SECTIONS 31950-31967 - California Statutes

GOVERNMENT CODE

SECTION 31950-31967

31950. The management of the system is vested in a board of
retirement, consisting of five members, one of whom shall be the
county treasurer acting in an exofficio capacity. The second and
third members shall be either members or pensioners of the system
elected by the members within 30 days after the system becomes
operative, in a manner to be determined by the board of supervisors.
The fourth and fifth members shall be qualified electors of the
county who are not connected with county government in any capacity,
appointed by the board of supervisors within 30 days after that date,
except that one of such members may be a member of the board of
supervisors.

31951. The first persons elected or appointed as the second and
fourth members shall serve for two years from the date the system
becomes operative, and the third and fifth members elected or
appointed shall serve for a term of three years from that date.
Thereafter, the term of office of the four elected members shall be
three years.

31952. Neither the enactment of this chapter nor any amendment of
its predecessor shortens the term of any member of the board who was
lawfully elected or appointed, even if he would not be eligible for
election or appointment under this chapter or such amendment, but he
shall continue to be a member of the board until the expiration of
the term for which he was appointed or elected.

31953. A pensioner is eligible for membership on the board to the
same extent as if he were a member.

31954. The members of the board, except the fourth and fifth
members, shall serve without compensation. The fourth and fifth
members of the board shall receive ten dollars ($10) a meeting for
not more than one meeting a month. The members of the board shall be
reimbursed out of the funds of the county for any expense or loss of
salary or wages which they incur through service on the board and for
costs of operation of this system.

31955. The board shall organize by choosing one of its number as
chairman. Thereafter the officers shall be chosen biennially by the
board.

31956. The board shall meet for the transaction of business at
least once every three months in each calendar year and at other
times as it or a majority of its members orders. Notice of all
meetings shall be given by the secretary at least three days in
advance of the meeting.

31957. A majority of the members may transact any business of the
board.

31958. The board may compel witnesses to attend and testify before
it upon all matters connected with the operation of this chapter in
the same manner as is provided by law for the taking of testimony
before notaries public. The chairman or any member of the board may
administer oaths to the witnesses.

31959. The board may appoint a secretary and provide for the
payment from the fund of all its necessary expenses, including
secretary hire and printing.

31960. The board may make regulations not inconsistent with this
chapter. The regulations shall become effective when approved by the
board of supervisors.

31961. The board shall report annually in January to the board of
supervisors the condition of the fund and the receipts and
disbursements on account of the fund with a full and complete list of
the beneficiaries of the fund and the amounts paid them for the
preceding calendar year.

31962. The board shall annually prepare a budget of the cost of
maintaining the pension fund. For this purpose it may employ an
actuary to assist it in preparing the budget and report, to the end
that the system may be scientifically financed and administered.

31963. The board shall cause an actuarial investigation and
valuation of the system to be made immediately after the first year
of operation and thereafter at not to exceed five-year intervals. The
investigation shall be conducted under the supervision of an actuary
and shall cover the mortality, service, and salary experience of the
members and beneficiaries, and evaluate the assets and liabilities
of the fund. Upon the basis of the determination, investigation,
valuation, and recommendation of the actuary the board shall
recommend to the board of supervisors such changes in the rate of
interest, in the rates of contributions of members, and in county
appropriations as it deems necessary. No adjustment shall be included
in the new rates for time prior to the effective date of the
revision.

31964. After the receipt of the recommendations the board of
supervisors shall promptly adjust the rate of interest, the rates of
contributions of members, and county appropriations, as it deems
advisable, but shall not fix them so as to reduce the amount of
individual benefits.

31965. The board has charge and control of the funds of the system,
and shall administer them and order payments therefrom in accordance
with this chapter.

31966. The board shall invest and reinvest the funds of the system,
and may from time to time sell any securities held by it and invest
and reinvest the proceeds therefrom and all unappropriated income of
the funds. All funds received by it not required for current
disbursements shall be invested only in:
(a) Securities that are legal for savings bank investments or any
bonds which, pursuant to the statutes or laws providing for the
issuance of those bonds are entitled to the same force or value or
use as bonds issued by any municipality, or any bonds issued pursuant
to those acts, statutes or laws of this state wherein the law
specifically states by reference or otherwise that the bonds shall be
legal investments for either savings banks, insurance companies, all
trust funds, state school funds and any funds that may be invested
in bonds of cities, counties, cities and counties, school districts,
or municipalities in the state, or any bonds that have been
investigated and approved by a commission or board now or hereafter
authorized by law to conduct that investigation and give that
approval and by authority of which those bonds are declared to be
legal investments for insurers.
(b) Obligations issued pursuant to Title IV of the National
Housing Act, approved June 27, 1934.
(c) Shares, share accounts, or investment certificates of any
savings and loan association that has the protection provided by
Title IV of the National Housing Act, approved June 27, 1934, to the
extent of that insurance protection.
(d) Deposits at interest in any state or national bank doing
business with the county pursuant to the law authorizing and
controlling the deposit of public funds in banks.
(e) Shares, share accounts, or certificates of funds of a credit
union that has the protection provided by the National Credit Union
Share Insurance Fund or other private insurance or guaranty of share
accounts that is acceptable to the Commissioner of Financial
Institutions.

31967. Whenever securities belonging to or held for the system are
sold, the county treasurer shall deliver the securities sold upon
receiving the proceeds and may execute any and all documents
necessary to transfer title. The duties imposed upon the county
treasurer are a part of his official duties, for the faithful
performance of which he is liable on his official bond.