§ 2-12. Fiduciary standards; Indemnification; Insurance.

(a) "Acting as a fiduciary ..." defined.

For purposes of this section, a person is "acting as a fiduciary with respect to the Plan" to the extent that the person:

(1) exercises any discretionary authority or discretionary control respecting management of the Retirement Savings Plan;

(2) exercises any discretionary authority or discretionary control respecting management or disposition of Plan assets; or

(3) has any discretionary authority or discretionary responsibility in administering the Plan.

(b) Fiduciary standards.

The trustees and every other person "acting as a fiduciary with respect to the Plan" must discharge their duties with respect to the Plan:

(1) solely in the interest of members and beneficiaries and for the exclusive purpose of providing benefits to members and beneficiaries and defraying reasonable expenses of administering the Plan;

(2) with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with those matters would use in the conduct of an enterprise of a like character and with like aims; and

(3) in accordance with this article and with the documents and instruments governing the Plan.

(1) To the extent allowable by applicable law, the City may indemnify every person who is made or is threatened to be made a party to any action, suit, or proceeding, including any administrative or investigative proceeding, by reason of "acting as a fiduciary with respect to the Plan".

(2) This indemnification may cover those expenses actually and reasonably incurred in connection with the action, suit, or proceeding, including attorney's fees, judgments, fines, and amounts paid in settlement.

(3) Notwithstanding any other provision of this subsection, indemnification may not be made with respect to:

(i) any action, suit, or proceeding as to which the person acted with gross negligence or willful misconduct; or

(ii) an independent contractor providing services to the Plan.

(d) Fiduciary insurance.

The City may provide insurance or self-insurance to cover potential liability resulting from an act or failure to act on the part of any person "acting as a fiduciary with respect to the Plan".

(e) Failure to indemnify or adequately insure.

If the City fails to indemnify or provide adequate insurance for any person "acting as a fiduciary with respect to the Plan", the City assumes all liability resulting from that person's act or failure to act.