RETIREMENT, DISABILITY, AND DEATH COMPENSATION FUND.

(a) The board may:

(1) provide for and administer a retirement, disability, and death compensation fund for district officers and employees; and

(2) adopt a plan to effectuate the purpose of this section, including the forms of insurance and annuities that the board considers advisable.

(b) The board may change a plan or rule after notice to the employees and a hearing.

(c) As the board considers advisable, the board may invest money provided:

(1) from the compensation of officers and employees participating in the fund and plan authorized by this section; and

(2) by the district for the retirement, disability, and death compensation fund after the money has been received by the district.

(d) The board may invest the money in:

(1) bonds of the United States, this state, or any political subdivision of this state;

(2) bonds issued by any agency of the United States if the payment of the principal and interest is guaranteed by the United States; and

(3) life insurance policies, endowment or annuity contracts, or interest-bearing certificates of legal reserve life insurance companies authorized to write the contracts in this state.

(e) A sufficient amount of money shall be kept on hand to meet the immediate payment of amounts likely to become due each year out of the fund as determined by the board.

(f) The recipients or beneficiaries of the fund are not eligible for any other pension, retirement fund, or direct aid from this state unless the fund created under this chapter is released to the state as a condition precedent to receiving the other pension or aid or the joining of any other system.

(g) The board may:

(1) include hospitalization and medical benefits to district officers and employees as part of the compensation currently paid to the officers and employees;

(2) adopt a plan or rule in connection with the benefits provided under Subdivision (1); or

(3) amend or change a plan or rule adopted under Subdivision (2) as the board determines.

(h) The board may contract with the state and federal governments as necessary to establish and continue a retirement program for the benefit of the district's employees.