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77~(R) SB 522 Enrolled version - Bill Text Page 11 of 12 24-4 securities as the board of trustees deter mines and as authorized by 24-5 24-6 24-7 24-8 24-9 24-10 24-11 24-12 24-13 24-14 24-15 24-16 24-17 24-18 24-19 24-20 24-21 24-22 24-23 24-24 24-25 24-26 25-1 25-2 this section. SECTION 26. Subchapter D, Chapter 855, Government Code, is amended by adding Section 855.3011 t o read as follows: Sec. 855.3011. SECURITIES LENDING. (a) The board of trustees, in the exercise of its discreti on to manage the assets of the retirement system, may select a perso n, including a commercial bank or depository trust company, to lend retirement system securities as provided by this section an d rules adopted by the board of trustees. (b) To be eligible to lend securities un der this section, a person must: (1) be experienced in the operations of a fully secured securities lending program; (2) maintain capital adequate in the pru dent judgment of the retirement system to assure the sa fety of the securities; (3) execute an indemnification agreement , satisfactory in form and content to the retirement sys rem, fully indemnifying the retirement system against any loss re sulting from borrower default or the failure of the securities lending agent to properly execute the agent's responsibilities under the applicable securities lending agreement~ (4) require any securities broker or dealer to whom the agent ]~nd~ securities belonging to t he retirement system to deliver and maintain with the custodian collateral in the form of 25-3 25-4 25-5 25-6 25-7 25-8 25-9 25-10 25-11 25-12 25-13 25-14 25-15 25-16 25-17 25-18 25-19 25-20 25-21 25-22 25-23 25-24 25-25 25-26 26-1 26-2 26-3 26-4 26-5 26-6 26-7 26-8 26-9 26-10 26-11 cash or United States government securiti es eligible for book entry, the market value of which must equ al not less than 100 percent of the market value, from time to time, of the loaned securities; and (5) comply with the guidelines adopted b y the board of trustees relating to the investment of ca sh collateral, borrower limits, and other items. SECTION 27. subchapter G, Ch apter 855, Government Code, is amended by adding Section 855.608 t o read as follows: Sec. 855.608. FULL BENEFIT ARRANGEMENT. (a) A separate fund for the payment of benefits under Se ction 415(m), Internal Revenue Code of 1986, and its subsequent amendments, is createG solely for the purpose of providing benef its to participants equal to the amount by which the participant's annual benefit otherwise payable under this subtitle exceeds the 1 imitation on benefits imposed by Section 415, Internal Revenue Code of 1986, and its subsequent amendments. (b) The board of trustees shall administ er this section. Except as otherwise provided by this sect ion, the board of trustees has the same rights, duties, and responsibilities concerning the full benefits arrangement as it has for t he trust fund. (c) Money for the payment of benefits to a participant under this section shall be transferred to the separate fund created by this section from the municipality accumulation fund account of the municipality that employed the member. I f the benefit is payable as a result of service with more than one participating. municipality, there shall be transferred from the municipality accumulation fund account of each such mu nicipality the amount chargeable to that municipality for the m ember. The monthly amount to pay benefits under this section shall be transferred at least 15 days before the date of a monthly payment to a person receiving annuity benefits under this section. (d) The full benefits arrangement shall be administered as a governmental excess benefit arrangement. The board of trustees may adopt rules for the efficient administrat ion of this section and to http:~/www.capit~.state.tx.us/~gi-bin/t~/viewtext.cmd?LEG=77&SESS=R&CHAMBER=~... 11/1/2001