2023 Laws of Puerto Rico › TITLE THREE - Executive (§§ 1 — 9311) › Chapter 33 - Retirement of Government Personnel (§§ 761 — 830q) › § 786-7 - Retirement Savings Account Program—Credits, investment yield, rights

(a) Credits.— The Administrator shall credit the following items to the savings account of each participant of the Program:
(1) Initial transfer balance.— In the case of participants of the System or of employees participating in any other employer retirement system who availed themselves of the transfer option granted by this chapter, the initial transfer balance that is transferred to the Program when the savings account is established, shall be credited.
(2) Contribution of the participant to the Program.— The contributions made by the participant of the Program as required by this act shall be credited once they are remitted to the System by the employer.
(3) Investment yield.— The investment yield shall be credited at the close of each semester of each fiscal year pursuant to the investment option or combination of investment options selected by the participant of the Program, pursuant to subsection (b) of this section. The investment yield shall be computed on the last business day of each semester of the fiscal year, on the average monthly balance in the savings account of the participant of the Program during the semester in question.
(b) Investment options of the savings account of the participant.—
(1) Selection of investment.— Every new participant of the Program shall have to select the investment to be applied to his/her savings account, in multiples of ten percent (10%), from among the options or combination thereof provided in clause (3) of this subsection. The initial selection must be made in the form, manner and on the date prescribed by the Administrator.
(2) Changes of selection.— The participant of the Program may change the investment selection to be applied to his/her savings account, in multiples of ten percent (10%), to any other investment option or combination thereof provided in clause (3) of this subsection, once during each fiscal year. The change of selection must be made in the form, manner and on the date prescribed by the Administrator and shall be effective on the first day of the month of the next fiscal year.
(3) Investment options.— The participants of the Program may opt for the yield of his savings account to be determined from among the following investment options or combination thereof:
(A) Fixed income.— Under this option, the yield shall be equal to the average monthly yield of the Two-Year Constant Maturity Treasuries during each semester of each fiscal year.
(B) System’s investment portfolio.— Under this option, the return shall be equal to ninety percent (90%) of the net yield of the investment portfolio of the System during every semester of each fiscal year minus management fees such as, but not limited to, fees payable to the custody of shares and investment consulting portfolio administrators.
(C) Additional investment options.— The Board may establish additional investment options through regulations, an order or a resolution.
(c) Retirement savings account rights.— The participants of the Program shall always have one hundred percent (100%) vested rights on the initial transfer balance provided in subsection (a)(1) of this section, their contributions to the savings account, and the investment option yield provided in subsection (a)(3) of this section.
History —May 15, 1951, No. 447, p. 1298, added as § 3-107 on Sept. 24, 1999, No. 305, § 30; Sept. 15, 2004, No. 296, § 8; renumbered as § 3-105 on April 4, 2013, No. 3, § 13, eff. July 1, 2013.