The board may, subject to and consistent with its fiduciary
duty, establish a program utilizing the retirement fund to assist
currently employed members and annuitants who are victims of a
natural disaster to obtain loans from the retirement fund for the
sole purpose of repairing or rebuilding their homes which have been
damaged by a natural disaster. In order to qualify for a loan the
home of the member or annuitant shall have been damaged by a natural
disaster and the home shall have been in an area that has been
declared a disaster area in a proclamation of the Governor of a state
of emergency affecting the area in which the member or annuitant
   The board may lend any amount of money, up to and including 100
percent of the costs of repairing or rebuilding a home of a member or
annuitant. However, 5 percent of the loan shall be secured by the
contributions of the member who requests the loan.
   The board may, under conditions it may deem prudent, require that
a member or annuitant pledge other assets as collateral for a loan.
   The board shall establish terms for the termination of loans made
pursuant to this section upon the separation of members from service,
to ensure, in the case of any default, that this system shall not
suffer any loss, and to provide, as a condition of retirement, for
alternative security. The board may impose other terms and conditions
as the board may determine appropriate.
   The Legislature hereby reserves full power and authority to
change, revise, limit, expand, or repeal the loan program authorized
by this section.