§ 4605. Reinsurance. (a) All or any part of the pension benefits of a system may be reinsured in an insurance company authorized to insure such risks in this state, as may be provided for in the by-laws or declaration of trust of the retirement system.

(b) The reinsurance contract may be terminated by agreement between the reinsurer and the ceding retirement system or a successor and the assets supporting such agreement may be transferred to such system or its successor in one sum or over a period of years in accordance with terms and conditions approved by the superintendent. In such event, the funds transferred in one sum or the present value of sums to be transferred over a period of years shall become an admitted asset of such system or its successor.