Bill No.                 31-10                       

Concerning:  Board of Investment Trustees - Membership                                   

Revised:    April 23, 2010   Draft No. 1  

Introduced:      May 4, 2010                   

Enacted:         June 22, 2010                

Executive:       June 30, 2010                

Effective:        September 29, 2010       

Sunset Date:  None                             

Ch.   31    , Laws of Mont. Co.    2010    

County Council

For Montgomery County, Maryland

By: Council President at the Request of the County Executive

AN ACT to:

(1)        add an additional member of the Board of Trustees with an indefinite term of office and delete a member with a definite term of office;

(2)        amend the law establishing the Board of Investment Trustees; and

(3)        generally amend the law regarding the employees’ retirement system.

By amending

Montgomery County Code

Chapter 33, Personnel and Human Resources

Section 33-59

Boldface Heading or defined term.

Underlining Added to existing law by original bill.

[Single boldface brackets] Deleted from existing law by original bill.

Double underlining Added by amendment.

[[Double boldface brackets]] Deleted from existing law or the bill by amendment.

*   *   *                                                  Existing law unaffected by bill.

The County Council for Montgomery County, Maryland approves the following Act:

          Sec. 1.  Section 33-59 is amended as follows:

33-59.  Board of Investment Trustees

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(b)     Membership.

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(3)     The County Executive must appoint [2] 3 voting certified employee organization representatives, subject to County Council confirmation, as members of the Board, who serve indefinitely while each remains the designee of the certified employee representative.  These trustees must not vote on any matter involving the County deferred compensation plan.  These trustees should be:

(A)    one representative nominated by the employee organizations certified as the representative of the Office, Professional, and Technical (OPT) and Service, Labor and Trades (SLT) bargaining units; [and]

(B)     one representative nominated by the employee organization certified as the representative for the fire and rescue employee unit[.]; and

(C)     one representative nominated by the employee organization certified as the representative for the police employee bargaining unit under Article V.

(4)     The following [7] 6 trustees must be appointed by the Executive and confirmed by the Council:

(A)    [One active County employee who is a member of an employee organization certified under Article V, and who is a vested member of the retirement system, or an individual recommended by the employee organization certified under Article V.  The employee organization may recommend 3 to 5 individuals for the respective trustee position.  Before appointing this trustee, the Executive must consider, and should select from, the individuals recommended by the employee organization.  The Executive must notify the Council when appointing an individual not recommended by an employee organization. A 3-year term for this trustee ends on March 1 of every third year after each trustee is confirmed by the Council.  Any trustee appointed under this subparagraph must not vote on any matter involving the County deferred compensation plan.]

          An active County employee who is a vested member of the retirement system and the Merit System, and not a member of a collective bargaining unit.  A 3-year term for this trustee ends on March 1 of every third year after the trustee is confirmed by the Council.

[(C)] (B)      A retired County employee who is a member of the retirement system.  Before appointing this trustee, the Executive must consider, and should select from, a list of 3 to 5 individuals recommended by the Montgomery County Retired Employees’ Association.  The Executive must notify the Council when nominating an individual not recommended by the Association.  A 3-year term for this trustee ends on March 1 of every third year after the trustee is confirmed by the Council.

[(D)](C)       Two persons recommended by the Council who are knowledgeable in pensions, investments, or financial matters.  A 3-year term for these trustees ends on March 1 of every third year after each trustee is confirmed by the Council.

[(E)](D)       Two individuals knowledgeable in pensions, investments, or financial matters. Before nominating these trustees, the Executive must consider, and should select from, individuals recommended by citizens or countywide citizens’ groups. An individual recommended by a citizens’ group need not be a member of the group. The Executive must notify the Council when nominating an individual not recommended by a citizens’ group. A 3-year term for these trustees ends on March 1 of every third year after each trustee is confirmed by the Council.

[(4)] (5)       A trustee appointed under paragraph (3) continues to serve after the trustee’s term ends until the Council confirms a successor, but the term for each position is not affected by any holdover. A trustee who, after appointment and before the end of a term, is no longer qualified for the trustee’s position is removed from the Board by operation of law.

[(5)] (6)       The Executive must not appoint as a trustee any person who furnishes, or is employed by a firm that furnishes, to pension funds and other institutional investors the kind of investment services purchased by the Board.

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Approved: