CREATION OF FUNDS.

SEC. 5. The funds of the retirement system shall consist of an expense fund, an annuity fund, and a pension fund.

(1) The expense fund shall consist of such amounts as shall be appropriated by the general court from year to year on estimates submitted by the retirement board to defray the expense of the administration of this act, exclusive of the payment of retirement allowances.

(2) The annuity fund shall consist of assessments paid by members of the retirement association and interest derived from investments of the annuity fund. Each member of the retirement association shall pay into the annuity fund, by deduction from his salary in the manner provided in section 9, paragraph 5, of this act, such assessments upon his salary as may be determined by the retirement board. The rate of assessment shall be established by the retirement board on the first day of July of each year after a prior notice of at least three months, and shall at any given time be uniform for all members of the retirement association, and shall not be less than 3 per cent nor more than 7 per cent of the members' salary: Provided, however, That when the total sum of assessments on the salary of any member at the rate established by the retirement board would amount to more than $100 or less than $35 for any school year, such member shall in lieu of assessments at the regular rate be assessed $100 a year or $35 a year as the case may be, payable in equal installments to be assessed for the number of months during which the schools of the community in which such member is employed are commonly in session. Any member of the retirement association who shall for 30 years have paid regular assessments to the annuity fund as provided herein, shall be exempt from further assessments; but such member may thereafter, if he so elects, continue to pay his assessments to the fund. No member so electing shall pay further assessments after the total sum of assessments paid by him shall at any time have amounted, with regular interest, to a sum sufficient to purchase an annuity of $500 at age 60; and interest thereafter accruing shall be paid to the member at the time of his retirement.

(3) The pension fund shall consist of such amounts as shall be appropriated by the general court from time to time on estimates submitted by the retirement board for the purpose of paying the pensions provided for in this act.

PAYMENT OF RETIREMENT ALLOWANCES.

SEC. 6. (1) Any member of the retirement association may retire from service in the public schools on attaining the age of 60 years, or, at any time thereafter, if incapable of rendering satisfactory service as a teacher, may, with the approval of the retirement board, be retired by the employing school committee.

(2) Any member of the retirement association on attaining the age of 70 years shall be retired from service in the public schools.

(3) A member of the retirement association after his retirement under the provisions of paragraphs numbered (1) or (2) of this section, shall be entitled to receive from the annuity fund, as he shall elect at the time of his retirement, on the basis of tables adopted by the retirement board-(a) An annuity payable in quarterly payments, to which the sum of his assessments under section 5, paragraph (2), with regular interest thereon, shall entitle him; or (b) an annuity of less amount, as determined by the retirement board for the annuitants electing such option, payable in quarterly payments, with the provision that if the annuitant dies before receiving payments equal to the sum of his assessments under section 5, paragraph (2), with regular interest, at the time of his retirement, the difference between the total amount of said payments and the amount of his contributions with regular interest shall be paid to his legal representatives.

(4) Any member of the retirement association receiving payments of an annuity as provided in paragraph numbered (3) of this section shall, if not rendered ineligible therefor by the provisions of section 12 of this act, receive with each quarterly payment of his annuity an equal amount to be paid from the pension fund as directed by the retirement board.

(5) Any teacher who shall have become a member of the retirement association under the provisions of paragraph numbered (2) of section 3, and who shall have served 15 years or more in the public schools of the Commonwealth, not less than five of which shall immediately precede retirement, shall, on retiring as provided in paragraphs (1) and (2) of this section, be entitled to receive a retirement allowance as follows: (a) Such annuity and pension as may be due under the provisions of paragraphs numbered (3) and (4) of this section; (b) an additional pension to such an amount that the sum of this additional pension and the pension provided in paragraph (4) of this section shall equal the pension to which he would have been entitled under the provisions of this act if he had paid 30 assessments on his average yearly wage for the 15 years preceding his retirement and at the rate in effect at the time of his retirement: Provided, (1) That if his term of service in the Commonwealth shall have been over 30 years the thirty assessments shall be reckoned as having begun at the time of his entering service and as drawing regular interest until the time of retirement; And further provided, (2) that if the sum of such additional pension together with the annuity and pension provided for by paragraphs numbered (3) and (4) of this section is less than $300 in any one year, an additional sum sufficient to make an annual retirement allowance of $300 shall be paid from the pension fund.

(6) If at any time it is impossible or impracticable to consult the original records as to wages received by a member during any period, the retirement board shall determine the pension to be paid under paragraph numbered (5) (b) of this section in accordance with the evidence they may be able to obtain.

WITHDRAWAL AND REINSTATEMENT.

SEC. 7. (1) Any member of the retirement association withdrawing from service in the public schools before becoming eligible to retirement shall be entitled to receive from the annuity fund all amounts contributed as assessments, together with regular interest thereon, in the manner hereinafter provided.

(2) If such withdrawal shall take place before 10 annual assessments have been paid, the total amount to which such member is entitled as determined by the retirement board under the provisions of this act shall be paid to him in four annual installments. (3) If such withdrawal shall take place after 10 annual assessments have been paid the amount so refunded shall be in the form of such annuity for life based on the contributions of such member, together with regular interest thereon, as may be determined by the retirement board according to its annuity tables, or in four annua installments, as such members may elect.

(4) If a member of the association withdrawing and receiving payments in accordance with paragraphs numbered (2) and (3) of this section, shall die before the amount of such payments equals the amount of his contributions to the annuity fund with regular interest, the difference between the amount of such payments and the amount of his contributions with regular interest shall be paid to his legal representatives. (5) Any member of the retirement association who shall have withdrawn from service in the public schools shall, on being reemployed in the public schools, be reinstated in the retirement association in accordance with such plans for reinstatement as the retirement board shall adopt.

(6) If a member of the retirement association shall die before retirement, the full amount of his contributions to the annuity fund with regular interest to the day of his death shall be paid to his legal representatives.

TAXATION, ATTACHMENTS, AND ASSIGNMENTS.

SEC. 8. That portion of the salary or wages of a member deducted or to be deducted under this act, the right of a member to an annuity or pension, and all his rights in the funds of the retirement system shall be exempt from taxation, and from the operation of any laws relating to bankruptcy or insolvency, and shall not be attached or taken upon execution or other process of any court. No assignment of any right in or to said funds shall be valid. The funds of the retirement system, so far as invested in personal property, shall be exempt from taxation.

DUTIES OF THE SCHOOL COMMITTEE.

SEC. 9. (1) The school committee of each town and city in the Commonwealth shall, before employing in any teaching position any person to whom this act may apply, notify such person of his duties and obligations under this act as a condition of his employment.

(2) On or before October 1 of each year the school committee of each town and city in the Commonwealth shall cretify to the retirement board the names of all teachers to whom this act shall apply.

(3) The school committee of each town and city in the Commonwealth shall, on the first day of each calendar month, notify the retirement board of the employment of new teachers, removals, withdrawals, changes in salary of teachers, that shall have occurred during the month preceding.

(4) Under the direction of the retirement board the school committee of each town or city in the Commonwealth shall furnish such other information as the board may require relevant to the discharge of the duties of the board.

(5) The school committee of each town and city in the Commonwealth shall, as directed by the retirement board, deduct from the amount of the salary due each teacher employed in the public schools of such city or town such amounts as are due as contributions to the annuity fund as prescribed in this act, shall send to the treasurer of said town or city a statement as voucher for such deductions, and shall send a duplicate statement to the secretary of the retirement board.

(6) The school committee of each town and city in the Commonwealth shall keep such records as the retirement board may require.

DUTIES OF BOARDS OF TRUSTEES.

SEC. 10. In administering this act for the benefit of teachers in schools conducted in accordance with chapter 471 of the acts of the year 1911, the boards of trustees of said schools are hereby authorized and required to perform all the duties prescribed for school committees under this act.

CUSTODY AND INVESTMENT OF FUNDS.

SEC. 11. (1) The treasurer of each town or city in the Commonwealth on receipt from the school committee or board of trustees of the voucher for deductions from the teachers' salaries provided for in section 9 shall transmit, monthly, the amounts specified in such voucher to the secretary of the retirement board.

(2) The secretary of the retirement board shall monthly pay to the treasurer of the Commonwealth all sums collected by him under the provisions of paragraph (1). (3) All funds of the retirement system shall be in custody and charge of the treasurer of the Commonwealth, and the treasurer shall invest such funds as are not required for current disbursements in accordance with the laws of the Commonwealth governing the investment of sinking funds. He may, whenever he sells securities, deliver the securities so sold upon receiving the proceeds thereof, and may execute any or all documents necessary to transfer the title thereto.

(4) The treasurer of the Commonwealth shall make such payments to members of the retirement association from the annuity fund and pension fund as the retirement board shall order to be paid in accordance with sections 6 and 7 of this act.

(5) On or before the third Wednesday in January the treasurer of the Commonwealth shall file with the insurance commissioner for the Commonwealth and with the secretary of the retirement board a sworn statement exhibiting the financial condition of the retirement system on the 31st day of the preceding December and its financial transactions for the year ending at such date. Such statement shall be in the form prescribed by the retirement board and approved by the insurance commissioner.

MEMBERSHIP IN OTHER RETIREMENT ASSOCIATIONS.

SEC. 12. (1) No person required to become a member of the association, under the provisions of paragraph (1) of section 3 of this act shall be entitled to participate in the benefits of any other teachers' retirement system, supported in whole or in part by funds raised by taxation, or to a pension under the provisions of chapter 498 of the acts of the year 1908, or chapter 589 of the acts of the year 1908, as amended by chapter 617 of the acts of the year 1910.

(2) No member of the retirement association shall be eligible to receive any pension as described in section 6 of this act who is at the time in receipt of a pension paid from funds raised in whole or in part from taxation under the provisions of chapter 498 of the acts of the year 1908, or chapter 589 of the acts of the year 1908, as amended by chapter 617 of the acts of the year 1910, or of any other act providing pensions for teachers, providing that this paragraph shall not be construed as applying to the Boston Teachers' Retirement Fund Association.

REIMBURSEMENT OF CITIES AND TOWNS.

SEC. 13. (1) Whenever, after the 1st day of July, 1914, a town or city retires a teacher who is not eligible to a pension under the provisions of section 6, paragraph (4) of this act, and pays to such teacher a pension in accordance with chapter 498 of the acts of the year 1908, or chapter 589 of the acts of the year 1908, as amended by chapter 617 of the acts of the year 1910, and the school committee of said town or city certifies under oath to the retirement board to the amount of said pension, said town or city shall be reimbursed therefor annually by the Commonwealth: Provided, That no such reimbursement shall be in excess of the amount, as determined by the retirement board, to which said teacher would have been entitled as a pensioner, had be become a member of the retirement association under the provisions of section 3, paragraph (2) of this act.

(2) On or before the first Wednesday of January of each year the retirement board shall present to the general court a statement of the amount expended previous to the preceding 1st day of July by cities and towns in the payment of pensions under the provisions of the preceding paragraph, for which such cities and towns should receive reimbursement. On the basis of such a statement the general court may make an appropriation for the reimbursement of such cities and towns up to such 1st day of July.

JURISDICTION OF COURT.

SEC. 14. The superior court shall have jurisdiction in equity upon petition of the insurance commissioner or of any interested party to compel the observance and restrain the violation of this act and of the rules and regulations established by the retirement board hereunder.

REFERENDUM AND REPEAL.

SEC. 15. Upon the petition of not less than 5 per cent of the legal voters of any city or town that has adopted chapter 498 of the acts of the year 1908, this question shall be submitted, in case of a city, to the voters of such city at the next city election, and, in case of a town, to the voters of such town at the next annual town meeting, and the vote shall be in answer to the question to be placed upon the ballot: "Shall an act passed by the general court in the year 1908, entitled 'An act to authorize cities and towns to establish pension funds for teachers in the public schools,' be repealed?" and if a majority of the voters thereon at such election or meeting shall vote in the affirmative, said act shall be repealed in such city or town.

SEC. 16. So much of chapter 498 of the acts of the year 1908 as authorizes its submission to the voters of a city or town for acceptance after the passage of this act is hereby repealed.

SEC. 17. This act shall take effect upon its passage.

SECTION 1. The word teacher as used in this act shall include any teacher, supervisor, principal, superintendent, or certified librarian employed in any educational or ⚫ administrative capacity in the public schools of Minnesota, or in any educational, correctional, or charitable institution supported wholly or in part by this State, excepting those employed in the University of Minnesota. The term "Member of the fund association," wherever used in this act, shall mean and include every teacher (as herein defined), who shall contribute to the Teachers' Insurance and Retirement Fund by the payment of the dues hereinafter provided by this act.

SEC. 2. For the purpose of better compensating the teachers in the public schools and making the occupation of "teacher" in this State more attractive to qualified persons, there is hereby established for the State a fund to be known as the "Teachers' insurance and retirement fund," for the benefit of teachers who have served not less than 20 years except as hereinafter provided. Said fund shall be secured from the following sources:

First. From assessments on the members of the fund association according to the following schedule: For the first five years of teaching service, $5 per year; for the second five years, $10 per year; for the next ten years, $20 per year; for the next five years, $30 per year. Provided, That when the regular annual salary as teacher of any member of the fund association shall have reached $1,500 or more said member shall be assessed upon a percentage basis as follows: One and one-half per centum per annum, but not more than $20 per year, for the first ten years of service as a teacher; and 2 per centum per annum, but not more than $40 per year, for each successive year of service as teacher: Provided, That in no case shall the annual assessments based on a percentage rate be less for any year than the flat rate assessments for a single year of the corresponding period, said assessment period to cover not more than 25 years in all, after which all assessments shall cease.

Second. From all money and property received as donations, gifts, legacies, devises, bequests, or otherwise for the benefit of said teachers' insurance and retirement fund.

Third. From all interest arising from investments of the money belonging to said fund.

Fourth. From a tax of one-twentieth of 1 mill, which is hereby levied annually on all the taxable property located in that part of the State subject to the provisions of this act, after the valuation of said property has been equalized by the State; said tax to

1 Contributory plan.