2005 California Education Code Sections 42850 Article 6. Retiree Benefit Funds

42850.  The governing board of any school district may establish a
fund for pension and other employee benefits to accumulate restricted
moneys from salary reduction agreements, other contributions for
employee retirement benefit payments, or both.  Moneys may be
transferred to the fund from other funds by periodic expense charges,
in amounts based on existing and future obligation requirements.
Payments from the pension plan and other employee benefits fund for
insurance, annuities, administrative costs, or any other authorized
purpose shall be made in accordance with all warrant approval
requirements applicable under this code.