§1823. Board responsibilities; powers and duties
Each board member shall discharge his fiduciary duties solely in the interest of the
system's members and beneficiaries and for the exclusive purpose of providing benefits to
the members and their beneficiaries, and defraying reasonable expenses of administering the
system, with the care, skill, prudence, and diligence under the circumstances then prevailing
that a prudent man 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. The board shall have the
following powers and duties in administering the system:
(1)To formulate and promulgate any and all necessary rules and regulations to
facilitate the proper functioning of this system or the administration
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§1823. Board responsibilities; powers and duties
Each board member shall discharge his fiduciary duties solely in the interest of the
system's members and beneficiaries and for the exclusive purpose of providing benefits to
the members and their beneficiaries, and defraying reasonable expenses of administering the
system, with the care, skill, prudence, and diligence under the circumstances then prevailing
that a prudent man 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. The board shall have the
following powers and duties in administering the system:
(1) To formulate and promulgate any and all necessary rules and regulations to
facilitate the proper functioning of this system or the administration of any of its funds,
provided the same are not inconsistent with the terms of this Chapter. The board shall have
full authority to determine all questions of coverage and qualifications as to participation in
and receipt of benefits under the system, and shall have the power to construe the provisions
of this Chapter, and such questions as determined, or any construction so adopted by the
board in good faith shall be binding on all parties and persons concerned. Any discretionary
actions to be taken under this system by the board with respect to the classification of the
employees, contributions, or benefits shall be uniform in their nature and applicable to all
employees similarly situated.
(2) To authorize or suspend the payment of any benefit in accordance with this
Chapter.
(3) To prepare and approve prior to the beginning of each fiscal year a budget of
operating expenses for such year.
(4) To compel witnesses to attend meetings and to testify upon any necessary matter
concerning the system.
(5) To request such information from any member or participating employer as is
necessary for the proper operation of the system.
(6) To determine the length of prior service from such information as is available.
Any such determination shall be conclusive as to any such period of service unless within
one year of the issuance of the service certificate to an employee the board reconsiders the
case and changes the determination.
(7) To establish an office or offices with suitable space for meetings of the board and
for use of the necessary administrative personnel. All books and records of the system shall
be kept in such office or offices or in such other places as the board shall designate for safe
keeping.
(8) To appoint an administrative director to manage the office and carry out the
technical administrative duties of the system.
(9) To appoint an actuary to perform all the necessary actuarial requirements of the
system.
(10) To appoint such investment counsel as, in the opinion of the board, may be
required from time to time.
(11) To obtain by employment or by contract such additional actuarial services and
such legal services, in addition to that provided by the attorney general, and in such medical,
clerical, or other services as is required for the efficient administration of the system.
(12) To determine and fix the rate of compensation to be paid to the administrative
director, actuary, investment counsel, auditor, legal or medical counsel, and employees.
(13) To have the accounts of the system audited annually by a certified public
accountant.
(14) To submit an annual statement to the authorized agent of each participating
employer as soon after the end of each fiscal year as possible. The statement shall include
the following:
(a) A balance sheet, showing the financial and actuarial condition of the system as
of the end of the fiscal year.
(b) A statement of receipts and disbursements during such year.
(c) A statement showing changes in the various funds of the system during such year,
and
(d) Such additional statistics as are deemed necessary for a proper interpretation of
the condition of the system.
(15) To submit an individual statement to any participating member upon his
reasonable request. The statement shall indicate the amount of creditable service and
accumulated contributions to the employee's credit, as of the latest date practicable.
(16) To determine the limitations on the amount of cash to be invested in order to
maintain such cash balances as may be deemed advisable to meet current requirements, and
invest the available cash within these limits.
(17) To keep in convenient form the data necessary for all required calculations and
valuations as required by the actuary.
(18) To keep a permanent record of all the proceedings of the board and such other
records as shall be necessary or desirable for administration of the system.
(19) To establish such rules and regulations not inconsistent with the provisions of
this Chapter as is necessary or desirable for the efficient administration of the fund, including
the time and manner of reporting and making contributions by participating employers.
(20) To appoint committees of three or more trustees to perform such functions as
may be directed by the board.
(21) To carry on generally any other reasonable activities, including, without
limitation, the making of administrative decisions on participation and coverage, which are
necessary for carrying out the intent of the system in accordance with the provisions of this
Chapter.
(22) To deduct monthly life and health insurance premiums from the benefits
payable to any retiree or other beneficiary and to transmit them to the agency to which the
premiums are due. The board shall have full authority to formulate and promulgate any and
all necessary rules and regulations to facilitate these deductions, including but not limited to
requirements for written documentation for deductions.
(23) Repealed by Acts 2022, No. 248, §3, eff. June 30, 2022.