Trustees--selection, qualifications, powers and duties--circuitcourt's jurisdiction over board--board's authority to make rules foradministering assets of system.
169.450. 1. The general administration and responsibility for theproper operation of the retirement system and for making effective theprovisions of sections 169.410 to 169.540 are hereby vested in a board oftrustees of eleven persons, as follows:
(1) Four trustees to be appointed for terms of four years by theboard of education; provided, however, that their terms shall be fixed sothe terms of one of the trustees so appointed shall expire each year. Themembers of such board of trustees appointed by the board of education maybe members of the board of education or other individuals deemed qualifiedto hold such positions by the board of education;
(2) Four trustees to be elected for terms of four years by and fromthe active members of the retirement system who shall hold office astrustees only while active members; provided, however, that their termsshall be fixed so that the terms of one of the trustees so elected shallexpire each year; and provided further, that not more than two of suchpersons shall be teachers and two shall be nonteachers. For the purposesof this subsection, a school administrator shall not be eligible for thepositions established pursuant to this subdivision and shall be eligiblefor the position established pursuant to subdivision (4) of thissubsection;
(3) Two trustees, who shall be retired members, to be elected forterms of four years by and from the retired members of the retirementsystem; provided, however, that the terms of office of the first twotrustees so elected shall begin immediately upon their election and shallexpire two and four years from the date of their election, respectively;and provided further, that not more than one of such persons shall be ateacher and one shall be a nonteacher;
(4) One member, who shall be a school administrator, to be electedfor a term of four years by and from the active members of the retirementsystem who shall hold office as a trustee only while an active member;except that, the initial term of office of such trustee shall expire onDecember 31, 1999.
2. If a vacancy occurs in the office of trustee, the vacancy shall befilled for the unexpired term in the same manner as the office waspreviously filled. No vacancy or vacancies on the board of trustees shallimpair the power of the remaining trustees to administer the retirementsystem pending the filling of such vacancies.
3. In the event of a lapse of a school district's corporateorganization as described in subsections 1 and 4 of section 162.081, RSMo,or for any other reason, the general administration and the responsibilityfor the proper operation of the retirement system shall continue to befully vested in the trustees then currently serving and such trustees shallcontinue to serve and be elected in the same manner as set forth in thisstatute as if no lapse had occurred, except that in the event of vacanciesoccurring in the office of trustees appointed by the board of educationprior to the lapse, the board of trustees shall appoint a qualified personor persons to fill such vacancy or vacancies for terms of up to four years.
4. Trustees shall serve without compensation, and any trustee shallbe reimbursed from the expense fund for all necessary expenses which thetrustee may incur through service on the board of trustees.
5. Each trustee shall, within ten days after such trustee'sappointment or election, take an oath of office before the clerk of thecircuit court of the judicial circuit in which the school district islocated that, so far as it devolves upon the trustee, the trustee willdiligently and honestly administer the affairs of the board of trustees andthat the trustee will not knowingly violate or willingly permit to beviolated any of the provisions of the law applicable to the retirementsystem. Such oath shall be subscribed to by the trustee making it andfiled in the office of the clerk of the circuit court.
6. The circuit court of the judicial circuit in which the schooldistrict is located shall have jurisdiction over the members of the boardof trustees to require them to account for their official conduct in themanagement and disposition of the funds and property committed to theircharge; to order, decree and compel payment by them to the public schoolretirement system of their school district of all sums of money, and of thevalue of all property which may have been improperly retained by them, ortransferred to others, or which may have been lost or wasted by anyviolation of their duties or abuse of their powers as such members of suchboard; to remove any such member upon proof that the trustee has abused thetrustee's trust or has violated the duties of the trustee's office; torestrain and prevent any alienation or disposition of property of suchpublic school retirement system by the members, in cases where it may bethreatened, or there is good reason to apprehend that it is intended to bemade in fraud of the rights and interests of such public school retirementsystem. The jurisdiction conferred by sections 169.410 to 169.540 shall beexercised as in ordinary cases upon petition, filed by the board ofeducation of such school district, or by any two members of the board oftrustees. 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 fromthe judgment of the circuit court as in other causes and be speedilydetermined, but such appeal shall not operate under any condition as asupersedeas of a judgment of removal from office.
7. Each trustee shall be entitled to one vote in the board oftrustees. Six votes shall be necessary for a decision by the trustees atany meeting of the board of trustees.
8. Subject to the limitations of sections 169.410 to 169.540, theboard of trustees shall, from time to time, establish rules and regulationsfor the administration of the retirement system, for eligibility for anddetermination of benefits under the retirement system, for the investmentof retirement system assets, and for the transaction of the retirementsystem's business.
9. The board of trustees shall elect from its membership a chairmanand shall, by majority vote of its members, appoint a secretary, who maybe, but need not be, one of its members. It shall engage such actuarialand other services as shall be required to transact the business of theretirement system. It shall also engage an investment counselor who shallbe experienced in the investment of moneys to advise the trustees oninvestments of the retirement system. The compensation of all personsengaged by the board of trustees and all other expenses of the boardnecessary for the operation of the retirement system shall be paid at suchrates and in such amounts as the board of trustees shall approve.
10. The board of trustees shall keep in convenient form such data asshall be necessary for actuarial valuations of the assets of the retirementsystem and for checking the experience of the system.
11. The board of trustees shall keep a record of all its proceedingswhich shall be open to public inspection. It shall prepare annually andsend to the board of education and to each member of the retirement systema report showing the fiscal transactions of the retirement system for thepreceding fiscal year, a detailed listing of all salaries and expendituresincurred by the trustees for its operation, the amount of the accumulatedcash and securities of the system, and the last balance sheet showing thefinancial condition of the system by means of an actuarial valuation of theassets and liabilities of the retirement system. The board of trusteesshall also prepare or cause to be prepared an annual report concerning theoperation of the retirement system herein provided for, which report shallbe sent by the chairman of the board of trustees to the board of education.
12. The board of trustees shall arrange for necessary legal advicefor the operation of the retirement system.
13. The board of trustees shall designate a medical board to becomposed of three physicians, none of whom shall be eligible for benefitspursuant to sections 169.410 to 169.540, who shall arrange for and passupon all medical examinations required pursuant to the provisions ofsections 169.410 to 169.540, shall investigate all essential statements andcertificates made by or on behalf of a member in connection with anapplication for disability retirement and shall report in writing to theboard of trustees its conclusions and recommendations upon all mattersreferred to it.
14. The actuary shall be the technical adviser of the board oftrustees on matters regarding the operation of the system created bysections 169.410 to 169.540 and shall perform such other duties as arerequired in connection therewith. Such person shall be qualified as anactuary by membership as a fellow in the Society of Actuaries or byobjective standards which are no less stringent than those established bythe Society of Actuaries.
15. At least once in each five-year period the actuary shall make aninvestigation into the actuarial experience of the retirement system, andtaking into account the results of such investigation of the experience,the board of trustees shall adopt for the retirement system such actuarialassumptions as shall be deemed necessary.
16. On the basis of such actuarial assumptions as the board oftrustees shall adopt, the actuary shall make an annual valuation of theassets and liabilities of the funds of the retirement system.
17. On the basis of the valuation the board of trustees shall certifythe 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)
Trustees--selection, qualifications, powers and duties--circuitcourt's jurisdiction over board--board's authority to make rules foradministering assets of system.
169.450. 1. The general administration and responsibility for theproper operation of the retirement system and for making effective theprovisions of sections 169.410 to 169.540 are hereby vested in a board oftrustees of eleven persons, as follows:
(1) Four trustees to be appointed for terms of four years by theboard of education; provided, however, that their terms shall be fixed sothe terms of one of the trustees so appointed shall expire each year. Themembers of such board of trustees appointed by the board of education maybe members of the board of education or other individuals deemed qualifiedto hold such positions by the board of education;
(2) Four trustees to be elected for terms of four years by and fromthe active members of the retirement system who shall hold office astrustees only while active members; provided, however, that their termsshall be fixed so that the terms of one of the trustees so elected shallexpire each year; and provided further, that not more than two of suchpersons shall be teachers and two shall be nonteachers. For the purposesof this subsection, a school administrator shall not be eligible for thepositions established pursuant to this subdivision and shall be eligiblefor the position established pursuant to subdivision (4) of thissubsection;
(3) Two trustees, who shall be retired members, to be elected forterms of four years by and from the retired members of the retirementsystem; provided, however, that the terms of office of the first twotrustees so elected shall begin immediately upon their election and shallexpire two and four years from the date of their election, respectively;and provided further, that not more than one of such persons shall be ateacher and one shall be a nonteacher;
(4) One member, who shall be a school administrator, to be electedfor a term of four years by and from the active members of the retirementsystem who shall hold office as a trustee only while an active member;except that, the initial term of office of such trustee shall expire onDecember 31, 1999.
2. If a vacancy occurs in the office of trustee, the vacancy shall befilled for the unexpired term in the same manner as the office waspreviously filled. No vacancy or vacancies on the board of trustees shallimpair the power of the remaining trustees to administer the retirementsystem pending the filling of such vacancies.
3. In the event of a lapse of a school district's corporateorganization as described in subsections 1 and 4 of section 162.081, RSMo,or for any other reason, the general administration and the responsibilityfor the proper operation of the retirement system shall continue to befully vested in the trustees then currently serving and such trustees shallcontinue to serve and be elected in the same manner as set forth in thisstatute as if no lapse had occurred, except that in the event of vacanciesoccurring in the office of trustees appointed by the board of educationprior to the lapse, the board of trustees shall appoint a qualified personor persons to fill such vacancy or vacancies for terms of up to four years.
4. Trustees shall serve without compensation, and any trustee shallbe reimbursed from the expense fund for all necessary expenses which thetrustee may incur through service on the board of trustees.
5. Each trustee shall, within ten days after such trustee'sappointment or election, take an oath of office before the clerk of thecircuit court of the judicial circuit in which the school district islocated that, so far as it devolves upon the trustee, the trustee willdiligently and honestly administer the affairs of the board of trustees andthat the trustee will not knowingly violate or willingly permit to beviolated any of the provisions of the law applicable to the retirementsystem. Such oath shall be subscribed to by the trustee making it andfiled in the office of the clerk of the circuit court.
6. The circuit court of the judicial circuit in which the schooldistrict is located shall have jurisdiction over the members of the boardof trustees to require them to account for their official conduct in themanagement and disposition of the funds and property committed to theircharge; to order, decree and compel payment by them to the public schoolretirement system of their school district of all sums of money, and of thevalue of all property which may have been improperly retained by them, ortransferred to others, or which may have been lost or wasted by anyviolation of their duties or abuse of their powers as such members of suchboard; to remove any such member upon proof that the trustee has abused thetrustee's trust or has violated the duties of the trustee's office; torestrain and prevent any alienation or disposition of property of suchpublic school retirement system by the members, in cases where it may bethreatened, or there is good reason to apprehend that it is intended to bemade in fraud of the rights and interests of such public school retirementsystem. The jurisdiction conferred by sections 169.410 to 169.540 shall beexercised as in ordinary cases upon petition, filed by the board ofeducation of such school district, or by any two members of the board oftrustees. 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 fromthe judgment of the circuit court as in other causes and be speedilydetermined, but such appeal shall not operate under any condition as asupersedeas of a judgment of removal from office.
7. Each trustee shall be entitled to one vote in the board oftrustees. Six votes shall be necessary for a decision by the trustees atany meeting of the board of trustees.
8. Subject to the limitations of sections 169.410 to 169.540, theboard of trustees shall, from time to time, establish rules and regulationsfor the administration of the retirement system, for eligibility for anddetermination of benefits under the retirement system, for the investmentof retirement system assets, and for the transaction of the retirementsystem's business.
9. The board of trustees shall elect from its membership a chairmanand shall, by majority vote of its members, appoint a secretary, who maybe, but need not be, one of its members. It shall engage such actuarialand other services as shall be required to transact the business of theretirement system. It shall also engage an investment counselor who shallbe experienced in the investment of moneys to advise the trustees oninvestments of the retirement system. The compensation of all personsengaged by the board of trustees and all other expenses of the boardnecessary for the operation of the retirement system shall be paid at suchrates and in such amounts as the board of trustees shall approve.
10. The board of trustees shall keep in convenient form such data asshall be necessary for actuarial valuations of the assets of the retirementsystem and for checking the experience of the system.
11. The board of trustees shall keep a record of all its proceedingswhich shall be open to public inspection. It shall prepare annually andsend to the board of education and to each member of the retirement systema report showing the fiscal transactions of the retirement system for thepreceding fiscal year, a detailed listing of all salaries and expendituresincurred by the trustees for its operation, the amount of the accumulatedcash and securities of the system, and the last balance sheet showing thefinancial condition of the system by means of an actuarial valuation of theassets and liabilities of the retirement system. The board of trusteesshall also prepare or cause to be prepared an annual report concerning theoperation of the retirement system herein provided for, which report shallbe sent by the chairman of the board of trustees to the board of education.
12. The board of trustees shall arrange for necessary legal advicefor the operation of the retirement system.
13. The board of trustees shall designate a medical board to becomposed of three physicians, none of whom shall be eligible for benefitspursuant to sections 169.410 to 169.540, who shall arrange for and passupon all medical examinations required pursuant to the provisions ofsections 169.410 to 169.540, shall investigate all essential statements andcertificates made by or on behalf of a member in connection with anapplication for disability retirement and shall report in writing to theboard of trustees its conclusions and recommendations upon all mattersreferred to it.
14. The actuary shall be the technical adviser of the board oftrustees on matters regarding the operation of the system created bysections 169.410 to 169.540 and shall perform such other duties as arerequired in connection therewith. Such person shall be qualified as anactuary by membership as a fellow in the Society of Actuaries or byobjective standards which are no less stringent than those established bythe Society of Actuaries.
15. At least once in each five-year period the actuary shall make aninvestigation into the actuarial experience of the retirement system, andtaking into account the results of such investigation of the experience,the board of trustees shall adopt for the retirement system such actuarialassumptions as shall be deemed necessary.
16. On the basis of such actuarial assumptions as the board oftrustees shall adopt, the actuary shall make an annual valuation of theassets and liabilities of the funds of the retirement system.
17. On the basis of the valuation the board of trustees shall certifythe 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)
Trustees--selection, qualifications, powers and duties--circuitcourt's jurisdiction over board--board's authority to make rules foradministering assets of system.
169.450. 1. The general administration and responsibility for theproper operation of the retirement system and for making effective theprovisions of sections 169.410 to 169.540 are hereby vested in a board oftrustees of eleven persons, as follows:
(1) Four trustees to be appointed for terms of four years by theboard of education; provided, however, that their terms shall be fixed sothe terms of one of the trustees so appointed shall expire each year. Themembers of such board of trustees appointed by the board of education maybe members of the board of education or other individuals deemed qualifiedto hold such positions by the board of education;
(2) Four trustees to be elected for terms of four years by and fromthe active members of the retirement system who shall hold office astrustees only while active members; provided, however, that their termsshall be fixed so that the terms of one of the trustees so elected shallexpire each year; and provided further, that not more than two of suchpersons shall be teachers and two shall be nonteachers. For the purposesof this subsection, a school administrator shall not be eligible for thepositions established pursuant to this subdivision and shall be eligiblefor the position established pursuant to subdivision (4) of thissubsection;
(3) Two trustees, who shall be retired members, to be elected forterms of four years by and from the retired members of the retirementsystem; provided, however, that the terms of office of the first twotrustees so elected shall begin immediately upon their election and shallexpire two and four years from the date of their election, respectively;and provided further, that not more than one of such persons shall be ateacher and one shall be a nonteacher;
(4) One member, who shall be a school administrator, to be electedfor a term of four years by and from the active members of the retirementsystem who shall hold office as a trustee only while an active member;except that, the initial term of office of such trustee shall expire onDecember 31, 1999.
2. If a vacancy occurs in the office of trustee, the vacancy shall befilled for the unexpired term in the same manner as the office waspreviously filled. No vacancy or vacancies on the board of trustees shallimpair the power of the remaining trustees to administer the retirementsystem pending the filling of such vacancies.
3. In the event of a lapse of a school district's corporateorganization as described in subsections 1 and 4 of section 162.081, RSMo,or for any other reason, the general administration and the responsibilityfor the proper operation of the retirement system shall continue to befully vested in the trustees then currently serving and such trustees shallcontinue to serve and be elected in the same manner as set forth in thisstatute as if no lapse had occurred, except that in the event of vacanciesoccurring in the office of trustees appointed by the board of educationprior to the lapse, the board of trustees shall appoint a qualified personor persons to fill such vacancy or vacancies for terms of up to four years.
4. Trustees shall serve without compensation, and any trustee shallbe reimbursed from the expense fund for all necessary expenses which thetrustee may incur through service on the board of trustees.
5. Each trustee shall, within ten days after such trustee'sappointment or election, take an oath of office before the clerk of thecircuit court of the judicial circuit in which the school district islocated that, so far as it devolves upon the trustee, the trustee willdiligently and honestly administer the affairs of the board of trustees andthat the trustee will not knowingly violate or willingly permit to beviolated any of the provisions of the law applicable to the retirementsystem. Such oath shall be subscribed to by the trustee making it andfiled in the office of the clerk of the circuit court.
6. The circuit court of the judicial circuit in which the schooldistrict is located shall have jurisdiction over the members of the boardof trustees to require them to account for their official conduct in themanagement and disposition of the funds and property committed to theircharge; to order, decree and compel payment by them to the public schoolretirement system of their school district of all sums of money, and of thevalue of all property which may have been improperly retained by them, ortransferred to others, or which may have been lost or wasted by anyviolation of their duties or abuse of their powers as such members of suchboard; to remove any such member upon proof that the trustee has abused thetrustee's trust or has violated the duties of the trustee's office; torestrain and prevent any alienation or disposition of property of suchpublic school retirement system by the members, in cases where it may bethreatened, or there is good reason to apprehend that it is intended to bemade in fraud of the rights and interests of such public school retirementsystem. The jurisdiction conferred by sections 169.410 to 169.540 shall beexercised as in ordinary cases upon petition, filed by the board ofeducation of such school district, or by any two members of the board oftrustees. 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 fromthe judgment of the circuit court as in other causes and be speedilydetermined, but such appeal shall not operate under any condition as asupersedeas of a judgment of removal from office.
7. Each trustee shall be entitled to one vote in the board oftrustees. Six votes shall be necessary for a decision by the trustees atany meeting of the board of trustees.
8. Subject to the limitations of sections 169.410 to 169.540, theboard of trustees shall, from time to time, establish rules and regulationsfor the administration of the retirement system, for eligibility for anddetermination of benefits under the retirement system, for the investmentof retirement system assets, and for the transaction of the retirementsystem's business.
9. The board of trustees shall elect from its membership a chairmanand shall, by majority vote of its members, appoint a secretary, who maybe, but need not be, one of its members. It shall engage such actuarialand other services as shall be required to transact the business of theretirement system. It shall also engage an investment counselor who shallbe experienced in the investment of moneys to advise the trustees oninvestments of the retirement system. The compensation of all personsengaged by the board of trustees and all other expenses of the boardnecessary for the operation of the retirement system shall be paid at suchrates and in such amounts as the board of trustees shall approve.
10. The board of trustees shall keep in convenient form such data asshall be necessary for actuarial valuations of the assets of the retirementsystem and for checking the experience of the system.
11. The board of trustees shall keep a record of all its proceedingswhich shall be open to public inspection. It shall prepare annually andsend to the board of education and to each member of the retirement systema report showing the fiscal transactions of the retirement system for thepreceding fiscal year, a detailed listing of all salaries and expendituresincurred by the trustees for its operation, the amount of the accumulatedcash and securities of the system, and the last balance sheet showing thefinancial condition of the system by means of an actuarial valuation of theassets and liabilities of the retirement system. The board of trusteesshall also prepare or cause to be prepared an annual report concerning theoperation of the retirement system herein provided for, which report shallbe sent by the chairman of the board of trustees to the board of education.
12. The board of trustees shall arrange for necessary legal advicefor the operation of the retirement system.
13. The board of trustees shall designate a medical board to becomposed of three physicians, none of whom shall be eligible for benefitspursuant to sections 169.410 to 169.540, who shall arrange for and passupon all medical examinations required pursuant to the provisions ofsections 169.410 to 169.540, shall investigate all essential statements andcertificates made by or on behalf of a member in connection with anapplication for disability retirement and shall report in writing to theboard of trustees its conclusions and recommendations upon all mattersreferred to it.
14. The actuary shall be the technical adviser of the board oftrustees on matters regarding the operation of the system created bysections 169.410 to 169.540 and shall perform such other duties as arerequired in connection therewith. Such person shall be qualified as anactuary by membership as a fellow in the Society of Actuaries or byobjective standards which are no less stringent than those established bythe Society of Actuaries.
15. At least once in each five-year period the actuary shall make aninvestigation into the actuarial experience of the retirement system, andtaking into account the results of such investigation of the experience,the board of trustees shall adopt for the retirement system such actuarialassumptions as shall be deemed necessary.
16. On the basis of such actuarial assumptions as the board oftrustees shall adopt, the actuary shall make an annual valuation of theassets and liabilities of the funds of the retirement system.
17. On the basis of the valuation the board of trustees shall certifythe 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)
