Ethics Code: Article VII

"Timely and energetic execution of fiduciary responsibilities is to be pursued at all times by the IMRF trustees and staff."

The quest for excellence is the essence of due care. Due care requires trustees and staff to discharge fiduciary responsibilities with competence and diligence. Competence is derived from a synthesis of education and experience. It begins with a mastery of a common body of knowledge which is required of all trustees and staff.

Accordingly, trustees and staff have the duty to educate themselves on a continuing basis on all aspects of fund operation, in order to be in compliance with the prudent person/expert standard to which they are called, and to be involved in those functions which require action in the operation of fund business.

Rules and Interpretations

Rule 7.01 Trustees and staff should act in a prudent manner which includes:

1. Employing proper methods to investigate, evaluate and structure the investment;
2. Acting in a manner as would others who have a capacity and familiarity with such matters; and
3. Exercising independence when making investment decisions.

Rule 7.02 When a trustee or staff member does not possess the education, experience, or skill required to make a decision concerning any operation of the plan, he or she, due to the applied prudent standards of fiduciary trust law, has an affirmative duty and an obligation to seek independent counsel in making the decision.

The trustees and staff further have an obligation to learn, comprehend and remain abreast of all component aspects relating to the discharge of their duties through attendance and participation in classes, workshops, forums, seminars and conferences which afford the trustees and staff the opportunity to become familiar with the necessary expertise to exercise independent enlightened judgment on matters regarding IMRF business.

The failure to seek outside counsel is imprudent when, under the circumstances then prevailing, a prudent trustee or staff member acting in like capacity and familiar with such matters would seek such counsel.

A trustee or staff member unfamiliar with an unusual or difficult investment is charged with making an independent inquiry into the merits of the particular investment rather than relying solely upon the advice of others.