97B.7A INVESTMENT AND MANAGEMENT OF RETIREMENT FUND
-- STANDARDS -- IMMUNITY.
1. Investment and investment policy standards. In
establishing the investment policy of the retirement fund and
providing for the investment of the retirement fund, the system and
board shall do the following:
a. Exercise the judgment and care, under the circumstances
then prevailing, which persons of prudence, discretion, and
intelligence exercise in the management of their own affairs, not for
the purpose of speculation, but with regard to the permanent
disposition of the funds, considering the probable income, as well as
the probable safety, of their capital.
b. Give appropriate consideration to those facts and
circumstances that the system and board know or should know are
relevant to the particular investment or investment policy involved,
including the role the investment plays in the total value of the
retirement fund.
c. For the purposes of this subsection, appropriate
consideration includes, but is not limited to, a determination that
the particular investment or investment policy is reasonably designed
to further the purposes of the retirement system, taking into
consideration the risk of loss and the opportunity for gain or income
associated with the investment or investment policy and consideration
of the following factors as they relate to the retirement fund:
(1) The composition of the retirement fund with regard to
diversification.
(2) The liquidity and current return of the investments in the
retirement fund relative to the anticipated cash flow requirements of
the retirement system.
(3) The projected return of the investments relative to the
funding objectives of the retirement system.
2. Investment acquisitions. Within the limitations of the
investment standards prescribed in this section, the system may
acquire and retain every kind of property and every kind of
investment which persons of prudence, discretion, and intelligence
acquire or retain for their own account. Consistent with this
section, investments shall be made in a manner that will enhance the
economy of this state, and in particular, will result in increased
employment of the residents of this state. Investments of moneys in
the retirement fund are not subject to sections 73.15 through 73.21.
3. Liability -- reimbursement. Except as provided in section
97B.4, subsection 7, if there is loss to the retirement fund, the
treasurer of state, the system, the employees of the system, the
members of the board severally, and the board are not personally
liable, and the loss shall be charged against the retirement fund.
There is appropriated from the retirement fund the amount required to
cover a loss.
4. Investment procedures. In managing the investment of the
retirement fund, the system, in accordance with the investment policy
established by the board, is authorized to do the following:
a. To sell any securities or other property in the retirement
fund and reinvest the proceeds when such action may be deemed
advisable by the system for the protection of the retirement fund or
the preservation of the value of the investment. Such sale of
securities or other property of the retirement fund and reinvestment
shall only be made in accordance with policies of the board in the
manner and to the extent provided in this chapter.
b. To subscribe for the purchase of securities for future
delivery in anticipation of future income. The securities shall be
paid for by anticipated income or from funds from the sale of
securities or other property held by the retirement fund.
c. To pay for securities directed to be purchased upon the
receipt of the purchasing bank's paid statement or paid confirmation
of purchase.
5. Travel. In the administration of the investment of moneys
in the retirement fund, employees of the system and members of the
board may travel outside the state for the purpose of meeting with
investment firms and consultants and attending conferences and
meetings to fulfill their fiduciary responsibilities. This travel is
not subject to section 8A.512, subsection 2.
Section History: Recent Form
2001 Acts, ch 68, §11, 24; 2003 Acts, ch 145, §174, 286
Referred to in § 8A.512, 12.8, 12B.10, 12C.5, 12C.10, 97A.7,
97B.4, 97B.8A, 257B.20, 411.7, 412.4, 602.9111
97B.7A INVESTMENT AND MANAGEMENT OF RETIREMENT FUND
-- STANDARDS -- IMMUNITY.
1. Investment and investment policy standards. In
establishing the investment policy of the retirement fund and
providing for the investment of the retirement fund, the system and
board shall do the following:
a. Exercise the judgment and care, under the circumstances
then prevailing, which persons of prudence, discretion, and
intelligence exercise in the management of their own affairs, not for
the purpose of speculation, but with regard to the permanent
disposition of the funds, considering the probable income, as well as
the probable safety, of their capital.
b. Give appropriate consideration to those facts and
circumstances that the system and board know or should know are
relevant to the particular investment or investment policy involved,
including the role the investment plays in the total value of the
retirement fund.
c. For the purposes of this subsection, appropriate
consideration includes, but is not limited to, a determination that
the particular investment or investment policy is reasonably designed
to further the purposes of the retirement system, taking into
consideration the risk of loss and the opportunity for gain or income
associated with the investment or investment policy and consideration
of the following factors as they relate to the retirement fund:
(1) The composition of the retirement fund with regard to
diversification.
(2) The liquidity and current return of the investments in the
retirement fund relative to the anticipated cash flow requirements of
the retirement system.
(3) The projected return of the investments relative to the
funding objectives of the retirement system.
2. Investment acquisitions. Within the limitations of the
investment standards prescribed in this section, the system may
acquire and retain every kind of property and every kind of
investment which persons of prudence, discretion, and intelligence
acquire or retain for their own account. Consistent with this
section, investments shall be made in a manner that will enhance the
economy of this state, and in particular, will result in increased
employment of the residents of this state. Investments of moneys in
the retirement fund are not subject to sections 73.15 through 73.21.
3. Liability -- reimbursement. Except as provided in section
97B.4, subsection 7, if there is loss to the retirement fund, the
treasurer of state, the system, the employees of the system, the
members of the board severally, and the board are not personally
liable, and the loss shall be charged against the retirement fund.
There is appropriated from the retirement fund the amount required to
cover a loss.
4. Investment procedures. In managing the investment of the
retirement fund, the system, in accordance with the investment policy
established by the board, is authorized to do the following:
a. To sell any securities or other property in the retirement
fund and reinvest the proceeds when such action may be deemed
advisable by the system for the protection of the retirement fund or
the preservation of the value of the investment. Such sale of
securities or other property of the retirement fund and reinvestment
shall only be made in accordance with policies of the board in the
manner and to the extent provided in this chapter.
b. To subscribe for the purchase of securities for future
delivery in anticipation of future income. The securities shall be
paid for by anticipated income or from funds from the sale of
securities or other property held by the retirement fund.
c. To pay for securities directed to be purchased upon the
receipt of the purchasing bank's paid statement or paid confirmation
of purchase.
5. Travel. In the administration of the investment of moneys
in the retirement fund, employees of the system and members of the
board may travel outside the state for the purpose of meeting with
investment firms and consultants and attending conferences and
meetings to fulfill their fiduciary responsibilities. This travel is
not subject to section 8A.512, subsection 2.
Section History: Recent Form
2001 Acts, ch 68, §11, 24; 2003 Acts, ch 145, §174, 286
Referred to in § 8A.512, 12.8, 12B.10, 12C.5, 12C.10, 97A.7,
97B.4, 97B.8A, 257B.20, 411.7, 412.4, 602.9111
97B.7A INVESTMENT AND MANAGEMENT OF RETIREMENT FUND
-- STANDARDS -- IMMUNITY.
1. Investment and investment policy standards. In
establishing the investment policy of the retirement fund and
providing for the investment of the retirement fund, the system and
board shall do the following:
a. Exercise the judgment and care, under the circumstances
then prevailing, which persons of prudence, discretion, and
intelligence exercise in the management of their own affairs, not for
the purpose of speculation, but with regard to the permanent
disposition of the funds, considering the probable income, as well as
the probable safety, of their capital.
b. Give appropriate consideration to those facts and
circumstances that the system and board know or should know are
relevant to the particular investment or investment policy involved,
including the role the investment plays in the total value of the
retirement fund.
c. For the purposes of this subsection, appropriate
consideration includes, but is not limited to, a determination that
the particular investment or investment policy is reasonably designed
to further the purposes of the retirement system, taking into
consideration the risk of loss and the opportunity for gain or income
associated with the investment or investment policy and consideration
of the following factors as they relate to the retirement fund:
(1) The composition of the retirement fund with regard to
diversification.
(2) The liquidity and current return of the investments in the
retirement fund relative to the anticipated cash flow requirements of
the retirement system.
(3) The projected return of the investments relative to the
funding objectives of the retirement system.
2. Investment acquisitions. Within the limitations of the
investment standards prescribed in this section, the system may
acquire and retain every kind of property and every kind of
investment which persons of prudence, discretion, and intelligence
acquire or retain for their own account. Consistent with this
section, investments shall be made in a manner that will enhance the
economy of this state, and in particular, will result in increased
employment of the residents of this state. Investments of moneys in
the retirement fund are not subject to sections 73.15 through 73.21.
3. Liability -- reimbursement. Except as provided in section
97B.4, subsection 7, if there is loss to the retirement fund, the
treasurer of state, the system, the employees of the system, the
members of the board severally, and the board are not personally
liable, and the loss shall be charged against the retirement fund.
There is appropriated from the retirement fund the amount required to
cover a loss.
4. Investment procedures. In managing the investment of the
retirement fund, the system, in accordance with the investment policy
established by the board, is authorized to do the following:
a. To sell any securities or other property in the retirement
fund and reinvest the proceeds when such action may be deemed
advisable by the system for the protection of the retirement fund or
the preservation of the value of the investment. Such sale of
securities or other property of the retirement fund and reinvestment
shall only be made in accordance with policies of the board in the
manner and to the extent provided in this chapter.
b. To subscribe for the purchase of securities for future
delivery in anticipation of future income. The securities shall be
paid for by anticipated income or from funds from the sale of
securities or other property held by the retirement fund.
c. To pay for securities directed to be purchased upon the
receipt of the purchasing bank's paid statement or paid confirmation
of purchase.
5. Travel. In the administration of the investment of moneys
in the retirement fund, employees of the system and members of the
board may travel outside the state for the purpose of meeting with
investment firms and consultants and attending conferences and
meetings to fulfill their fiduciary responsibilities. This travel is
not subject to section 8A.512, subsection 2.
Section History: Recent Form
2001 Acts, ch 68, §11, 24; 2003 Acts, ch 145, §174, 286
Referred to in § 8A.512, 12.8, 12B.10, 12C.5, 12C.10, 97A.7,
97B.4, 97B.8A, 257B.20, 411.7, 412.4, 602.9111
