(1) There shall be a defined benefit system that shall consist of the following plans: (a) The statewide retirement plan established pursuant to article 31.5 of this title 31; (b) Repealed. (c) Any exempt plan that is incorporated into the defined benefit system, pursuant to an agreement established under section 31-31-706 (2); (d) Any health-care benefit plan established in association with the included plans; and (e) Any other plan authorized to be incorporated into the statewide defined benefit system. (2) The board may create plan documents for the plans within the defined benefit system that shall be in substantial conformance with the statutory provisions for each plan and that may include modifications and plan amendments as authorized under law. (2.5) Notwithstanding section 31-31.5-601 or the terms of an agreement entered into pursuant to section 31-31-706 (2), the board may modify, alter, or amend the plan provisions contained in article 31.5 of this title 31 or a plan document or rules of a plan within the defined benefit system as the board deems prudent and necessary to administer benefits under the plan consistently and uniformly across the defined benefit system in a manner that does not result in an actuarial cost to the plan. Such modifications or amendments may include changes to the options for the distribution of benefits. This subsection (2.5) shall not be construed to authorize modification to the amount of a normal benefit. (3) Qualification requirements - internal revenue code - definitions. (a) As used in this subsection (3), "internal revenue code" means the federal "Internal Revenue Code of 1986", as amended. (b) The defined benefit system and each of the plans established by part 2 or 7 of this article 31 or part 1 of article 31.5 of this title 31 included within the system shall satisfy the qualification requirements specified in section 401 of the internal revenue code, as applicable to governmental plans. (c) The board may adopt any provision for a plan established by part 2 or 7 of this article 31 or part 1 of article 31.5 of this title 31 that is necessary to comply with the internal revenue code. (4) Trust fund. (a) There is hereby created the defined benefit system trust fund. All assets held in connection with the defined benefit system, including all contributions to the plans in the system, all property and rights acquired or purchased with such amounts, and all income attributable to such amounts, property, or rights, shall be held in trust for the exclusive benefit of members and their designated beneficiaries under the plans. Such assets shall constitute the trust fund. No part of the assets and income of the trust fund shall be used for, or diverted to, purposes other than for the exclusive benefit of members and their designated beneficiaries and for defraying reasonable expenses of the system. (b) All amounts of compensation contributed pursuant to the plans, all property and rights acquired or purchased with such amounts, and all income attributable to such amounts, property, or rights held as part of the defined benefit system, including member contributions, employer contributions, any state contributions, fees collected, gifts received, unclaimed deposits, and investment income, shall be transferred to the board to be held, managed, invested, and distributed as part of the trust fund in accordance with the provisions of the documents governing the system. All contributions to the plans shall be transferred by the employers to the trust fund. All benefits under the plans shall be distributed solely from the trust fund pursuant to the documents governing the system. (c) The board is the trustee of the defined benefit system trust fund. (d) Repealed.
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