Missouri § 56.809 - Board established, trustees, terms, selection of — actuaries, advisors, counsel — audits — tables, rates, records — hearings, appeal — surety bonds — rules — powers of trustees — delegation of authority to advisors — records.

§ 56.809. Board established, trustees, terms, selection of — actuaries, advisors, counsel — audits — tables, rates, records — hearings, appeal — surety bonds — rules — powers of trustees — delegation of authority to advisors — records.

1.  The general administration and the responsibility for the proper operation of the fund are vested in a board of trustees of five persons.  Trustees shall be elected by a secret ballot vote of the prosecuting attorneys and circuit attorneys of this state.  Trustees shall be chosen for terms of four years from the first day of January next following their election except that the members of the first board shall be appointed by the governor by and with the consent of the senate after notification in writing, respectively, by the prosecuting attorneys and circuit attorneys of eighty percent of the counties in the state, including a city not within a county, that the prosecuting attorney or circuit attorney has elected to come under the provisions of sections 56.800 to 56.840.  It shall be the responsibility of the initial board to establish procedures for the conduct of future elections of trustees and such procedures shall be approved by a majority vote by secret ballot of the prosecuting attorneys and circuit attorneys in this state.  The board shall have all powers and duties that are necessary and proper to enable it, its officers, employees and agents to fully and effectively carry out all the purposes of sections 56.800 to 56.840.

2.  The board of trustees shall elect one of their number as chairman and one of their number as vice chairman and may employ an administrator who shall serve as executive secretary to the board.  The Missouri office of prosecution services, sections 56.750 to 56.775, may, in the discretion of the board of trustees, act as administrative employees to carry out all of the purposes of sections 56.800 to 56.840.  In addition, the board of trustees may appoint such other employees as may be required.  The board shall hold regular meetings at least once each quarter.  Other meetings may be called as necessary by the chairman or by any three members of the board.  Notice of such meetings shall be given in accordance with chapter 610.

3.  The board of trustees shall appoint an actuary or firm of actuaries as technical advisor to the board of trustees.

4.  The board of trustees shall retain investment advisors to be investment advisors to the board.

5.  The board of trustees may retain legal counsel to advise the board and represent the system in legal proceedings.

6.  The board shall arrange for annual audits of the records and accounts of the system by a certified public accountant or by a firm of certified public accountants.

7.  The board of trustees shall serve without compensation for their services as such; except that each trustee shall be paid from the system's funds for any necessary expenses incurred in the performance of duties authorized by the board.

8.  The board of trustees shall be authorized to appropriate funds from the system for administrative costs in the operation of the system.

9.  The board of trustees shall, from time to time, after receiving the advice of its actuary, adopt such mortality and other tables of experience, and a rate or rates of regular interest, as shall be necessary for the actuarial requirements of the system, and shall require its executive secretary to keep in convenient form such data as shall be necessary for actuarial investigations of the experience of the system, and such data as shall be necessary for the annual actuarial valuations of the system.

10.  The board of trustees shall, after reasonable notice to all interested parties, hear and decide questions arising from the administration of sections 56.800 to 56.840; except that within thirty days after a decision or order, any member, retirant, beneficiary or political subdivision adversely affected by that determination or order may make an appeal under the provisions of chapter 536.

11.  The board of trustees shall arrange for adequate surety bonds covering the executive secretary and any other custodian of funds or investments of the board.  When approved by the board, such bonds shall be deposited in the office of the Missouri secretary of state.

12.  Subject to the limitations of sections 56.800 to 56.840, the board of trustees shall formulate and adopt rules and regulations for the government of its own proceedings and for the administration of the retirement system.

13.  The board of trustees shall be the trustees of the funds of the system.  Subject to the provisions of any applicable federal or state laws, the board of trustees shall have full power to invest and reinvest the moneys of the system, and to hold, purchase, sell, assign, transfer or dispose of any of the securities and investments in which such moneys shall have been invested, as well as the proceeds of such investments and such moneys.

14.  Notwithstanding any other provision of the law to the contrary, the board of trustees may delegate to its duly appointed investment advisors authority to act in place of the board of trustees in the investment and reinvestment of all or part of the moneys of the system, and may also delegate to such advisors the authority to act in place of the board of trustees in the holding, purchasing, selling, assigning, transferring or disposing of any or all of the securities and investments in which such moneys shall have been invested, as well as the proceeds of such investments and such moneys.  Such investment counselor shall be registered as an investment advisor with the United States Securities and Exchange Commission.  In exercising or delegating its investment powers and authority, members of the board of trustees shall exercise ordinary business care and prudence under the facts and circumstances prevailing at the time of the action or decision.  In so doing, the board of trustees shall consider the long-term and short-term needs of the system in carrying out its purposes, the system's present and anticipated financial requirements, the expected total return on the system's investment, the general economic conditions, income, growth, long-term net appreciation, and probable safety of funds.  No member of the board of trustees shall be liable for any action taken or omitted with respect to the exercise of or delegation of these powers and authority if such member shall have discharged the duties of his or her position in good faith and with that degree of diligence, care and skill which prudent men and women would ordinarily exercise under similar circumstances in a like position.

15.  The board shall keep a record of its proceedings which shall be open to public inspection.  It shall annually prepare a report showing the financial condition of the system.  The report shall contain, but not be limited to, an auditor's opinion, financial statements prepared in accordance with generally accepted accounting principles, an actuary's certification along with actuarial assumptions and financial solvency tests.

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(L. 1989 S.B. 30 § 56.795, A.L. 1993 S.B. 169, A.L. 2013 H.B. 116)

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