Missouri Revised Statutes













Chapter 169

Teacher and School Employee Retirement Systems

←169.291

Section 169.295.1

169.296→

August 28, 2015

Board of trustees, powers and duties.

169.295. 1. The board of trustees shall be the trustees of all the funds

of the system and shall have full power to invest and reinvest such funds.

The trustees shall have full power to hold, purchase, sell, assign, transfer

or dispose of any of the securities and investments in which the funds shall

have been invested, and the proceeds thereof.



2. The board of trustees shall allow interest annually on the balance in

each member's account at the beginning of the year at the rate approved by

the board. The board shall adjust the balance of the general reserve fund

for investment realized and unrealized gains, losses, income and expenses, not

so allowed as interest on members' accounts.



3. The board of trustees shall elect a treasurer who shall serve at the

board's pleasure. The treasurer shall be the custodian of the funds provided

for in section 169.350 and shall give such bond for the faithful handling of

the funds as the board of trustees shall determine. The board of trustees may

employ one or more banks having fiduciary powers for the provisions of such

custodial or clerical service as the board may deem appropriate to assist the

treasurer. Disbursement of funds of the retirement system shall be under the

supervision of the treasurer and shall be in accordance with procedures

established or approved by the board of trustees with the concurrence of the

system's auditors.



4. For the purpose of meeting disbursements for retirement allowances and

other payments, there may be kept available cash, not exceeding ten percent

of the total amount in the funds of the retirement system, on deposit in one

or more banks or trust companies in the school district, organized under the

laws of the state of Missouri, or of the United States; provided, that the

amount on deposit in any one bank or trust company shall not exceed

twenty-five percent of the paid-up capital and surplus of such bank or trust

company, and for all deposits in excess of ten thousand dollars the board of

trustees shall require of the banks or trust companies as security for the

safekeeping and payment of the deposits securities of a like kind and

character as may be required by law for the safekeeping and payment of

deposits made by the state treasurer.



5. Except as herein provided, no trustee and no employee of the board of

trustees shall have any direct interest in the gains or profits of any

investment made by the board of trustees. No trustee or employee of the board

of trustees shall directly or indirectly for such person or as an agent in

any manner use the assets of the retirement system except to make such

current and necessary payments as are authorized by the board of trustees,

nor shall any trustee or employee of the board of trustees become in any

manner an obligor for moneys loaned by or borrowed from the board of trustees.



6. In the event that any employer offers to its employees an early

retirement option, or any other form of group exit incentive program, the

board of trustees is hereby authorized to permit such employer or any active

member who participates in such group exit incentive program to purchase

additional creditable service, in increments of not less than one month, and

shall fix and determine by proper rules and regulations, which may be amended

from time to time, the amount of service that may be purchased and the cost

thereof. Under no circumstance, however, shall:



(1) The amount of such purchased creditable service exceed twenty-four

months;



(2) The cost of purchasing such creditable service be less than the

amount necessary to pay the full actuarial cost to the retirement system of

the additional purchased service;



(3) The purchasing employer or active member be permitted to elect to

purchase such creditable service after the expiration of a reasonable time

period, which time period shall be specified in the above-referenced rules and

regulations;



(4) Such purchased creditable service count toward the vesting

requirements of section 169.301; or



(5) This subsection be applied in any manner that would not be in

compliance with applicable provisions of the Internal Revenue Code.



(L. 1982 H.B. 1522, A.L. 1990 H.B. 1347, et al., A.L. 1993 S.B. 126,

A.L. 1994 S.B. 575, A.L. 2004 H.B. 1502 merged with S.B. 1242)





1994



1994



169.295. 1. The board of trustees shall be the trustees of

all the funds of the system and shall have full power to invest

and reinvest such funds. The trustees shall have full power to

hold, purchase, sell, assign, transfer or dispose of any of the

securities and investments in which the funds shall have been

invested, and the proceeds thereof.



2. The board of trustees shall allow interest annually on

the balance in each member's account at the beginning of the year

at the rate approved by the board. The board shall adjust the

balance of the general reserve fund for investment realized and

unrealized gains, losses, income and expenses, not so allowed as

interest on members' accounts.



3. The board of trustees shall elect a treasurer who shall

serve at the board's pleasure. The treasurer shall be the

custodian of the funds provided for in section 169.350 and shall

give such bond for the faithful handling of the funds as the

board of trustees shall determine. The board of trustees may

employ a bank having fiduciary powers for the provisions of such

custodial or clerical service as the board may deem appropriate

to assist the treasurer. Disbursement of funds of the retirement

system shall be under the supervision of the treasurer and shall

be in accordance with procedures established or approved by the

board of trustees with the concurrence of the system's auditors.



4. For the purpose of meeting disbursements for retirement

allowances and other payments, there may be kept available cash,

not exceeding ten percent of the total amount in the funds of the

retirement system, on deposit in one or more banks or trust

companies in the school district, organized under the laws of the

state of Missouri, or of the United States; provided, that the

amount on deposit in any one bank or trust company shall not

exceed twenty-five percent of the paid-up capital and surplus of

such bank or trust company, and for all deposits in excess of ten

thousand dollars the board of trustees shall require of the banks

or trust companies as security for the safekeeping and payment of

the deposits securities of a like kind and character as may be

required by law for the safekeeping and payment of deposits made

by the state treasurer.



5. Except as herein provided, no trustee and no employee of

the board of trustees shall have any direct interest in the gains

or profits of any investment made by the board of trustees. No

trustee or employee of the board of trustees shall directly or

indirectly for such person or as an agent in any manner use the

assets of the retirement system except to make such current and

necessary payments as are authorized by the board of trustees,

nor shall any trustee or employee of the board of trustees become

in any manner an obligor for moneys loaned by or borrowed from

the board of trustees.



6. In the event that any employer offers to its employees

an early retirement option, or any other form of group exit

incentive program, the board of trustees is hereby authorized to

permit such employer or any active member who participates in

such group exit incentive program to purchase additional

creditable service, in increments of not less than one month, and

shall fix and determine by proper rules and regulations, which

may be amended from time to time, the amount of service that may

be purchased and the cost thereof. Under no circumstance,

however, shall:



(1) The amount of such purchased creditable service exceed

twenty-four months;



(2) The cost of purchasing such creditable service be less

than the amount necessary to pay the full actuarial cost to the

retirement system of the additional purchased service;



(3) The purchasing employer or active member be permitted

to elect to purchase such creditable service after the expiration

of a reasonable time period, which time period shall be specified

in the above-referenced rules and regulations;



(4) Such purchased creditable service count toward the

vesting requirements of section 169.301; or



(5) This subsection be applied in any manner that would not

be in compliance with applicable provisions of the Internal

Revenue Code.



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