets in the program. The City shall not be required to replace any loss which may result from any investment.
D. Fiduciaries shall be liable to the trust for any losses resulting from a breach of their fiduciary duties. Each fiduciary is responsible only for duties or responsibilities specifically assigned under the program, or duties delegated by another fiduciary. No fiduciary shall be responsible for the actions or inactions of another fiduciary, except for conduct:
1. In which the fiduciary participated.
2. Known by the fiduciary to violate duties under the program and for which the fiduciary did not take reasonable steps to redress the wrong.
3. That should have been known by the fiduciary to violate duties under the program and for which the fiduciary did not take reasonable steps to redress the wrong.
E. Members are personally immune from suit with respect to acts done and actions taken in good faith and in furtherance of the purposes of this article.
F. Fiduciaries are not liable for any loss resulting from an individual participant’s exercise of investment control as permitted under the program. (Ord. No. G-4634, § 3, 2004)