Funds of retirement system, how invested--delegation of investmentauthority--investments, manner of making, form--designateddepository--electronic funds transfer required--closed meetingsauthorized, when.
169.040. 1. All funds arising from the operation of sections 169.010to 169.141 shall belong to the retirement system herein created and shallbe controlled by the board of trustees of that system which board shallprovide for the collection of such funds, shall see that they are safelypreserved, and shall permit their disbursement only for the purposes hereinauthorized. Such funds and all other funds received by the retirementsystem are declared and shall be deemed to be the moneys and funds of theretirement system and not revenue collected or moneys received by the stateand shall not be commingled with state funds.
2. The board shall invest all funds under its control which are inexcess of a safe operating balance. The funds shall be invested only inthose investments which a prudent person acting in a like capacity andfamiliar with these matters would use in the conduct of an enterprise of alike character and with like aims, as provided in section 105.688, RSMo.The board of trustees may delegate to duly appointed investment counselorsauthority to act in place of the board in the investment and reinvestmentof all or part of the moneys of the system, and may also delegate to suchcounselors the authority to act in place of the board in the holding,purchasing, selling, assigning, transferring or disposing of any or all ofthe securities and investments in which such moneys shall have beeninvested, as well as the proceeds of such investments and such moneys.Such investment counselors shall be registered as investment advisors withthe United States Securities and Exchange Commission. In exercising ordelegating its investment powers and authority, members of the board shallexercise ordinary business care and prudence under the facts andcircumstances prevailing at the time of the action or decision. No memberof the board shall be liable for any action taken or omitted with respectto the exercise of, or delegation of, these powers and authority if suchmember shall have discharged the duties of his or her position in goodfaith and with that degree of diligence, care and skill which a prudentperson acting in a like capacity and familiar with these matters would usein the conduct of an enterprise of a like character and with like aims.
3. Notwithstanding the provisions of section 105.662, RSMo, the boardmay set up and maintain a public school and education employee retirementsystems of Missouri investment fund account in which investment andreinvestment of all or part of the moneys of the system may be placed andbe available for investment purposes. For the purpose of investing thefunds of the retirement system, the funds may be combined with the funds ofthe public education employee retirement system of Missouri, but the fundsof each system shall be accounted for separately and for all otherreporting purposes shall be separate. The board of trustees may promulgatesuch rules and regulations consistent with the provisions of this sectionand section 169.630 as deemed necessary for its proper administration,pursuant to the provisions of this section and this chapter. Any rule orportion of a rule, as that term is defined in section 536.010, RSMo, thatis created under the authority delegated in this section shall becomeeffective only if it complies with and is subject to all of the provisionsof chapter 536, RSMo, and, if applicable, section 536.028, RSMo. Thissection and chapter 536, RSMo, are nonseverable and if any of the powersvested with the general assembly pursuant to chapter 536, RSMo, to review,to delay the effective date, or to disapprove and annul a rule aresubsequently held unconstitutional, then the grant of rulemaking authorityand any rule proposed or adopted after August 28, 2009, shall be invalidand void.
4. No investment transaction authorized by the board shall be handledby any company or firm in which a member of the board has an interest, norshall any member of the board profit directly or indirectly from any suchinvestment. All investments shall be made for the account of theretirement system, and any securities or other properties obtained by theboard of trustees may be held by a custodian in the name of the retirementsystem, or in the name of a nominee in order to facilitate the expeditioustransfer of such securities or other property. Such securities or otherproperties which are not available in registered form may be held in bearerform or in book entry form. The retirement system is further authorizedto deposit, or have deposited for its account, eligible securities in acentral depository system or clearing corporation or in a federal reservebank under a book entry system as defined in the Uniform Commercial Code,sections 400.8-102 and 400.8-109, RSMo. When such eligible securities ofthe retirement system are so deposited with a central depository systemthey may be merged and held in the name of the nominee of such securitiesdepository and title to such securities may be transferred by bookkeepingentry on the books of such securities depository or federal reserve bankwithout physical delivery of the certificates or documents representingsuch securities.
5. With appropriate safeguards against loss by the system in anycontingency, the board may designate a bank or trust company to serve as adepository of system funds and intermediary in the investment of thosefunds and payment of system obligations.
6. All retirement allowances or other periodic payments paid by theboard shall be paid to recipients of such payments by electronic fundstransfer, unless another method has been determined by the board to beappropriate. Each recipient of retirement allowances or other periodicpayments shall designate a financial institution or other authorizedpayment agent and provide the board information necessary for the recipientto receive electronic funds transfer payments through the institution oragent designated. This subsection shall apply to retirement allowances andother periodic payments first paid on or after January 1, 1998, and shallapply to all retirement allowances and other periodic payments on and afterJanuary 1, 1999.
7. The board of trustees may deliberate about, or make tentative orfinal decisions on, investments or other financial matters in a closedmeeting under chapter 610, RSMo, if disclosure of the deliberations ordecisions would jeopardize the ability to implement a decision or toachieve investment objectives. A record of the retirement system thatdiscloses deliberations about, or a tentative decision on, investments orother financial matters is not a public record under chapter 610, RSMo, tothe extent and so long as its disclosure would jeopardize the ability toimplement a decision or to achieve investment objectives.
(L. 1945 p. 1353 § 4, A.L. 1951 p. 510, A.L. 1957 p. 432, A.L. 1961 p. 365, A.L. 1975 S.B. 149, A.L. 1984 S.B. 407, A.L. 1990 H.B. 1347, et al., A.L. 1995 S.B. 378, A.L. 1997 S.B. 309, A.L. 2005 H.B. 443, A.L. 2009 H.B. 265)
CROSS REFERENCE:
Multinational banks, securities and obligation of, investment in, when, RSMo 409.950
Funds of retirement system, how invested--delegation of investmentauthority--investments, manner of making, form--designateddepository--electronic funds transfer required--closed meetingsauthorized, when.
169.040. 1. All funds arising from the operation of sections 169.010to 169.141 shall belong to the retirement system herein created and shallbe controlled by the board of trustees of that system which board shallprovide for the collection of such funds, shall see that they are safelypreserved, and shall permit their disbursement only for the purposes hereinauthorized. Such funds and all other funds received by the retirementsystem are declared and shall be deemed to be the moneys and funds of theretirement system and not revenue collected or moneys received by the stateand shall not be commingled with state funds.
2. The board shall invest all funds under its control which are inexcess of a safe operating balance. The funds shall be invested only inthose investments which a prudent person acting in a like capacity andfamiliar with these matters would use in the conduct of an enterprise of alike character and with like aims, as provided in section 105.688, RSMo.The board of trustees may delegate to duly appointed investment counselorsauthority to act in place of the board in the investment and reinvestmentof all or part of the moneys of the system, and may also delegate to suchcounselors the authority to act in place of the board in the holding,purchasing, selling, assigning, transferring or disposing of any or all ofthe securities and investments in which such moneys shall have beeninvested, as well as the proceeds of such investments and such moneys.Such investment counselors shall be registered as investment advisors withthe United States Securities and Exchange Commission. In exercising ordelegating its investment powers and authority, members of the board shallexercise ordinary business care and prudence under the facts andcircumstances prevailing at the time of the action or decision. No memberof the board shall be liable for any action taken or omitted with respectto the exercise of, or delegation of, these powers and authority if suchmember shall have discharged the duties of his or her position in goodfaith and with that degree of diligence, care and skill which a prudentperson acting in a like capacity and familiar with these matters would usein the conduct of an enterprise of a like character and with like aims.
3. Notwithstanding the provisions of section 105.662, RSMo, the boardmay set up and maintain a public school and education employee retirementsystems of Missouri investment fund account in which investment andreinvestment of all or part of the moneys of the system may be placed andbe available for investment purposes. For the purpose of investing thefunds of the retirement system, the funds may be combined with the funds ofthe public education employee retirement system of Missouri, but the fundsof each system shall be accounted for separately and for all otherreporting purposes shall be separate. The board of trustees may promulgatesuch rules and regulations consistent with the provisions of this sectionand section 169.630 as deemed necessary for its proper administration,pursuant to the provisions of this section and this chapter. Any rule orportion of a rule, as that term is defined in section 536.010, RSMo, thatis created under the authority delegated in this section shall becomeeffective only if it complies with and is subject to all of the provisionsof chapter 536, RSMo, and, if applicable, section 536.028, RSMo. Thissection and chapter 536, RSMo, are nonseverable and if any of the powersvested with the general assembly pursuant to chapter 536, RSMo, to review,to delay the effective date, or to disapprove and annul a rule aresubsequently held unconstitutional, then the grant of rulemaking authorityand any rule proposed or adopted after August 28, 2009, shall be invalidand void.
4. No investment transaction authorized by the board shall be handledby any company or firm in which a member of the board has an interest, norshall any member of the board profit directly or indirectly from any suchinvestment. All investments shall be made for the account of theretirement system, and any securities or other properties obtained by theboard of trustees may be held by a custodian in the name of the retirementsystem, or in the name of a nominee in order to facilitate the expeditioustransfer of such securities or other property. Such securities or otherproperties which are not available in registered form may be held in bearerform or in book entry form. The retirement system is further authorizedto deposit, or have deposited for its account, eligible securities in acentral depository system or clearing corporation or in a federal reservebank under a book entry system as defined in the Uniform Commercial Code,sections 400.8-102 and 400.8-109, RSMo. When such eligible securities ofthe retirement system are so deposited with a central depository systemthey may be merged and held in the name of the nominee of such securitiesdepository and title to such securities may be transferred by bookkeepingentry on the books of such securities depository or federal reserve bankwithout physical delivery of the certificates or documents representingsuch securities.
5. With appropriate safeguards against loss by the system in anycontingency, the board may designate a bank or trust company to serve as adepository of system funds and intermediary in the investment of thosefunds and payment of system obligations.
6. All retirement allowances or other periodic payments paid by theboard shall be paid to recipients of such payments by electronic fundstransfer, unless another method has been determined by the board to beappropriate. Each recipient of retirement allowances or other periodicpayments shall designate a financial institution or other authorizedpayment agent and provide the board information necessary for the recipientto receive electronic funds transfer payments through the institution oragent designated. This subsection shall apply to retirement allowances andother periodic payments first paid on or after January 1, 1998, and shallapply to all retirement allowances and other periodic payments on and afterJanuary 1, 1999.
7. The board of trustees may deliberate about, or make tentative orfinal decisions on, investments or other financial matters in a closedmeeting under chapter 610, RSMo, if disclosure of the deliberations ordecisions would jeopardize the ability to implement a decision or toachieve investment objectives. A record of the retirement system thatdiscloses deliberations about, or a tentative decision on, investments orother financial matters is not a public record under chapter 610, RSMo, tothe extent and so long as its disclosure would jeopardize the ability toimplement a decision or to achieve investment objectives.
(L. 1945 p. 1353 § 4, A.L. 1951 p. 510, A.L. 1957 p. 432, A.L. 1961 p. 365, A.L. 1975 S.B. 149, A.L. 1984 S.B. 407, A.L. 1990 H.B. 1347, et al., A.L. 1995 S.B. 378, A.L. 1997 S.B. 309, A.L. 2005 H.B. 443, A.L. 2009 H.B. 265)
CROSS REFERENCE:
Multinational banks, securities and obligation of, investment in, when, RSMo 409.950
Funds of retirement system, how invested--delegation of investmentauthority--investments, manner of making, form--designateddepository--electronic funds transfer required--closed meetingsauthorized, when.
169.040. 1. All funds arising from the operation of sections 169.010to 169.141 shall belong to the retirement system herein created and shallbe controlled by the board of trustees of that system which board shallprovide for the collection of such funds, shall see that they are safelypreserved, and shall permit their disbursement only for the purposes hereinauthorized. Such funds and all other funds received by the retirementsystem are declared and shall be deemed to be the moneys and funds of theretirement system and not revenue collected or moneys received by the stateand shall not be commingled with state funds.
2. The board shall invest all funds under its control which are inexcess of a safe operating balance. The funds shall be invested only inthose investments which a prudent person acting in a like capacity andfamiliar with these matters would use in the conduct of an enterprise of alike character and with like aims, as provided in section 105.688, RSMo.The board of trustees may delegate to duly appointed investment counselorsauthority to act in place of the board in the investment and reinvestmentof all or part of the moneys of the system, and may also delegate to suchcounselors the authority to act in place of the board in the holding,purchasing, selling, assigning, transferring or disposing of any or all ofthe securities and investments in which such moneys shall have beeninvested, as well as the proceeds of such investments and such moneys.Such investment counselors shall be registered as investment advisors withthe United States Securities and Exchange Commission. In exercising ordelegating its investment powers and authority, members of the board shallexercise ordinary business care and prudence under the facts andcircumstances prevailing at the time of the action or decision. No memberof the board shall be liable for any action taken or omitted with respectto the exercise of, or delegation of, these powers and authority if suchmember shall have discharged the duties of his or her position in goodfaith and with that degree of diligence, care and skill which a prudentperson acting in a like capacity and familiar with these matters would usein the conduct of an enterprise of a like character and with like aims.
3. Notwithstanding the provisions of section 105.662, RSMo, the boardmay set up and maintain a public school and education employee retirementsystems of Missouri investment fund account in which investment andreinvestment of all or part of the moneys of the system may be placed andbe available for investment purposes. For the purpose of investing thefunds of the retirement system, the funds may be combined with the funds ofthe public education employee retirement system of Missouri, but the fundsof each system shall be accounted for separately and for all otherreporting purposes shall be separate. The board of trustees may promulgatesuch rules and regulations consistent with the provisions of this sectionand section 169.630 as deemed necessary for its proper administration,pursuant to the provisions of this section and this chapter. Any rule orportion of a rule, as that term is defined in section 536.010, RSMo, thatis created under the authority delegated in this section shall becomeeffective only if it complies with and is subject to all of the provisionsof chapter 536, RSMo, and, if applicable, section 536.028, RSMo. Thissection and chapter 536, RSMo, are nonseverable and if any of the powersvested with the general assembly pursuant to chapter 536, RSMo, to review,to delay the effective date, or to disapprove and annul a rule aresubsequently held unconstitutional, then the grant of rulemaking authorityand any rule proposed or adopted after August 28, 2009, shall be invalidand void.
4. No investment transaction authorized by the board shall be handledby any company or firm in which a member of the board has an interest, norshall any member of the board profit directly or indirectly from any suchinvestment. All investments shall be made for the account of theretirement system, and any securities or other properties obtained by theboard of trustees may be held by a custodian in the name of the retirementsystem, or in the name of a nominee in order to facilitate the expeditioustransfer of such securities or other property. Such securities or otherproperties which are not available in registered form may be held in bearerform or in book entry form. The retirement system is further authorizedto deposit, or have deposited for its account, eligible securities in acentral depository system or clearing corporation or in a federal reservebank under a book entry system as defined in the Uniform Commercial Code,sections 400.8-102 and 400.8-109, RSMo. When such eligible securities ofthe retirement system are so deposited with a central depository systemthey may be merged and held in the name of the nominee of such securitiesdepository and title to such securities may be transferred by bookkeepingentry on the books of such securities depository or federal reserve bankwithout physical delivery of the certificates or documents representingsuch securities.
5. With appropriate safeguards against loss by the system in anycontingency, the board may designate a bank or trust company to serve as adepository of system funds and intermediary in the investment of thosefunds and payment of system obligations.
6. All retirement allowances or other periodic payments paid by theboard shall be paid to recipients of such payments by electronic fundstransfer, unless another method has been determined by the board to beappropriate. Each recipient of retirement allowances or other periodicpayments shall designate a financial institution or other authorizedpayment agent and provide the board information necessary for the recipientto receive electronic funds transfer payments through the institution oragent designated. This subsection shall apply to retirement allowances andother periodic payments first paid on or after January 1, 1998, and shallapply to all retirement allowances and other periodic payments on and afterJanuary 1, 1999.
7. The board of trustees may deliberate about, or make tentative orfinal decisions on, investments or other financial matters in a closedmeeting under chapter 610, RSMo, if disclosure of the deliberations ordecisions would jeopardize the ability to implement a decision or toachieve investment objectives. A record of the retirement system thatdiscloses deliberations about, or a tentative decision on, investments orother financial matters is not a public record under chapter 610, RSMo, tothe extent and so long as its disclosure would jeopardize the ability toimplement a decision or to achieve investment objectives.
(L. 1945 p. 1353 § 4, A.L. 1951 p. 510, A.L. 1957 p. 432, A.L. 1961 p. 365, A.L. 1975 S.B. 149, A.L. 1984 S.B. 407, A.L. 1990 H.B. 1347, et al., A.L. 1995 S.B. 378, A.L. 1997 S.B. 309, A.L. 2005 H.B. 443, A.L. 2009 H.B. 265)
CROSS REFERENCE:
Multinational banks, securities and obligation of, investment in, when, RSMo 409.950
