§ 24-7-305. Board of trustees — Duties and responsibilities

(a)

1. (1) Both the contributory plan provided by this act and the noncontributory plan established by §§ 24-7-401 — 24-7-411 and 24-7-701, 24-7-702, 24-7-704 — 24-7-713, 24-7-715, and 24-7-716 [repealed] shall be under the administration and control of the Board of Trustees of the Arkansas Teacher Retirement System as provided by § 24-7-301.

2. (2) It is the intent of the General Assembly that neither the composition, responsibilities, nor the authority of the board be changed as a result of §§ 24-7-401 — 24-7-411 and 24-7-701, 24-7-702, 24-7-704 — 24-7-713, 24-7-715, and 24-7-716 [repealed].

(b)

1. (1) The board shall promulgate rules as it deems necessary from time to time in the transaction of its business and in administering the Arkansas Teacher Retirement System.

2. (2) In order to fully comply with federal requirements that may affect the members or the members’ benefits under this subchapter, and to limit the impact of changes in federal requirements on members or the members’ benefits, the board may promulgate rules to:

   1. (A) Establish the regular retirement age for members consistent with the provisions of the Internal Revenue Code, 26 U.S.C. § 411;

   2. (B) Maintain the system’s retirement plan tax qualification status by the United States Government to remain tax-exempt and tax-qualified under the Internal Revenue Code, 26 U.S.C. § 401(a); and

   3. (C) Modify or eliminate a plan provision that was originally established to comply with Internal Revenue Code requirements but is no longer necessary to maintain the plan’s tax-qualified status under the Internal Revenue Code, 26 U.S.C. § 1 et seq., including without limitation provisions concerning:

      1. (i) Penalties;

      2. (ii) Restrictions;

      3. (iii) Time limitations; and

      4. (iv) Other requirements that impact a member, members’ benefits, or the plan.

3. (3) The board may adopt rules, procedures, plans, programs, and actions necessary to enable the system to pay all benefits earned by the system’s members and reduce penalties or restrictions required by the Internal Revenue Service while maintaining compliance with the Internal Revenue Service.

4. (4) The board may adopt or amend by motion or resolution at any board meeting investment policies, investment procedures, and investment asset allocation targets that are consistent with the board’s fiduciary obligations under the prudent investor rule and other obligations under this subchapter.

5. (5) The board may set or amend by a motion or resolution at any board meeting a de minimis amount of twenty-five dollars ($25.00) or less concerning the system’s obligation to distribute or collect payments, penalties, interest, funds, or moneys.

6. (6) The rulemaking authority specifically granted under this chapter shall not limit the general rulemaking authority of the board under subdivision (b)(1) of this section.

(c) The board shall adopt from time to time such reasonable mortality and other tables of experience and a rate or rates of regular interest as shall be necessary for the actuarial requirements of the Arkansas Teacher Retirement System.

(d) The Executive Director of the Arkansas Teacher Retirement System shall keep, or cause to be kept, in convenient form such data as shall be necessary for actuarial investigations of the experiences of the system, and such data as shall be necessary for annual actuarial valuations of the system.

(e)

1. (1) The board shall annually render a report to each employer showing the financial condition of the system as of the preceding June 30.

2. (2) The report shall contain, but shall not be limited to:

   1. (A) A financial balance sheet;

   2. (B) A statement of income and disbursements;

   3. (C) A detailed statement of investments acquired and disposed of during the year, together with a detailed statement of the annual rates of investment income from all assets and from each type of investment;

   4. (D) An actuarial balance sheet prepared by means of the last valuation of the system; and

   5. (E) Such other data as the board shall deem necessary to comply with § 24-2-702.

3. (3) In addition to the distribution of the report provided by this subsection, it shall also be distributed to the Legislative Council and to the Governor.

(f) All records of the system shall be kept and maintained in the office of the system.

(g)

1. (1) The board shall arrange for adequate surety bonds covering the executive director and any other custodian of the funds or investments of the board.

2. (2) When approved by the board, the bonds shall be deposited in the office of the Treasurer of State.

(h) The records and accounts of the system shall be audited by Arkansas Legislative Audit.

(i) The headquarters of the system shall be in Little Rock.