Sec. 2. (a) The board is composed of nine (9) trustees appointed by the governor as follows:

(1) At least one (1) trustee must have experience in economics, finance, or investments.

(2) At least one (1) trustee must have experience in executive management or benefits administration.

(3) The director of the budget agency or the budget agency director's designee serving as an ex officio voting member of the board. An individual appointed under this subdivision to serve as the budget agency director's designee:

(A) is subject to section 5 of this chapter; and

(B) serves as a permanent designee until replaced by the budget agency director.

(4) Two (2) trustees nominated by the speaker of the house of representatives as follows:

(A) One (1) must be an active or retired police officer or firefighter who is a member of the 1977 police officers' and firefighters' pension and disability fund.

(B) One (1) must be a member of the teachers' retirement fund with at least ten (10) years of creditable service.

(5) Two (2) trustees nominated by the president pro tempore of the senate as follows:

(A) One (1) must be a member of the public employees' retirement fund with at least ten (10) years of creditable service.

(B) One (1) must be a member of the teachers' retirement fund with at least ten (10) years of creditable service.

(6) One (1) trustee nominated by the auditor of state. The individual nominated under this subdivision may be the auditor of state or another individual who has experience in professional financial accounting or actuarial science.

(7) One (1) trustee nominated by the treasurer of state. The individual nominated under this subdivision may be the treasurer of state or another individual who has experience in economics, finance, or investments.

(b) If a vacancy on the board occurs, the governor shall, not later than forty-five (45) days after the date the vacancy occurs, appoint an individual to fill the vacancy using the criteria in subsection (a).

(c) During the first year after an individual's initial appointment as a trustee and each year thereafter during which the individual serves as a trustee, the individual is strongly encouraged to complete at least twelve (12) hours of trustee education, at least two (2) hours in each of the following areas:

(1) Fiduciary duties and responsibilities of a trustee.

(2) Ethics.

(3) Governance process and procedures.

(4) Retirement plan design and administration.

(5) Investments.

(6) Actuarial principles and methods.

(d) Subject to the director's approval, each trustee is entitled to reimbursement for reasonable expenses actually incurred in fulfilling the educational requirements under subsection (c). The director shall give a preference for reimbursement for in-state training that meets the requirements under subsection (c), if in-state training is available.

As added by P.L.23-2011, SEC.22.