Missouri Code of State Regulations › Title 16 - RETIREMENT SYSTEMS › Division 10 - The Public School Retirement System of Missouri › Chapter 6 - The Public Education Employee Retirement System of Missouri › Section 16 CSR 10-6.030 - Management of Funds

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This amendment changes the timing of the
				  application of a change in the interest rate used to credit interest to member
				  accounts.
(1) The system
				shall name a depository financial institution(s) in which all moneys received
				by the retirement office must be deposited and from which all disbursements of
				system funds must be made.
(2) All
				system funds held by this financial institution(s) must be fully insured by the
				Federal Deposit Insurance Corporation (FDIC) or secured by collateral held by a
				third party in the name of the system as provided by section
				169.640,
				RSMo, which shall be available to the system in the event of default by the
				financial institution(s).
(3) The
				executive director or his/her designated employee(s) shall determine and
				maintain appropriate balance of funds to be held in the financial
				institution(s) to satisfy the current obligations of the system.
(4) The portion of the balance held in the
				financial institution(s) but not needed for immediate settlement of system
				payments may be invested in collateralized investments.
(5) The system shall name a custodial bank to
				facilitate the investment of funds and safekeeping of securities.
(6) Funds held by the depository financial
				institution(s) in excess of the appropriate balance shall be transferred to the
				system's custodial bank and shall be distributed to the system's investment
				managers to be invested in accordance with the asset allocation policy of the
				board of trustees.
(7) The board of
				trustees shall determine annually, on or before June 30, the rate of interest
				which shall be in effect on July 1 of the following fiscal year and which shall
				be used to credit interest to members' accumulated contribution accounts at the
				end of the following fiscal year.
(8) Section
				169.630,
				RSMo, provides the board authority to invest the assets of the system
				established by sections
				169.600 to
				169.715,
				RSMo. Pursuant to such authority, assets of such system may be invested in any
				collective investment fund, including common and group trust funds that consist
				exclusively of assets of exempt pension and profit sharing trusts and
				individual retirement accounts, custodial accounts, retirement income accounts,
				governmental plans, and tax-exempt trusts under the
Internal Revenue
				Code
of 1986 and Rev. Rule 81-100, as modified by Rev. Rules 2004-67,
				2008-40, and 2011-1. The assets so invested shall be subject to all the
				provisions of the instruments establishing and governing such funds. Those
				instruments of group trusts, including any subsequent amendments, are hereby
				incorporated by reference and made a part of the system established by sections
				169.600 to
				169.750,
				RSMo, to the extent of the system's investment therein.
*Original authority: 169.610, RSMo 1965, amended 1977,
					 2005.