Page:United States Statutes at Large Volume 115 Part 1.djvu/906

 115 STAT. 884 PUBLIC LAW 107-90 —DEC. 21, 2001 divided into equal groups so nearly as may be, of which one group will be appointed for a 1-year term, one for a 2-year term, and one for a 3-year term. The Trustee initially selected pursuant to clause (iiXIII) shall be appointed to a 3-year term. A vacancy in the Board of Trustees shall not affect the powers of the Board of Trustees and shall be filled in the same manner as the selection of the member whose departure caused the vacancy. Upon the expiration of a term of a member of the Board of Trustees, that member shall continue to serve until a successor is appointed. "(4) POWERS OF THE BOAED OF TRUSTEES.— The Board of Trustees shall— "(A) retain independent advisers to assist it in the formulation and adoption of its investment guidelines; "(B) retain independent investment managers to invest the assets of the Trust in a manner consistent with such investment guidelines; "(C) invest assets in the Trust, pursuant to the policies adopted in subparagraph (A); "(D) pay administrative expenses of the Trust from the assets in the Trust; and "(E) transfer money to the disbursing agent or as otherwise provided in section 7(b)(4), to pay benefits payable under this Act from the assets of the Trust. " (5) REPORTING REQUIREMENTS AND FIDUCIARY STAND- ARDS.—The following reporting requirements and fiduciary standards shall apply with respect to the Trust: "(A) DUTIES OF THE BOARD OF TRUSTEES.— The Trust and each member of the Board of Trustees shall discharge their duties (including the voting of proxies) with respect to the assets of the Trust solely in the interest of the Railroad Retirement Board and through it, the participants and beneficiaries of the programs funded under this Act— "(i) for the exclusive purpose of— "(I) providing benefits to participants and their beneficiaries; and "(II) defraying reasonable expenses of administering the functions of the Trust; "(ii) with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims; "(iii) by diversifying investments so as to minimize the risk of large losses and to avoid disproportionate influence over a particular industry or firm, unless under the circumstances it is clearly prudent not to do so; and "(iv) in accordance with Trust governing documents and instruments insofar as such documents and instruments are consistent with this Act. "(B) PROHIBITIONS WITH RESPECT TO MEMBERS OF THE BOARD OF TRUSTEES. —No member of the Board of Trustees shall— "(i) deal with the assets of the Trust in the trustee's own interest or for the trustee's own account;

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