Sec. 12.02. LEGAL COUNSEL.  The board of trustees shall retain legal counsel for matters affecting the operation of the fund.
Sec. 12.03. ACTUARY.    (a)  The board of trustees shall employ an actuary who may be the consultant and technical advisor to the board of trustees regarding the operation of the fund and may perform such duties as may be required by the board.
(b) The actuary shall make a valuation at least once every two years of the assets and liabilities of the fund on the basis of assumptions and methods that are reasonable in the aggregate, considering the experience of the fund and reasonable expectations and that, in combination, offer the actuary's best estimate of anticipated experience under the fund.
(c) On the basis of the valuation, the actuary shall make recommendations to the board of trustees to ensure the actuarial soundness of the fund.  In making recommendations, the actuary shall define each actuarial term and enumerate and explain each actuarial assumption used in making the valuation.  This information must be included either in the actuarial study or in a separate report made available as a public record.
(d) The board of trustees shall file with the State Pension Review Board a copy of each actuarial study and each separate report made as required by law.
(e) An actuary employed under this section must be a fellow of the Society of Actuaries, a member of the American Academy of Actuaries, or an enrolled actuary under the federal Employee Retirement Income Security Act of 1974 (29 U.S.C. Section 1001 et seq.).
(f) The municipality may pay all or part of the cost of the actuarial services.  Any cost not paid directly by the municipality is payable from assets of the fund.
Sec. 12.04. INVESTMENT COUNSELORS AND MANAGERS;  CUSTODIAN OF ASSETS.    (a)  The board of trustees may employ professional investment counselors to advise and assist the board in the investment of the assets of the fund.  The investment counseling service must be provided by a nationally known organization whose business functions include rendering continuous investment advisory service to public pension and retirement funds.  The municipality may pay the entire cost of this counseling service.  If not paid by the municipality, the cost may be paid from the assets of the fund.
(b) The board of trustees shall appoint investment managers for the fund by contracting for professional investment services with one or more organizations, which may include a bank if it has a trust department, that are in the business of managing investments.
(c) To be eligible for appointment under Subsection (b) of this section, an investment manager must be:
(1) registered under the federal Investment Advisors Act of 1940 (15 U.S.C. 801b-1 et seq.);
(2) a bank as defined by that Act;  or
(3) an insurance company qualified to perform investment services under the laws of more than one state.
(d) In a contract made under Subsection (b) of this section, the board shall specify any policies, requirements, or restrictions, including criteria for determining the quality of investments and for the use of standard rating services, that the board adopts for investments of the fund.
(e) The municipality may pay all or part of the cost of professional investment management services under a contract under Subsection (b) of this section.  Any cost not paid directly by the municipality is payable from assets of the fund.
(f) The board of trustees may at any time and shall at frequent intervals monitor the investments made by any investment manager for the fund.  The board may contract for professional evaluation services to fulfill this requirement.
(g) The municipality may pay all or part of the cost of professional evaluation services under Subsection (f) of this section.  Any cost not paid directly by the municipality is payable from assets of the fund.
(h) The board may enter into an investment custody account agreement designating a state or national bank or a trust company as custodian for all assets allocated to or generated under the investment management contract.
(i) Under the custody account agreement, the board of trustees shall require the designated custodian to perform the duties and assume the responsibilities for assets under the contract for which the agreement is established.
(j) The municipality may pay all or part of the cost of services under a custody account agreement under Subsection (h) of this section.  Any cost not paid directly by the municipality is payable from assets of the fund.
(k) An investment manager other than a bank having a contract with the fund under Subsection (b) of this section may not be a custodian of any assets of the fund.
(l) When demands of the fund require, the board shall withdraw from a custodian of fund assets money for use in paying benefits to members and other beneficiaries of the fund and for reasonable expenses of administering the fund, as approved by the board.
Sec. 12.05. MEDICAL BOARD.  The board of trustees may designate a medical board composed of three persons.  To be eligible to serve as a member of the medical board, a physician must be licensed to practice medicine in this state and be of good standing in the medical profession.  The board of trustees also may designate persons who are not physicians to serve on the medical board.  The medical board shall:
(1) review all medical examinations and reports required by this Act;
(2) investigate essential statements and certificates made by or on behalf of a member of the fund in connection with an application for disability retirement;  and
(3) report in writing to the board of trustees its conclusions and recommendations on all matters referred to it.
Sec. 12.06. RETIREMENT COUNSELING.  The board of trustees may pay for the cost of counseling for members of the fund regarding retirement matters.
Sec. 12.07. AUDITS;  EMPLOYMENT OF CERTIFIED PUBLIC ACCOUNTANTS.  The board of trustees shall employ a certified public accountant or firm of certified public accountants to perform an audit of the fund at least annually.  The municipality may pay the entire cost of an audit.  If not paid by the municipality, the cost may be paid from the assets of the fund.
Sec. 12.08. CIVIL ACTIONS FOR MONEY WRONGFULLY PAID OUT OR OBTAINED.  The board of trustees may recover by civil action from any offending party or from the party's sureties, if any, any money paid out or obtained from the fund through fraud, misrepresentation, defalcation, theft, embezzlement, or misapplication and may institute, conduct, and maintain the action in the name of the board of trustees for the use and benefit of the fund.