{"data":{"id":"us-ok/okla.-stat.-tit.-74-74-909.1","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 74, § 74-909.1","heading":"Duties of Board - Investments - Liability insurance -","body":"Investment managers - Custodial services - Reports.\n\nA. The Oklahoma Public Employees Retirement System Board of\n\nTrustees shall discharge their duties with respect to the System\n\nsolely in the interest 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 of Trustees may procure insurance indemnifying the\n\nmembers of the Board of Trustees from personal loss or\n\naccountability from liability resulting from a member's action or\n\ninaction as a member of the Board of Trustees.\n\nC. The Board of Trustees may establish an investment committee.\n\nThe investment committee shall be composed of not more than five (5)\n\nmembers of the Board of Trustees appointed by the chairman of the\n\nBoard of Trustees. The committee shall make recommendations to the\n\nfull Board of Trustees on all matters related to the choice of\n\ncustodians and managers of the assets of the System, on the\n\nestablishment of investment and fund management guidelines, and in\n\nplanning future investment policy. The committee shall have no\n\nauthority to act on behalf of the Board of Trustees in any\n\ncircumstances whatsoever. No recommendation of the committee shall\n\nhave effect as an action of the Board of Trustees nor take effect\n\nwithout the approval of the Board of Trustees as provided by law.\n\nD. The Board of Trustees shall retain qualified investment\n\nmanagers to provide for the investment of the monies of the System.\n\nThe investment managers shall be chosen by a solicitation of\n\nproposals on a competitive bid basis pursuant to standards set by\n\nthe Board of Trustees. Subject to the overall investment guidelines\n\nset by the Board of Trustees, the investment managers shall have\n\nfull discretion in the management of those monies of the System\n\nallocated to the investment managers. The Board of Trustees shall\n\nmanage those monies not specifically allocated to the investment\n\nmanagers. The monies of the System allocated to the investment\n\nmanagers shall be managed by the investment managers, which may\n\ninclude selling investments and realizing losses if such action is\n\nconsidered advantageous to longer term return maximization. Because\n\nof the total return objective, no distinction shall be made for\n\nmanagement and performance evaluation purposes between realized and\n\nunrealized capital gains and losses.\n\nE. Funds and revenues for investment by the investment managers\n\nor the Board of Trustees shall be placed with a custodian selected\n\nby the Board of Trustees. The custodian shall be a bank or trust\n\ncompany offering pension fund master trustee and master custodial\n\nservices. The custodian shall be chosen by a solicitation of\n\nproposals on a competitive basis pursuant to standards set by the\n\nBoard of Trustees. In compliance with the investment policy\n\nguidelines of the Board of Trustees, 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\nuidelines of the Board of Trustees, 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 Board of Trustees for investing the monies in\n\nappropriately collateralized short-term interest-bearing investment\n\nvehicles.\n\nF. By November 1, 1988, and prior to August 1 of each year\n\nthereafter, the Board of Trustees shall develop a written investment\n\nplan for the System.\n\nG. The Board of Trustees shall compile a quarterly financial\n\nreport of all the funds of the System on a fiscal year basis. The\n\nreport shall be compiled pursuant to uniform reporting standards\n\nprescribed by the Oklahoma State Pension Commission for all state\n\nretirement systems. The report shall include several relevant\n\nmeasures of investment value, including acquisition cost and current\n\nfair market value with appropriate summaries of total holdings and\n\nreturns. The report shall contain combined and individual rate of\n\nreturns of the investment managers by category of investment, over\n\nperiods of time. The Board of Trustees shall include in the\n\nquarterly reports all commissions, fees or payments for investment\n\nservices performed on behalf of the Board. The report shall be\n\ndistributed to the Governor, the Oklahoma State Pension Commission,\n\nthe Speaker of the House of Representatives and the President Pro\n\nTempore of the Senate. In lieu of compiling and distributing the\n\nquarterly report, the Board may provide the Pension Commission with\n\ndirect access to the same data from the custodian bank for the\n\nSystem.\n\nH. After July 1 and before December 1 of each year, the Board\n\nof Trustees shall publish widely an annual report presented in\n\nsimple and easily understood language pursuant to uniform reporting\n\nstandards prescribed by the Oklahoma State Pension Commission for\n\nall state retirement systems. The report shall be submitted to the\n\nGovernor, the Speaker of the House of Representatives, the President\n\nPro Tempore of the Senate, the Oklahoma State Pension Commission and\n\nthe members of the System. The annual report shall cover the\n\noperation of the System during the past fiscal year, including\n\nincome, disbursements, and the financial condition of the System at\n\nthe end of the fiscal year. The annual report shall also contain\n\nthe information 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 of Trustees.\n\nThe annual report shall be written in such a manner as to permit a\n\nreadily understandable means for analyzing the financial condition\n\nand performance of the System for the fiscal year.\n\nI. The Board shall distribute the corpus and income of the\n\nSystem to the members and their beneficiaries in accordance with the\n\nSystem's laws and rules and regulations. At no time prior to the\n\nsatisfaction of all liabilities with respect to members and their\n\nbeneficiaries shall any part of the corpus and income be used for,\n\nor diverted to, purposes other than the exclusive benefit of the\n\nmembers and their beneficiaries.","path":["OK Code","Title 74"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os74.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"3a384261463281867e300f8ccca58edc17a57dc28e0ab07203eb4210ff1ee908","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-74-74-909","next":"us-ok/okla.-stat.-tit.-74-74-909.2"},"notice":"GroundRules: Original legal text. Not legal advice."}