§ 4-12-2. Pension investment committee.

There is hereby created and established a pension investment committee which, under the provisions of this chapter, shall implement approved policies and guidelines, review and recommend amendments to the statement of investment objectives, created by the pension board, in light of changing circumstances or conditions, and other responsibilities and functions as may be reasonably necessary or advisable to the fulfillment of its duties.

A.

The committee shall consist of the finance director, the two deputy finance directors, the treasurer, the comptroller, the investment manager, the senior investment analyst, one citizen member, three business members of the community and a member of the city council. The citizen and business members of the committee shall be appointed on the first Tuesday in December in odd-numbered years by the pension board on the recommendation of pension board members, for a two-year appointment which shall begin on the January 1 next following the appointment. The council member of the committee shall be the chairman of the city council or the chairman's designee who shall be appointed each December, to serve for one year beginning on the January 1 next following the appointment and shall be an ex officio member without a vote.

B.

The committee shall be authorized and empowered to report and make recommendations to the pension board to invest and reinvest the principal and income of the trust fund in any and all stocks (common or preferred), bonds, mutual funds, notes, debentures, mortgages, equipment, trust certificates and in other evidences of indebtedness or ownership and such other property, real or personal, investments and securities of any kind, class, character or location, as well as in units of any commingled, collective, common pooled or mutual trust fund, savings accounts, certificates of deposit and time deposits of a bank described pursuant to section 4-12-3; provided that the total sum invested in common stocks, convertible bonds or debentures shall not exceed 65 percent of the total trust fund; and further, provided, that all investments shall be of a quality grade, all commercial class "A" or comparable; and provided, further, that the total real estate investments shall not exceed five percent of the total trust fund portfolio; and shall be limited to commingled pools in corporate institutions showing an annual corporate real estate inventory of at least $5,000,000.00, with all such holdings of real estate or property to be of declared legal status in the United States; and

1.

To keep in its discretion, such portion of the trust fund in cash or cash balances as the comptroller may from time to time deem to be in the best interest of the trust fund.

C.

Specific functions of the investment committee include, but are not limited to, the following:

1.

Periodic review of the statement of investment objectives to evaluate whether it adequately accommodates changes related to the pension fund, the pension plan, and the investment markets, all in a manner consistent with the requirements outlined in subsection (B) of this section and the long term investment objectives, financial needs, and circumstances of the pension plan;

2.

Monitor and evaluate the performance of the pension fund assets as a whole and report to the pension board on such performance quarterly;

3.

Select, monitor, evaluate and terminate investment advisers and investment products;

4.

Selection or termination of consultants, counsel with oversight from the city attorney's office, custodians, and other professional advisers or agents whose services are necessary or advisable to assist in the investment of pension fund assets or the ability of the committee to carry out its duties;

5.

Such other activities as may be reasonably related to the foregoing.

D.

Regular meetings of the investment committee shall be held quarterly for the purpose of reviewing the performance measurement and other reports provided by the investment consultant in respect to each adviser and the pension fund as a whole, generally reviewing the statement of investment objectives, asset allocation strategy, and investment adviser strategies, meeting with investment advisers to the pension fund, and other relevant matters as may come to the attention of the committee or its advisers. The date, time, and place of such meetings shall be determined by the chairperson. At the option of the chairperson, one of the four quarterly meetings may be designated an annual meeting. The chairperson may also call additional meetings as needed.

E.

Representatives of the investment committee and the investment consultant shall meet with the pension board periodically, as requested by the pension board, but not less than annually, to report on the status of the pension fund's investment activities, the committee's activities, and to make recommendations, as necessary and advisable to the pension board.

F.

Representatives of the investment committee and the investment consultant shall make semi-annual reports to the personnel, intergovernmental and annexation committee along with recommendations on the city's investment policy.

(Ord. No. 5169, § 1, 7-21-2006)

State law reference

Open meetings act, T.C.A. § 8-44-101 et seq.