District of Columbia Retirement Board: Fiduciary Obligations

In addition to the Retirement Board's mission to manage and control the assets of the Funds, the Reform Act imposes stringent fiduciary obligations on Retirement Board members ("Trustees"), which include a requirement to exercise their responsibilities exclusively in the interests of the beneficiaries and participants with the care, skill, prudence, and diligence as would a prudent expert. A fiduciary who breaches any of the responsibilities, obligations, or duties imposed by the Reform Act are held personally liable and must restore to the Funds any losses that may occur from such breach.

In recognition of these and other uncompromising fiduciary obligations, the Reform Act provides the Retirement Board with a level of independence sufficient to permit Trustees to perform their duties efficiently and effectively. For example, the Reform Act authorizes the Retirement Board to promulgate rules and regulations, adopt resolutions, issue directives for the administration and transaction of its business, and to perform such functions as may be necessary to carry out its responsibilities [DC Code § 1-711(e)]. The Retirement Board is also granted specific authority to enter into contracts with public or private sector entities to the extent necessary to carry out its responsibilities [DC Code § 1-711(i)(1)]. Moreover, the Retirement Board is authorized to propose its own rules, which govern the procurement of goods and services pursuant to its authority to contract [DC Code § 1-711(i)(2)].