DRAFT: March 27, 2007

FresnoCounty Employees’ Retirement Association

Board of Retirement Charter

Introduction

  1. The Board of Retirement (the “Board”) consists of nine (9) members and two (2) alternates. Under the provisions of the County Employees Retirement Law of 1937 (the “1937 Act”), the Board is responsible for overseeing all facets of the administration of the FCERA, including investment, actuarial, member service, and operational functions. The Board is committed to carrying out this policy and oversight role consistent with the highest standards of fiduciary practice. In support of this commitment, the Board has established this charter to guide the Board in carrying out its duties.

Duties and Responsibilities

Governance

  1. The Board will:
  2. Administer the retirement system as provided by law;
  3. Adopt bylaws for its own governanceand regulations consistent with the 1937 Act, which will become effective when approved by the Board of Supervisors; (§31525 & §31526)[1]
  4. Approve governance policies setting out the governance practices of the Board, and amend such policies as necessary;
  5. Approve charters describing the roles and responsibilities of the Board, each committee of the Board, board officers, and the Retirement Administrator, and amend said charters as necessary;
  6. Annually elect a Chair and a Vice Chair;
  7. Establish and disband standing and ad hoc board committees as needed;
  8. Approve the appointment of members to standing, ad hoc, or special committees;
  9. Review all policies, charters, regulations, and bylaws, on a periodic basis; and
  10. Approve a strategic plan and any updates thereto.

Investments

  1. The Board has exclusive control of the assets of FCERA. The assets of the FCERA are trust funds and, as such, the Board will manage the Fund:
  2. Solely in the interest of, and for the exclusive purposes of providing benefits to, participants and their beneficiaries, and defraying reasonable expenses of administering the FCERA;
  3. With the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with these matters would use in the conduct of an enterprise of a like character and with like aims; and
  4. By diversifying the investments of the FCERA so as to minimize the risk of loss and to maximize the rate of return, unless under the circumstances it is clearly not prudent to do so.
  5. The Board will commission asset allocation or asset/liability studies as required to determine the appropriate asset mix for the Fund.
  6. The Board will approve a written investment policy and any other investment policies that may be required or advisable, and will amend such policies as necessary.

Benefits Administration and Operations

  1. The Board will:
  2. Approve policies necessary to ensure effective benefit administration, and amend them as necessary;
  3. Approve all qualified members who apply for service retirement; (§31670)
  4. Determine the merits of applications for disability benefits, making necessary determinations of service and permanency of injury; (§31720)(see also Hearings Policy)
  5. Act on member appeals of decisions made by FCERA Administration;
  6. Annually approve cost-of-living adjustments; (§31870)
  7. Approve the annual Operating Budget and any changes thereto;
  8. Approve a staff travel policy;
  9. Approve the location of the FCERA’s operations; and
  10. Ensure that measures are in place to provide for the security and continuity of the FCERA operations.

Financial, Actuarial and Accounting

  1. The Board will:
  2. Approve accounting and actuarial policies, and amend them as necessary;
  3. Approve the adoption of appropriate actuarial assumptions and methodologies;
  4. Accept the annual actuarial valuation upon the advice of the Actuary;
  5. Recommend to the Board of Supervisors such changes in the rates of interest, in the rates of contributions of members, and in county and district appropriations, as may be necessary; (§31453)
  6. Ensure a financial audit is conducted at least annually; (§31593)
  7. Approve the audited financial statements;
  8. Commission actuarial experience studies as required; and
  9. Commission an actuarial audit on a periodic basis.

Human Resources

  1. The Board will appoint the Retirement Administrator, who will serve at the pleasure of the Board. (§31522.2)
  2. The Board will establish a process for effectively evaluating the performance of the Retirement Administrator.
  3. The Board will annually evaluate the performance of the Retirement Administrator and determine the Retirement Administrator’s evaluation process, compensation, and benefits.

Legislation, Litigation and Legal Affairs

  1. The Board will initiate, support, or oppose legislative proposals where it deems such actions are in the best interest of the System and its members and beneficiaries.
  2. The Board will:
  3. Approve actions concerning lawsuits that may affect the investments, benefits, or funding of the FCERA; and
  4. Approve a securities litigation policy and any other necessary policies concerning litigation.

Advisors and Service Providers

  1. The Board will approve policies to provide for clear delegation and prudent due diligence with respect to the selection of service providers, and amend them as necessary.
  2. The Board will appoint, and may terminate the following primary service providers:
  3. The actuary;
  4. The external auditor;
  5. The custodian; (§31529.5)
  6. The general investment consultant;
  7. Investment managers;
  8. Transition managers, securities lending managers, and commission recapture brokers;
  9. Legal Counsel;
  10. General partners for real estate and private equity investments;
  11. The actuarial auditor;
  12. Human resource consultants [that may be necessary to assist in filling vacancies in the position of Retirement Administrator]; and
  13. Other providers of goods and services where the total value of the goods to be provided or the services to be rendered during a 12-month period is expected to exceed $50,000.[2]
  14. The Board, committees of the Board, and board members shall direct service providers only during public board and committee meetings.

Monitoring and Reporting

  1. The Board will work with administrationto ensure that the Board and its committees receive all necessary information and reporting to enable them to effectively carry out their duties.
  2. The Board will monitor key aspects of the FCERA including, but not limited to:
  1. The assets and liabilities of the FCERA;
  2. The investment performance of the Fund;
  3. Compliance with all policies of the Board;
  4. Compliance with the Operating Budget;
  5. Ongoing litigation;
  6. Implementation of strategic or business plans;
  7. The performance of the Retirement Administrator;
  8. The performance of primary service providers; and
  9. The performance of the Board itself.

Charter Review and History

  1. The Boardwill review this Charter at least every 3 years.
  2. This Charter was adopted by the Board on [Day, Month, Year].

Secretary’s Certificate

I, Roberto L. Peña, the duly appointed Secretary of the Fresno County Employees’ Retirement Association, hereby certify the adoption of this Charter.

Dated: ______, 2007

______

Roberto L. Peña, Secretary to the Board

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DRAFT: March 27, 2007

FresnoCounty Employees’ Retirement Association

Chair Charter

Introduction

  1. The Board of Retirement will elect one (1) board memberas Chair to hold office for a period of one (1) year or until a successor is duly elected and qualified. (FCERA Bylaw, §A1) The Chair will exercise the powers and will perform the duties and functions specified herein.

Duties and Responsibilities

  1. The Chair will:
  2. Preside at meetings of the Board, ensuring that such meetings are conducted in a lawful,efficient, and effective manner;
  3. Ensure coordination of board meetings, agendas, schedules, and presentations, in consultation with the Retirement Administrator;
  4. Recommend to the Board members to be appointed to standing, ad hoc, or special committees, after seeking input from the Board during board meetings;[3]
  5. In situations that call for an official spokesperson to communicate on behalf of the FCERA, determine jointly with the Retirement Administrator who will act in such capacity on a case-by-case basis;
  6. Review travel and other job-related expenditures of the Retirement Administrator; (Travel Policy, §5)
  7. Review and approve travel and other job-related expenditures for the other board members;[4](Travel Policy, §5)
  8. Discuss and assess the concerns of any board memberabout the conduct of the Board or the conduct of individual board members, and take appropriate action, consulting with legal counsel, if necessary(see Code of Conduct);
  9. Execute all agreements with the primary service providers (see Board Charter);
  10. Sign subpoenas if the Secretary to the Board is unavailable; (1937 Act §31535)
  11. Carry out such other functions and duties as may be prescribed by the Board; and
  12. Be responsible to assure Board and system compliance with all filing and disclosure requirements.

Charter Review and History

  1. The Board shall review this charter at least every three years.
  2. This Charter was adopted by the Board on [Month, Day, Year].

Secretary’s Certificate

I, Roberto L. Peña, the duly appointed Secretary of the Fresno County Employees’ Retirement Association, hereby certify the adoption of this Charter.

Dated: ______, 2007

______

Roberto L. Peña, Secretary to the Board

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DRAFT: March 27, 2007

FresnoCounty Employees’ Retirement Association

Vice Chair Charter

Introduction

  1. The Board of Retirement will elect one (1) board memberas Vice Chair to hold office for a period of one (1) year or until a successor is duly elected and qualified. (FCERA Bylaw, §A1) The Vice Chair will exercise the powers and perform the duties and functions specified herein.

Duties and Responsibilities

  1. The Vice Chair will:
  2. Assume the duties of the Chair in the absence of the Chair;
  3. Discuss and assess the concerns of any board memberabout the conduct of the Chair, and take appropriate action, consulting with counsel, if necessary; and(see Code of Conduct)
  4. Review and approve the travel expenditures of the Chair. [Travel Policy, §5]

Charter Review and History

  1. The Board shall review this charter at least every three years.
  2. This Charter was adopted by the Board on [Month, Day, Year].

Secretary’s Certificate

I, Roberto L. Peña, the duly appointed Secretary of the Fresno County Employees’ Retirement Association, hereby certify the adoption of this Charter.

Dated: ______, 2007

______

Roberto L. Peña, Secretary to the Board

FresnoCounty Employees’ Retirement Association

Audit Committee Charter

Introduction

1)The Board of Retirement has established an Audit Committee to assist it in overseeing the financial and audit-related functionsof FCERA. The Audit Committee will be comprised of three board members and one alternate.[5]

2)The staff contact for the Committee will be the Retirement Administrator.

Duties and Responsibilities

3)The Audit Committee will:

a)Examine and approve the objectives and scope of the annual financial audit, including the audit plans of the external auditor, the duties and responsibilities of the external auditor, and the timing and estimated fees of the audit;

b)Meet annually with the external auditor to review the annual audit findings, any management letters issued by the Auditor in connection with the annual audit, and any responses thereto by FCERA Administration;

c)Recommend the audited financial statements to the Board of Retirement;

d)Review the engagement of the external auditor at least every [five (5)] years and make recommendations to the Board as appropriate;

e)Co-ordinate searches for external auditors or other audit services as required, and make recommendations to the Board as appropriate;

f)Review the reports or correspondence submitted by any regulatory agencies concerning the FCERA, as well as FCERA Administration’s responses, if any;

g)Review any significant changes in accounting practices or policies that may have an impact on the financial statements of the Association and provide recommendations to the Board;

h)Periodically discuss the internal controls of the FCERA with management, and the potential need for special audits of the internal controls;

i)Review any communications or reports from any State agencies regarding the financial affairs of FCERA; and

j)Perform any other duties that are assigned to it by the Board.

Reporting

4)The Audit Committee will report regularly to the Board on its activities.

Charter Review and History

5)The Board shall review this charter at least every three years.

6)This Charter was adopted by the Board on [Date].

Secretary’s Certificate

I, Roberto L. Peña, the duly appointed Secretary of the Fresno County Employees’ Retirement Association, hereby certify the adoption of this Charter.

Dated: ______, 2007

______

Roberto L. Peña, Secretary to the Board

FresnoCounty Employees’ Retirement Association

Budget Committee Charter

Introduction

  1. The Board of Retirement has established a Budget Committee to assist the Board in the annual budgeting process. The Budget Committee shall be comprised of threeboard members and one alternate.[6]
  2. The staff contact for the Budget Committee will be the Retirement Administrator.

Duties and Responsibilities

  1. The Budget Committee will:
  2. Review the annual Operating Budget recommended by FCERA Administration;
  3. Recommend the Operating Budget to the Board;
  4. Review changes to the Budget that may be recommended throughout the year by the Retirement Administrator and make recommendations to the Board;
  5. Periodically review the budget process and format with the Retirement Administrator; and
  6. Perform any other duties that are assigned to it by the Board.

Monitoring and Reporting

  1. The Budget Committee will:
  2. Report regularly to the Board on its activities.

Charter Review and History

  1. The Board shall review this charter at least every three years.
  2. This Charter was adopted by the Board on [Month, Day, Year].

Secretary’s Certificate

I, Roberto L. Peña, the duly appointed Secretary of the Fresno County Employees’ Retirement Association, hereby certify the adoption of this Charter.

Dated: ______, 2007

______

Roberto L. Peña, Secretary to the Board

FresnoCounty Employees’ Retirement Association

Disability Committee Charter

Introduction

1)The Board of Retirement has established the Disability Committee to assist the Board in overseeing the disability application process. The Disability Committee will be comprised threeboard members and one alternate board member.[7]

2)The staff contact for the Disability Committee will be the Assistant Retirement Administrator.

Duties and Responsibilities

3)The Disability Committee will:

a)Work with staff to review the disability process and identify methods for improving the efficiency and effectiveness of the process;

b)Review the Hearings Policy at least every three years and recommend amendments to the Board as necessary;

c)Recommend to the Board appropriate policies for the selection of service providers that assist FCERA in the disability process, including but not limited to independent medical examiners, hearing officers, and investigators; and

d)Perform any other duties that are assigned to it by the Board.

Reporting

4)The Disability Committee will report regularly to the Board on its activities.

Charter Review and History

5)The Board shall review this charter at least every three years.

6)This Charter was adopted by the Board on [Date].

Secretary’s Certificate

I, Roberto L. Peña, the duly appointed Secretary of the Fresno County Employees’ Retirement Association, hereby certify the adoption of this Charter.

Dated: ______, 2007

______

Roberto L. Peña, Secretary to the Board

FresnoCounty Employees’ Retirement Association

Personnel Committee Charter

Introduction

1)The Board of Retirement has established a Personnel Committee to assist the Board in overseeing personnel matters. The Personnel Committee shall be comprised of threeboard members and one alternate.[8]

2)The staff contact for the Personnel Committee will be the Retirement Administrator.

Duties and Responsibilities

3)The Personnel Committee will:

a)Recommend to the Board any personnel policies that may be necessary or desirable, based on the recommendation of the Retirement Administrator;

b)Coordinate the annual performance evaluation of the Retirement Administrator;

c)Coordinate an employment search for the Retirement Administrator position, in the event the Retirement Administrator position is vacated;

d)Co-ordinate searches for any human resource consultants that may be necessary to assist in filling vacancies in the position of Retirement Administrator, negotiate contracts with such consultants, and recommend the consultant to the Board for approval;

e)Periodically review the succession plans for the Retirement Administrator and any related issues, and report to the Board; and

f)Perform any other duties that are assigned to it by the Board.

Reporting

4)The Personnel Committee will report regularly to the Board on its activities.

Charter Review and History

5)The Board shall review this charter at least every three years.

6)This Charter was adopted by the Board on [Date].

Secretary’s Certificate

I, Roberto L. Peña, the duly appointed Secretary of the Fresno County Employees’ Retirement Association, hereby certify the adoption of this Charter.

Dated: ______, 2007

______

Roberto L. Peña, Secretary to the Board

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DRAFT: March 27, 2007

FresnoCounty Employees’ Retirement Association

Retirement Administrator Charter

Introduction

  1. The Board of Retirement will appoint a Retirement Administrator who will serve at its pleasure. The Retirement Administrator is the most senior executive of the FCERA and is not subject to county civil service or merit system rules. (§31522.2)[9]

Duties and Responsibilities

Leadership and Policy Analysis

  1. The Retirement Administrator will provide leadership for the FCERA staff in implementing the programs necessary to achieve the mission, goals and objectives established by the Board. The Retirement Administrator will manage the day-to-day affairs of the FCERA in accordance with policies established by the Board, and may delegate duties to FCERA management and staff as necessary.
  2. The Retirement Administrator will provide support to the Board in establishing all policies of the Board. Such support will include identifying and analyzing issues requiring policy decisions and providing policy recommendations for consideration by the Board or its committees. The Retirement Administrator will be responsible for ensuring that all policies are implemented.

Governance