State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_135 > GS_135-7

§ 135‑7.  Management offunds.

(a)        Vested in Board ofTrustees. – The Board of Trustees shall be the trustee of the several fundscreated by this Chapter as provided in this section and in G.S. 135‑8.

(b)        Regular InterestAllowance. – The Board of Trustees annually shall allow regular interest on themean amount for the preceding year in each of the funds with the exception ofthe expense fund. The amounts so allowed shall be due and payable to saidfunds, and shall be annually credited thereto by the Board of Trustees frominterest and other earnings on the moneys of the Retirement System. Anyadditional amount required to meet the interest on the funds of the RetirementSystem shall be paid from the pension accumulation fund, and any excess ofearnings over such amount required shall be paid to the pension accumulationfund. Regular interest shall mean such per centum rate to be compoundedannually as shall be determined by the Board of Trustees on the basis of theinterest earnings of the System for the preceding year and of the probableearnings to be made, in the judgment of the Board, during the immediate future,such rate to be limited to a minimum of three per centum (3%) and a maximum offour per centum (4%), with the latter rate applicable during the first year ofoperation of the Retirement System.

(c)        Custodian of Funds;Disbursements; Bond of Director. – The State Treasurer shall be the custodianof the several funds and shall invest their assets in accordance with theprovisions of G.S. 147‑69.2 and 147‑69.3.

(d)        Deposits to MeetDisbursements. – For the purpose of meeting disbursements for pensions,annuities and other payments there may be kept available cash, not exceedingten per centum (10%) of the total amount in the several funds of the RetirementSystem, on deposit with the State Treasurer of North Carolina.

(e)        Personal Profit orActing as Surety Prohibited. – Except as otherwise herein provided, no trusteeand no employee of the Board of Trustees shall have any direct interest in thegains or profits of any investment made by the Board of Trustees, nor as suchreceive any pay or emolument for his service. No trustee or employee of theBoard shall, directly or indirectly, for himself or as an agent in any manneruse the same, except to make such current and necessary payments as areauthorized by the Board of Trustees; nor shall any trustee or employee of theBoard of Trustees become an endorser or surety or in any manner an obligor formoneys loaned or borrowed from the Board of Trustees.

(f)         Retiree HealthBenefit Fund. – The Retiree Health Benefit Fund is established as a fund inwhich accumulated contributions from employers and any earnings on thosecontributions shall be used to provide health benefits to retired and disabledemployees and their applicable beneficiaries as provided by this Chapter. TheRetiree Health Benefit Fund shall be administered in accordance with theprovisions of subsection (a) of this section. Employer contributions to theFund are irrevocable. The assets of the Fund are dedicated to providing healthbenefits to retired and disabled employees and their applicable beneficiariesas provided by this Chapter and are not subject to the claims of creditors ofthe employers making contributions to the Fund. However, Fund assets may beused for reasonable expenses to administer the Fund, including costs to conductrequired actuarial valuations of State‑supported retired employees'health benefits under other post‑employment benefit accounting standardsset forth by the Governmental Accounting Standards Board of the FinancialAccounting Foundation. (1941, c. 25, s. 7; 1957, c. 846, s. 2; 1959, c. 1181, s. 2; 1961, c.397; 1965, c. 780, s. 1; 1967, c. 720, s. 11; c. 1205; 1971, c. 386, s. 4;1973, c. 241, s. 9; 1979, c. 467, ss. 14, 15; 2004‑124, s. 31.20(a); 2007‑323,s. 28.23.)