RS 11:3689 Management of funds - Louisiana Statutes

§3689.  Management of funds

A.  The Board of Trustees shall have full power to invest and reinvest such funds, subject to the prudent-man rule limitations regarding investments set forth in Subtitle I, Chapter 4, Part II, Subpart I of this Title and shall have full power to hold, purchase, sell, assign, transfer, and dispose of any of the securities and investments in which any of the funds created herein shall have been invested, as well as the proceeds of said investments and any monies belonging to said funds.

B.  All expense vouchers and pension payrolls shall be certified by the Secretary.  The Secretary shall furnish the Board of Trustees a surety bond in a company authorized to do business in Louisiana and in such an amount as shall be required by the Board, the premium to be paid from the Expense Fund.

C.  For the purpose of meeting disbursements for pensions, annuities, and other payments there may be kept available cash, not exceeding ten percent of the total amount in the several funds of the retirement system, on deposit in one or more banks or trust companies of the state of Louisiana organized under the laws of the state of Louisiana or of the United States, provided, that the sum of deposit in any one bank or trust company shall not exceed twenty-five percent of the paid-up capital and surplus of such bank or trust company.

D.  The Board of Trustees shall approve the Fiscal Agency Bank or banks selected for the deposit of the funds and securities of this retirement system, provided that no bank shall be selected unless the bank is a fiscal agent of the State.  The funds and properties of the system held in any bank of the State shall be safeguarded by bonds or other securities acceptable for the protection of State deposits, the amount to be determined by the Board of Trustees.

E.  Except as otherwise herein provided, no trustee and no employee of the Board of Trustees shall have any direct interest in the gains or profits of any investment made by the Board of Trustees, nor as such receive any pay or emolument for his service.  No trustee or employee of the Board shall, directly or indirectly, for himself or as an agent in any manner use the same, except to make such current and necessary payments as are authorized by the Board of Trustees; nor shall any trustee or employee of the Board of Trustees become an endorser or surety or in any manner as obligor for moneys loaned or borrowed from the Board of Trustees.

Designated from Acts 1971, No. 71, §9 by Acts 1991, No. 74, §3, eff. June 25, 1991; Acts 2003, No. 1255, §1, eff. July 7, 2003; Acts 2004, No. 621, §1, eff. July 5, 2004.