§ 100-C:12 — Fiduciary Duties of Board of Trustee in Investing and Managing Assets of Judicial Retirement Plan

New Hampshire § 100-C:12

• Jurisdiction: New Hampshire
• Title VI: PUBLIC OFFICERS AND EMPLOYEES
• Ch. 100-C: JUDICIAL RETIREMENT PLAN

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I. The members of the board of trustees shall be the trustees of all funds of the judicial retirement plan created under this chapter and shall have full power to invest, and reinvest such funds, subject to all the terms, conditions, limitations, and restrictions herein. Each member of the board of trustees or other fiduciary shall discharge duties with respect to the plan:
(a) Solely in the interest of its members and beneficiaries;
(b) For the exclusive purpose of providing benefits to members and beneficiaries and paying reasonable expenses of administering the plan;
(c) With the care, skill, and caution under the circumstances then prevailing which a prudent person acting in a like capacity and familiar with those matters would use in the conduct of an activity of like character and purpose;
(d) Impartially, taking into account any differing interests of members and beneficiaries;
(e) Incurring only costs that are appropriate and reasonable; and
(f) In accordance with a good-faith interpretation of the law governing the judicial retirement plan.
II. In investing and managing assets of the judicial retirement plan, the board of trustees:
(a) Shall consider among other circumstances:
(1) General economic conditions;
(2) The possible effect of inflation or deflation;
(3) The expected total return from income and the appreciation of capital;
(4) Needs for liquidity, regularity of income, and preservation or appreciation of capital; and
(5) The adequacy of funding for the plan based on reasonable actuarial factors;
(b) Shall diversify the investments of the plan unless the board reasonably determines that, because of special circumstances, it is clearly prudent not to do so;
(c) Shall make a reasonable effort to verify facts relevant to the investment and management of assets of the plan; and
(d) May invest in any kind of property or type of investment consistent with the fiduciary provisions of this chapter.
III. The contribution shall be used for the exclusive benefit of members and their beneficiaries and in no event shall revert to the state unless the reversion is due to a good faith mistake of fact or law. The board may return a member or state contribution, or make alternative arrangements for reimbursement, if the board determines the contribution was made because of a mistake of fact or law.
IV. In evaluating the performance of a trustee or other fiduciary of the plan, compliance by the trustee or other fiduciary with those duties and liabilities under this chapter shall be determined in light of the facts and circumstances existing at the time of the trustee or fiduciary's decision or action and not by hindsight; and the board's investment and management decisions shall be evaluated not in isolation but in the context of the trust portfolio as a whole and as a part of an overall investment strategy having risk and return objectives reasonably suited to the plan.
V. The board of trustees may insure against liability or losses occurring because of a breach of duty hereunder if the insurance is purchased or provided either by the trustee or fiduciary personally or, on the trustee or fiduciary's behalf, by the state, the plan, the employer whose members participate in the plan, or the trustee or fiduciary's employer.

Legislative History

2003, 311:1. 2004, 146:7, eff. May 24, 2004.