SEC. 12.103. TRUST FUND.
§ 12.103
The Retirement Fund is a trust administered by the Retirement Board for the exclusive benefit of active and retired members of the Retirement System and their beneficiaries. Administrative costs are paid from the City's accumulated contributions, and the Fund is structured to qualify for federal tax-deferred treatment under the Internal Revenue Code.
The city's Retirement Fund is a trust account run by the Retirement Board. The money in it can only be used to pay retirement benefits to current and former city employees and their families. The costs of running the retirement system come from money the city has contributed. The Fund is set up to get special tax benefits from the federal government so that investment earnings grow without being taxed each year.
- Complex:The section references the Charter, the Board of Supervisors' budget process, and Internal Revenue Code Section 401(a), creating cross-dependencies that may be unclear to lay readers without additional context.
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Official text
The Retirement Fund shall be a trust fund to be administered by the Retirement Board in accordance with the provisions of this Charter solely for the benefit of the active members and retired members of the Retirement System and their survivors and beneficiaries. Administrative costs of the Retirement System, as adopted by the Board of Supervisors in the annual budget shall be paid from the accumulated contributions of the City and County.
The Fund is intended to qualify for tax deferred treatment under Section 401(a) of the Internal Revenue Code of 1986, as amended, and the Board is responsible for preserving the Fund's status.