(a)  All money immediately required for the payment of retirement allowances or other benefits shall be deemed to be held in a trust under the laws of the state of Rhode Island with respect to which the general treasurer is designated the trustee in accordance with § 36-8-20(b). The trustee shall only invest these funds in accordance with the written objectives and guidelines established by the state investment commission pursuant to the provisions of chapter 10 of Title 35 and other applicable law.

(b)  All money not immediately required for the payment of retirement allowances or other benefits shall be invested in accordance with the provisions of chapter 10 of Title 35 and other applicable law and shall be held in a custodial or trust account in accordance with § 36-8-20(b).

(c)  By December 31, 1994, the trust and custodial account established under this section shall be maintained pursuant to written documents which expressly provide that it shall be impossible at any time prior to the satisfaction of all liabilities with respect to employees and their beneficiaries for any part of the corpus or income to be used for or diverted to purposes other than the payment of retirement allowances and other pension benefits to employees and their beneficiaries (except as otherwise permitted by § 36-8-20(b)).