CHAPTER 3. THE BOARD OF TRUSTEES
IC 5-10.3-3
Chapter 3. The Board of Trustees
IC 5-10.3-3-1
Composition; appointment; vacancies
Sec. 1. (a) The board is composed of six (6) trustees.
(b) Five (5) of the trustees shall be appointed by the governor, asfollows:
(1) One (1) must be a member of the fund with at least ten (10)years of creditable service.
(2) Not more than three (3) may be members of the samepolitical party.
(3) One (1) must be:
(A) a:
(i) member of the fund or retired member of the fund; or
(ii) member of a collective bargaining unit of stateemployees represented by a labor organization; or
(B) an individual who is:
(i) an officer or a member of a local, a national, or aninternational labor union that represents state or universityemployees; and
(ii) an Indiana resident.
(c) The director of the budget agency or the director's designee isan ex officio voting member of the board. An individual appointedunder this subsection to serve as the director's designee:
(1) is subject to the provisions of section 3 of this chapter; and
(2) serves as a permanent designee until replaced by thedirector.
(d) The governor shall fill by appointment vacancies on the boardin the manner described in subsection (b).
(e) In making the appointments under subsection (b)(1) or (b)(2),the governor may consider whether at least one (1) trustee is a retiredmember of the fund under subsection (b)(3)(A)(i).
As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.36-1996,SEC.1; P.L.246-2001, SEC.9; P.L.62-2005, SEC.4.
IC 5-10.3-3-2
Term of office
Sec. 2. Term of Office. Each trustee is entitled to serve a term offour (4) years beginning on July 1 following appointment and untilhis successor is qualified.
As added by Acts 1977, P.L.53, SEC.3.
IC 5-10.3-3-3
Oath of office; qualification for membership
Sec. 3. Oath of Office; Qualification for Membership. Eachtrustee shall take an oath of office, which must be:
(1) subscribed to by the trustee making it;
(2) certified by the officer before whom it is taken; and
(3) filed with the secretary of state.A trustee is qualified for membership on the board when the oath isfiled with the secretary of state.
As added by Acts 1977, P.L.53, SEC.3.
IC 5-10.3-3-4
Compensation
Sec. 4. (a) Each trustee who is not a state officer or employee isentitled to receive reimbursement for necessary expenses actuallyincurred through service on the board.
(b) Each trustee who is a state officer or employee is entitled toreimbursement for necessary expenses actually incurred throughservice on the board.
As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.25-1994,SEC.6; P.L.62-2005, SEC.5.
IC 5-10.3-3-5
Meetings
Sec. 5. (a) The board shall hold an annual meeting each Novemberand regular meetings at least quarterly in each year. Special meetingsmay be held as considered necessary by the board.
(b) Meetings may be held in the general office or in such otherplaces in the state as are designated by the board.
(c) All meetings must be open to the public. The board shall keepa record of its proceedings.
As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.28-1984,SEC.4.
IC 5-10.3-3-6
Voting; quorum
Sec. 6. Four (4) trustees constitute a quorum for the transaction ofbusiness. Each trustee is entitled to one (1) vote on the board. Amajority vote is sufficient for adoption of a resolution or other actionat regular or special meetings.
As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.62-2005,SEC.6.
IC 5-10.3-3-7
Duties
Sec. 7. The board shall do all of the following:
(1) In conjunction with the board of trustees of the Indiana stateteachers' retirement fund, appoint a director.
(2) Appoint an actuary and employ or contract with employees,auditors, technical experts, legal counsel, and other serviceproviders as it considers necessary to transact the business ofthe fund, without the approval of any state officer.
(3) Fix the compensation of persons:
(A) appointed or employed by the board; or
(B) who contract with the board.
(4) Establish a general office in Indianapolis for board meetingsand for administrative personnel. (5) Provide for the installation in the general office of acomplete system of books, accounts including reserve accounts,and records in order to give effect to all the requirements of thisarticle and to assure the proper operation of the fund.
(6) Provide for a report at least annually, before June 1, to eachmember of the amount credited to him in the annuity savingsaccount in each investment program under IC 5-10.2-2.
(7) With the advice of the actuary, adopt actuarial tables andcompile data needed for actuarial studies which are necessaryfor the fund's operation.
(8) Act on applications for benefits and claims of error filed bymembers.
(9) Have the accounts of the fund audited annually by the stateboard of accounts.
(10) Publish for the members a synopsis of the fund's condition.
(11) Adopt a budget on a calendar year or fiscal year basis thatis sufficient, as determined by the board, to perform the board'sduties and, as appropriate and reasonable, draw upon fundassets to fund the budget.
(12) Expend money, including income from the fund'sinvestments, for effectuating the fund's purposes.
(13) Establish personnel programs and policies for itsemployees.
(14) Submit a report of its activities each year to the governor,the pension management oversight commission, and the budgetcommittee before November 1 of each year. The report underthis subdivision must set forth a complete operating andfinancial statement covering its operations during the mostrecent fiscal year, including information on the following:
(A) Investment performance.
(B) Investment and administrative costs as a percentage ofassets under management.
(C) Investment asset allocation strategy.
(D) Member services.
(E) Member communications.
(15) Establish a code of ethics or decide to be under thejurisdiction and rules adopted by the state ethics commission.
(16) Cooperate with the board of trustees of the Indiana stateteachers' retirement fund to the extent practicable and feasiblein:
(A) administering and investing the assets of the fundsadministered by the board; and
(B) hiring investment managers, investment advisors, andother service providers.
As added by Acts 1977, P.L.53, SEC.3. Amended by Acts 1979,P.L.17, SEC.6; P.L.35-1985, SEC.20; P.L.5-1990, SEC.7;P.L.119-2000, SEC.4; P.L.107-2010, SEC.2.
IC 5-10.3-3-7.1
Annual analysis of fund Sec. 7.1. The board shall annually analyze for internal controlpurposes the fund's;
(1) income and expenditures;
(2) actuarial condition;
(3) reserve accounts;
(4) investments; and
(5) such other data as necessary to interpret the fund's conditionand the board's administration of the fund.
As added by Acts 1979, P.L.17, SEC.7.
IC 5-10.3-3-8
Powers
Sec. 8. (a) The board may do any of the following:
(1) Establish and amend rules and regulations:
(A) for the administration and regulation of the fund and theboard's affairs; and
(B) to effectuate the powers and purposes of the board;
without adopting a rule under IC 4-22-2.
(2) Make contracts and sue and be sued as the board of trusteesof the public employees' retirement fund of Indiana.
(3) Delegate duties to its employees.
(4) Enter into agreements with one (1) or more insurancecompanies to provide life, hospitalization, surgical, medical,dental, vision, long term care, or supplemental Medicareinsurance, utilizing individual or group insurance policies forretired members of the fund, and, upon authorization of therespective member, deduct premium payments for such policiesfrom the members' retirement benefits and remit the paymentsto the insurance companies.
(5) Enter into agreements with one (1) or more insurancecompanies to provide annuities for retired members of the fund,and, upon a member's authorization, transfer the amountcredited to the member in the annuity savings account to theinsurance companies.
(6) For the 1977 police officers' and firefighters' pension anddisability fund, deduct from benefits paid and remit to theappropriate entities amounts authorized by IC 36-8-8-17.2.
(7) Whenever the fund's membership is sufficiently large foractuarial valuation, establish an employer's contribution rate forall employers, including employers with special benefitprovisions for certain employees.
(8) Amortize prior service liability over a period of forty (40)years or less.
(9) Recover payments made under false or fraudulentrepresentation.
(10) Exercise all powers necessary, convenient, or appropriateto carry out and effectuate its public and corporate purposes andto conduct its business.
(b) An agreement under subsection (a)(4) may be for a durationof three (3) years. (c) This subsection does not apply to investments of the board. Acontract under subsection (a)(2) may be for a term of not more thanfive (5) years, with an ability to renew thereafter.
(d) The board's powers and the fund's powers specified in thischapter shall be interpreted broadly to effectuate the purposes of thischapter and may not be construed as a limitation of powers.
As added by Acts 1977, P.L.53, SEC.3. Amended by Acts 1977(ss),P.L.1, SEC.2; P.L.35-1985, SEC.21; P.L.43-1991, SEC.4;P.L.22-1998, SEC.7; P.L.119-2000, SEC.5; P.L.61-2002, SEC.7;P.L.183-2003, SEC.1.
IC 5-10.3-3-9
Director; duties
Sec. 9. (a) The director is the executive officer in charge of theadministration of the fund's detailed affairs.
(b) The director shall:
(1) maintain a record of the board's proceedings;
(2) be responsible for the safekeeping of the books and recordsof the funds administered by the board;
(3) receipt for payments made to the funds administered by theboard and deposit these payments with the custodian for thefund's account;
(4) sign vouchers for the payment of money from the fundsadministered by the board as authorized by the board;
(5) execute a corporate surety bond in an amount specified bythe board, the premium on the bond to be paid by the board; and
(6) perform other duties assigned by the board.
As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.46-1988,SEC.1; P.L.5-1990, SEC.8; P.L.115-2009, SEC.9.
IC 5-10.3-3-10
Actuary; duties
Sec. 10. The Actuary. The actuary is the technical advisor on theoperation of the fund. The actuary shall perform the duties specifiedin this article and in IC 5-10.2 and all other duties assigned by theboard.
As added by Acts 1977, P.L.53, SEC.3.