(a) The administration and control of the Arkansas State Highway Employees' Retirement System shall be vested in a board known as the "Board of Trustees of the Arkansas State Highway Employees' Retirement System".

(b) (1) The board shall consist of seven (7) members:

(A) The Director of State Highways and Transportation;

(B) The Treasurer of State;

(C) The Director of the Department of Finance and Administration;

(D) The Chief Engineer of the Arkansas Department of Transportation;

(E) A retiree from the Arkansas State Highway and Transportation Department or the Arkansas Department of Transportation; and

(F) Two (2) regularly qualified members of the system.

(2) The board shall cause an election to be held by letter ballot in June of each year, after thirty (30) days' written notice to the membership, for the purpose of electing two (2) employee members and one (1) retiree member who shall serve for two (2) years.

(3) In case of a vacancy of any employee member of the board, the board shall fill the vacancy until the next regular election, when the vacancy shall be filled by the election procedure specified in subdivision (b)(2) of this section.

(c) The officers of the board shall be a chair and a vice chair, who shall be selected annually from their own number by the board, and an executive secretary, who shall be appointed by the board.

(d) The duties of the board shall be:

(1) To make all rules and regulations necessary and proper for carrying out the provisions of this chapter;

(2) To provide administrative direction and control of the executive secretary and such clerical staff as may be required;

(3) To provide for actuarial valuations if and when the board deems such action necessary;

(4) To exercise discretionary power and authority in the investment and disbursement of the funds of the system, subject to the conditions prescribed in this chapter;

(5) To designate the necessary medical examiners for disabled members as provided in this chapter;

(6) To serve without pay but may receive expense reimbursement in accordance with § 25-16-901 et seq.;

(7)

(A) To provide a one million dollar ($1,000,000) blanket fidelity bond covering board members and those employees of the department who may be responsible for administering the funds.

(B) The premiums for the bond may be paid from the funds appropriated for the administration of the system or may be considered as a cost of administration and borne by the department as provided in § 24-5-105(a); and

(8) To do any and all things necessary for the proper execution of this chapter.

(e) The duties of the executive secretary shall be:

(1) To keep all minutes and other records as directed by the board;

(2) To set up and maintain separate accounts for each member of the system to show the payroll deductions and to transmit the deductions to the bank designated by the trustees as the depository for the system or to the State Treasury, as appropriate;

(3) To prepare and sign, as directed by the board, all vouchers for all valid claims; and

(4) To perform such other administrative duties as may be directed by the board for carrying out the provisions of this chapter.