2.1.3 Ethics Policy: 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.

Trustees cannot rely solely on others to execute their fiduciary functions. While authority can be delegated, fiduciary responsibility rests ultimately with 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. At a minimum, the trustees are required to attend at least 8 hours of ethics and fiduciary training per year. Trustees shall annually certify to the Board compliance with this training requirement.

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.

Trustee Ethics and Fiduciary Training:

• Trustees are required to attend at least 8 hours of ethics and fiduciary training annually. Each trustee is expected to maintain adequate documentation of such training, received in increments of no less than one-half hour of actual instruction.
• training may be conducted during Board and Board Committee meetings and Board Roundtables, provided the topic is clearly delineated as trustee ethics and fiduciary training.
• training may be undertaken at independent conferences, seminars and symposiums.
• Trustee ethics and fiduciary training includes presentations by staff or consultants or training at outside seminars and conferences on topics of:
  1. IMRF ethics and travel policies and best practices in the industry;
  2. Fiduciary duties;
  3. Investment issues including asset allocation, training on potential investment vehicles, investment procedures, and best practices;
  4. Illinois pension Code;
  5. Actuarial issues, including presentations concerning the annual actuarial report, gain/loss analysis, and triennial experience analysis;
  6. Medical matters to assist in hearing disability claims;
  7. New trustee orientation; and
  8. Other issues of pension fund administration, as determined by the Board.
• Not included are presentations covering:
  1. IMRF processes and procedures;
  2. Board agenda items unless specifically delineated as a training program.