SECTIONS 53620-53622 - California Statutes

GOVERNMENT CODE

SECTION 53620-53622

53620. Notwithstanding Section 53601 or 53635, the governing body
of a local agency may invest funds designated for the payment of
employee retiree health benefits in any form or type of investment
deemed prudent by the governing body pursuant to Section 53622.

53621. The authority of the governing body to invest or to reinvest
funds intended for the payment of employee retiree health benefits,
or to sell or exchange securities purchased for that purpose, may be
delegated by the governing body to designated officers.

53622. (a) Funds intended for the payment of employee retiree
health benefits shall only be held for the purpose of providing
benefits to participants in the retiree health benefit plan and
defraying reasonable expenses of administering that plan.
(b) The governing body or designated officer, when making
investments of the funds, shall discharge its duties with respect to
the investment of the funds.
(1) Solely in the interest of, and for the exclusive purposes of
providing benefits to, participants in the retiree health benefit
plan, minimizing employer contributions thereto, and defraying
reasonable expenses of administering the plan.
(2) With the care, skill, prudence, and diligence under the
circumstances then prevailing that a prudent person acting in a like
capacity and familiar with these matters would use in the conduct of
an enterprise of a like character and with like aims.
(3) Shall diversify the investments of the funds so as to minimize
the risk of loss and to maximize the rate of return, unless under
the circumstances it is clearly prudent not to do so.