Board receives fiduciary‑duty and conflict‑of‑interest refresher, counsel highlights Form 700 and Gov. Code §1090 risks

Counsel and the board’s fiduciary consultant provided a training session on fiduciary responsibilities and conflicts of interest, emphasizing practical do’s and don’ts for trustees.

Key points: presenters reviewed the duties of loyalty and care, the board’s duty to prioritize plan members and beneficiaries, and the requirement to diversify and prudently manage the fund’s assets. The presenters emphasized the ‘‘one‑hat’’ rule: when acting in pension matters trustees must act solely in the interest of plan beneficiaries, setting aside other roles or employer interests.

Counsel described two bodies of law trustees should watch: the Political Reform Act (disclosure focus; Form 700 filings) and California Government Code §1090 (which can bar participation in contracts where a trustee has a financial interest and can carry civil or criminal consequences in some cases). Counsel said abstention, recusal and early consultation with counsel are important remedies and that staff will assist in building procedural scripts for handling necessary abstentions.

Board members asked about the practical mechanics of abstaining and communicating with members; counsel recommended routing benefit‑specific inquiries to staff and using the CEO/CIO or counsel to escalate systemic communications. The training closed with an administrative reminder: certain senior investment staff and board categories will have to file both city and state Form 700 filings this year.