Payment of Administrative Cost and Expenses

(a)Subject to the approval of the Board of Trustees, the Director shall develop and establish a procedure by which common administrative expenses shared among the Government of Guam Retirement Fund, the Government of Guam Defined Contribution System and the Program, taking into account such factors, including, but not limited to, the number of members and plan asset values that may be prorated among such retirement plans.

(b)[No text]

(1)In accordance with such procedure, the Qualified Custodian, as selected by the Board of Trustees, shall allocate all of the administrative, custodial, record keeping, and investment CH. 8 RETIREMENT OF PUBLIC EMPLOYEES management costs and expenses associated with the Program, other than the costs described in § 8305(e) relating to the soliciting, evaluating and periodic review of companies offering investment options, against the assets and investment income accumulated pursuant to this Article. The amount of administrative costs and expenses which are to be appropriated from the fund or member’s account in accordance with this Section shall also include the costs of the Board of Trustees and the Director which are incurred in administering the Program, including, but not limited to, fees of counsel, actuaries, accountants or other experts appointed to provide services with respect to the Program and payroll expenses of persons on the payroll of the Board of Trustees or the Retirement Fund who are employed to perform services with respect to the Program.

(2)The Board of Trustees is authorized and instructed to borrow from the Government of Guam Retirement Fund on behalf of the Deferred Compensation Program, the amounts necessary to pay the administrative costs and expenses of the Board of Trustees and the Director pending the appropriation of such costs from the fund or the members’ accounts. Such borrowed amounts shall be repaid to the Government of Guam Retirement Fund as soon as possible following the Board of Trustee’s receipt of the appropriated reimbursements together with a reasonable rate of interest based upon the investment return which the Government of Guam Retirement Fund could have obtained through an alternative investment of such monies.