48-223. Types of retirement plans; trust fund; insured plan

The plan adopted may provide for either:

1. The creation of a retirement trust fund to consist of all contributions made by the district and the participants and the net income produced by the investment of the trust fund. The trust fund shall be held, managed and administered by a trustee pursuant to an agreement between the district and the trustee. The governing body of the district is authorized to enter into an agreement with a bank or corporation empowered to exercise trust powers providing for the holding, management, administration, and disposition of the trust fund upon such terms and under such conditions as the governing body may determine to be in the best interest of the participants and the district and to afford the greatest actuarially sound benefits to the participants. Such trustee shall be a corporation or association organized under the laws of this state or of the United States and shall have been engaged in business not less than ten years. The trust funds may be invested in any of the securities or obligations prescribed by section 38-719, or as hereafter amended, for the investment of funds of the Arizona state retirement system.

2. A group annuity contract with a legal reserve insurance company for the purpose of providing for the purchase of annuities, the payment of death and termination benefits, and such other benefits as shall be provided by the plan. The insurance company shall be authorized to transact business in the state for the purposes of issuing such group annuity contracts.