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Texas Statutes (Last Updated: January 4, 2014) |
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GOVERNMENT CODE |
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Title 8. PUBLIC RETIREMENT SYSTEMS |
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Subtitle G. TEXAS MUNICIPAL RETIREMENT SYSTEM |
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Chapter 855. ADMINISTRATION |
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Subchapter D. MANAGEMENT OF ASSETS |
Sec. 855.317. ANNUAL ALLOCATION OF NET INVESTMENT INCOME OR LOSS FROM INTEREST FUND
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The board shall then allocate the remaining net investment income or loss between the funds or accounts referenced in Subsections (a)(3) and (4) of this section in rates or amounts determined by the board in its sole discretion. The board of trustees shall accumulate the amount of assets in the interest reserve account of the endowment fund that the board in its sole discretion determines is necessary:
(1) to provide adequate reserves to:
(A) mitigate the effects of future investment return volatility and insufficient net investment income; and
(B) provide reasonable rate stabilization for participating municipalities;
(2) to provide adequate reserves against special and contingency requirements of other funds of the system; and
(3) to provide the amount required for the administration expenses of the system for the following year.
(c) After the requirements of the interest reserve account of the endowment fund have been satisfied, the board of trustees may transfer any of the amount remaining in the interest fund to the general reserves account of the endowment fund to maintain adequate reserves against special requirements of other funds of the retirement system.
(d) After the requirements of the interest reserve account and the general reserves account of the endowment fund have been satisfied, the board of trustees shall transfer any amount remaining in the interest fund to the distributive benefits account of the endowment fund.