{"data":{"id":"us-ok/okla.-stat.-tit.-47-47-2-303.1","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 47, § 47-2-303.1","heading":"Duties of board - Investments - Liability insurance -","body":"Investment managers - Custodial services - Reports - Legal services\n\n- Confidentiality.\n\nA. The Oklahoma Law Enforcement Retirement Board shall\n\ndischarge its 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 Board may procure insurance indemnifying the members of\n\nthe Board from personal loss or accountability from liability\n\nresulting from a member's action or inaction as a member of the\n\nBoard.\n\nC. The Board may establish an investment committee. The\n\ninvestment committee shall be composed of not more than five (5)\n\nmembers of the Board appointed by the president of the Board. The\n\ncommittee shall make recommendations to the full Board on all\n\nmatters related to the choice of custodians and managers of the\n\nassets of the System, on the establishment of investment and fund\n\nmanagement guidelines, and in planning future investment policy.\n\nThe committee shall have no authority to act on behalf of the Board\n\nin any circumstances whatsoever. No recommendation of the committee\n\nshall have effect as an action of the Board nor take effect without\n\nthe approval of the Board as provided by law.\n\nD. The Board shall retain qualified investment managers to\n\nprovide 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 Board.\n\nSubject to the overall investment guidelines set by the Board, the\n\ninvestment managers shall have full discretion in the management of\n\nthose monies of the System allocated to the investment managers.\n\nThe 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. All assets of the System shall be held in trust for the\n\nexclusive purpose of providing benefits for the members and\n\nbeneficiaries of the System, including defraying reasonable expenses\n\nof administering the System, and shall not be encumbered for or\n\ndiverted to any other purposes. Funds and revenues for investment\n\nby the investment managers or the Board shall be placed with a\n\ncustodian selected by the Board. The custodian shall be a bank or\n\ntrust company offering pension fund master trustee and master\n\ncustodial services, and any related custodial agreement or trust\n\nagreement is incorporated herein by reference. The custodian shall\n\nbe chosen by a solicitation of proposals on a competitive bid basis\n\npursuant to standards set by the Board. In compliance with the\n\ninvestment policy guidelines of the Board, the custodian bank or\n\ntrust company shall be contractually responsible for ensuring that\n\nall monies of the System are invested in income-producing investment\n\nvehicles at all times. If a custodian bank or trust company has not\nhosen by a solicitation of proposals on a competitive bid basis\n\npursuant to standards set by the Board. In compliance with the\n\ninvestment policy guidelines of the Board, the custodian bank or\n\ntrust company shall be contractually responsible for ensuring that\n\nall monies 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 Board for investing the monies in appropriately\n\ncollateralized short-term interest-bearing investment vehicles. Any\n\nassets of the System may be invested in a collective investment fund\n\nor in a group trust provided the investment in such collective\n\ninvestment fund or group trust is in compliance with the provisions\n\nof Rev. Rul. 81-100, as further amended by Rev. Rul. 2004-67, Rev.\n\nRul. 2008-40, and Rev. Rul. 2011-1, or any successor ruling,\n\nregulation, or similar pronouncement. Each such collective\n\ninvestment fund or group trust is adopted with respect to any monies\n\ninvested therein, as part of the System, its trust and custodial\n\nagreement, and the provisions of such trust agreement or such\n\ndeclaration of trust and related adoption, participation, investment\n\nmanagement, subtrust or other agreements, as amended from time to\n\ntime, with respect to any monies invested therein, are incorporated\n\nby reference into the System, its trust agreement(s) or custodial\n\nagreement(s), upon approval by the Board.\n\nF. Prior to August 1 of each year, the Board shall develop a\n\nwritten investment plan for the System.\n\nG. The Board shall compile a quarterly financial report of all\n\nthe funds of the System on a fiscal year basis. The report shall be\n\ncompiled pursuant to uniform reporting standards prescribed by the\n\nOklahoma State Pension Commission for all state retirement systems.\n\nThe report shall include several relevant measures of investment\n\nvalue, including acquisition cost and current fair market value with\n\nappropriate summaries of total holdings and returns. The report\n\nshall contain combined and individual rate of returns of the\n\ninvestment managers by category of investment, over periods of time.\n\nThe Board shall include in the quarterly reports all commissions,\n\nfees or payments for investment services performed on behalf of the\n\nBoard. The report shall be distributed to the Governor, the\n\nOklahoma State Pension Commission, the Legislative Service Bureau,\n\nthe Speaker of the House of Representatives and the President Pro\n\nTempore of the Senate.\n\nH. After July 1 and before October 31 of each year, the Board\n\nshall publish widely an annual report presented in simple and easily\n\nunderstood 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 the\n\ninformation issued in the quarterly reports required pursuant to\n\nsubsection G of this section as well as a summary of the results of\n\nthe most recent actuarial valuation to include total assets, total\n\nliabilities, unfunded liability or over funded status, contributions\n\nand any other information deemed relevant by the Board. The annual\n\nreport shall be written in such a manner as to permit a readily\n\nunderstandable means for analyzing the financial condition and\nbsection G of this section as well as a summary of the results of\n\nthe most recent actuarial valuation to include total assets, total\n\nliabilities, unfunded liability or over funded status, contributions\n\nand any other information deemed relevant by the Board. The annual\n\nreport shall be written in such a manner as to permit a readily\n\nunderstandable means for analyzing the financial condition and\n\nperformance of the System for the fiscal year. The annual financial\n\nstatements must be audited and filed in accordance with the\n\nrequirements set forth for financial statement audits in Section\n\n212A of Title 74 of the Oklahoma Statutes.\n\nI. The Board may retain an attorney licensed to practice law in\n\nthis state. The attorney shall serve at the pleasure of the Board\n\nfor such compensation as set by the Board. The Attorney General\n\nshall furnish such legal services as may be requested by the Board.\n\nJ. All information, documents and copies thereof contained in a\n\nmember's retirement file shall be given confidential treatment and\n\nshall not be made public by the System without the prior written\n\nconsent of the member to which it pertains, but shall be subject\n\nonly to court order. Provided, the System, its employees or\n\nattorneys, may use such records in defense of any action brought\n\nagainst the System.\n\nK. Effective July 1, 1999, the Board is hereby authorized to do\n\nall acts and things necessary and proper to carry out the purpose of\n\nthe System and to make the least costly amendments and changes, if\n\nany, as may be necessary to qualify the System under the applicable\n\nsections of the Internal Revenue Code of 1986, as amended.\n\nL. The Executive Director and such employees of the System as\n\nthe Executive Director may designate are hereby authorized to\n\nprepare certified copies of records of the System and every such\n\ncertified copy shall be admissible in any proceeding in any court in\n\nlike manner as the original thereof.\n\nM. On or after July 1, 2011, the Board may permit, effective\n\nfor applicable notices, elections and consents provided or made for\n\na member, beneficiary, alternate payee or individual entitled to\n\nbenefits under the System, the use of electronic media to provide\n\napplicable notices and make such elections and consents as described\n\nin Section 1.401(a)-21 of the Income Tax Regulations.\n\nN. The Board shall develop such procedures and may require such\n\ninformation from the distributing plan as it deems necessary to\n\nreasonably conclude that a potential rollover contribution is a\n\nvalid rollover contribution under Section 1.401(a)(31)-1, Q\u0026A-\n\n14(b)(2), of the Income Tax Regulations.","path":["OK Code","Title 47"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os47.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"049787a94a5ff76670720ec2442c085d22f68d795a9e39b5453f79706c25164b","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-47-47-2-303","next":"us-ok/okla.-stat.-tit.-47-47-2-303.2"},"notice":"GroundRules: Original legal text. Not legal advice."}