1. There is hereby created as a special fund, separate and apart from all other public moneys or funds of this state, the "Iowa Public Employees' Retirement Fund", hereafter called the "retirement fund". This fund shall consist of all moneys collected under this chapter, together with all interest, dividends and rents thereon, and shall also include all securities or investment income and other assets acquired by and through the use of the moneys belonging to this fund and any other moneys that have been paid into this fund.
2. The treasurer of the state of Iowa is hereby made the custodian and trustee of this fund and shall administer the same in accordance with the directions of the department. It shall be the duty of the trustee:
a. To hold said trust funds.
b. To invest the portion of the retirement fund which in the judgment of the department is not needed for current payment of benefits under this chapter. The department shall execute the disposition and investment of moneys in the retirement fund in accordance with the investment policy and goal statement established by the investment board. In establishing the investment policy of the fund and the investment of the fund, the department and investment board shall exercise the judgment and care, under the circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for the purpose of speculation, but with regard to the permanent disposition of the funds, considering the probable income, as well as the probable safety, of their capital. Within the limitations of the standard prescribed in this section, the treasurer of state, the department, and the board may acquire and retain every kind of property and every kind of investment which persons of prudence, discretion, and intelligence acquire or retain for their own account.
The department and investment board shall give appropriate consideration to those facts and circumstances that the department and investment board know or should know are relevant to the particular investment or investment policy involved, including the role the investment plays in the total value of the retirement fund.
For the purposes of this paragraph, appropriate consideration includes, but is not limited to, a determination by the department and investment board that the particular investment or investment policy is reasonably designed to further the purposes of the retirement system, taking into consideration the risk of loss and the opportunity for gain or other return associated with the investment or investment policy and consideration of the following factors as they relate to the retirement fund:
(1) The composition of the retirement fund with regard to diversification.
(2) The liquidity and current return of the investments in the fund relative to the anticipated cash flow requirements of the retirement system.
(3) The projected return of the investments relative to the funding objectives of the retirement system.
Consistent with this paragraph, investments made under this paragraph shall be made in a manner that will enhance the economy of this state, and in particular, will result in increased employment of the residents of this state. Investments of moneys in the fund are not subject to sections 73.15 through 73.21.
Except as provided in section 97B.4, if there is loss to the fund, the treasurer, the department, and the board are not personally liable, and the loss shall be charged against the retirement fund. There is appropriated from the retirement fund the amount required to cover a loss. Expenses incurred in the sale and purchase of securities belonging to the retirement fund shall be charged to the retirement fund, and there is appropriated from the retirement fund the amount required for the expenses incurred. Investment management expenses shall be charged to the investment income of the retirement fund, and there is appropriated from the retirement fund the amount required for the investment management expenses, subject to the limitations stated in this unnumbered paragraph. The amount appropriated for a fiscal year under this unnumbered paragraph shall not exceed four- tenths of one percent of the market value of the retirement fund. The department shall report the investment management expenses for a fiscal year as a percent of the market value of the retirement fund in the annual report to the governor required in section 97B.4. A person who has signed a contract with the department for investment management purposes shall meet the requirements for doing business in Iowa sufficient to be subject to tax under rules of the department of revenue and finance.
c. To disburse such trust funds upon warrants drawn by the director of revenue and finance pursuant to the order of the department.
d. To sell any securities or other property in the trust fund and reinvest the proceeds in accordance with the direction of the department when such action may be deemed advisable by the department for the protection of the trust fund or the preservation of the value of the investment. Such sale of securities or other property of the trust fund shall only be made after advice from the investment board in the manner and to the extent provided in this chapter in regard to the purchase of investments.
e. To subscribe, in accordance with the direction of the department, for the purchase of securities for future delivery in anticipation of future income. Such securities shall be paid for by such anticipated income or from funds from the sale of securities or other property held by the fund.
f. To pay for securities directed to be purchased by the department on the receipt of the purchasing bank's paid statement or paid confirmation of purchase.
3. All moneys which are paid or deposited into this fund are appropriated and made available to the department to be used for the exclusive benefit of the members and their beneficiaries or contingent annuitants as provided in this chapter:
a. To be used by the department for the payment of retirement claims for benefits under this chapter.
b. To be used by the department to pay refunds provided for in this chapter.
c. To be used for the costs of administering the retirement system. If as a result of action under section 8.31, the governor has reduced the moneys appropriated from the Iowa public employees' retirement system fund to the department of personnel for salaries, support, maintenance, and other operational purposes to pay the costs of the Iowa public employees' retirement system for a fiscal year, it is the intent of the general assembly that the amount by which the appropriation has been reduced should be transferred from that fund to the department of personnel for salaries, support, maintenance, and other operational purposes to pay the costs of the Iowa public employees' retirement system for that fiscal year.
[C46, 50, § 97.5, 97.7; C54, 58, 62, 66, 71, 73, 75, 77, 79, 81, § 97B.7; 82 Acts, ch 1261, § 10]
84 Acts, ch 1180, § 9; 84 Acts, ch 1285, § 3; 85 Acts, ch 190, §1; 85 Acts, ch 227, §7; 86 Acts, ch 1245, § 253; 88 Acts, ch 1242, § 11-13; 89 Acts, ch 83, §20; 92 Acts, ch 1201, §10; 94 Acts, ch 1001, §3; 96 Acts, ch 1187, § 2, 3
Referred to in § 12.8, 12B.10, 12C.5, 12C.10, 97A.7, 97B.4, 97B.8, 97B.42B, 97B.43, 97B.49G, 257B.20, 411.7, 602.9111
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