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HomeMy WebLinkAboutHandouts_Pension General_Tab 06_08/04/2008May 10, 2005 and be bound by all of the provisions of Chapter 280, Florida Statutes. In order to fulfill its investment responsibilities as set forth herein, the Board may retain the services of a custodian bank or banks, an investment advisor or advisors registered under Investment Advisors Act of 1940, registered broker dealer or otherwise exempt from such required registration, an insurance company, or a combination of these, for the purposes of investment decisions and management. Such investment manager or managers shall have discretion. subject to any guidelines as prescribed by the Board, in the investment of all fund assets. - - 4. Accurate records shall be maintained at all times reflecting the market valuations of funds and assets of the ,Fund, .including accurate. current ~ accounts and .entries as regards the following: ~ ~ - ~ - - - -- A. Current amounts of Accumulated Contributions of Members on both an individual and aggregate account basis, and - B. Receipts and disbursements, and C. Benefit payments, and D. Current amounts clearly reflecting all moneys, funds and assets whatsoeverattributable to contributions and deposits from the Village, - - County or State, and E. All interest, dividends and gains (or losses) whatsoever, and F. Such other entries as may be properly required so as to reflect a clear and complete financial report of the Fund. 5. An independent audit shall be performed annually by a certified public accountantfor the most recent fiscal year of the Village showing a detailed listing of assets and a statement of all income and disbursements during the year for each Fund. Such income and disbursements must be reconciled with the assets at the beginning and end. of the year. Such report shall reflect ~mplete evaluations of assets on both a cost and market basis, as well as other items normally included in a certified audit. 6. The Board of Trustees shall have the following investment powers and a uthority: A. The Board of Trustees shall be vested with full legal title to the Fund, subject, however, and in any event to the authority and power of the Tequesta Village Council to amend or terminate this Trust, provided that no amendment or Fund termination shall ever result in the use of 7 May 10, 2005 any assets of the Fund except for the payment of regular expenses and benefits under this System. Alf contributions from time to time paid into the Fund, and the. income thereof, without distinction between principal and income, shalt be held in the Fund and administered by the Board or its Agents. B. All moneys paid into or to be held by the Fund shall be invested and reinvested by the Board and the investment of al! or any part of such funds shall be limited to: (1) : .Annuity and life.. insurance . _contracts of .life insurance.,... .. companies in amounts suffiaent to provide, in whole or in part. the benefits to which all of the participants in the Fund shall be entitled under the provisions of the Plan and pay the initial and subsequent premium thereon. (2) Time or savings accounts of a national bank, a state bank insured by the Bank Insurance Fund, or a savings and loan association insured by the Savings Association Insurance Fund which is administered by the Federal Deposit Insurance Corporation or a state or federal chartered credit union whose share accounts are insured bythe National.Credit Union Share Insurance Fund. (3) Obligations of the United States or obligations guaranteed as to principal and interest by the government of the United States. (4) Bonds, stocks, commingled funds administered by National or State Banks or evidences ~of indebtedness issued or guaranteed by a corporation organized under the laws of the United States, or registered investment company pursuant to the Investment Advisors Act of 1940, any state or organized territory of the United States, or the District of Columbia, provided that the corporation is traded on a nationally recognized Exchange and in the case of bonds only holds a rating in one of the ##~ree four highest classifigtions by a major rating service, and if such investments are made in a pooled fund administered by a state or national bank, then the rating of each issue in the pooled fund shall hold a rating within the top three (3) rating classifications of a major rating service. (5) Real estate. 8 May 10, 2005 (6) All monies paid into or held in the Pension Fund shall be invested and reinvested by the Board of Trustees and the investment of ail or any part of such funds shall be invested in accordance with an established investment policy adopted by the Board of Trustees. (7) Up to 10% of the Plan assets may be invested in foreign securities. C. The Board of Trustees shall not invest more than five percent (5%) of its assets. in the common stock or capital stock 'of any one issuing company, nor shall the aggregate ~ investment iri -any, one issuing company exceed five percent {5%) of the outstanding capital stock of that company; nor shall the aggn,gate of its investments in common stock, capital stock and convertible bonds at cost exceed sixty percent (60%) of the assets of the Fund. D. The Board of Trustees may retain in cash and keep unproductive of income such amauntofthe Fund as they maydeem advisable. having regard for the cash requirements of the System. E. No person or entity shall be liable for the making, retention or sale of any investment or reinvestment made as herein provided, nor for any loss or diminishment of the Fund, except that due to his/her or its awn negligence, willful misconduct or lack of good faith. F.~ The Board may cause any investment in securities held to be registered in or transferred into their name as Trustee or into the name of such nominee as they may direct, or they may retain them unregistered and in form permitting transferability, but the books and records shall at all times show that all investments are part of the Trust Fund. G. The Board is empowered to vote upon any stocks, bonds or securities of any corporation, association, or trust and to give general or specific proxies or powers of attorney with or without power of substitution; to participate in mergers, reorganizations, recapitalization, consolidations and similar transactions with respect to such securities; to deposit such stock or other securities in any voting trust or any protective or like committee with the Trustees or with depositories designated thereby; to amortize or fail to amortize any part of all of the premium or discount resulting from the acquisition or disposition of assets; and generally to exercise any of the powers of an ownerwith 9 EXHIBIT VANGUARD INDEX FUND: PROSPECTUS EXCERPT https•//personal vanguard.com/us/FundsStrategyAndPolicy?FundId=0040&FundIntE xt=INT Investment policy The fund reserves the right to invest, to a limited extent, in stock futures and options contracts, warrants, convertible securities, and swap agreements, which are types of derivatives. It may use these investments for two reasons: to keep cash on hand to meet shareholder redemptions or other needs while simulating full investment in stocks or to reduce costs by buying futures instead of actual stocks when futures are cheaper. Losses (or gains) involving futures and options contracts can be substantial-in part because a relatively small price movement in a contract may result in an immediate and substantial loss (or gain) for the fund. Similar risks exist for warrants, convertible securities, and swap agreements. For this reason, the fund will not use such investments for speculative purposes. Only a limited percentage of its assets may be committed to them. To track its target index as closely as possible, the Fund attempts to remain fully invested in stocks. To help stay fully invested and to reduce transaction costs, the Fund may invest, to a limited extent, in derivatives. Generally speaking, a derivative is a financial contract whose value is based on the value of a financial asset (such as a stock, bond, or currency), a physical asset (such as gold), or a market index (such as the S&P 500 Index). The Fund will not use derivatives for speculation or for the purpose of leveraging (magnifying) investment returns.