Section 4706 - Investment or deposit of fund; standard of care and liability of board members(a) The board shall be the trustees of the retirement fund, and shall have exclusive control and management of the said fund with full power to invest the money or any part thereof, subject to the terms, conditions, limitations and restrictions that are provided by law for investments of trust funds by fiduciaries or the retention or sale of certain investments in the hands of fiduciaries. Subject to like terms, conditions, limitations and restrictions, the board shall have power to hold, purchase, sell, assign, transfer or dispose of any of the securities and investments in the retirement fund, as well as the proceeds of said investments and of the money belonging to said fund, or it may deposit such moneys or any part thereof in one or more banks or banking institutions selected by the board. The board shall decide upon the number of banks and banking institutions of the county as depositories of retirement funds and the rate of interest to be paid by them to the board. A contract with a depository shall be for a period covering the term of the county treasurer. No moneys shall be deposited in a depository until it shall furnish to the board collateral to secure payments of deposits and interest to the board, by depositing in escrow securities to be approved by the board. Such securities to be of the kind and in the amount to be fixed by the board.(b) A board member shall perform his duties as a director, including his duties as a member of any committee of the board upon which he may serve, in good faith, in a manner he reasonably believes to be in the best interests of the retirement system and with such care, including reasonable inquiry, skill and diligence, as a person of ordinary prudence would use under similar circumstances. In performing his duties, a board member shall be entitled to rely in good faith on information, opinions, reports or statements, including financial statements, investment data and such other financial or investment data made available to him by the board's investment counselors or managers and the board's monitor, in each case prepared or presented by any of the following:(1) One or more officers or employes of the board whom the director reasonably believes to be reliable and competent in the matters presented.(2) Counsel, actuaries, investment managers or consultants, the investment monitor, the board's agent or other persons as to matters which the director reasonably believes to be within the professional or expert competence of such persons.(3) A committee of the board upon which he does not serve, duly designated in accordance with law, as to matters within its designated authority, which committee the director reasonably believes to merit confidence.(c) A director shall not be considered to be acting in good faith if he has knowledge concerning the matter in question that would cause his reliance to be unwarranted.(d) In discharging the duties of their respective positions, the board, committees of the board and individual members of the board may, in determining the effects of any action upon the employes of the board, the active employes of the county retirement system and of the retirees of the county retirement system who are receiving benefits, consider all other pertinent factors, which shall include, but not be limited to, the actions or activities of the duly appointed monitor, investment counselors or managers, the actuary and the custodial agent. Consideration of factors contained in this subsection shall not constitute a violation of subsection (b).(e) Absent breach of a fiduciary duty, lack of good faith or self-dealing, actions taken as a member of the board by any member of the board, or any failure to take any action, shall be presumed to be in the best interest of the retirement system.(f) Whenever the provisions of this act require the members of the board to undertake any action by a vote of the board, a member of the board shall not be personally liable for monetary damages as such for any action taken, or any failure to take any action, unless:(1) the board member has breached or failed to perform the duties of his position under subsections (b), (c), (d) and (e); and(2) the breach or failure to perform constitutes self- dealing, wilful misconduct or recklessness.(g) The provisions of subsections (b), (c), (d), (e) and (f) shall not apply in any case involving responsibility or liability of a board member under any criminal statute.1953, July 28, P.L. 723, art. XVII, § 1706. Amended 1989, Dec. 14, P.L. 169, No. 75, § 2, imd. effective.