Section 7
SEC. 7. There is hereby incorporated a new paragraph after the third paragraph of Section 36, which shall read as follows: “ The Board of Trustees has the following powers and functions, among other: “(a) To formulate the policies, guidelines and programs of effectively carry out the purposes and objectives of this Act; “(b) To promulgate such rules and regulations as may be necessary or proper for the effective exercise of the powers and functions as well as the discharge of the duties and responsibilities of the System, its officers and employees; "(c) Upon the recommendation of the President and General Manager, to approve the annual and supplemental budget of receipts and expenditures of the System, and to authorize such operating and capital expenditures and disbursements of the System as may be necessary or proper for the effective management, operation and administration of the System; "(d) Upon the recommendation of the President and General Manager, to approve the System's organizational and administrative structure and staffing pattern, and to establish, fix, review, revise and adjust the appropriate compensation package for the officers and employees of the System, with reasonable allowances, incentives, bonuses, privileges and other benefits as may be necessary or proper for the effective management, operation and administration of the System. For the purpose of this and the preceding subsection, the System shall be exempt from the rules and requirements of the Office of the Budget and Management and the Office of the Compensation and Position Classification; "(e) To fix and periodically review and adjust the rates of interest and other terms and conditions for loans and credits extended to its members or other persons, whether natural or juridical; "(f) The provisions of any law to the contrary notwithstanding, to compromise or release, in whole or in part, any claim or settled liability to the System, regardless of the amount involved, under such terms and conditions as it may impose for the best interest of the System; and "(g) To do and perform any and all acts necessary, proper or incidental to the attainment of the purposes and objectives of this Act."