51.1-803 - Investments of retirement systems. - Virginia Statutes

§ 51.1-803. Investments of retirement systems.

A. If the governing body of any county, city, or town establishes aretirement system pursuant to the provisions of this article, any funds thatmay be allocated, segregated, or otherwise designated for the retirementsystem, which are on hand at any time and are not necessary for immediatepayment of pensions or benefits, shall be invested with the care, skill,prudence and diligence under the circumstances then prevailing that a prudentperson acting in a like capacity and familiar with such matters would use inthe conduct of an enterprise of like character and with the same aims. Suchinvestments shall be diversified so as to minimize the risk of large lossesunless under the circumstances it is clearly prudent not to do so.

B. The selection of services related to the management, purchase, or sale ofinvestments authorized by this section, including but not limited toactuarial services, shall be governed by the standard of care set forth inthis section and shall not be subject to the provisions of the VirginiaPublic Procurement Act (§ 2.2-4300 et seq.) of Title 2.2.

C. In the case of an automatic rollover of a mandatory cash-out, as that termis defined under I.R.C. Section 401 (a) (31) (B) of the United StatesInternal Revenue Code of 1986 (including as such section is amended orrenumbered or any successor provision thereto) and regulations thereunderapplicable to governmental plans, the governing body shall not be liable forany loss resulting from the governing body's selection of an individualretirement plan provider and investment product where the selection is madein accordance with guidelines to be adopted by the governing body that aresimilar to the safe harbor guidelines adopted by the United States Departmentof Labor for this purpose.

(1986, c. 196, § 51-112.1; 1990, c. 832; 1992, c. 810; 1995, c. 307; 1996, c.508; 1997, c. 213; 2005, c. 196.)