ENDOWMENT FUND

(a) The retirement system shall deposit in the endowment fund gifts, awards, funds, and assets delivered to the retirement system that are not specifically required by the system's other funds. (b) The endowment fund consists of: (1) the interest reserve account; (2) the general reserves account; (3) the distributive benefits account; (4) the perpetual endowment account; and (5) other special accounts that the board of trustees by resolution establishes. (c) The retirement system shall credit or charge to the interest reserve account, general reserves account, and distributive benefits account amounts allocated in accordance with Section 855.317. (d) The board of trustees shall transfer money from the interest reserve account to the expense fund in accordance with Section 855.312. (e) If the board of trustees determines that the amount credited to the distributive benefits account on December 31 of any year is sufficient to do so, the board by resolution may: (1) authorize the distribution and payment of all or part of the money credited to the account to persons who were annuitants on that day in the ratio of the rate of the monthly benefit of each annuitant to the total of all annuity payments made by the system for the final month of the year; or (2) authorize the distribution of all or part of the amount credited to the account to each member's individual account as supplemental interest in the ratio of the amount of interest paid on the individual's account to the interest paid to all individual accounts for the year. (f) The retirement system shall deposit and hold in the perpetual endowment account: (1) funds, gifts, and awards that the grantors designate as perpetual endowments for the retirement system; and (2) money forfeited to the retirement system as provided by Section 855.603. (g) Distribution and payment to an annuitant under Subsection (e) must be based on the ratio that the number of months elapsing since the effective date of the person's retirement bears to the number 12 if that person retired under this subtitle during the year for which the distribution and payment is made.