Class

seven.

First alternative.

schools of this state, or of service partly in the said public schools and partly in one or more of the offices mentioned in said subdivision four of section twelve, shall be compelled by reason of incapacity, to retire from public school service, or from one of the offices mentioned in said subdivision four of section twelve, while holding a valid certificate or diploma to teach in the public schools of this state, such retiring teacher or office holder, if a contributor to the said fund at the time of retirement, shall be entitled to receive from the public school teachers' annuity and retirement fund a sum in dollars equal to such proportion of the maximum annuity granted under this act as the time he shall have been subject to the burdens of this act bears to the period of thirty years; provided, however, that those who have served in the public schools of this state, or partly in the said public schools and partly in one or more of the offices mentioned in said subdivision four of section twelve, at a time when, or in a place where, it was impossible to make contributions to said fund, by reason of the nonexistence of said fund, may receive in addition to the proportion of the maximum annuity last herein above specified, such an additional proportion of the full annuity as the number of years of said service, while not burdened with the provisions of this act, bears to thirty years; provided, further, that they shall have paid into the said fund, at the time of their retirement, an amount equal to what they would have paid into said fund had they been subject to the burdens imposed by this act for the full time of said service, not to exceed thirty years; and provided, further, that no person retired under this subdivision B shall ever receive a greater annuity than he would have received had he retired on account of years of service; and provided, further, that he shall have contributed to the said fund for five years before he becomes an annuitant. Class Seven. Contributors to said public school teachers' annuity and retirement fund, retiring under this class, shall be retired under either subdivision A, or under subdivision B, hereof, as the said contributors to said fund in such county, or consolidated city and county, shall have selected to follow, as provided in section five of this act.

A. Any public school teacher who shall have been subject to the burdens imposed by this act, for a period of at least five years, and who shall have served in the public schools of this state for a period of fifteen (15) years, or partly in the said public schools and partly in one or more of the offices mentioned in said subdivision four of section twelve, for a period of fifteen years, and who has held a valid certificate or diploma to teach in the schools of this state during all said period, and who shall have been declared incapacitated, by the committee on retirement, to perform the duties of a public school teacher, or the duties of the office which he may be occupying, if he should be occupying one of the offices mentioned in said subdivision four of section twelve, shall be entitled to retire and to receive an annuity from the public school

teachers' annuity and retirement fund, equal to such proportion of the maximum annuity granted under this act as the time he has been subject to the burdens imposed by this act bears to the period of thirty years.

ternative.

B. Any public school teacher who shall have been subject Second alto the burdens imposed by this act for a period of five years (5), and who shall have served in the public schools of this state for a period of five (5) years, or partly in the said public schools and partly in one or more of the offices mentioned in said subdivision four of section twelve, for a period of five years, and who has held a valid certificate to teach in the schools of this state during said period, and who shall have been declared incapacitated by the committee on retirement, to perform the duties of a public school teacher, or the duties of the office which he may be occupying, if he should be occupying one of the offices mentioned in said subdivision four of section twelve, shall be entitled to retire, if a contributor to the fund at the time of retirement, and to receive an annuity, from the public school teachers' annuity and retirement fund a sum in dollars equal to such proportion of the maximum annuity granted under this act, as the time he shall have been subject to the burdens imposed by this act bears to the period of thirty years.

eight.

Class Eight. Teachers of public evening schools receiving a Class salary of fifty (50) dollars or less per month, shall be subject to one-half of the burdens, and shall be entitled to one-half of the benefits, of this act; provided, that any public school teacher who is employed both in a day and an evening school shall be considered for the purposes of this act to be employed in a day school only; provided, further, that an evening public school teacher, who at any time before retirement under the provisions of this act shall become a day public school teacher, or an occupant of one of the offices mentioned in said subdivision four of section twelve, shall upon retirement as a day public school teacher, or as one of said officers, be credited with half time for his said evening school service, under the class in which he may be retired.

HIGH SCHOOL AND OTHER PUBLIC SCHOOL TEACHERS.

admission

High school and other public school teachers in counties, or Terms of in consolidated cities and counties, in which the act of which of other this act is amendatory has been in force, who were unable by teachers. reason of any imperfection in the terms of said act, to become contributors, shall be allowed, upon admission under the terms of this act, and upon the payment of the amounts they would have paid had they been contributors, to date the time of their admission from the time of the organization of the public school teachers' annuity and retirement fund in their county or consolidated city and county. City treasurers are hereby directed to pay into the public school teachers' annuity and retirement fund of their respective counties the contributions of teachers and officers, whose salaries are paid by, or

Suspension of annui

ties.

Who exempt

from re

annuities.

through, city treasurers, in the same manner as provided in the act of which this act is amendatory, to be paid by the treasurer of a county, or consolidated city and county.

Compliance with these provisions shall render any public high school or other public school teacher eligible to the benefits provided in any one of the eight classes of annuitants in this act created to which such teacher may be qualified.

SUSPENSION OF ANNUITIES.

Any and all annuities shall be suspended if the recipient returns to the profession of teaching or becomes the occupant of one of the said offices mentioned in subdivision four of section twelve. Any annuity less than two thirds of the maximum annuity shall cease at the expiration of one year from the time at which the committee on retirement, constituted in section five of this act, shall decide that the recipient has been restored to the capacity of performing the duties of a public school teacher.

All teachers now employed in the public schools of this state who filed the notice specified in the act of which this act duction of is amendatory, within ninety days after the passage of this amendatory act in counties or in consolidated cities and counties where the provisions of any act or acts to which this act is amendatory are now applicable, and all other public school teachers in other counties or consolidated city and county who become contributors within ninety days after the establishment of a public school teachers' annuity and retirement fund therein and who shall have paid at the time of retirement an amount equal to what they would have paid had they been subject to the burdens imposed by the provisions of this act for thirty (30) years, shall not suffer any reduction of annuities; provided, however, that the provisions of this paragraph shall not apply to counties or consolidated cities and counties in which the contributors to said fund shall select to be governed by the provisions of subdivision B of classes two, six and seven respectively of section eight, and subdivision B of section eleven, as provided in section five.

Funds may be pro rated.

Source of retirement

fund.

SEC. 4. Section nine of the act designated in section one hereof is hereby amended to read as follows, viz.:

Section 9. If at the end of any quarter year there shall not be a sufficient amount of money in the "annuity fund," or in the "distribution fund," as the case may be, to pay all warrants and demands of annuitants in full, then the money in that fund shall be divided pro rata among them, and the sum received by each annuitant shall be in full discharge of all claims against said fund to that date.

SEC. 5. Section ten of the act designated in section one hereof is hereby amended to read as follows, viz.:

Section 10. The public school teachers' annuity and retirement fund herein provided for, shall consist of the following, with the income and interest thereof: (I) Twelve (12) dollars per school year, of the salaries paid to all those subject to the bur

dens imposed by this act, in each county or consolidated city and county, shall be deducted from the warrants for salary, and paid by the treasurer of the county, or consolidated city and county, to the public school teachers' retirement fund commissioners of said county, or consolidated city and county; and it shall be the duty of the secretary of the board of education in every incorporated city or town, or consolidated city and county, and the clerk of the board of trustees of every public school district outside of such city or town, or consolidated city and county, to note on each warrant the amount to be so deducted therefrom by the treasurer, and if classified, the class under this act to which the teacher belongs. (II) All moneys received from gifts, bequests and devises, or from any other source. (III) All moneys, pay, compensation, or salary forfeited, deducted or withheld from the warrant or demand for salary of any teacher or teachers for and on account of absence from duty from any cause, which the board of education of every incorporated city or town, or the board of trustees of every school district outside of such city or town, may appropriate and set apart for the aforesaid fund; and said board of education or board of trustees, are hereby empowered to appropriate such moneys, or any part thereof, for such fund; provided, that in consolidated cities and counties, after the establishment of an annuity fund therein, it is hereby made the duty of the boards of education to appropriate, monthly, at least one half of such moneys for such fund.

SEC. 6. Section eleven of the act designated in section one hereof is hereby amended to read as follows, viz.:

shall be divided.

Section 11. The said public school teachers' annuity and How fund retirement fund shall be divided either as designated in subdivision A hereof, or as designated in subdivision B hereof, as the said contributors to said fund in such county, or consolidated city and county, shall have selected to follow pursuant to the provisions of section five (5) hereof.

A. The said public school teachers' annuity and retirement Alternafund in each county or consolidated city and county, shall be tive. divided into two distinct funds, or accounts, (1) the permanent fund, and (2) the annuity fund.

(1) The permanent fund.

(a) The permanent fund shall consist of: (I) Twenty-five per cent of all contributions from those affected by this act; (II) Twenty-five per cent of all gifts, bequests, or devises, unless otherwise ordered by the donor or the testator; (III) Twenty-five per cent of all moneys deducted from the salaries of teachers because of absence from duty.

(b) When the permanent fund shall amount to the sum of fifty thousand (50,000) dollars, then all moneys thereafter received shall go into the annuity fund, except such gifts, devises, or bequests as may be specially directed by its donor or testator to be placed in the permanent fund.

(c) It shall be the duty of the public school teachers' retirement fund commissioners to invest the aforesaid permanent

Permanent fund.

Annuity fund.

Alternative.

Reserve fund.

fund in interest-bearing bonds issued by the federal, state, county, city and county, or municipal governments, and to apply the interest thereon as herein directed.

(2) The annuity fund.

(a) The annuity fund shall consist of: (I) The income derived from the permanent fund; (II) All other moneys belonging to the public school teachers' annuity and retirement fund, not herein before directed to be placed in the permanent fund; (III) All moneys in the fund provided for in the act to which this is amendatory.

(b) The annuity fund shall be the only one from which annuitants shall be paid.

(c) If at the end of any fiscal year there remain any surplus in the annuity fund, said surplus shall be deposited by the public school teachers' retirement fund commissioners in any savings bank, or savings banks, designated by them.

B. The said public school teachers' annuity and retirement fund, in each county, or consolidated city and county, shall be divided into two distinct funds or accounts, (1) the reserve fund and (2) the distribution fund.

(1) The reserve fund.

The reserve fund shall consist of:

(a) All moneys collected from the unclassified contributors for the first five years after the creation of said fund.

(b) Sixty (60) per cent of all moneys collected from the unclassified contributors for the second five years after the creation of the fund.

(c) Fifty (50) per cent of all moneys collected from unclassified contributors for the third five years after the creation of the fund.

(d) Thirty (30) per cent of all moneys collected from the unclassified contributors for the fourth five years after the creation of the fund.

(e) One hundred per cent of all collections from the classified contributors during the first period of their classification, as hereinafter classified.

(f) Ninety per cent of all collections from the classified contributors during the second period of their classification, as hereinafter classified.

(g) Eighty per cent of all collections from the classified contributors during the third period of their classification, as hereinafter classified.

(h) Seventy per cent of all collections from the classified contributors during the fourth period of their classification, as hereinafter classified.

(i) All collections from sources other than said collections from contributors; all donations, and all interest accrued on such reserve fund for a period of twenty years from the creation of said fund.

It shall be the duty of the public school teachers' retirement fund commissioners to place the reserve fund at interest, monthly, in a savings bank selected by the said commissioners. All original contributors to a public school teachers' annuity