§ 508 — Investment of funds; interest; accounts; reports

New York § 508

• Jurisdiction: New York
• Law EDN: Education
• Title 1: General Provisions Article 1 Short Title and Definitions (§§
• Art. 11: State Teachers' Retirement System For Public School Teachers

Text

§ 508. Investment of funds; interest; accounts; reports. 1. The\nmembers of the retirement board shall be the trustees of the several\nfunds created by this article, and shall determine from time to time\nwhat part of the moneys belonging to the retirement system shall be\ninvested. When such board shall determine upon the investment of any\nmoneys or upon the conversion or sale of any securities, it shall, by\nresolution duly adopted by a majority vote of the members of the board,\ndirect the custodian to so invest the moneys or convert or sell the\nsecurities. Investments shall be made only in securities in which the\ntrustees of a savings bank may invest the moneys deposited therein as\nprovided by law except that the retirement system shall have the\nauthority to own any of its nominee corporations organized pursuant to\nsubdivision seventeen of this section. It shall be the duty of the\ncustodian to collect the interest thereon as the same becomes due and\npayable and also the principal thereof and place the same when so\ncollected to the credit of the retirement system.\n 2. The retirement board shall annually allow regular interest on the\nmean amount for the preceding year in each of the funds created by this\narticle, excepting the expense fund. The amount so allowed shall be\npayable to said funds and shall be annually credited thereto by the\nretirement board. All interest earned upon the entire amount of the\nfunds belonging to the retirement system shall be used for this purpose,\nunless the amount so earned is in excess of the requirements, in which\ncase the excess amount shall be credited to the pension accumulation\nfund. Any deficiency in the amount required to cover the interest\nrequirements of the funds, exclusive of the pension accumulation fund,\nshall be paid from the pension accumulation fund.\n 3. Except as herein provided, no member nor employee of the retirement\nboard shall have any interest direct or indirect in the gains or profits\nof any investment made by the board nor as such directly or indirectly\nreceive any pay or emolument for his services. And no member nor\nemployee of the said board directly or indirectly, for himself or as an\nagent or partner of others, nor a corporation of which he is an officer,\nstockholder or member, shall borrow any of its funds or deposits or in\nany manner use the same except to make such current and necessary\npayments as are authorized by the board; nor shall any member or\nemployee of said board become an endorser or surety or become in any\nmanner an obligor for moneys loaned by or borrowed of the board. Nothing\nherein contained shall be construed to prevent a member or an employee\nof the retirement board, who is also a member of the retirement system,\nfrom borrowing from his accumulated contributions in the retirement\nsystem in accordance with section five hundred twelve-b of this article.\n 4. The retirement board shall provide for maintenance of an individual\naccount with each member showing the amount of the member's\ncontributions and the interest accumulations thereon. It shall report\nannually to each member who has furnished the board with a mailing\naddress the accumulated contributions credited to such account together\nwith the amount of service then credited to the member. It shall collect\nand keep in convenient form such data as shall be necessary for the\npreparation of the required mortality and service tables, and for the\ncompilation of such other information as shall be required for the\nactuarial valuation of the assets and liabilities of the various funds\ncreated by this article. Upon the basis of the mortality and service\nexperience of the members and beneficiaries of the system, the\nretirement board from time to time shall adopt the tables to be used for\nvaluation purposes and for determining the amount of annuities to be\nallowed on the basis of the contributions of members.\n 5. At such time as the retirement board may deem it necessary and at\nleast once each quinquennial period, the retirement board shall have its\nactuary prepare a report showing a complete valuation of the present and\nprospective assets and liabilities of the various funds created by this\narticle with the exception of the expense fund. The actuary shall make\nan investigation of the mortality and service experience of the members\nof the retirement system and shall report fully upon its conditions as\nwell as estimated future investment earnings with such recommendations\nas he shall deem advisable for the information of the retirement board\nin the proper operation of the retirement system.\n 6. The records of the retirement board shall be open to public\ninspection.\n 7. The retirement board shall publish annually a report showing the\ncondition of the various funds created by this article, certifying to\nthe accumulated cash and securities of the funds and giving an account\nof the operation of the system.\n 8. The retirement system may use a part of its funds, not exceeding\nten per centum of its net assets, (1) for purchasing or leasing of land\nwithin the county of Albany and the construction thereon of a suitable\noffice building or buildings for the transaction of the business of the\nretirement system and (2) for purchasing or leasing of land in the\ncities of Albany, Binghamton, New York, Rochester and Utica and the\nconstruction thereon of a suitable office building or buildings for\npurposes of lease or sale to the state and (3) for purchasing or leasing\nof land in locations approved by the state university trustees and the\nconstruction, acquisition, reconstruction, rehabilitation or improvement\nof suitable buildings or facilities thereon for purposes of lease or\nsale to the state university construction fund, such buildings or\nfacilities to be used by the state university or by state-operated\ninstitutions or statutory or contract colleges under the jurisdiction of\nthe state university or by the students, faculty and staff of the state\nuniversity or of any such state-operated institution or statutory or\ncontract college, and their families.\n The retirement system from time to time may lease to any public agency\nany portion of a building constructed for the transaction of its\nbusiness which may not be required for such purpose, upon such terms and\nconditions as shall be deemed to be for the best interest of the\nretirement system.\n Real property of the retirement system acquired or constructed\npursuant to this subdivision shall be exempt from taxation as provided\nin the real property tax law.\n 10. The retirement system may invest, within the limitations\nauthorized for investments in conventional mortgages, a part of its\nfunds in first mortgages on real property located anywhere within the\nboundaries of the United States and leased to the government of the\nUnited States, provided however, that no such investment shall be made\nunless the terms of the mortgage shall provide for amortization payments\nin an amount sufficient to completely amortize the loan within the\nperiod of the lease.\n 11. The funds of the retirement system may be invested in the purchase\nof promissory notes or bonds from the farmers home administration issued\nin connection with the purchase or improvement of real property and\nwhich are insured by the farmers home administration.\n 13. Where any benefit accruing under the provisions of this article is\npayable to a minor, incompetent, or any other person under a legal\ndisability and no guardian of the property, committee or other such\nlegal representative is duly appointed within six months of the date the\nbenefit accrues to such person, the retirement board shall be authorized\nto adopt rules and regulations providing for a savings account to be\nestablished for each such person to which shall be paid the amounts of\nsuch benefits due and owing to such persons. Interest shall be credited\nto each savings account established pursuant to this subdivision in the\nsame manner and amount as is credited to the accumulated contributions\nof members in their individual accounts in the annuity savings fund\npursuant to this article. The funds in such accounts shall be payable,\nwithin a reasonable time after proper notification to the system, to a\nguardian of the property, committee or other such legal representative\nafter such person is duly appointed or to the beneficiary once the legal\ndisability is removed. A payment made pursuant to the provisions of this\nsubdivision shall release the system from any liability whatsoever.\n 14. The retirement board is hereby authorized to buy securities under\nan agreement providing for the repurchase thereof. The retirement board\nis also authorized to assign commitments to invest system funds pursuant\nto an agreement providing for the subsequent purchase of such\ninvestments. The securities purchased pursuant to this subdivision\nshall meet the eligibility standards prescribed for such class of\ninvestments.\n 15. During the period ending June thirtieth, nineteen hundred\nseventy-seven, the retirement board is authorized, in order to obtain\nthe funds necessary to make investments without the conversion or sale\nof securities it holds, to borrow an amount not exceeding the amount to\nbe invested, upon such terms and conditions as the board, by resolution,\nshall approve, which terms may include the pledge of any assets of such\nsystem as may be necessary to secure the repayment of the amount\nborrowed, provided that the total amount of such borrowing at no time\nshall exceed five per centum of the system's assets.\n 16. (a) The retirement system is authorized to photograph,\nmicrophotograph, film, record, copy, image or otherwise reproduce all or\nany part of its records by any process which accurately reproduces or\nforms a durable medium for reproducing any original document or record.\nWhenever the retirement system shall have so reproduced such records and\nwhenever such reproductions or media have been placed in conveniently\naccessible files and provision has been made for preserving, examining\nand using the same, the retirement system may cause the original record\nwhich has been so reproduced to be disposed of or destroyed.\n (b) Any reproduction or reproduction from any media authorized\npursuant to this subdivision shall have the same force and effect as the\noriginals thereof would have had and shall be deemed to be an original\nrecord for all purposes, including introduction in evidence in all\ncourts or administrative agencies. Duly certified or authenticated\ncopies of such reproductions shall be admitted in evidence equally with\nthe original reproductions.\n (c) A duly authorized representative of the retirement system is\nhereby authorized to certify to the authenticity of any reproduction\nherein authorized and the retirement system shall make such charges\ntherefor as may be authorized by law.\n 17. Any real estate interests acquired by the retirement system\npursuant to this section, or pursuant to any other provision of law,\nshall be conveyed to it directly by name, or may be taken in the name of\na duly authorized nominee. The retirement system shall have the\nauthority to organize corporations for the purpose of carrying out the\nintent of this subdivision, and may make loans to said corporations for\nthe purpose of operating, preserving, or otherwise servicing any\nproperty being held by said corporations.\n 18. Notwithstanding any other provision of this section, the\nretirement board shall have the power to delegate to one or more\ninvestment managers its authority to invest moneys belonging to the\nretirement system. The term "investment managers" as used in this\nsubdivision shall include but not be limited to independent contractors\nselected by the retirement board.\n 19. Whenever a statute requires that a document must be filed or\nmoneys deposited with the system within a prescribed period of time or\nby a specified date in order for a member to be eligible for service\ncredit or a benefit from the system the document shall be deemed filed\nor the moneys deposited with the system on the date mailed if mailed to\nthe system either through (1) the United States postal service by\nregistered or certified mail or (2) such other equivalent postal mail\nservice as the retirement board may specifically permit by rule or\nregulation with a tracking service confirming a date of mailing.\nNotwithstanding the provisions hereof, no such document shall be deemed\nfiled or moneys deposited with the system on the mailing date unless\nactually received by the retirement system as the result of such\nmailing.\n