Missouri Revised Statutes
Chapter 169
Teacher and School Employee Retirement Systems
←169.440
Section 169.450.1
169.460→
August 28, 2015
Trustees--selection, qualifications, powers and duties--circuit court's jurisdiction over board--board's authority to make rules for administering assets of system.
169.450. 1. The general administration and responsibility for the proper
operation of the retirement system and for making effective the provisions of
sections 169.410 to 169.540 are hereby vested in a board of trustees of eleven
persons, as follows:
(1) Four trustees to be appointed for terms of four years by the board
of education; provided, however, that their terms shall be fixed so the terms
of one of the trustees so appointed shall expire each year. The members of
such board of trustees appointed by the board of education may be members of
the board of education or other individuals deemed qualified to hold such
positions by the board of education;
(2) Four trustees to be elected for terms of four years by and from the
active members of the retirement system who shall hold office as trustees
only while active members; provided, however, that their terms shall be fixed
so that the terms of one of the trustees so elected shall expire each year;
and provided further, that not more than two of such persons shall be
teachers and two shall be nonteachers. For the purposes of this subsection,
a school administrator shall not be eligible for the positions established
pursuant to this subdivision and shall be eligible for the position
established pursuant to subdivision (4) of this subsection;
(3) Two trustees, who shall be retired members, to be elected for terms
of four years by and from the retired members of the retirement system;
provided, however, that the terms of office of the first two trustees so
elected shall begin immediately upon their election and shall expire two and
four years from the date of their election, respectively; and provided
further, that not more than one of such persons shall be a teacher and one
shall be a nonteacher;
(4) One member, who shall be a school administrator, to be elected for a
term of four years by and from the active members of the retirement system
who shall hold office as a trustee only while an active member; except that,
the initial term of office of such trustee shall expire on December 31, 1999.
2. If a vacancy occurs in the office of trustee, the vacancy shall be
filled for the unexpired term in the same manner as the office was previously
filled. No vacancy or vacancies on the board of trustees shall impair the
power of the remaining trustees to administer the retirement system pending
the filling of such vacancies.
3. In the event of a lapse of a school district's corporate organization
as described in subsections 1 and 4 of section 162.081, or for any other
reason, the general administration and the responsibility for the proper
operation of the retirement system shall continue to be fully vested in the
trustees then currently serving and such trustees shall continue to serve and
be elected in the same manner as set forth in this statute as if no lapse had
occurred, except that in the event of vacancies occurring in the office of
trustees appointed by the board of education prior to the lapse, the board of
trustees shall appoint a qualified person or persons to fill such vacancy or
vacancies for terms of up to four years.
4. Trustees shall serve without compensation, and any trustee shall be
reimbursed from the expense fund for all necessary expenses which the trustee
may incur through service on the board of trustees.
5. Each trustee shall, within ten days after such trustee's appointment
or election, take an oath of office before the clerk of the circuit court of
the judicial circuit in which the school district is located that, so far as
it devolves upon the trustee, the trustee will diligently and honestly
administer the affairs of the board of trustees and that the trustee will not
knowingly violate or willingly permit to be violated any of the provisions of
the law applicable to the retirement system. Such oath shall be subscribed to
by the trustee making it and filed in the office of the clerk of the circuit
court.
6. The circuit court of the judicial circuit in which the school district
is located shall have jurisdiction over the members of the board of trustees
to require them to account for their official conduct in the management and
disposition of the funds and property committed to their charge; to order,
decree and compel payment by them to the public school retirement system of
their school district of all sums of money, and of the value of all property
which may have been improperly retained by them, or transferred to others, or
which may have been lost or wasted by any violation of their duties or abuse
of their powers as such members of such board; to remove any such member upon
proof that the trustee has abused the trustee's trust or has violated the
duties of the trustee's office; to restrain and prevent any alienation or
disposition of property of such public school retirement system by the
members, in cases where it may be threatened, or there is good reason to
apprehend that it is intended to be made in fraud of the rights and interests
of such public school retirement system. The jurisdiction conferred by
sections 169.410 to 169.540 shall be exercised as in ordinary cases upon
petition, filed by the board of education of such school district, or by any
two members of the board of trustees. Such petition shall be heard in a
summary manner after ten days' notice in writing to the member complained of,
and an appeal shall lie from the judgment of the circuit court as in other
causes and be speedily determined, but such appeal shall not operate under any
condition as a supersedeas of a judgment of removal from office.
7. Each trustee shall be entitled to one vote in the board of trustees.
Six votes shall be necessary for a decision by the trustees at any meeting of
the board of trustees.
8. Subject to the limitations of sections 169.410 to 169.540, the board
of trustees shall, from time to time, establish rules and regulations for the
administration of the retirement system, for eligibility for and
determination of benefits under the retirement system, for the investment of
retirement system assets, and for the transaction of the retirement system's
business.
9. The board of trustees shall elect from its membership a chairman and
shall, by majority vote of its members, appoint a secretary, who may be, but
need not be, one of its members. It shall engage such actuarial and other
services as shall be required to transact the business of the retirement
system. It shall also engage an investment counselor who shall be
experienced in the investment of moneys to advise the trustees on investments
of the retirement system. The compensation of all persons engaged by the
board of trustees and all other expenses of the board necessary for the
operation of the retirement system shall be paid at such rates and in such
amounts as the board of trustees shall approve.
10. The board of trustees shall keep in convenient form such data as
shall be necessary for actuarial valuations of the assets of the retirement
system and for checking the experience of the system.
11. The board of trustees shall keep a record of all its proceedings
which shall be open to public inspection. It shall prepare annually and send
to the board of education and to each member of the retirement system a
report showing the fiscal transactions of the retirement system for the
preceding fiscal year, a detailed listing of all salaries and expenditures
incurred by the trustees for its operation, the amount of the accumulated
cash and securities of the system, and the last balance sheet showing the
financial condition of the system by means of an actuarial valuation of the
assets and liabilities of the retirement system. The board of trustees shall
also prepare or cause to be prepared an annual report concerning the
operation of the retirement system herein provided for, which report shall be
sent by the chairman of the board of trustees to the board of education.
12. The board of trustees shall arrange for necessary legal advice for
the operation of the retirement system.
13. The board of trustees shall designate a medical board to be composed
of three physicians, none of whom shall be eligible for benefits pursuant to
sections 169.410 to 169.540, who shall arrange for and pass upon all medical
examinations required pursuant to the provisions of sections 169.410 to
169.540, shall investigate all essential statements and certificates made by
or on behalf of a member in connection with an application for disability
retirement and shall report in writing to the board of trustees its
conclusions and recommendations upon all matters referred to it.
14. The actuary shall be the technical adviser of the board of trustees
on matters regarding the operation of the system created by sections 169.410
to 169.540 and shall perform such other duties as are required in connection
therewith. Such person shall be qualified as an actuary by membership as a
fellow in the Society of Actuaries or by objective standards which are no
less stringent than those established by the Society of Actuaries.
15. At least once in each five-year period the actuary shall make an
investigation into the actuarial experience of the retirement system, and
taking into account the results of such investigation of the experience, the
board of trustees shall adopt for the retirement system such actuarial
assumptions as shall be deemed necessary.
16. On the basis of such actuarial assumptions as the board of trustees
shall adopt, the actuary shall make an annual valuation of the assets and
liabilities of the funds of the retirement system.
17. On the basis of the valuation the board of trustees shall certify
the rates of contribution payable by the board of education.
(L. 1943 p. 805 § 5, A.L. 1953 pp. 438, 496, A.L. 1957 p. 462, A.L.
1961 p. 384, A.L. 1967 p. 263, A.L. 1978 S.B. 542, A.L. 1981 H.B.
33, et al., A.L. 1987 H.B. 558, et al., A.L. 1996 S.B. 860, A.L.
1999 H.B. 979, A.L. 2001 H.B. 660)
1999
1999
169.450. 1. The general administration and responsibility for the
proper operation of the retirement system and for making effective the
provisions of sections 169.410 to 169.540 are hereby vested in a board of
trustees of eleven persons, as follows:
(1) Four trustees to be appointed for terms of four years by the
board of education; provided, however, that their terms shall be fixed so
the terms of one of the trustees so appointed shall expire each year;
(2) Four trustees to be elected for terms of four years by and from
the active members of the retirement system who shall hold office as
trustees only while active members; provided, however, that their terms
shall be fixed so that the terms of one of the trustees so elected shall
expire each year; and provided further, that not more than two of such
persons shall be teachers and two shall be nonteachers;
(3) Two trustees, who shall be retirants, to be elected for terms of
four years by and from the retirants of the retirement system; provided,
however, that the terms of office of the first two trustees so elected
shall begin immediately upon their election and shall expire two and four
years from the date of their election, respectively; and provided further,
that not more than one of such persons shall be a teacher and one shall be
a nonteacher;
(4) One member, who shall be a school administrator, to be elected
for a term of four years by and from the active members of the retirement
system who shall hold office as a trustee only while an active member;
except that, the initial term of office of such trustee shall expire on
December 31, 1999.
2. If a vacancy occurs in the office of trustee, the vacancy shall be
filled for the unexpired term in the same manner as the office was
previously filled.
3. The members of such board of trustees appointed by the board of
education may be members of the board of education or other individuals
deemed qualified to hold such positions by the board of education. The
trustees shall serve without compensation, and any trustee shall be
reimbursed from the expense fund for all necessary expenses which the
trustee may incur through service on the board of trustees.
4. Each trustee shall, within ten days after such trustee's
appointment or election, take an oath of office before the clerk of the
circuit court of the judicial circuit in which the school district is
located that, so far as it devolves upon the trustee, the trustee will
diligently and honestly administer the affairs of the board of trustees and
that the trustee will not knowingly violate or willingly permit to be
violated any of the provisions of the law applicable to the retirement
system. Such oath shall be subscribed to by the trustee making it and
filed in the office of the clerk of the circuit court.
5. The circuit court of the judicial circuit in which the school
district is located shall have jurisdiction over the members of the board
of trustees to require them to account for their official conduct in the
management and disposition of the funds and property committed to their
charge; to order, decree and compel payment by them to the public school
retirement system of their school district of all sums of money, and of the
value of all property which may have been improperly retained by them, or
transferred to others, or which may have been lost or wasted by any
violation of their duties or abuse of their powers as such members of such
board; to remove any such member upon proof that the trustee has abused the
trustee's trust or has violated the duties of the trustee's office; to
restrain and prevent any alienation or disposition of property of such
public school retirement system by the members, in cases where it may be
threatened, or there is good reason to apprehend that it is intended to be
made in fraud of the rights and interests of such public school retirement
system. The jurisdiction conferred by sections 169.410 to 169.540 shall be
exercised as in ordinary cases upon petition, filed by the board of
education of such school district, or by any two members of the board of
trustees. Such petition shall be heard in a summary manner after ten days'
notice in writing to the member complained of, and an appeal shall lie from
the judgment of the circuit court as in other causes and be speedily
determined, but such appeal shall not operate under any condition as a
supersedeas of a judgment of removal from office.
6. Each trustee shall be entitled to one vote in the board of
trustees. Six votes shall be necessary for a decision by the trustees at
any meeting of the board of trustees.
7. Subject to the limitations of sections 169.410 to 169.540, the
board of trustees shall, from time to time, establish rules and regulations
for the administration of the assets of the retirement system and for the
transaction of its business.
8. The board of trustees shall elect from its membership a chairman
and shall, by majority vote of its members, appoint a secretary, who may
be, but need not be, one of its members. It shall engage such actuarial
and other services as shall be required to transact the business of the
retirement system. It shall also engage an investment counselor who shall
be experienced in the investment of moneys to advise the trustees on
investments of the retirement system. The compensation of all persons
engaged by the board of trustees and all other expenses of the board
necessary for the operation of the retirement system shall be paid at such
rates and in such amounts as the board of trustees shall approve.
9. The board of trustees shall keep in convenient form such data as
shall be necessary for actuarial valuations of the assets of the retirement
system and for checking the experience of the system.
10. The board of trustees shall keep a record of all its proceedings
which shall be open to public inspection. It shall prepare annually and
send to the board of education and to each member of the retirement system
a report showing the fiscal transactions of the retirement system for the
preceding fiscal year, a detailed listing of all salaries and expenditures
incurred by the trustees for its operation, the amount of the accumulated
cash and securities of the system, and the last balance sheet showing the
financial condition of the system by means of an actuarial valuation of the
assets and liabilities of the retirement system. The board of trustees
shall also prepare or cause to be prepared an annual report concerning the
operation of the retirement system herein provided for, which report shall
be sent by the chairman of the board of trustees to the board of education.
11. The board of trustees shall arrange for necessary legal advice
for the operation of the retirement system.
12. The board of trustees shall designate a medical board to be
composed of three physicians, none of whom shall be eligible for benefits
pursuant to sections 169.410 to 169.540, who shall arrange for and pass
upon all medical examinations required pursuant to the provisions of
sections 169.410 to 169.540, shall investigate all essential statements and
certificates made by or on behalf of a member in connection with an
application for disability retirement and shall report in writing to the
board of trustees its conclusions and recommendations upon all matters
referred to it.
13. The actuary shall be the technical adviser of the board of
trustees on matters regarding the operation of the system created by
sections 169.410 to 169.540 and shall perform such other duties as are
required in connection therewith. Such person shall be qualified as an
actuary by membership as a fellow in the Society of Actuaries or by similar
objective standards.
14. At least once in each five-year period the actuary shall make an
investigation into the actuarial experience of the retirement system, and
taking into account the results of such investigation of the experience,
the board of trustees shall adopt for the retirement system such actuarial
assumptions as shall be deemed necessary.
15. On the basis of such actuarial assumptions as the board of
trustees shall adopt, the actuary shall make an annual valuation of the
assets and liabilities of the funds of the retirement system.
16. On the basis of the valuation the board of trustees shall certify
the rates of contribution payable by the board of education.
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