§ 507 — Officers of board; custody of funds

§ 507. Officers of board; custody of funds. 1. The retirement board\nshall elect from its membership a president and vice-president, and\nshall have power to employ a secretary and to secure the services of\nsuch technical and administrative employees as may be necessary for the\ntransaction of the business of the retirement system. The compensation\nof all persons engaged by the retirement board and all other expenses of\nthe board necessary for the proper operation of the retirement system\nshall be paid at such rates and in such amounts as the retirement board\nshall approve.\n 2. The retirement board shall appoint a counsel to serve as its legal\nadviser.\n 3. The head of the division of the treasury in the department of\ntaxation and finance shall be the custodian of the funds of the\nretirement system, except any asset consisting of evidence of a loan to\na member of the retirement system pursuant to section five hundred\ntwelve-b which such asset shall be in the custody of the retirement\nboard. Disbursements from the funds of the retirement system shall be\nmade by the custodian or such person as may be authorized by him only\nupon warrants signed by a member of the retirement board, or an official\nthereof, authorized to do so by resolution of the board duly adopted at\na meeting of the board by a majority of its members. The commissioner of\ntaxation and finance shall authorize a person who in the absence or\ndisability of the head of the division of the treasury in the department\nof taxation and finance shall exercise and perform the functions, powers\nand duties conferred or imposed on the head of the division of the\ntreasury in the department of taxation and finance as the custodian of\nthe funds of the retirement system, and such person so authorized shall\ncontinue to exercise and perform such functions, powers and duties\nduring any period that the office of the head of the division of the\ntreasury in the department of taxation and finance is vacant.\n 4. The custodian shall furnish annually to the retirement board a\nsworn statement of the amount of the funds in his custody belonging to\nthe retirement system.\n 6. The retirement board shall appoint a medical board of three\nphysicians who shall hold office at the pleasure of the retirement\nboard. Such medical board shall meet at regular intervals and shall\nperform such duties as are assigned to it by the retirement board,\nincluding, but not limited to, a review of applications for disability\nretirement and a review of the continued disablement of pensioners\nretired for disability. The medical board shall report to the retirement\nboard its recommendation approving or disapproving each disability\nretirement application. The medical board may designate other physicians\nto make such medical examinations of a disability applicant as it may\nrequire and shall review the findings of such physicians prior to making\nits own recommendation to the retirement board.\n 7. a. The system shall save harmless and indemnify all members of the\nretirement board, officers and employees of the system from financial\nloss arising out of any claim, demand, suit or judgment by reason of\nalleged negligence or other act by such board member, officer or\nemployee provided that such board member, officer or employee at the\ntime of such alleged negligence or act was acting in the discharge of\nhis duties and within the scope of his employment and that such damages\ndid not result from the willful and wrongful act or gross negligence of\nsuch board member, officer or employee and provided further that such\nboard member, officer or employee shall, within five days of the time he\nis served with any summons, complaint, process, notice, demand or\npleading, deliver the original or a copy thereof to the system's legal\nadvisor.\n b. Upon such delivery the system's legal advisor may assume control of\nthe representation of such board member, officer or employee. Such board\nmember, officer or employee shall cooperate fully with the system's\nlegal advisor's defense.\n c. This section shall not in any way impair, limit or modify the\nrights and obligations of any insurer under any policy of insurance.\n d. The benefits of this section shall inure only to board members,\nofficers and employees of the system and shall not enlarge or diminish\nthe rights of any other party.\n 8. Notwithstanding the provisions of subdivision seven of this section\nand in lieu thereof, the retirement board may, by adoption of a board\nregulation, provide for the indemnification and defense by the system of\nmembers of the retirement board and employees of the system in\naccordance with section eighteen of the public officers law.\n