§ 128-29. Management of funds.
§128‑29. Management of funds.
(a) Vested in Board ofTrustees. The Board of Trustees shall be the trustee of the several fundscreated by this Article as provided in G.S. 128‑30.
(b) Annual Allowance ofRegular Interest. The Board of Trustees annually shall allow regularinterest on the mean amount for the preceding year in each of the funds withthe exception of the expense fund. The amounts so allowed shall be due andpayable to said funds, and shall be annually credited thereto by the Board of Trusteesfrom interest and other earnings on the moneys of the Retirement System. Anyadditional amount required to meet the interest on the funds of the RetirementSystem shall be paid from the pension accumulation fund, and any excess ofearnings over such amount required shall be paid to the pension accumulationfund. Regular interest shall mean interest at the rate of four per centum (4%)per annum with respect to all calculations and allowances on account ofmembers' contributions and at the rate of three per centum (3%) per annum withrespect to employers' contributions, with the right reserved to the Board ofTrustees to set a different rate or rates from time to time.
(c) Custodian of Funds. The State Treasurer shall be the custodian of the several funds and shallinvest their assets in accordance with the provisions of G.S. 147‑69.2and 147‑69.3. All payments from said funds shall be made by him only uponvouchers signed by two persons designated by the Board of Trustees. Thesecretary of the Board of Trustees shall furnish said Board a surety bond in acompany authorized to do business in North Carolina in such amount as shall berequired by the Board, the premium to be paid from the expense fund.
(d) Cash Deposits forMeeting Disbursements. For the purpose of meeting disbursements for pensions,annuities and other payments there may be kept available cash, not exceedingten per centum (10%) of the total amount in the several funds of the RetirementSystem, on deposit in one or more banks or trust companies of the State ofNorth Carolina, organized under the laws of the State of North Carolina, or ofthe United States: Provided, that the sum on deposit in any one bank or trustcompany shall not exceed twenty‑five per centum (25%) of the paid upcapital and surplus of such bank or trust company.
(e) Selection ofDepositories. The Board of Trustees shall select a bank or banks for thedeposits of the funds and securities of the Retirement System in the samemanner as such banks are selected by the Treasurer of the State of NorthCarolina. Such banks selected shall be required to conform to the law governingbanks selected by the State. The funds and properties of the North CarolinaGovernmental Employees' Retirement System held in any bank of the State shallbe safeguarded by a fidelity and surety bond, the amount to be determined bythe Board of Trustees.
(f) Immunity of Funds. Except as otherwise herein provided, no trustee and no employee of the Boardof Trustees shall have any direct interest in the gains or profits of anyinvestment made by the Board of Trustees, nor as such receive any pay oremolument for this service. No trustee or employee of the Board shall, directlyor indirectly, for himself or as an agent in any manner use the same, except tomake such current and necessary payments as are authorized by the Board ofTrustees; nor shall any trustee or employee of the Board of Trustees become anendorser or surety or in any manner an obligor for moneys loaned or borrowedfrom the Board of Trustees. (1939, c. 390, s. 9; 1941, c.357, s. 7; 1945, c. 526, s. 5; 1957, c. 846, s. 1; 1959, c. 1181, s. 1; 1961,c. 397; 1967, c. 978, s. 8; 1971, c. 386, s. 3; 1973, c. 243, s. 10; 1979, c.467, ss. 12, 13.)