daily amount received by such employee as determined by the Retirement Board, but for purposes of this Act this amount shall be assumed to be not less than two and one half dollars per day.

§ 5. The Retirement Board shall elect from its membership, a president, and a secretary, and shall appoint such actuarial, legal, medical, clerical and other employes as may be necessary.

The compensation of all persons employed by said Retirement Board shall be fixed by said board.

The Retirement Board shall keep a record of all its proceedings which shall be open to inspection by the public.

The Retirement Board shall certify to each employer the amount to be deducted from the salary of each employee for purposes of this Act for each pay-roll period from and after July 1, 1919.

The Retirement Board shall pay all moneys received to the custodian of the funds of said Retirement Board for use according to the provisions of this Act.

The Retirement Board shall keep such books and records as are necessary for the transaction of its business. It shall see that all deductions from salary and that contributions to be made by each employer under the provisions of this Act are being duly made, and that all funds thus collected are being deposited when collected with the custodian of the fund. It shall see that all the other duties of each employer are being performed, and in the event that an employer fails to perform any duties imposed on said employer under the provisions of this Act, it shall be the duty of the Retirement Board to take such steps as in its judgment seems advisable to enforce compliance on the part of such employer with the provisions of this Act.

The Retirement Board shall prepare a report, as of June 30 of each year, setting forth the income and disbursements of the year of each of the funds controlled by said Retirement Board and the amount of assets credited to, and the amounts of liabilities of, each such fund on such date. Such statement shall include:

(a) The total of the reserves on all annuities being paid by the board from the Annuity Reserve Fund and on all prospective annuities to be paid from such fund to employees who are over the age of sixty (60) years, calculating such reserves as if annuities were actually entered upon.

(b) The total of the liabilities of the employers because of supplementary annuities provided by such employers for present employees, including the present values of the supplementary annuities entered

upon.

The members of the Retirement Board as constituted shall be the trustees of all the funds created under this Act for the purpose of providing the benefits stipulated herein and for paying the cost of administration of this Act. Said Retirement Board shall have exclusive control and management of all funds of which the members of such board are trustees and full power to invest the same; subject however to all the terms, conditions, limitations and restrictions imposed by this Act upon the making of investments. Subject to such terms, conditions, limita

tions and restrictions, said Retirement Board shall have power to hold, purchase, sell, assign, transfer or dispose of any of the securities and investments in which any of the moneys of the funds created by this Act of which the members of such board are the trustees shall have been invested as well as of the proceeds of said investments and of any money belonging to said funds.

It shall be the duty of said Retirement Board to determine the length of service of each present employee rendered prior to the date when such employee comes under the provisions of this Act, including all service rendered to any employer as defined by this Act. Under such rules and regulations as the Retirement Board shall adopt, each employee shall file with said Retirement Board a detailed statement of all such service rendered by him or allowed to him. As soon as practicable thereafter, the Retirement Board shall verify such statement as to prior service, and shall issue a certificate to such employee, stating the length of prior service allowed and the amount to the credit of such employee for old age retirement annuity and widow's annuity purposes for the benefit of such employee. Such certificate shall be final and conclusive as to length of prior service and amount of credit unless modified by the Retirement Board, either of its own volition or upon application of the employee, within one year from the date when the certificate or a modified certificate was issued to the employee.

All time during which any present employee was absent on leave of absence without pay shall be excluded in computing the prior service of an employee, and all time during which any employee was absent on leave of absence on full or part pay shall be included in computing the prior service of such employee.

For the purpose of computing prior service, the Retirement Board shall fix and determine by appropriate rules and regulations, what period of service rendered on the basis of payment by the hour or day shall be equivalent to a year of service. All vacation periods shall be included as periods of service for employees paid on an annual or monthly basis. No employee shall be allowed credit for more than one year of service during any service year.

If any employee does not file a statement showing the amount of prior service rendered, or if the Retirement Board is unable to verify the averments contained in the statement filed by such employee, said Retirement Board shall fix the period for which such employee shall receive credit for prior service from such information as is available, and such decision of said Retirement Board shall be final unless modified by said Retirement Board within one year from the date of such decision.

§ 6. Each employer shall before employing any person to whom this Act shall apply, notify such person of his duties and obligations under this Act as a condition of his employment.

During some month in each year, to be fixed by the Retirement Board, each employer shall certify to said Retirement Board the name of each of its employees to whom this Act applies.

Each employer shall, on the first day of each calendar month, notify the Retirement Board of the employment of new employees, removals,

withdrawals, deaths and changes in salary of employees, that shall have occurred during the month preceding, setting forth the dates upon which such employments, removals, withdrawals, deaths and changes in salaries occurred.

Each employer shall furnish such other information to the Retirement Board as such Retirement Board may reasonably require hereunder in the discharge of its duties.

Beginning on July 1, 1919, each employer shall cause to be deducted from the salary or wages of each employee, for each and every payroll period, such an amount as shall be certified to by said Retirement Board as required under the provisions of this Act. Each employer shall certify to the treasurer of said employer, on each and every payroll, a statement as voucher for the amounts so deducted, and shall send a duplicate of such statement to the secretary of the Retirement Board. The treasurer of each employer, on receipt from the employer of such voucher for deductions from salaries or wages of employees, shall transmit monthly, or at such other times as the Retirement Board shall designate, to the secretary of said Retirement Board, the amounts specified in such voucher.

Each employer shall keep such records as the Retirement Board may require hereunder.

§ 7. Each person elected or appointed to membership upon the Retirement Board shall take a written oath of office that he will, so far as it devolves upon him, diligently and honestly administer the affairs of the office to which he was elected or appointed and that he will not knowingly violate or wilfully permit to be violated any of the provisions of law applicable under this Act. Such oath shall be subscribed by the person making it, and certified to by the officer before whom it is taken, and deposited with the custodian of the fund. Anyone after appointment or election shall be deemed to have qualified for membership on the board when such certificate is deposited with said custodian of the fund.

§ 8. Except as herein provided, no member of the Retirement Board, nor any one connected with the Retirement Board, shall have any interest, direct or indirect, in the gains or profits of any investment made by such board, nor as such, directly or indirectly, receive any pay or emoluments for his services except as herein provided. Nor shall any such person as an agent or partner of others borrow any funds or deposits, or in any manner use the same, except to make such current and necessary payments as are authorized by the board, nor shall any member of said board, or anyone connected with said board, become an endorser or surety or become in any manner, an obligor for moneys loaned by or borrowed of any such board.

All payments from the funds created by this Act shall be made by the custodian of the fund only, and only upon warrant or voucher signed by the president of the Retirement Board and countersigned by the secretary of said board and no warrant or voucher shall be drawn except by order of said board duly entered in the record of its proceedings.

The said Retirement Board, may keep as an available fund for the purpose of making disbursements in excess of receipts for annuities and

other payments to employes, an amount not exceeding ten per cent of the total amount in the several funds of said board for annuity purposes. Such funds hereby authorized to be kept, shall be kept on deposit in any bank in this State organized under the laws thereof or under the laws of the United States, or with any trust company incorporated under any law of this State; provided said bank or trust company shall furnish adequate security for said funds; and provided further that the sum so deposited in any one bank or trust company shall not exceed twentyfive per cent of the paid up capital and surplus of said bank or trust company.

§ 9. The moneys under the control of the Retirement Board, created under the provisions of this Act shall be invested in bonds of the United States, or of this State, or in bonds of any county, village or incorporated town in this State or in federal farm loan bonds issued by any federal reserve bank.

$10. The Retirement Board shall establish and administer nine funds to be known respectively as;

(1) Expense Fund; (2) Employers' Annuity Fund; (3) Children's Annuity Fund; (4) Compensation Fund; (5) Salary Deductions for Annuity Fund; (6) Annuity Reserve Fund; (7) Sickness and Accident Fund; (8) Investment and Interest Fund; (9) Employers' Supplementary Fund.

In the month of July, 1920, for a period covering the year next preceding, and in July of each year thereafter, for a period covering the year then last preceding, each employer shall pay into these funds such amounts as the Retirement Board shall have certified are required to be contributed by such employer under the provisions of this Act.

Expense fund: Such amounts as shall be paid to the Retirement Board to defray the administrative expenses thereof shall be paid into a fund known as the Expense Fund. All administrative expenses of said Retirement Board shall be paid from this fund.

During the first fiscal year, each employer concerned shall pay to said Retirement Board an amount equal to one-fifth of one per cent of the aggregate salaries of the employes of such employer involved for such fiscal year. Thereafter each employer shall pay to said Retirement Board such sums as said Retirement Board shall certify to as necesary to defray the administrative expense of said board, but in no case shall such sums exceed amounts equal to one-fifth of one per cent of the salaries of the employes of the employer involved for the preceding calendar year.

If at any time there is not a sum in the Expense Fund sufficient to defray the current expenses of said Retirement Board, an amount equal to the sum necessary for such expenses may be transferred from any other fund under the control of said board. When thereafter any sum in excess of that required for current expenses is received into the Expense Fund, it shall be transferred from such fund and placed in the fund or funds from which such sums were taken until the total amount so taken with regular interest thereon is returned to such fund or funds.

If, on July 31st of any year, a sum is owing to any other fund from the Expense Fund, an amount equal to the amount so owing shall be charged against the employees involved, each such employee being charged an equal part of the whole sum. A sum equal to that charged to each employee shall be deducted from the first payment on account of the salary of such employee.

Employers' annuity fund. Such amounts as are required under the provisions of this Act to be paid by an employer towards the old age retirement annuities of future entrants, or towards the annuities of widows of future entrants, or towards the old age retirement annuities of present employees, or towards the annuities of widows of present employees, exclusive of amounts paid to provide supplementary annuities for present employees, or for widows of present employes, shall be paid into a fund to be known as the Employers' Annuity Fund.

In this fund an individual account shall be kept for each employee towards whose old age retirement annuity the employer is contributing, and as contributions are received from the employer, the account of each such employee shall be credited with the amount which the employer has contributed towards the old age retirement annuity of such employee. At least once each year such account shall be credited with the proper interest accumulations. On the date when such employee enters upon his annuity, or attains the age of sixty years, whichever event shall first occur, the accumulated amount to the credit of such employee on such date shall be transferred to the Annuity Reserve Fund and placed to the credit of the employee in such fund.

If an employee withdraws from service before his attainment of the age of fifty-five years and retains his eligibility for annuity, the total amount thus credited to the account of such employee, with interest accumulations, shall remain in the fund until such employee enters upon. annuity or attains the age of sixty years, whichever event shall first occur, and the amount of such accumulation available under the provisions of this Act for old age retirement annuity of the employee shall then be transferred from this fund to the Annuity Reserve Fund and be placed to the credit of such employee in such fund.

If a male employee dies while in service before attainment of the age of sixty years, leaving a widow, or if a male employee who withdrew from service before his attainment of the age of fifty-five years, dies before entering upon his annuity, leaving a widow eligible for annuity, the accumulation or that part of the accumulation on the date of the death of the employee necessary to provide the annuities stated herein for such widow shall be transferred from this fund to the Annuity Reserve Fund and be placed to the credit of such widow in such fund.

Children's annuity fund. Into a fund to be known as the Children's Annuity Fund shall be paid: (a) All amounts received from the employer to provide for children's annuities as provided for in this Act; (b) such amounts, payable from other funds, as are necessary for children's annuities under the provisions of this Act, which funds were they not necessary for this purpose would be refunded to children or parents of the deceased employee.