§ 24-51-207 — Standard of conduct

Colorado § 24-51-207

• Jurisdiction: Colorado
• Title 24: Government
• Art.: Public Employees' Retirement Association

Text

(1) The trustees of the board shall be held
to the standard of conduct of a fiduciary specified in subsection (2) of this section in
the discharge of their functions. Their functions shall include any duty, obligation,
power, authority, responsibility, right, privilege, activity, or program specified in this
article in connection with the association.

(2) (a) As fiduciaries, such trustees shall carry out their functions solely in
the interest of the members and benefit recipients and for the exclusive purpose of
providing benefits and defraying reasonable expenses incurred in performing such
duties as required by law. The trustees shall act in accordance with the provisions
of this article and with the care, skill, prudence, and diligence in light of 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 by diversifying the investments of the association so as
to minimize the risk of large losses, unless in light of such circumstances it is
clearly prudent not to do so.

(b) Notwithstanding the provisions of paragraph (a) of this subsection (2), the
mere settlement or compromise of any dispute by the board pursuant to the
authority granted under section 24-51-205 (3.5) is not per se a violation of the
fiduciary duties of any trustee.

(c) Notwithstanding the provisions of paragraph (a) of this subsection (2), the
consolidation or merger of a plan created under part 2 of article 64 of title 22,
C.R.S., prior to its repeal in 2010, into the association and the board's administration
of that division following the effective date of the merger shall not be considered a
breach of the board's duties or standards of conduct. No claims shall lie against the
board, association, or the trustees arising from the consolidation or merger or the
specific terms imposed by law.

(3) The trustees of the board shall not engage in any activities which might
result in a conflict of interest with their functions as fiduciaries for the association.

(4) The trustees of the board, the executive director, the deputy executive
directors, and any employee of the association who is in a fiduciary position shall be
subject to and shall make financial disclosures pursuant to the provisions of section
24-6-202.

(5) Any person who is in a fiduciary position with the association and who is
adjudicated of violating any provisions of this article shall be personally liable to
pay to the association an amount equal to any losses resulting from such violation
and shall be subject to such equitable or remedial relief as the court deems
appropriate. The court may enjoin any act or practice which violates any provision of
this article.

Legislative History

Source: L. 87: Entire article R&RE, p. 1049, � 1, effective July 1. L. 95: (2) amended, p. 557, � 17, effective May 22. L. 2009: (2)(c) added, (SB 09-282), ch. 288, p. 1335, � 6, effective May 21.