48-223. Types of retirement plans; trust fund;
insured plan
The plan adopted may provide for either:
1. The creation of a retirement trust fund to consist of all contributions made by
the district and the participants and the net income produced by the investment of the
trust fund. The trust fund shall be held, managed and administered by a trustee pursuant
to an agreement between the district and the trustee. The governing body of the district
is authorized to enter into an agreement with a bank or corporation empowered to exercise
trust powers providing for the holding, management, administration, and disposition of
the trust fund upon such terms and under such conditions as the governing body may
determine to be in the best interest of the participants and the district and to afford
the greatest actuarially sound benefits to the participants. Such trustee shall be a
corporation or association organized under the laws of this state or of the United States
and shall have been engaged in business not less than ten years. The trust funds may be
invested in any of the securities or obligations prescribed by section 38-719, or as
hereafter amended, for the investment of funds of the Arizona state retirement system.
2. A group annuity contract with a legal reserve insurance company for the purpose
of providing for the purchase of annuities, the payment of death and termination
benefits, and such other benefits as shall be provided by the plan. The insurance company
shall be authorized to transact business in the state for the purposes of issuing such
group annuity contracts.
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