Policy on Business and Educational Functions

The Board of Trustees acknowledges it is responsible for the administration and operation of a specialized business involving great sums of money for the exclusive benefit of the plan participants and beneficiaries of the trust (Fund), and are responsible for defraying reasonable expenses which arise from the performance of duties and responsibilities under applicable trust law and universal tenets of fiduciary responsibility.

In the context of running the business of retirement systems and satisfying on an ongoing basis the requirements embodied in the mandated standard of prudent/expert person rules of law, one major conduit by which this is accomplished is through travel.

One cannot, individually or collectively, adequately discharge fiduciary duties in a cloistered state. Trustees cannot rely solely on others to execute their fiduciary functions. While authority can be delegated, fiduciary responsibility rests solely on the shoulders of the trustees.

The Board of Trustees strongly encourages attendance and participation in business and educational functions which will further the performance of duties and responsibilities under applicable trust law

Examples of Categories and Definitions

I. Business Operations:

Business Meetings:

• gatherings for discussions or negotiations on potential investments.
• formal litigation procedures.
• internal retreats of Board with or without advisors or consultants.
• instructional gatherings to develop business acumen.

Due Diligence:

• personal investigatory appearances by board members to the actual site(s) of a prospective venture, which could include the operational office of a prospective new advisor, consultant or business venture.
• this function should be repeated with existing relationships particularly when a material change has occurred, such as a change in personnel.

Site Inspections:

• primarily reserved for real estate investments in order to "kick the tires", meet the tenants and the property management teams, check out the condition of the building(s) and other data relating to any proforma items of the investment.

II. Educational Operations:

Conferences:

• usually week long events of an annual nature dealing with a multitude of topics and current trends and developments in the pension industry.
• one of the best forums within which to interact with peers from other jurisdictions (networking).

Workshops and Symposiums:

• events of two to three days of sessions involving discussions surrounding a single theme- or a specific topic or subject matter.

Special Missions:

• usually involve excursions to foreign lands to provide trustees with an other wise unobtainable learning experience and which increases the trustee’s perspective to the global marketplace.

Trustee Training:

• usually reserved for new trustees to acquire the basics of trust law and fiduciary requirement, as well as matters involving finance, administrative and actuarial issues.
• sometimes good for tenured trustees to revisit as a refresher, particularly on the heels of new case law.