PURPOSE: This rule provides for the security of funds in the depository bank and the investment of the funds as authorized in sections 169.630 and 169.640, RSMo.

1. (1) The system shall name a depository financial institution(s) in which all moneys received by the retirement office must be deposited and from which all disbursements of system funds must be made.
2. (2) All system funds held by this financial institution(s) must be fully insured by the Federal Deposit Insurance Corporation (FDIC) or secured by collateral held by a third party in the name of the system as provided by section 169.640, RSMo which shall be available to the system in the event of default by the financial institution(s).
3. (3) The executive director or his/her designated employee(s) shall determine and maintain appropriate balance of funds to be held in the financial institution(s) to satisfy the current obligations of the system.
4. (4) The portion of the balance held in the financial institution(s) but not needed for immediate settlement of system payments may be invested in collateralized investments.
5. (5) The system shall name a custodial bank to facilitate the investment of funds and safekeeping of securities.
6. (6) Funds held by the depository financial institution(s) in excess of the appropriate balance shall be transferred to the system’s custodial bank and shall be distributed to the system’s investment managers to be invested in accordance with the asset allocation policy of the board of trustees.
7. (7) The board of trustees shall determine annually, on or before June 30, the rate of interest which shall be credited to members’ accounts at the end of the fiscal year.

AUTHORITY: section 169.610, RSMo 1994.* Original rule filed Dec. 19, 1975, effective Jan. 1, 1976. Amended: Filed Jan. 8, 1985, effective May 11, 1985. Amended: Filed Aug. 29, 1997, effective Feb. 28, 1998. *Original authority 169.610, RSMo 1965, amended 1977.