Current through February 26, 2024
The core retirement investment trust may invest in the variable
retirement investment trust subject to the following:
(1) Combined stock fund. A combined stock
fund shall be established and shall operate as a separate account within the
variable retirement investment trust as follows:
(a) All investments in common and preferred
stock by the core retirement investment trust and the variable retirement
investment trust shall be made through the combined stock fund
account.
(b) The trusts shall
transfer funds to be invested in common and preferred stocks to the combined
stock fund account. In exchange, the core retirement investment trust and
variable retirement investment trust shall receive shares in the combined stock
fund.
(c) Shares in the combined
stock fund may be purchased only as of the first day of each month.
(d) All shares purchased in the combined
stock fund shall, at the time of purchase, have a book value of one dollar per
share.
(2) Investment of
combined stocks. All funds received in the combined stock fund from the core
retirement investment trust and the variable retirement investment trust shall
be used to invest in common or preferred stocks or the state investment
fund.
(3) Earnings distributions.
Earnings shall be distributed from the combined stock fund to the core
retirement investment trust and the variable retirement investment trust
according to the following:
(a) The book value
of all investments in the combined stock fund shall be adjusted to current
market value as of the last day of each month. The appraisal gain or loss shall
be recognized in the month incurred.
(b) As of the last day of each month the
combined stock fund shall distribute to the core retirement investment trust
and the variable retirement investment trust all income recorded for that month
including interest received, dividends received, gain or loss realized on the
sale of investments and the unrealized gain or loss recognized on the
adjustment of investment book value to market value. Following these
distributions the unit value of shares in the combined stock fund shall be one
dollar.
(c) For any month, the
distribution of income between the core retirement investment trust and the
variable retirement investment trust shall be based on the ratio of the
relative number of combined stock fund shares held by each trust as of the
first day of that month to the total number of combined stock fund shares
outstanding.
(d) Monthly
distributions from the combined stock fund to the core retirement investment
trust resulting from gains or losses realized on the sale of investments or
unrealized appraisal gains or losses shall be transferred to the transaction
amortization account. Distributions resulting from all other sources shall be
recognized as current income to the core retirement investment trust in the
month of distribution.
(e) All
distribution to the variable retirement investment trust shall be treated as
current income in the month of distribution.
(4) Withdrawals. The core retirement
investment trust or the variable retirement investment trust may withdraw funds
from the combined stock fund as of the first day of any month. The withdrawal
shall be accomplished by selling combined stock fund shares to the combined
stock fund. Withdrawals made after the first day of any month shall be deemed
to have been made on the first day of that month for purposes of distributing
income at the end of that month.