247646 / 64.77% Yes votes ...... 134727 / 35.23% No votes

See Also: Index of all Propositions

The proposed ballot measure to change the composition of the Retirement Board carries no fiscal impact.

Under the current Charter, the Board is composed of thirteen members: the City Manager, the City Auditor and Comptroller, the City Treasurer, three members elected by the active general membership, one member elected from City retirees, one member elected by the active membership from Fire Safety, one member elected by the active membership from Police Safety, and four citizens appointed by the Council, one of whom must be a local bank officer. The Charter prescribes six-year terms for Board members.

Voter approval of this measure would maintain the total number of Board members at thirteen, but change the terms of office to four years and change the composition of the Board as follows: seven citizens with professional qualifications appointed by the Council, two members elected by the active general membership, one member elected from City retirees, one member elected by the active membership from Fire Safety, one member elected by the active membership from Police Safety, and one top ranking City management employee appointed from the administrative service of the City.

The measure includes qualifications for the citizen appointees to the Board. The seven citizen appointees must have a college degree in finance, economics, law, business, or other relevant field of study, or a relevant professional certification. Additionally, a citizen appointee must have a minimum of fifteen years experience in pension administration, pension actuarial practice, investment management, real estate, banking, or accounting.

The measure also contains qualifications for citizen appointees in order to prevent conflicts of interest. First, "no person who is a City employee, participant in the Retirement System, or City union representative may be eligible for appointment in this category." Second, "appointees shall not have any other personal interests which would create a conflict of interest with the duties of a Board member and trustee." At the Council hearing regarding placement of the measure on the ballot, the City Attorney interpreted this language with more specificity and obtained Council concurrence to verify the Council's intent. A "participant" in the Retirement System is a person who has assets invested with the Retirement System or who is designated as a beneficiary for someone with assets invested in the Retirement System. A "personal interest" that conflicts with Retirement Board duties means an income interest that is reportable on a Statement of Economic Interests in the City, the Retirement System, or any entity contracting as a plan sponsor with the Retirement System. A person who is a "participant" or who has a "personal interest" is not eligible for appointment to the Board as a citizen appointee. Additionally, a stockbroker or bond broker actively engaged in doing business with the City or the Retirement System is ineligible for appointment.