§ 1943. Investments; interest rate; disbursements
(a) The members of the Vermont Pension Investment Commission 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 provided in this section, no trustee and no employee of the Board
or member of the Vermont Pension Investment Commission shall have any direct interest
in the gains or profits of any investment made by the Commission; nor shall any trustee
or employee of the Board or Commission, 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 Commission; nor shall any trustee or employee
of the Board or Commission 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 Commission, 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 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; 2019, No. 131 (Adj. Sess.), § 85; 2021, No. 75, § 7, eff. June 8, 2021.)