1. (a)

   1. (1) The sources of funding to the trust fund may consist of all of the following:

      1. a. Investment income.
      2. b. Proceeds of any gifts, grants, or contributions.
      3. c. Revenue sources as directed by the Legislature.
      4. d. Revenue sources other than direct appropriations by the Legislature.
   2. (2) The sources of funding to the trust fund may not consist of Education Trust Fund revenue and those revenues are expressly prohibited from that use. The trust fund shall be funded from sources other than the Education Trust Fund.
2. (b) The agreements creating the trust fund shall be irrevocable and the assets of the trust fund may not be expended, disbursed, loaned, or transferred, or used for any purpose other than to acquire permitted investments, pay administrative expenses, and provide periodic bonus checks to or for retired employees and their beneficiaries. The Legislature may not appropriate the assets of the trust fund.
3. (c) Upon certification from the actuary of the Teachers’ Retirement System that the assets of the trust fund are above and beyond the minimum trust fund balance of one hundred million dollars ($100,000,000) and sufficient to fund periodic bonus checks as provided for by legislation granting the periodic bonus checks, the trustees shall transfer the amount of assets certified by the board of control to the Teachers’ Retirement System to fund those bonuses or increases.

4. (d) Notwithstanding subsection (c), the trustees may amend or modify the trust fund, consistent with the legislative intent of this chapter, in any of the following circumstances:

   1. (1) If, in the opinion of counsel for the trustees, it is necessary or advisable to obtain any material tax advantage or avoid any material adverse tax result.
   2. (2) If, in the opinion of an independent accountant for the trustees, it is necessary or advisable to cause the trust fund to be considered a post-employment benefits trust fund in accordance with generally accepted governmental accounting principles as prescribed by the Governmental Accounting Standards Board, or its successor.
   3. (3) If, in response to a petition of the trustees requesting that the trust fund be amended, a court of competent jurisdiction determines that the amendment is necessary or advisable to accomplish the purposes of this chapter.
5. (e) All assets and income of the trust fund shall be exempt from taxation by the state or any political subdivision thereof. The assets of the trust fund are not subject to the claims of creditors of the state, the board of control, trustees, plan administrators, employees, retired employees, or beneficiaries, and are not subject to execution, attachment, garnishment, the operation of bankruptcy, insolvency laws, or any other process whatsoever, and no assignment thereof shall be enforceable in any court.
6. (f) The trustees shall prepare the annual financial statements of the trust fund in accordance with generally accepted governmental accounting principles and shall provide for an audit of those financial statements for each fiscal year to be conducted by a qualified independent certified accounting firm in accordance with generally accepted auditing standards.

(Act 2021-464, §7.)