N.Y. Education Law § 508: Investment of funds; interest; accounts; reports

§ 508. Investment of funds; interest; accounts; reports. 1. The

members of the retirement board shall be the trustees of the several

funds created by this article, and shall determine from time to time

what part of the moneys belonging to the retirement system shall be

invested. When such board shall determine upon the investment of any

moneys or upon the conversion or sale of any securities, it shall, by

resolution duly adopted by a majority vote of the members of the board,

direct the custodian to so invest the moneys or convert or sell the

securities. Investments shall be made only in securities in which the

trustees of a savings bank may invest the moneys deposited therein as

provided by law except that the retirement system shall have the

authority to own any of its nominee corporations organized pursuant to

subdivision seventeen of this section. It shall be the duty of the

custodian to collect the interest thereon as the same becomes due and

payable and also the principal thereof and place the same when so

collected to the credit of the retirement system.

2. The retirement board shall annually allow regular interest on the

mean amount for the preceding year in each of the funds created by this

article, excepting the expense fund. The amount so allowed shall be

payable to said funds and shall be annually credited thereto by the

retirement board. All interest earned upon the entire amount of the

funds belonging to the retirement system shall be used for this purpose,

unless the amount so earned is in excess of the requirements, in which

case the excess amount shall be credited to the pension accumulation

fund. Any deficiency in the amount required to cover the interest

requirements of the funds, exclusive of the pension accumulation fund,

shall be paid from the pension accumulation fund.

3. Except as herein provided, no member nor employee of the retirement

board shall have any interest direct or indirect in the gains or profits

of any investment made by the board nor as such directly or indirectly

receive any pay or emolument for his services. And no member nor

employee of the said board directly or indirectly, for himself or as an

agent or partner of others, nor a corporation of which he is an officer,

stockholder or member, shall borrow any of its funds or deposits or in

any manner use the same except to make such current and necessary

payments as are authorized by the board; nor shall any member or

employee of said board become an endorser or surety or become in any

manner an obligor for moneys loaned by or borrowed of the board. Nothing

herein contained shall be construed to prevent a member or an employee

of the retirement board, who is also a member of the retirement system,

from borrowing from his accumulated contributions in the retirement

system in accordance with section five hundred twelve-b of this article.

4. The retirement board shall provide for maintenance of an individual

account with each member showing the amount of the member's

contributions and the interest accumulations thereon. It shall report

annually to each member who has furnished the board with a mailing

address the accumulated contributions credited to such account together

with the amount of service then credited to the member. It shall collect

and keep in convenient form such data as shall be necessary for the

preparation of the required mortality and service tables, and for the

compilation of such other information as shall be required for the

actuarial valuation of the assets and liabilities of the various funds

created by this article. Upon the basis of the mortality and service

experience of the members and beneficiaries of the system, the

retirement board from time to time shall adopt the tables to be used for

valuation purposes and for determining the amount of annuities to be

allowed on the basis of the contributions of members.

5. At such time as the retirement board may deem it necessary and at

least once each quinquennial period, the retirement board shall have its

actuary prepare a report showing a complete valuation of the present and

prospective assets and liabilities of the various funds created by this

article with the exception of the expense fund. The actuary shall make

an investigation of the mortality and service experience of the members

of the retirement system and shall report fully upon its conditions as

well as estimated future investment earnings with such recommendations

as he shall deem advisable for the information of the retirement board

in the proper operation of the retirement system.

6. The records of the retirement board shall be open to public

inspection.

7. The retirement board shall publish annually a report showing the

condition of the various funds created by this article, certifying to

the accumulated cash and securities of the funds and giving an account

of the operation of the system.

8. The retirement system may use a part of its funds, not exceeding

ten per centum of its net assets, (1) for purchasing or leasing of land

within the county of Albany and the construction thereon of a suitable

office building or buildings for the transaction of the business of the

retirement system and (2) for purchasing or leasing of land in the

cities of Albany, Binghamton, New York, Rochester and Utica and the

construction thereon of a suitable office building or buildings for

purposes of lease or sale to the state and (3) for purchasing or leasing

of land in locations approved by the state university trustees and the

construction, acquisition, reconstruction, rehabilitation or improvement

of suitable buildings or facilities thereon for purposes of lease or

sale to the state university construction fund, such buildings or

facilities to be used by the state university or by state-operated

institutions or statutory or contract colleges under the jurisdiction of

the state university or by the students, faculty and staff of the state

university or of any such state-operated institution or statutory or

contract college, and their families.

The retirement system from time to time may lease to any public agency

any portion of a building constructed for the transaction of its

business which may not be required for such purpose, upon such terms and

conditions as shall be deemed to be for the best interest of the

retirement system.

Real property of the retirement system acquired or constructed

pursuant to this subdivision shall be exempt from taxation as provided

in the real property tax law.

10. The retirement system may invest, within the limitations

authorized for investments in conventional mortgages, a part of its

funds in first mortgages on real property located anywhere within the

boundaries of the United States and leased to the government of the

United States, provided however, that no such investment shall be made

unless the terms of the mortgage shall provide for amortization payments

in an amount sufficient to completely amortize the loan within the

period of the lease.

11. The funds of the retirement system may be invested in the purchase

of promissory notes or bonds from the farmers home administration issued

in connection with the purchase or improvement of real property and

which are insured by the farmers home administration.

13. Where any benefit accruing under the provisions of this article is

payable to a minor, incompetent, or any other person under a legal

disability and no guardian of the property, committee or other such

legal representative is duly appointed within six months of the date the

benefit accrues to such person, the retirement board shall be authorized

to adopt rules and regulations providing for a savings account to be

established for each such person to which shall be paid the amounts of

such benefits due and owing to such persons. Interest shall be credited

to each savings account established pursuant to this subdivision in the

same manner and amount as is credited to the accumulated contributions

of members in their individual accounts in the annuity savings fund

pursuant to this article. The funds in such accounts shall be payable,

within a reasonable time after proper notification to the system, to a

guardian of the property, committee or other such legal representative

after such person is duly appointed or to the beneficiary once the legal

disability is removed. A payment made pursuant to the provisions of this

subdivision shall release the system from any liability whatsoever.

14. The retirement board is hereby authorized to buy securities under

an agreement providing for the repurchase thereof. The retirement board

is also authorized to assign commitments to invest system funds pursuant

to an agreement providing for the subsequent purchase of such

investments. The securities purchased pursuant to this subdivision

shall meet the eligibility standards prescribed for such class of

investments.

15. During the period ending June thirtieth, nineteen hundred

seventy-seven, the retirement board is authorized, in order to obtain

the funds necessary to make investments without the conversion or sale

of securities it holds, to borrow an amount not exceeding the amount to

be invested, upon such terms and conditions as the board, by resolution,

shall approve, which terms may include the pledge of any assets of such

system as may be necessary to secure the repayment of the amount

borrowed, provided that the total amount of such borrowing at no time

shall exceed five per centum of the system's assets.

16. (a) The retirement system is authorized to photograph,

microphotograph, film, record, copy, image or otherwise reproduce all or

any part of its records by any process which accurately reproduces or

forms a durable medium for reproducing any original document or record.

Whenever the retirement system shall have so reproduced such records and

whenever such reproductions or media have been placed in conveniently

accessible files and provision has been made for preserving, examining

and using the same, the retirement system may cause the original record

which has been so reproduced to be disposed of or destroyed.

(b) Any reproduction or reproduction from any media authorized

pursuant to this subdivision shall have the same force and effect as the

originals thereof would have had and shall be deemed to be an original

record for all purposes, including introduction in evidence in all

courts or administrative agencies. Duly certified or authenticated

copies of such reproductions shall be admitted in evidence equally with

the original reproductions.

(c) A duly authorized representative of the retirement system is

hereby authorized to certify to the authenticity of any reproduction

herein authorized and the retirement system shall make such charges

therefor as may be authorized by law.

17. Any real estate interests acquired by the retirement system

pursuant to this section, or pursuant to any other provision of law,

shall be conveyed to it directly by name, or may be taken in the name of

a duly authorized nominee. The retirement system shall have the

authority to organize corporations for the purpose of carrying out the

intent of this subdivision, and may make loans to said corporations for

the purpose of operating, preserving, or otherwise servicing any

property being held by said corporations.

18. Notwithstanding any other provision of this section, the

retirement board shall have the power to delegate to one or more

investment managers its authority to invest moneys belonging to the

retirement system. The term "investment managers" as used in this

subdivision shall include but not be limited to independent contractors

selected by the retirement board.

19. Whenever a statute requires that a document must be filed or

moneys deposited with the system within a prescribed period of time or

by a specified date in order for a member to be eligible for service

credit or a benefit from the system the document shall be deemed filed

or the moneys deposited with the system on the date mailed if mailed to

the system either through (1) the United States postal service by

registered or certified mail or (2) such other equivalent postal mail

service as the retirement board may specifically permit by rule or

regulation with a tracking service confirming a date of mailing.

Notwithstanding the provisions hereof, no such document shall be deemed

filed or moneys deposited with the system on the mailing date unless

actually received by the retirement system as the result of such

mailing.