{"data":{"id":"us-ok/okla.-stat.-tit.-11-11-50-105.4","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 11, § 11-50-105.4","heading":"Duties of Board - Investments - Liability insurance -","body":"Investment managers - Custodial services - Reports.\n\nA. The Oklahoma Police Pension and Retirement Board shall\n\ndischarge their duties with respect to the System solely in the\n\ninterest of the participants and beneficiaries and:\n\n1. For the exclusive purpose of:\n\na. providing benefits to participants and their\n\nbeneficiaries, and\n\nb. defraying reasonable expenses of administering the\n\nSystem;\n\n2. With the care, skill, prudence, and diligence under the\n\ncircumstances then prevailing that a prudent person acting in a like\n\ncapacity and familiar with such matters would use in the conduct of\n\nan enterprise of a like character and with like aims;\n\n3. By diversifying the investments of the System so as to\n\nminimize the risk of large losses, unless under the circumstances it\n\nis clearly prudent not to do so; and\n\n4. In accordance with the laws, documents and instruments\n\ngoverning the System.\n\nB. The State Board may procure insurance indemnifying the\n\nmembers of the State Board from personal loss or accountability from\n\nliability resulting from a member’s action or inaction as a member\n\nof the State Board.\n\nC. The State Board may establish an investment committee. The\n\ninvestment committee shall be composed of not more than five (5)\n\nmembers of the State Board appointed by the chairman of the State\n\nBoard. The committee shall make recommendations to the full State\n\nBoard on all matters related to the choice of custodians and\n\nmanagers of the assets of the System, on the establishment of\n\ninvestment and fund management guidelines, and in planning future\n\ninvestment policy. The committee shall have no authority to act on\n\nbehalf of the State Board in any circumstances whatsoever. No\n\nrecommendation of the committee shall have effect as an action of\n\nthe State Board nor take effect without the approval of the State\n\nBoard as provided by law.\n\nD. The State Board shall retain qualified investment managers\n\nto provide for the investment of the monies of the System. The\n\ninvestment managers shall be chosen by a solicitation of proposals\n\non a competitive bid basis pursuant to standards set by the State\n\nBoard unless the State Board deems it necessary and prudent to do\n\notherwise to fulfill its fiduciary responsibility. Subject to the\n\noverall investment guidelines set by the State Board, the investment\n\nmanagers shall have full discretion in the management of those\n\nmonies of the System allocated to the investment managers. The\n\nState Board shall manage those monies not specifically allocated to\n\nthe investment managers. The monies of the System allocated to the\n\ninvestment managers shall be actively managed by the investment\n\nmanagers, which may include selling investments and realizing losses\n\nif such action is considered advantageous to longer term return\n\nmaximization. Because of the total return objective, no distinction\n\nshall be made for management and performance evaluation purposes\n\nbetween realized and unrealized capital gains and losses.\n\nE. Funds and revenues for investment by the investment managers\n\nor the State Board shall be placed with a custodian selected by the\n\nState Board. The custodian shall be a bank or trust company\n\noffering pension fund master trustee and master custodial services\n\nand any related custodial agreement or trust agreement is\n\nincorporated herein by reference. The custodian shall be chosen by\n\na solicitation of proposals on a competitive basis pursuant to\n\nstandards set by the State Board. In compliance with the investment\n\npolicy guidelines of the State Board, the custodian bank or trust\n\ncompany shall be contractually responsible for ensuring that all\n\nmonies of the System are invested in income-producing investment\n\nvehicles at all times. If a custodian bank or trust company has not\n\nreceived direction from the investment managers of the System as to\ndards set by the State Board. In compliance with the investment\n\npolicy guidelines of the State Board, the custodian bank or trust\n\ncompany shall be contractually responsible for ensuring that all\n\nmonies of the System are invested in income-producing investment\n\nvehicles at all times. If a custodian bank or trust company has not\n\nreceived direction from the investment managers of the System as to\n\nthe investment of the monies of the System in specific investment\n\nvehicles, the custodian bank or trust company shall be contractually\n\nresponsible to the State Board for investing the monies in\n\nappropriately collateralized short-term interest-bearing investment\n\nvehicles. Any assets of the System may be invested in a collective\n\ninvestment fund or in a group trust that satisfies the requirements\n\nof Rev. Rul. 81-100, as further amended by Rev. Rul. 2004-67, Rev.\n\nRul. 2008-40, and Rev. Rul. 2011-1, and as subsequently amended by\n\nfuture guidance. Each such collective investment fund or group\n\ntrust is adopted, with respect to any monies invested therein, as\n\npart of the System, its trust, and custodial account and each such\n\ndeclaration of trust or trust agreement and related adoption,\n\nparticipation, investment management, subtrust or other agreements,\n\nas amended from time to time, with respect to any monies invested\n\ntherein, are incorporated by reference into the System, its trust\n\nagreement(s) or custodial agreement(s), upon approval by the State\n\nBoard.\n\nF. By November 1, 1988, and prior to August 1 of each year\n\nthereafter, the State Board shall develop a written investment plan\n\nfor the System.\n\nG. After July 1 and before November 1 of each year, the State\n\nBoard shall publish widely an annual report presented in simple and\n\neasily understood language pursuant to uniform reporting standards\n\nprescribed by the Oklahoma State Pension Commission for all state\n\nretirement systems. The report shall be submitted to the Governor,\n\nthe Speaker of the House of Representatives, the President Pro\n\nTempore of the Senate, the Oklahoma State Pension Commission and the\n\nmembers of the System. The annual report shall cover the operation\n\nof the System during the past fiscal year, including income,\n\ndisbursements, and the financial condition of the System at the end\n\nof the fiscal year. The annual report shall also contain a summary\n\nof the results of the most recent actuarial valuation to include\n\ntotal assets, total liabilities, unfunded liability or over funded\n\nstatus, contributions and any other information deemed relevant by\n\nthe State Board. The annual report shall be written in such a\n\nmanner as to permit a readily understandable means for analyzing the\n\nfinancial condition and performances of the System for the fiscal\n\nyear.\n\nH. The State Board shall adopt a cost of living adjustment\n\nactuarial assumption in its annual actuarial valuation report.","path":["OK Code","Title 11"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os11.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"a7bbeab6eee65d6341e0982e410737f69b5c6f38086f38ddfefe4cc0770cccd0","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-11-11-50-105.3","next":"us-ok/okla.-stat.-tit.-11-11-50-105.5"},"notice":"GroundRules: Original legal text. Not legal advice."}