2023 Laws of Puerto Rico › TITLE EIGHTEEN - Education (§§ 1 — 3510-3520) › PART I - Public Schools (§§ 1 — 596d) › Chapter 18C - Commonwealth of Puerto Rico Teacher’s Retirement System Act (§§ 393 — 399d) › Subchapter II - System, Board of Trustees, and Executive Director (§§ 394 — 394g) › § 394a - Powers and authorities of the System

(a) In order to carry out the duties provided in this chapter, the System shall have the following powers and authorities:
(1) To sue and be sued.
(2) To draft, approve, adopt, amend, and repeal rules and regulations for the due enforcement of the provisions of this chapter, which once approved and promulgated by the Board of Trustees shall have the force of law.
(3) To prepare and approve an expense budget for its operations and administration.
(4) To conduct investigations concerning all matters within its jurisdiction; compel the appearance of witnesses by a summons to such purposes which may be served through the Office of the Superintendent of the Puerto Rico Police, and to administer oaths to said witnesses.
(5) To adopt an official seal.
(6) To create a Board of Trustees with authority to establish the administrative organization of the System.
(7) To request and obtain from government offices those reports deemed convenient in relation to the sound administration of the System and keep the appropriate accounting books to determine the condition thereof.
(8) To pay pensions to System pensioners, reimburse individual contributions in the cases provided under this chapter, pay the salaries of its employees and all expenses lawfully incurred.
(9) To contract services as necessary for the administration of the System, including consultants, investment managers, actuaries, and any professional service deemed necessary.
(10) To invest funds in accordance with the provisions of this chapter.
(11) To sell, assign or transfer the amount of the mortgage credits held by the System as well as personal loans portfolios managed by the same. The interest accrued by said mortgages shall be exempt from the payment of income tax to the Commonwealth of Puerto Rico, held by any subsequent holder thereof.
(12) To delegate to the Executive Director or his/her authorized representative the approval of loans authorized under the provisions of this chapter, pursuant to the regulations approved by the Board of Trustees by virtue of its inherent powers vested in it this Act.
(13) To prescribe by regulations one or more insurance plans in connection with loans of any nature that the System may grant to its participants. The System may act as insurer, reinsurer, or enter into contracts with third parties to assume the risk of any such plans. To this end, the System is hereby empowered to authorize that the sums needed to establish the special reserve funds for each of said insurance plans be taken from the general fund of the System with the approval of the Board of Trustees. The sums thus taken shall be returned to the general fund of the System as the special funds thus created accrue the needed reserves from the income generated from the premiums and surcharges collected. The Board of Trustees shall order actuarial studies and risk assessments that would provide the basis for determining the total amount of the premium the insurers are to be charged in relation to each of said plans. Should any insurance plan be discontinued after having been in operation, the sums remaining in the special fund corresponding to the discontinued plan shall be covered into the general fund of the System after the obligations corresponding to said plan have been paid.
(14) To own, acquire, alienate, and transfer any kind of property and mortgage or lease any of such property along with their rights and privileges to the extent allowed by the law.
(15) To take money on loan from any financing source including private institutions, as well as from the Government of Puerto Rico and the Government of the United States or by directly issuing debt and bonds which shall be secured by the System’s assets. Interests accrued on such obligations shall be exempt from the payment of income taxes to the Commonwealth of Puerto Rico.
(16) To solicit, receive, and accept federal, state funds or any other type of donation.
History —Dec. 24, 2013, No. 160, § 2.2.