15.2-1547 - Creation of local finance boards to manage the assets of postemployment benefits trust or equivalent arrangement; composition of such boards; alternatives to such boards; liability; and re
§ 15.2-1547. Creation of local finance boards to manage the assets ofpostemployment benefits trust or equivalent arrangement; composition of suchboards; alternatives to such boards; liability; and removal from office.
Except as otherwise provided herein, the governing body of any county, city,or town that establishes a trust, trusts, or equivalent arrangements forpostemployment benefits other than pensions pursuant to this article alsoshall create a finance board to serve as trustee of such a trust, trusts, orequivalent arrangements and to manage and invest the assets of that trust,trusts, or equivalent arrangements. Such a finance board shall be composed ofat least three members who shall include the chief financial officer of thelocality, the treasurer of the locality, and at least one other additionalperson who shall be a citizen of the Commonwealth with proven integrity,business ability, and demonstrated experience in cash management and ininvestments. If the locality does not have a chief financial officer or atreasurer, then that position may be filled by the chief administrativeofficer of the locality or by a citizen who meets the qualifications setforth above. The citizen member shall be appointed initially by the governingbody of the locality for a term of two years and if more than one citizen isappointed to serve on any such board, then the local governing body mayappoint those citizens for staggered terms of one and two years. Subsequentappointments shall be for two-year terms or to fill the balance of anyunexpired term. The finance board shall annually elect one of its members aschairman and another as vice-chairman. The finance board shall meet at leastfour times a year, and a majority of the members shall constitute a quorum.
Any school board of a local school division or the governing body of anyother political subdivision that establishes its own postemployment benefitstrust, trusts, or equivalent arrangements pursuant to this article shallcreate a finance board to serve as trustee of such a trust, trusts, orequivalent arrangements and to manage and invest the assets of that trust,trusts, or equivalent arrangements. Such a finance board shall be composed ofat least three members consisting of the chief administrative officer of theentity, the chief financial officer of the entity, and at least oneadditional person who shall be a citizen of the Commonwealth and who meetsthe qualifications set forth above. The citizen member shall be appointedinitially by the governing body of the locality for a term of two years andif more than one citizen is appointed to serve on any such board, then thelocal governing body may appoint those citizens for staggered terms of oneand two years. Subsequent appointments shall be for two-year terms or to fillthe balance of any unexpired term. The finance board shall annually elect oneof its members as chairman and another as vice-chairman. The finance boardshall meet at least four times a year, and a majority of the members shallconstitute a quorum.
Alternatively, and in lieu of establishing the finance board as described inthis section, the governing body of any county, city, or town, schooldivision or other political subdivision that has established a retirementboard or deferred compensation board to manage pension benefits provided toor for its active and former employees may designate that retirement board ordeferred compensation board to serve as trustee and to manage the assets of atrust or equivalent arrangement established pursuant to this article. Anysuch retirement board or deferred compensation board shall have all thepowers and duties of the finance board described in this article, mutatismutandis.
Except in the case of gross negligence or intentional misconduct, any memberof a finance board established pursuant to this section, any director offinance or another appointed official with a similarly named position, or anymember of a retirement board, who is acting in accordance with the provisionsof this article, shall not incur any liability for investment losses sufferedby a trust established pursuant to this article. Members of any such financeboard shall be subject to removal from office as set forth in §§ 24.2-230through 24.2-238.
(2007, c. 710.)