HARRY HUGHES, Governor

2473

fiduciary capacity to this pension system, in accordance
with and subject to this section.

(2) (a) In this section, "service in a fiduciary
capacity" means the exercise of any discretionary authority
or control concerning:

(i) The management or administration of
this pension system; or

(ii) The management or disposition of the
assets of this system.

(b) "Service in a fiduciary capacity" includes:

(i) Membership on the board of trustees of
this pension system;

(ii) Membership on the advisory investment
committee; and

(iii) Service as investment administrator
or on his staff.

[(c)] (3) If, with respect to a civil,
administrative, or investigative action, suit, or
proceeding, a person acted in good faith and in a manner he
reasonably believed to be in or not opposed to the best
interest of this pension system, and, with respect to a
criminal action, had no reasonable cause to believe his
conduct was unlawful, then indemnification shall be against
those expenses, including reasonable attorney's fees,
judgments, fines, and accounts paid in settlement that were
actually and reasonably incurred by him in connection with
the proceeding.

[(d)] (4) The termination of any suit or proceeding,
in any manner, does not, of itself, create a presumption
that a person did not act in good faith and in a manner he
reasonably believed to be in or not opposed to the best
interest of this pension system, and with respect to a
criminal action or proceeding, had reasonable cause to
believe that his conduct was unlawful.

[(e)] (5) Indemnification may not be made:

[(i)] (A) With respect to any suit SUIT,
claim, or matter as to which the person is adjudged to be
liable for gross negligence or willful misconduct in this
system; or

[(ii)] (B) For an independent contractor
who provides services to this pension system.

[(f)] (6) The State may provide insurance for every
person eligible for indemnification under this section
against any liability asserted against him or incurred by