Investment Powers; Power to Maintain Cash on Deposit for Payments Under the Retirement System; Personal Interests in Investments Prohibited

  1. Law
  2. Georgia Code
  3. Retirement and Pensions
  4. Teachers Retirement System of Georgia
  5. Creation, Administration, and Management of the Assets of the Retirement System
  6. Investment Powers; Power to Maintain Cash on Deposit for Payments Under the Retirement System; Personal Interests in Investments Prohibited

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  1. The members of the board of trustees shall be the trustees of the retirement system and shall have full power to invest and reinvest its assets, subject to all the terms, conditions, limitations, and restrictions imposed by Article 7 of Chapter 20 of this title, the "Public Retirement Systems Investment Authority Law." Subject to like restrictions, the board of trustees shall have the power to hold, transfer, and dispose of any investments in which retirement system assets are invested, including proceeds of investments. The board of trustees is authorized to employ agents, including banks and trust companies, to act as investment advisers and make investments if the board of trustees so authorizes.
  2. For the purpose of meeting disbursements for pensions, annuities, and other payments, the board of trustees may keep available cash on deposit in one or more banks or trust companies organized under the laws of this state or of the United States, provided that the sum on deposit in any one bank or trust company shall not exceed 25 percent of the paid-up capital and surplus of each bank or trust company. Each bank or trust company shall give a depository bond in an amount sufficient to cover the deposits or shall place in trust a sufficient amount of federal or state securities to cover the deposits.
  3. Except as otherwise provided in this chapter no trustee or employee of the board of trustees shall have any personal interest in the gains or profits from any investment made by the board of trustees or use the assets of the retirement system in any manner, directly or indirectly, for himself or as an agent, except to make such payments as are authorized by the board of trustees in accordance with this chapter.

(Ga. L. 1943, p. 640, § 7; Ga. L. 1963, p. 433, § 1; Ga. L. 1969, p. 391, § 2; Ga. L. 1995, p. 651, § 2; Ga. L. 2000, p. 2, § 5; Ga. L. 2010, p. 1207, § 64/SB 436.)

The 2010 amendment, effective July 1, 2010, substituted "paid-up capital" for "paid up capital" in the first sentence of subsection (b).

Editor's notes.

- Ga. L. 2010, p. 1207, § 1, not codified by the General Assembly, provides that: "The intent of this Act is to repeal obsolete and inoperative provisions and to make certain stylistic corrections in Title 47 of the Official Code of Georgia Annotated. Nothing in this Act shall deny, abridge, increase, renew, revive, or on any way affect any right, benefit, option, credit, or election to which any person was entitled pursuant to such title on June 30, 2010, and the board of trustees of each public retirement system is authorized and directed to provide by regulation for the continuation of any such right, benefit, option, credit, or election not otherwise covered in this Act; provided, however, that any such right, benefit, option, credit, or election shall be subject to the statutory provisions in effect on June 30, 2010."

Ga. L. 2010, p. 1207, § 67, not codified by the General Assembly, provides that: "In the event of an irreconcilable conflict between a provision of Sections 62 through 64 of this Act and a provision of another Act enacted at the 2010 regular session of the General Assembly, the provision of such other Act shall control over this Act to the extent of the conflict."

JUDICIAL DECISIONS

Cited in Teachers Retirement Sys. v. City of Atlanta, 249 Ga. 196, 288 S.E.2d 200 (1982).

OPINIONS OF THE ATTORNEY GENERAL

Executive secretary-treasurer may perform investment duties.

- Executive secretary-treasurer of the retirement system is a proper and qualified member of the investment committee of the retirement system and may be delegated the authority, following a proper investment decision, to perform mechanical or ministerial duties effectuating the investment decision or transaction. 1975 Op. Att'y Gen. No. 75-66.

Retirement system may make secured loans provided the prior approval of the Insurance Commissioner is obtained. 1954-56 Op. Att'y Gen. p. 608.

Investment of retirement funds in federal Housing Authority mortgage loans at 100 percent of the value of the property is legal, provided the Insurance Commissioner approves such loans. 1954-56 Op. Att'y Gen. p. 609.

Upon the assent of the Insurance Commissioner, the retirement system may legally make loans secured by mortgages on real estate up to 100 percent of the value of the property. 1954-56 Op. Att'y Gen. p. 610.

Retirement system may invest in secured and unsecured notes subject to the same restrictions and safeguards that are applicable to investments of domestic life insurance companies. 1962 Op. Att'y Gen. p. 370.

RESEARCH REFERENCES

Am. Jur. 2d.

- 60A Am. Jur. 2d, Pensions and Retirement Funds, §§ 1169 et seq., 1244. 63A Am. Jur. 2d, Public Officers and Employees, § 335 et seq.

C.J.S.

- 67 C.J.S., Officers and Public Employees, §§ 244 et seq., 313. 78 C.J.S., Schools and School Districts, §§ 346, 352. 81A C.J.S., States, § 374 et seq.


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