§ 23-271. Management of funds.

(a)

The board of trustees shall be the trustees of the several funds created by this division, as provided in sections 23-272—23-277, and shall have full power to invest and reinvest such funds under the prudent man standard which shall require each member of the board of trustees, acting collectively on behalf of the retirement system, to act with the care, skill, prudence and diligence under the circumstances prevailing that a prudent institutional investor acting in a like capacity and familiar with such maters would use in the conduct of an enterprise of a like character with like aims.

(b)

[ Reserved. ]

(c)

All expense vouchers and pension payrolls shall be certified by the secretary-manager, the secretary-manager shall furnish the board of trustees a surety bond in a company authorized to do business in Louisiana and in such an amount as shall be required by the board, the premium to be paid from the expense fund.

(d)

For the purpose of meeting disbursements for pensions, annuities, and other payments there may be kept available cash, not exceeding ten (10) per centum of the total amount in the several funds of the retirement system, on deposit in one (1) or more banks or trust companies of the State of Louisiana organized under the laws of the State of Louisiana or of the United States, provided, that the sum of deposit in any one (1) bank or trust company shall not exceed twenty-five (25) per centum of the paid up capital and surplus of such bank or trust company.

(e)

The board of trustees shall approve the fiscal agency bank or banks for the deposit of the funds and securities of this retirement system provided that no bank shall be selected unless the bank is a fiscal agent of the state. The funds and properties of the system held in any bank of the state shall be safeguarded by bonds or other securities acceptable for the protection of state deposits, the amount to be determined by the board of trustees.

(f)

Except as otherwise herein provided, no trustee and no employee of the board of trustees shall have any direct interest in the gains or profits of any investment made by the board of trustees, nor as such receive any pay or emolument for his service. No trustee or employee of the board shall directly or indirectly, for himself or as an agent in any manner use the same, except to make such current and necessary payments as are authorized by the board of trustees; nor shall any trustee or employee of the board of trustees become an endorser or surety or in any manner an obliger for moneys loaned or borrowed from the board of trustees.

(g)

That all funds of this retirement system shall be subject to audit regularly, at least once annually, by an independent firm of certified public accountants chosen by the board of trustees or the State Legislative Auditor beginning in the year 1975.

(Ord. No. 11027, § 7(1)—(7), 1-18-73; Ord. No. 11952, § 1, 3-6-75; Ord. No. 22916, § 2, 11-15-06)