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Section: 169.0450 Trustees--selection, qualifications, powers and duties--circuit court's jurisdiction over board--board's authority to make rules for administering assets of system. RSMO 169.450


Published: 2015

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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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