Section 1305.1 - Discharge of duties - Investment of monies - Indemnity insurance - Investment committee - Investment managers - Funds and custodian of investment fund and revenues - Investment plan - Quarterly financial report(1) The Director of the Office of Management and Enterprise Services and the Oklahoma Employees Insurance and Benefits Board shall discharge their duties with respect to the Oklahoma Employees Insurance and Benefits Act, the State Employees Flexible Benefits Act and the State Employees Disability Program Act solely in the interest of said Acts and: (a) for the exclusive purpose of: (i) providing benefits to the participants and their dependents, and(ii) defraying reasonable expenses of administering the Oklahoma Employees Insurance and Benefits Act, the State Employees Flexible Benefits Act and the State Employees Disability Program Act;(b) with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims;(c) by diversifying investments so as to minimize the risk of large losses, unless under the circumstances it is clearly prudent not to do so; and(d) in accordance with the laws, documents and instruments governing the Oklahoma Employees Insurance and Benefits Act, the State Employees Flexible Benefits Act and the State Employees Disability Program Act.(2) The Office may procure insurance indemnifying the members of the Board and the Director from personal loss or accountability from liability resulting from action or inaction.(3) The Director may establish an investment committee. The investment committee shall be composed of not more than three (3) members of the Board selected by the Director. The committee shall make recommendations to the full Board on all matters related to the choice of custodians and managers of the assets of the Office of Management and Enterprise Services relating to the Oklahoma Employees Insurance and Benefits Act, on the establishment of investment and fund management guidelines, and in planning future investment policy. The committee shall have no authority to act on behalf of the Board or Director in any circumstances whatsoever. No recommendation of the committee shall have effect as an action of the Board or Director nor take effect without the approval of the Board or Director.(4) The Office of Management and Enterprise Service, based on recommendation of the Board shall retain qualified investment managers to provide for the investment of the monies received by the Office. The investment managers shall be chosen by a solicitation of proposals on a competitive bid basis pursuant to standards set by the Board. Subject to the overall investment guidelines set by the Board, the investment managers shall have full discretion in the management of those monies of the Office allocated to the investment managers. The Board shall oversee the management of those monies not specifically allocated to the investment managers. The monies of the Office allocated to the investment managers shall be actively managed by the investment managers, which may include selling investments and realizing losses if such action is considered advantageous to longer term return maximization. Because of the total return objective, no distinction shall be made for management and performance evaluation purposes between realized and unrealized capital gains and losses.(5) Funds and revenues for investment by the investment managers or the Office of Management and Enterprise Services shall be placed with a custodian recommended by the Board. The custodian shall be a bank or trust company offering pension fund master trustee and master custodial services. The custodian shall be chosen by a solicitation of proposals on a competitive bid basis pursuant to standards set by the Board. In compliance with the investment policy guidelines of the Board, the custodian bank or trust company shall be contractually responsible for ensuring that all monies of the Office are invested in income-producing investment vehicles at all times. If a custodian bank or trust company has not received direction from the investment managers of the Office as to the investment of the monies of the Office in specific investment vehicles, the custodian bank or trust company shall be contractually responsible to the Office for investing the monies in appropriately collateralized short-term interest-bearing investment vehicles.(6) Prior to August 1 of each year, the Board shall develop a written investment plan for the monies received by the Office.(7) The Administrator shall compile annual financial statements of all the activity of the Office on a calendar year basis. The financial statements shall be compiled pursuant to accounting principles generally accepted in the United States. The report shall include several relevant measures of investment value, including acquisition cost and current fair market value with appropriate summaries of total holdings and returns. The report shall contain combined and individual rate of returns of the investment managers by category of investment, over periods of time. The report shall be distributed to the Board and the Director of the Office of Management and Enterprise Services.Okla. Stat. tit. 74, § 1305.1
Amended by Laws 2019 , c. 228, s. 1, eff. 7/1/2019.Added by Laws 1989, HB 1282, c. 318, § 6, emerg. eff. 7/1/1989; Amended by Laws 1991, SB 546, c. 219, § 6, emerg. eff. 5/22/1991; Amended by Laws 2002 , SB 1243, c. 196, §2, emerg. eff. 7/1/2002; Amended by Laws 2012 , HB 3079, c. 304, §936.