23-38.79:1 - Advisory committees to the Board; membership; terms; qualifications; duties.
§ 23-38.79:1. Advisory committees to the Board; membership; terms;qualifications; duties.
A. To further assist the Board in fulfilling its fiduciary duty as trustee ofthe funds of the Plan and to assist the chief executive officer in directing,managing, and administering the Plan's assets, the Board shall appoint anInvestment Advisory Committee to provide sophisticated, objective, andprudent investment advice.
1. Members of the Investment Advisory Committee shall demonstrate extensiveexperience in any one or more of the following areas: domestic orinternational equity or fixed-income securities, cash management, alternativeinvestments, institutional real estate investments, or managed futures.
2. The Investment Advisory Committee shall (i) review, evaluate, and monitorinvestments and investment opportunities; (ii) make appropriaterecommendations to the Board about such investments and investmentopportunities; and (iii) make appropriate recommendations to the Board aboutoverall asset allocation.
B. To further assist the Board in fulfilling its responsibilities relating tothe integrity of the Plan's financial statements, financial reportingprocess, and systems of internal accounting and financial controls, the Boardshall appoint an Audit and Actuarial Committee.
1. Members of the Audit and Actuarial Committee shall demonstrate anunderstanding of generally accepted accounting principles, generally acceptedauditing standards, enterprise risk management principles, and financialstatements, and evidence an ability to assess the general application of suchprinciples to the Plan's activities. The members should have experience inpreparing, auditing, analyzing, or evaluating financial statements of thesame complexity as those of the Plan, and an understanding of internalcontrols and procedures for financial reporting.
2. In order to establish and maintain its effectiveness and independence, thefollowing persons shall not be members of the Audit and Actuarial Committee:(i) current Plan employees; (ii) individuals who have been employees of thePlan in any of the prior three fiscal years; and (iii) immediate familymembers of an individual currently employed as an officer of the Plan or whohas been employed in such a capacity within the past three fiscal years.
3. The Audit and Actuarial Committee shall (i) review, examine, and monitorthe Plan's accounting and financial reporting processes and systems ofinternal controls; (ii) review and examine financial statements and financialdisclosures and discuss any findings with the Plan's senior management; and(iii) make appropriate recommendations and reports to the Board.
4. The Audit and Actuarial Committee shall also monitor the Plan's externalaudit function by (i) participating in the retention, review, and dischargeof independent auditors; (ii) discussing the Plan's financial statements andaccounting policies with independent auditors; and (iii) reviewing theindependence of independent auditors.
C. In addition, the Board may appoint such other advisory committees as itdeems necessary and the qualifications for members of any other advisorycommittee shall be set by the Board by resolution.
D. Advisory committee members shall serve at the pleasure of the Board andmay be removed by a majority vote of the Board.
E. Members of advisory committees shall receive no compensation but shall bereimbursed for actual expenses incurred in the performance of their duties.
F. The disclosure requirements of subsection B of § 2.2-3114 of the State andLocal Government Conflict of Interests Act shall apply to any member of anyadvisory committee who is not also a Board member.
G. The recommendations of an advisory committee are not binding upon theBoard or the designee appointed by the Board to make investment decisionspursuant to subsections A and B of § 23-38.80.
(2009, cc. 827, 845.)