§ 1943. Investments; interest rate; disbursements

(a) The members of the Vermont Pension Investment Committee established in 3 V.S.A. chapter 17 shall be the trustees of the Pension Fund created by this chapter, and with respect to them may invest and reinvest the assets of the Pension Fund, and hold, purchase, sell, assign, transfer, and dispose of the securities and investments in which the assets of the Pension Fund have been invested and reinvested. Investments shall be made in accordance with the standard of care established by the prudent investor rule under 14A V.S.A. chapter 9.

(b) The Board from time to time shall set rates of regular interest at such percentages compounded annually as it determines to be equitable both to members and to taxpayers of the State, but not less than three percent nor more than five percent.

(c) The State Treasurer shall be the custodian of the assets of the Pension Fund of the System. All payment from the Pension Fund shall be made by the Treasurer or by a deputy treasurer, only upon vouchers signed by two persons designated by the Board. A duly attested copy of a resolution of the Board designating such persons and bearing on its face specimen signatures of such persons shall be filed with the State Treasurer as authority for making payments upon such vouchers. No vouchers shall be drawn unless it has previously been authorized by resolution of the Board.

(d) Except as otherwise herein provided, no trustee and no employee of the Board or member of the Vermont Pension Investment Committee shall have any direct interest in the gains or profits of any investment made by the Committee; nor shall any trustee or employee of the Board or Committee, directly or indirectly, for himself or herself or as an agent, in any manner use the same except to make such current and necessary payments as are authorized by the Board or Committee; nor shall any trustee or employee of the Board or Committee become an endorser or surety, or in any manner an obligor, for the monies loaned to or borrowed from the Board. The State Treasurer, with the approval of the Board and the Committee, shall adopt by rule standards of conduct for trustees and employees of the Board in order to maintain and promote public confidence in the integrity of the Board. Such rules shall prohibit trustees, members of the Committee, and employees from receiving or soliciting any gift, including meals, alcoholic beverages, travel fare, room and board, or any other thing of value, tangible or intangible, from any vendor or potential vendor of investment services, management services, brokerage services, and other services to the Board. (Amended 1963, No. 110, § 4, eff. May 28, 1963; 1967, No. 13; 1967, No. 29, § 1, eff. March 14, 1967; 1981, No. 41, § 30; 1985, No. 171 (Adj. Sess.), § 4, eff. May 7, 1986; 1987, No. 80, § 9, eff. June 9, 1987; 1997, No. 67 (Adj. Sess.), § 3; 2005, No. 50, § 7; 2007, No. 13, § 31; 2015, No. 23, § 39; 2017, No. 165 (Adj. Sess.), § 16.)