LB .N STATE OF NEW JERSEY Teachers' Pension and Annuity Fund Law 1922 TRENTON, N. J. MacCrb«,ish & Quigi,ey Co., State Printers. 1922 STATE OF NEW JERSEY iW Teachers' Pension and Annuity Fund Law 1922 TRENTON, N. J. MacCrEiaish & Quigley Co., State Printers. IQ22 LIBRARY OF CONGRESS RECEIVED jim a 3 1923 i DOCUMENTS DIVISION 1$ tf AV Teachers' Pension and Annuity Fund Law CHAPTER 80, LAWS OF 1919, AS AMENDED TO 1922. An Act to amend "An act to establish a thorough and efficient system of free public schools, and to provide for the mainte- nance, support and management thereof," approved October nineteenth, one thousand nine hundred and three. PREAMBI^, Whereas, In the advancement of public policy there Preamble, has been established in this State a retirement fund to which public school teachers are required to con- tribute and which was designed to provide an an- nuity to any member disabled after twenty or more years of service, and the State has provided a non- contributory pension for any teacher who teaches thirty-five years ; and Whereas, After two years of investigation conducted Preamble, with the assistance of pension experts and actuaries employed by it, the Pension and Retirement Fund Commission created by the act of the Legislature, J. R. ii, P. L. 1917, and J. R. 3, P. L. 1918, has found that the two retirement systems convict with each other in their operation and thereby create em- barrassment in the administration of school affairs, and in many instances give double retirement benefits to the teachers, amounting on an average to more than the salary received by the teachers when in active service ; and Whereas, The actuary employed by the State Teachers' Preamble. Association and the actuary of the commission both report that the liabilities of the Teachers' Retirement Fund are far in excess of its present and prospective assets, which indicates that the contributions of pres- ent teachers are being used for the payment of an- nuities to teachers now retired, thereby exhausting the funds which should be kept in reserve for the benefit Preamble. Preamble. Article XXVIII added to school law. of present teachers, with the result that a majority of those now contributing will be unable to receive the benefits promised under the fund; and Whereas, Inasmuch as the State of New Jersey by legislative enactment has compelled its teachers to contribute to this fund which is in an unsound finan- cial, condition, it is the duty of the Legislature to cor- rect as far as possible the injustice and embarrassment occasioned by such conditions, which are detrimental to the welfare of the teachers and the school system ; and Whereas, It is recognized as an established State policy that the teachers of our public schools should be given protection against disability and old age and that such protection should be provided by a retirement system established on a scientific basis that wil truly advance the best interests of our educational system and protect the future well being of the teachers; therefore, i. The act to which this act is an amendment is hereby amended by the addition of a new article, which shall be known as Article XXVIII, and which shall con- tain sections 247 to 256, inclusive. Article XXVIII. teachers' pension and annuity eund. Definitions of sundry terms. DEEINITIONS. 247. (1) The following words and phrases used in this act shall have the following meanings unless a dif- ferent meaning is plainly required by the context : (2) "Retirement System" shall mean the "Teachers' Pension and Annuity Fund," created by section two hundred and forty-eight of this article. (3) "Teachers' Retirement Fund" shall mean the Teachers' Retirement Fund of the State of New Jersey, as created by chapter 32, P. L. 1896; chapter 178, P. L. 1899; chapter 96, P. L. 1900; chapter 36, P. L. 1902; chapter 1, Second Special Session P. L. 1903; chapter 95, P. L. 1905; chapter 314, P. L. 1906; chap- ter 139, P. L. 1907, and amendments thereto and sup- plements thereof. (4) "Board of Trustees" shall mean the board pro- vided for in section two hundred and fifty-five of this article. (5) "Commissioner of Education" shall mean the Commissioner of Education of the State of New Jersey. (6) "Employer" shall mean the State of New Jersey, or the school district, normal school, district, board or other agency of and within the State by which the teacher is paid. (7) "Teacher" shall mean any regular teacher, Teacher special teacher, helping teacher, teacher-clerk, principal, defined - vice-principal, supervisor, supervising principal, di- rector, superintendent, city superintendent, assistant city superintendent, county superintendent, State commis- sioner or assistant commissioner of education and other member of the teaching or professional staff of any class, public school, high school, normal school, model school, training school, vocational school, truant re- formatory school, or parental school, and of any and all classes or schools within the State of New Jersey conducted under the order and superintendence, and wholly or partly at the expense of the State Board of Education, of a duly elected or appointed board of edu- cation, board of school directors, or board of trustees of the State or of any school district or normal school district thereof, and any such person under contract or engagement to perform one or more of these functions ; provided, that no person shall be deemed a teacher Proviso. within the meaning of this article who is a substitute teacher or is a teacher not regularly engaged in per- forming one or more of these functions as a full-time occupation outside of vacation periods. In all cases of doubt the board of trustees shall determine whether any person is a teacher as defined in this article. (8) "Present-entrant" shall mean any teacher who is a member of the retirement system under the pro- visions of class B, C, D and E under sub-section 1(2) of section two hundred and forty-nine of this article. And in addition to the above-mentioned persons defined p. l. 1021, as teachers, there shall also come under the provisions Chap- 2I9 ' of the act to which this act is an .amendment, for pen- sion and annuity purposes, and subject to the same pro- visions as applied to teachers, any janitor, assistant janitor, janitress, engineer, firemen or any janitorial employees of a board of education of any school dis- trict, or of any public school, high school, normal school, model school, training school, vocational school, truant reformatory school, parental school within the State. (9) "New-entrant" shall mean any teacher who is a member of the retirement system, except a present entrant. (10) "Contributor" shall mean any person who' has an account in the annuity savings fund. (11) "Beneficiary" shall mean any person in receipt of a retirement allowance or other benefit as provided in this article. (12) "School Service" shall mean any service as a teacher as defined by sub-section (7) of this section. (13) "School Year" shall mean the official school year of the school district or the institution in which a teacher is employed. (14) "Regular Interest" shall mean interest at four per centum per annum, compounded annually. (15) "Accumulated Deductions" shall mean the total of the amounts deducted from the salary of a con- tributor and credited to his individual account in the annuity savings fund together with the interest thereon. Regular interest shall be computed and allowed on such total or part thereof when used for the purchase from the retirement system of a retirement annuity. Interest at the rate of three and one-half per centum per annum, compounded annually, shall be computed and paid on such total amounts or part thereof when withdrawn for any other purpose. (16) "School Apportionment Fund" shall mean the moneys retained in the State Treasury to be appor- tioned to the several counties of the State by the Comp- troller for school purposes, as defined in chapter 146, P. L. 1906, and chapter 65, P. L. 1909. 1(17) "Average Salary" shall mean the average annual salary earnable by and as a teacher for the last five years preceding retirement. (18) "Pension" shall mean annual payments for life derived from the pension fund or from the pension reserve fund as provided in this article. All pensions shall be paid in monthly installments. (19) "Annuity" shall mean payments for life de- rived from contributions made by a contributor as pro- vided in this article. All annuities shall be paid in monthly installments. (20) "Retirement Allowance" shall mean the pension plus the annuity. (21 ) "Pension Reserve" shall mean the present value computed on the basis of such mortality tables as shall be adopted by the board of trustees, with regular in- terest of the future payments to be made on account of any pension granted to a member. (22) "Annuity Reserve" shall mean the present value computed on the basis of such mortality tables as shall be adopted by the board of trustees with regular interest of the future payments to be made on account of any annuity granted to a member. (23) "Prior Service" shall mean service rendered as a teacher either within or without the State of New Jersey prior to September first, nineteen hundred and nineteen, and for purposes of credits, prior service out- side the State of New Jersey shall be construed abso- lutely and not proportionally within the limits other- wise provided for in this act. p. 1,. Chap. 1920, 194. ESTABLISHMENT OE SYSTEM. 248. (1) A retirement system for public school Retirement teachers is hereby created and established to be known Elated as the "Teachers' Pension and Annuity Fund," and shall include the several funds created and placed under the management of the board of trustees as provided Management. by this article for the purpose of paying retirement allowances and other benefits hereinafter provided to or on account of the teachers who become members of said system. (2) The retirement system so created shall have the powers and powers and privileges of a corporation, and under its P rivile s es - corporate name all its business shall be transacted, all 8 funds invested, all warrants for money drawn and pay- ments made, and all cash and securities and other prop- erty shall be held. Membership begins. Classes of members. Class A. Proviso. Proviso. Class B. MEMBERSHIP. 249. ( I ) Membership in the retirement system shall begin not earlier than the first day of September, nine- teen hundred and nineteen. (2) The membership of the retirement system shall consist of the following- classes of teachers : Class A. All persons who become teachers after the first day of September, nineteen hundred and nineteen, and whose appointment is made subsequent to the pas- sage of this act, shall become members of the retirement system by virtue of their appointment as teacher; pro- vided, that any person who may become a teacher after September first, nineteen hundred and nineteen, who before the passage of this act shall have made an agree- ment to teach in the schools of this State as a consider- ation for the instruction received in any normal school of the State shall not be compelled during the life of such agreement to become a member of the retirement system when he shall enter the service as a teacher, but shall, however, become a member after the expiration of such agreement by virtue of any subsequent appoint- ment as teacher, but he may become a member at any time by filing an application as hereinafter described; provided, further, that any person who shall have signed a contract for the position of a teacher prior to the passage of this act, whose services thus contracted for shall extend beyond the first day of September, nine- teen hundred and nineteen, shall not be compelled to become a member of the retirement system when he shall enter the service under such contract as a teacher, but he may do so by filing an application as hereinafter described. Class B. All teachers in the service on September first, nineteen hundred and nineteen, who are not mem- bers of the Teachers' Retirement Fund at the time of the passage of this act, who, during their service as a teacher on or before the first day of September, nine- teen hundred and twenty, shall file with the board of trustees an application for membership. Class C. All teachers in the service on September class c. first, nineteen hundred and nineteen, who became mem- bers of the Teachers' Retirement Fund by virtue of their appointment as teacher since January first, nineteen hun- dred and eight, who during their service as a teacher on or before the first day of September, nineteen hundred and twenty, shall file with the board of trustees an appli- cation for membership. Class D. All teachers in the service on September ciass d. first, nineteen hundred and nineteen, who became mem- bers of the Teachers' Retirement Fund before the first day of January, nineteen hundred and eight, and who during their service as a teacher on or before the first day of September, nineteen hundred and twenty, shall file with the board of trustees an application for mem- bership. Class E. All teachers, who do not come under the Class e. provisions of class A, B, C or D, who within a year after their appointment or after the passage of this act, shall file with the board of trustees an application for mem- bership. Any member who has been enrolled or who shall be enrolled under class A as a new member prior to one thousand nine hundred and twenty-three, and who has had ten years or more of service as a teacher in the public schools of New Jersey, may by resolution of the board of trustees have his or her membership changed from that of new entrant to present entrant and be enti- tled to all the benefits and privileges granted by this act to present entrants. (3) Application for membership under class B, C, Application D and E, and the certificate of enrollment in case of class A member, shall be in such form and contain such information as the board of trustees shall designate, and furthermore, the application for membership in case of class C, D and E shall contain a waiver of all rights and Waiver. privileges as a member or prospective beneficiary of. the Teachers' Retirement Fund. The board of trustees shall file one copy of the appli-* copies of cation for membership or certificate of enrollment in fi?ed. catlon P. L,. 1922, Chap. 45. 10 Time for application extended. As to future applications. Right may- be denied. Absence to forfeit mem- bership. the retirement system as a permanent record in its office, and one copy with the employer of the applicant, which shall constitute a notice to such employer to deduct the percentage of salary as defined by this article. (4) The board of trustees may, in its discretion, extend the period for filing any application for mem- bership provided for herein, but no' extension shall carry the date beyond the year nineteen hundred and twenty- three. (5) Any teacher who does not elect to become a member while eligible to membership under the pro- visions as to class B, C, D or E, and who is not eligible to membership under the provisions as to class A, may become a member thereafter upon application in accord- ance with the rules and regulations of the board of trustees, but with a limited allowance for prior service as hereinafter provided for new entrants. (6) This board of trustees may, in its discretion, deny the right to become members to any class of teachers whose compensation is only partly paid by the State, or who are serving on a temporary or any other than a per annum basis, and it may also, in its discre- tion, make optional with members in any such class their individual entrance into membership. (7) The membership of any person in the retirement system shall cease if he shall be continuously absent without pay for a period of more than two years, or if in any five-year period after he last became a member, he shall render less than two years of school-service, or upon the withdrawal by a contributor of his accumu- lated deductions as provided in this article or upon re- tirement on a pension, or at death but not otherwise, except as provided in this article. Service of present- entrant. SERVICE CREDITABLE. 250. (1) In addition to the application required in sub-section (3) of section two hundred and forty-nine of this article each present-entrant shall file a detailed statement under oath of all school-service and service in a similar capacity in other States rendered by him prior to the first day of September, nineteen hundred and nine- II teen, for which he claims credit, and of such other facts as the board of trustees may require for the proper operation of the retirement system. (2) Each new-entrant shall file a detailed statement of school-service and service in a similar capacity in other States rendered by him prior to so becoming a member for which he desires credit and on account of which he desires to contribute and of such other facts as the board of trustees may require for the proper operation of the system. (3) The board of trustees shall fix and determine by appropriate rules and regulations how much service in any year is the equivalent of a year of service, but in computing such service, or in computing average com- pensation, it shall credit.no time during which a mem- ber was absent without pay for a period of more than a month's duration, nor shall more than one year of service be credited for all service in any calendar year. (4) Subject to the above restrictions and to such other rules and regulations as the board of trustees shall adopt, said board shall verify as soon as practicable the statement of service submitted, and shall issue to the member a prior-service certificate certifying to the ag- gregate length of such prior service. (5) In such prior-service* certificate a present-entrant shall be credited with all prior service not exceeding ten years which he rendered as a teacher outside of the State of New Jersey, prior to September first, nineteen hun- dred and nineteen, and such outside prior service shall be credited to him in his prior-service certificate regard- less of the length of his service in New Jersey on Sep- tember first, nineteen hundred and nineteen. And in ad- dition to such prior service so credited, he shall also be credited with all service rendered by him as a teacher in New Jersey prior to September first, nineteen hundred and nineteen ; provided, that the number of years of his service in New Jersey, when added to the number of years of service rendered by him as teacher outside of New Jersey, and credited to him on his prior-service certificate, in the manner above mentioned, shall not exceed a total of thirty-five years of credit for prior service; provided, further, that an y present-entrant, Service of new-entrant. Year's service fixed. Statement verified. Prior-service credits of present-en- trant. P. L. 1920, Chap, j 94. Proviso. Proviso. 12 Prior service of new- entrant. Prior-service certificate final. whose prior service was wholly within New Jersey shall have credited to him on his prior-service certificate such prior service not to exceed thirty-five years. (6) In. his prior-service certificate, a new-entrant shall be credited in full up to the nearest number of years and months, but not exceeding ten years, with all service rendered by him as a teacher in public schools in or outside of New Jersey prior to becoming a member, for which he desires credit and on account of which he desires to contribute. (7) So long as membership continues, a prior-service certificate shall be final and conclusive for retirement purpose as to such service, unless thereafter modified by the board of trustees upon the application made by the member within one year after the date of issuance or modification of a prior-service certificate or upon the discovery by the board of trustees of an error or fraud. Restoration to When membership ceases, such certificate shall be void, but upon membership being resumed the prior-service certificate shall be restored for the same number of years of prior service as were previously credited less a deduction of one year for each year during which the teacher was not a member of the retirement system since the issuance of the initial prior-service certificate. (8) At retirement the total service credited a mem- ber shall consist of the service rendered by him during his membership, and if he has a prior-service certificate which is in full force and effect, for all service certified on such certificate. This act shall take effect immediately, and shall be retroactive, and its provisions shall apply to all prior- service certificates issued under the act to which this act is an amendment. membership. Total service. Retirement at 62 years. BENEFITS. ■ Superannuation Retirement. 251. (1) A member who has attained the age of sixty-two (62) may retire upon his request or, upon the request of his employer, shall be retired from the service if a written statement duly attested is filed by him or by his employer with the board of trustees setting forth at what time subsequent to the execution and filing J 3 Chap. 222. thereof he or his employer desires such retirement. The board of trustees shall retire said member at the time specified or at such other time within thirty days after the date so specified as the board of trustees may find advisable. Any present-entrant who is not covered by the tenure of office law who prior to the first day of November, one thousand nine hundred and nineteen, shall become a member of the retirement system, and who shall be credited in his prior-service certificate with thirty-five or more years of service, who shall lose his position before attaining the age of sixty-two (62) years, shall be retired on a total retirement allowance of one-half of his average salary. Provided, however, that Proviso, any present-entrant, irrespective of his or her age, who p. l. 1920 so desires and who has had thirty-five years of service as a teacher to his or her credit, the last twenty-five years of which service shall have been performed in this State, shall be retired from active service and shall receive all the benefits of this act as now provided for members over the age of sixty-two (62) years as if said member were over the age of sixty-two (62) years; excepting that such retirement allowance (other than the addi- tional pension provided by paragraph (d) sub-section (3) of this section) shall not exceed one-seventieth the average of the salary of such member, for the last five years, for each year of service. (2) After the first day of January of the year nine- teen hundred and twenty-six, each and every member who has attained or shall attain the age of seventy (70) shall be retired by the board of trustees from the service forthwith, or at such time within a year thereafter as it shall deem advisable. (3) Upon superannuation retirement a present-en- trant shall receive a retirement allowance which shall consist of : . (a) An annuity which shall be the actuarial equiva- Annuity; lent of his accumulated deductions at the time of his retirement, (b) A pension in addition to the annuity, of one one- hundred and fortieth (i/i 4 oth) of his average salary multiplied by the number of years of service he has rendered since he became a member, Retirement 70 years. at Allowance to present- entrant : Pension ; 14 Further pension : Further additional pension. Allowance to new-entrant: Annuity; Pension. Minimum allowance. (c) A further pension of one seventieth (i/7oth) of his average salary multiplied by the number of years of service certified on his prior-service certificate, (d) And if such person shall have been a member of the Teachers' Retirement Fund prior to his becoming a member of the retirement system, a further additional pension which shall be the actuarial equivalent of the contributions without interest, which he paid to the Teachers' Retirement Fund prior to the first day of September, nineteen hundred and nineteen, which he has not otherwise received. (4) Upon superannuation retirement a new-entrant shall receive a retirement allowance which shaH consist of: (a) An annuity which shall be the actuarial equiva- lent of his accumulated deductions at the time of his retirement, and (b) A pension, in addition to the annuity, of one one hundred and fortieth (i/i40th) of his average salary multiplied by the number of years of his total service. (5) The total retirement allowance granted to a per- son with twenty or more years of service who has at- tained the age of sixty-two (62) shall in no case be less than four hundred dollars per annum. Retirement for disability. Disability Retirement. (6) Retirement for disability of a teacher who is a member shall be made by the board of trustees upon the application of his employer or upon his own applica- tion or that of a person acting in his behalf, on a disa- bility allowance if he is under the age of sixty-two (62) years, provided the board of trustees, after a medical examination of said member, made at the place of his residence within the State or other place mutually agreed upon, by a physician or physicians designated by said board, shall determine upon the basis of a report sub- mitted by said physician or physicians that the said member is physically or mentally incapacitated for the performance of duty and that said member ought to be retired ; and further provided, that the said member has rendered ten years of service as a teacher in New Jersey, i5 and if he is a new-entrant, has also been a member of the retirement system for ten years. Should the applicant for a disability retirement be dissatisfied with the decision of the board of trustees, appeal may be made to the State Board of Education and the decision of the latter shall be final and binding- upon all parties. (7) On retirement for disability, a teacher who is a member shall receive a retirement allowance which shall consist of : (a) An annuity which shall be the actuarial equiva- lent of his accumulated deductions at the time of his retirement; (b) A pension which together with his annuity pro- vided under the paragraph immediately preceding shall be sufficient to produce a retirement allowance of one- seventieth of his average salary multiplied by the num- ber of years of his total service but not less than three hundred dollars per annum or thirty per centum of said average salary, with the exception that in no case shall the allowance exceed nine-tenths of the rate of retire- ment allowance to which he might have been entitled had retirement been deferred until the age of sixty-two (62). (c) And if such person shall have been a member of the Teachers' Retirement Fund prior to his becoming a member of the retirement system, a further additional pension, which shall be the actuarial equivalent of the contributions without interest, which he paid to the Teachers' Retirement Fund prior to the first day of Sep- tember, nineteen hundred and nineteen, which he has not otherwise received. (8) Once each year during the first five years follow- ing the retirement of the teacher on a disability allow- ance and once in every three-year period thereafter, the board of trustees may, and upon his application shall, require any disability beneficiary who is under the age of sixty -two (62) years to undergo medical examina- tion by a physician or physicians designated by the board of trustees, said examination to be made at the place of residence of said beneficiary or other place mutually agreed upon. Should such physician or physicians there- Right of appeal. R ^tiremenjt allowance for disability: Annuity Pension: Further pension. Medical examination of tocher retired for disability. If found able to work. i6 Change of allowance. Proviso. Refusal to work. Refusal to be examined. Restoration to service. upon report and certify to the board of trustees that such disability beneficiary is not totally incapacitated either physically or mentally for the performance of duty and that such disability beneficiary is engaged in or is able to engage in a gainful occupation and should the board of trustees concur in such report, then the amount of his retirement allowance shall be reduced to an amount which, when added to the amount then earned by him shall not exceed the amount of his aver- age salary. Should his earning capacity be later changed, then the amount of his retirement allowance may be further altered; provided, that the new retire- ment allowance shall not exceed the amount of the retirement allowance originally granted or an amount which when added to the amount earned by the bene- ficiary, exceeds the amount of his average salary. Should a disability beneficiary who is under the age of sixty-two (62) years refuse to engage in a gainful occupation when qualified so to do and further refuses a position in the public schools offered to him, the board of trustees may reduce his retirement allowance to half of its former rate. (9) Should any disability beneficiary, under the age of sixty-two (62) years, refuse to submit to a medical examination as provided under the subsection imme- diately preceding, his retirement allowance may be dis- continued until his withdrawal of such refusal, and should such refusal continue for one year, all his rights in and to such retirement allowance may be forfeited. (10) Should a disability beneficiary be restored to active service at a salary equal to that formerly received, his retirement allowance shall cease and he shall again become a member of the retirement system, and his annuity reserve shall be transferred from the annuity reserve fund to the annuity savings fund and credited to his individual account as a part of his accumulated deductions in the latter fund, and he shall contribute to the said fund thereafter in the same manner and at the same rate as he paid upon his disability. Upon his restoration to active service his pension reserve in the pension reserve fund shall be transferred to the pension accumulation fund. His prior-service certificate on the i7 basis of which his service was computed at the time of his retirement shall be renewed and shall again be in full force and effect, and in addition upon his subsequent retirement he shall be credited with all his service as a member subsequent to the period covered by his prior- service certificate, anything to the contrary in this act notwithstanding. Withdrawal and Death Benefits. (n) A contributor who withdraws from service or Paid accumu- ceases to be a teacher for any cause other than death t?ons. dedl or retirement, shall be paid on demand the accumulated deductions standing to the credit of his individual ac- count in the annuity savings fund. (12) The board of trustees may, in its discretion, withholding withhold for not more than one year after a member deductlons - last rendered school-service all or part of his accumu- lated deductions, if, before he last became a member, he withdrew from the annuity savings fund all or part of his accumulated deductions and failed to redeposit such withdrawn amount to the credit of his individual account in such fund. (13) Should a contributor die before retirement his Dying before accumulated deductions shall be paid to his estate or to retirement such person having an insurable interest in his life as he shall have nominated by written designation duly executed and filed with the board of trustees. Optional Benefits. (14) At the time of his retirement, any contributor Exercise may elect to receive his benefits in a retirement allow- Sement: ance payable throughout life, or he may on retirement elect to receive the actuarial equivalent at that time of his annuity, his pension or his retirement allowance in a lesser annuity, or a lesser pension, or a lesser retire- ment allowance, payable throughout life with the provi- sion that : Option 1. If he dies before he has received in pay- Option 1; ments the present value of his annuity, his pension or his retirement allowance as it was at the time of his retirement, the balance shall be paid to his legal repre- sentatives or to such person having an insurable interest lcS in his life as he shall nominate by written designation duly acknowledged and filed with the board of trustees. Options; Option 2. Upon his death, his annuity, his pension or his retirement allowance shall be continued throughout the life of and paid to such person having an insurable interest in his life as he shall nominate by written desig- nation duly acknowledged and filed with the board of trustees at the time of his retirement. Option 3 ; Option 3. Upon his death, one-half of his annuity, his pension or his retirement allowance shall be con- tinued throughout the life of and paid to such person having an insurable interest in his life as he shall nomi- nate by written designation duly acknowledged and filed with the board of trustees at the time of his retire- ment. Option 4. Option 4. Some other benefit or benefits shall be paid either to the member or to such person or persons as he shall nominate, provided such other benefit or benefits, together with the lesser annuity or lesser pension or lesser retirement allowance, shall be certified by the actuary to be of equivalent actuarial value to his an- nuity, his pension or his retirement allowance and shall be approved by the board of trustees. Benefits of Teachers Now Retired. (15) All pensions payable prior to the month of September, nineteen hundred and nineteen, by the State under the provisions of chapter 268, P. L. 19 14, shall, beginning with said month, be paid from the pension fund created by this article and all such pensions, as are below four hundred dollars shall be increased to and be paid at the rate of four hundred dollars. (16) Should the Teachers' Retirement Fund by reason of insolvency or liquidation cease to pay in full the annuities granted and theretofore paid by said fund, there shall be paid out of the pension fund created by this article to persons who shall have been annuitants of said Teachers' Retirement Fund from a date prior to the first day of September, nineteen hundred and nine- teen, such part or all of such annuities as the said Teach- Proviro. ers' Retirement Fund shall have ceased to pay; pro- vided, that neither all nor any part of the amount of Payments from pension fund. If retirement fund fails. io any reduction in the annuity therefore payable by the said Teachers' Retirement Fund shall be paid out of the said pension fund, unless there is in effect a correspond- ing and proportionate reduction by the said Teachers' Retirement Fund in the annuity of,"and payment thereof to, each and every person retired by the Retirement Fund; provided, further, that the board of trustees shall Proviso. be the sole judge as to whether the amount of any allowance which would thereby become payable out of the pension fund corresponds to the amount of a reduc- tion by the Teachers' Retirement Fund in the allowance of the same person due to the insolvency or liquidation of said fund. ACTUARIAL BASIS. 252. (1) Immediately after the establishment of the Actuarial retirement system, the actuary of the board of trustees J£S pre " shall make such investigation of the mortality service and compensation experience of the teachers of the State of New Jersey as he shall recommend, and the board of trustees shall authorize, for the purpose of determining the proper tables for the purposes of the system. On the basis of such investigation and recom- mendation the board of trustees shall adopt such tables and certify such rates as are required in paragraphs (a) (b) and (c) of sub-section (2) of this section. On valuation the basis, of such tables as the board of trustees shall ^bliitfe^ adopt, the actuary, as soon as practicable, shall make a valuation of the assets and liabilities of the funds created by this article. (2) In the years nineteen hundred twenty-one and Periodical nineteen hundred and twenty-four, and once in every iTSS? " 8 five-year period thereafter, the said actuary shall make an actuarial investigation into the mortality, service and compensation or salary experience of the members and beneficiaries of the retirement system, and shall make a valuation of the assets and liabilities of the various funds thereof, and upon the basis of such investigation and valuation the board of trustees shall : (a) adopt for the retirement system such mortality, u se of tables service and other tables as shall be deemed necessary; ' 20 (b) certify the rates of deduction from compensa- tion computed to be necessary to pay the annuities au- thorized under the provisions of this article ; and (c) certify the rates of contribution, expressed as a proportion of the compensation of members at various ages, which shall be made to the pension accumulation fund. Six funds created. Annuity sav- ings fund. Amount oon- tributable. Amount to be deducted from teacher's com- pensation. FUNDS CREATED, CONTRIBUTIONS THERETO AND PAY- MENTS THEREEROM. 253. (1) The funds created are: (a) the annuity savings fund; (b) the annuity reserve fund; (c) the pension fund; (d) the pension accumulation fund; (e) the pension reserve fund; (f) the expense fund. Funds Derived from Members' Contributions. (2) The annuity savings fund shall be the fund in which shall be accumulated deductions from the com- pensation of contributors. (3) Upon the basis of such tables as the board of trustees shall adopt, and regular interest, the actuary of the board of trustees shall determine for each con- tributor the proportion of compensation, which when deducted from each payment of his prospective earn- able compensation prior to his eligibility for service retirement and accumulated at regular interest until his attainment of the age of sixty-two (62) shall be com- puted to be sufficient to provide at that time an annuity equal to the pension then allowable under the provisions of this article for service rendered during his member- ship, and in case the said member is a new-entrant for such prior service as he both claimed and was allowed. The proportion of compensation shall be computed to remain constant until the member attains the age of sixty-two (62) years. The proportion computed for a contributor entering at the age of sixty-one (61) shall be applied to any contributor who has attained a greater age at the time of entrance into the retirement system. (4) The board of trustees shall certify to each em- ployer and the said employer shall deduct from the com- pensation of each member on each and every payroll for each and every payroll period subsequent to the date 21 upon which such certification becomes effective, the per centum of his earnable compensation so computed. But the board of trustees shall not certify, nor shall any em- ployer make, any deduction for annuity purposes from the compensation of a member who has attained the age of sixty-two (62) and completed thirty-five (35) years of service, if such member elects not to contribute. (5) In determining the amount earnable by a con- Amount earn- tributor in a payroll period, the board of trustees may Sif^f consider the rate of compensation payable to such mem- ber on the first day of the payroll period as continuing throughout such payroll period, and it may omit deduc- tions from compensation for any period less than full payroll, period if a teacher was not a contributor on the first day of the payroll period, and to facilitate the mak- ing of deductions it may modify the deduction required of any contributor by such an amount as shall not ex- ceed one-tenth of one per centum of the compensation upon the basis of which said deduction is to be made. (6)_ In lieu of any part of the deduction from com- Deposit in pensation hereinbefore required, any new-entrant may m ent epay " deposit in the annuity savings fund" by a single payment such an amount as will be sufficient to permit him to contribute the rate of contributions applicable to an earlier entrance age. In addition to the deductions Redeposit. from compensation hereinbefore required any contribu- tor may redeposit in a single payment an amount equal to the total amount which he withdrew therefrom as provided in this article, or he may deposit therein by a single payment an amount computed to be sufficient together with the retirement allowance otherwise pro- vided, to provide for him a total retirement allowance of one-half of his final salary at the age of sixty-two (62). Such additional amounts so deposited shall be- come a part of his accumulated deductions. (7) The accumulated deductions of a contributor Accumulated withdrawn, as provided in this article, shall be paid out fltdirom of the annuity savings fund. In the case of a with- an ™it yS av- drawal, an amount equivalent to the difference between '"^ f " nd ' the amount of the accumulated deductions calculated at regular interest and the amount of the accumulated deductions calculated by use of interest at the rate of Fund from which annui- ties paid. Source of pension fund. Actuary to determine liability. Annual pay- ment by State. Increasing payments. three and one-half per centum per annum compounded annually shall be transferred to the expense fund. (8) The annuity reserve fund shall he the fund from which shall be paid all annuities and all benefits in lieu of annuities. Upon the retirement of a contributor his accumulated deductions shall be transferred from the annuity savings fund to said annuity reserve fund. FUNDS DERIVED FROM CONTRIBUTIONS FROM SCHOOL APPORTIONMENT FUND. PENSION FUND. (9) The pension fund shall be the fund in which shall be accumulated the reserves for the payment of pensions to present-entrants; into which the moneys necessary for the payment of all other pensions with the exception of those payable to new-entrants shall be paid; and from which all pensions with the exception of those payable to new-entrants shall be paid. (io) The actuary, after making- the first valuation required, shall determine the present value of the liability on account of pensions to present-entrants then retired or to be retired. He shall then determine the percentage of the total compensation paid to all mem- bers for service during the preceding school year, which is equivalent to one-twenty-fifth of the said liability. (n) The State Comptroller shall pay annually, be- o-inning with the year nineteen hundred and twenty, from the school apportionment fund into the pension fund the amount as certified to him by the board ot trustees, which shall be equal to the per centum, deter- mined in accordance with this subsection and the sub- section immediately preceding, of the total compensa- tion paid to all members for service during the preced- ing school vear. Each annual payment shall be at least three per centum greater than the preceding annual payment. In everv case, the amount shall be sufficient, when com- bined with that in the fund to provide the pensions payable out of this fund during the year then current, and shall be equal to at least one-^twenty-fifth of the liability on account of present-entrants now retired or ^3 to be retired. The State Comptroller shall continue Continuation such payments until the accumulated reserve in the pension fund equals the present value, as computed D\ the actuary and approved by the board of trustees, of all pension payments thereafter payable on account 01 present-entrants, then retired or to be retired on a pen- sion as provided in this article. (12) To pay the pensions provided under subsections Estimate of (15) and (16) of section two hundred and fifty-one, sary. the board of trustees shall annually prepare an estimate of the amounts required therefor and the State Comp- troller shall pay from the school apportionment fund into the pension fund for this purpose the amounts Payment. required. (13) All moneys appropriated for the payment" of Future pay- pensions to public-school teachers under chapter 268, sionhni 6 "' P. L. 1914, for the fiscal year beginning July, nineteen hundred and nineteen, less the amount disbursed for said pensions during the months of July and August, shall, on the first day of September, one thousand nine hundred and nineteen, be paid by the State Treasurer into the pension fund. PENSION ACCUMULATION FUND. (14) The pension accumulation fund shall be the pension fund in which shall be accumulated the reserves neces- f U nd mulat,on sary to pay all pensions to be granted to new-entrants. (15) ln the month of July, nineteen hundred and Payments on twenty, for a period covering- the ten months next pre- new-entrants, ceding, and annually thereafter, covering the year next preceding, the State Comptroller shall pa3^ from the school apportionment fund into the pension accumulation fund on account of all new-entrants who were contrib- utors for one or more months of such period immedi- ately preceding, such amount as shall be certified by the board of trustees as necessary to provide thereby during their prospective active service the pension reserve re- quired at the time of retirement for the disability or superannuation pension herein provided. The amount Aggregate for each teacher included in the aggregate amount so amount - certified shall be computed to bear a ratio to the salary 24 earnable by such teacher during the period for which the amount is certified, which shall remain constant during his entire period of prospective active service and shall be based on such mortality and other tables as shall be adopted by the board of trustees and on regular interest. All pensions paid from pension re- serve fund. Cancellation or reduction of disability pension. PENSION RESERVE FUND. ( 16) The pension reserve fund shall be the fund from which shall be paid all pensions, and all benefits, in lieu of pensions, granted to new-entrants. Upon the retire- ment of a new-entrant an amount equal to his pension reserve fund shall be transferred to said fund from the pension accumulation fund. (17) Should any disability pension payable from said fund be cancelled, the pension reserve thereon shall thereupon be transferred from the pension reserve fund to the pension accumulation fund. Should the pension of a disability beneficiary be reduced as a result of an increase in his earning capacity, the amount of the annual reduction in his pension shall be paid annually into the pension accumulation fund during the period of such reduction. Expense fund. Payment by State to expense func EXPENSE EUND. (18) The expense fund shall be the fund from which the expense of the administration of the retirement system shall be paid exclusive of amounts payable as retirement allowances and as other benefits provided herein. (19) The board of trustees shall certify annually to the State Comptroller the amount required to defray such expense in the ensuing fiscal year after making allowance for the estimated amounts to be received by the expense fund from the annuity savings fund, and the State Comptroller shall pay from the school appor- tionment fund into the expense fund the amount so determined. 25 COLLECTION OF CONTRIBUTIONS. Collection of Members' Contributions. 254. (1) Each employer shall keep such records, Records of and, from time to time, furnish such information as teachers - the board of trustees in the discharge of its duties may require. (2) Upon the employment of any teacher to whom Relation to this article may apply, he shall be informed by his em- syS! ent ployer of his duties and obligations in connection with the retirement system as a condition of his employment. Every teacher accepting employment shall be deemed to consent and agree to any deductions from his com- pensation required herein and to all other provisions of this article. (3) Notwithstanding any other law, rule or regula- Payments less tion affecting the salary, pay, compensation, other per- compiSdis- quisites or tenure of any teacher to whom this article charge - applies, or shall apply, and notwithstanding that the minimum salary, pay, compensation or other perquisites, provided by law for any such teacher shall be reduced thereby, payment less said deductions shall be a full and complete discharge and acquittance of all claims and demands whatsoever for service rendered by such mem- ber during the period covered by such payment. (4) When a teacher is employed by a school district, Deductions the custodian of school moneys and, in other cases, his cert?ned ary employer shall notify the board of trustees within ten days after the appointment of a teacher of such ap- pointment, and shall deduct the proportion of salary as certified by the board of trustees from the salary of such teacher as herein directed, and shall certify to the Treasurer of the State of New Jersey on account of each and every payroll a statement as voucher for the amounts deducted for annuity purposes at the rate cer- tified by the board of trustees, shall send a duplicate of such statement to the board of trustees, and shall trans- mit or credit to the said State Treasurer the amount thereof. Any failure on the part of the custodian of Failure by school moneys of any school district to comply with the school* moneys provisions of the subsection shall constitute a default, adefauIt and the State Board of Education may withhold school 26 .Amount credited an- nuity savings fund. Individual account credited. Estimates of amounts necessary for each fund. Deductions before appor- tionment. Payment into funds of system. moneys from such school district until such default is made good. (5) The State Treasurer shall credit the annuity savings fund with each amount transmitted or credited as provided in the subsection immediately preceding, and he shall transmit to the board of trustees monthly, or at such less frequent intervals as the board of trus- tees shall designate, a detailed statement of all amounts so paid in and credited by him to the annuity savings fund. The board of trustees shall cause each of such amounts so deducted to be credited in the annuity sav- ings fund to an individual account of the member from whose compensation the deduction was made. Collection of Employers' Contributions. (6) Upon the basis of each actuarial determination and appraisal provided herein, the board of trustees shall annually prepare and certify to the State Comp- troller an estimate of the amounts necessary to be paid from the school apportionment fund to the various funds for the ensuing fiscal year. (7) The State Comptroller, prior to the apportion- ment, on or before the first day of February, among the several counties of the State of the funds devoted to the maintenance and support of a thorough and efficient system of free public schools, as provided in and by an act entitled "A supplement to an act entitled 'An act to establish a thorough and efficient system of free public schools, and to provide for the maintenance, support and management thereof,' approved October nineteenth, one thousand nine hundred and three," approved April twentieth, one thousand nine hundred and six, shall de- duct from the moneys so to be apportioned, in addition to any other sums to be deducted from said fund by virtue of the provisions contained in any law of this State, the amount certified to him by the board of trus- tees as necessary to make the payments to the various funds of the retirement system from the School Appor- tionment Fund as provided herein for the then ensuing school year, and he shall pay such amounts into the 27 various funds of the retirement system, on the first day of July following the certification. (8) If at any time no deductions shall have been ifnodeduc- made as required by the subsection immediately pre- amouSinsuf. ceding, or if at any time the amount deducted shall not ficient be sufficient to make the payments provided for herein, such payments shall be provided for by the Comptroller, of the Treasury in making the then next deductions as required herein, and shall be in addition to the sum certified to him by the board of trustees as necessary for the payments for the then ensuing school year. (9) To meet the expense of establishing and ad- Appropriation ministering the retirement system created herein there forsystem - is hereby appropriated from the school apportionment fund the sum of twenty-five thousand dollars ($25,000). (10)- To meet the cost of pensions granted under Meeting pen- chapter two hundred and sixty-eight, Laws of nineteen o«s"y Ranted. hundred and fourteen, assumed herein, and the cost of such annuities granted by the Teachers' Retirement Fund which are assumed herein, and shall be payable on or after the first day of July, nineteen hundred and nineteen, there is hereby appropriated from the school apportionment fund the sum of two hundred and fifty Appropriation. thousand dollars. The State Comptroller shall deduct such sum from the school apportionment fund in the same manner as provided by chapter sixty-five of the Laws of nineteen hundred and nine, and shall pay said sum into the pension fund created herein. ADMINISTRATION. Board of Trustees. .^55- (1) The general administration and responsi- Operation of bility for the proper operation of the retirement system fnWdof ed and for making effective the provisions of this article trustees - is hereby vested in a board of trustees, which shall be organized immediately after the passage of this act. The said board shall from time to time establish rules Functions and regulations for the administration and transaction oftrustees - of its business and for the control of the funds created herein, and shall perform such other functions as are 28 Membership: Commissioner of Education; Proviso. State Treas- urer ; Appointed by Governor; Three teach- ers; term. Residence. Election of successors. Nonrepre- sentative. Vacancy. Pending choice of teacher trus- tees. required for the execution of the provisions of the re- tirement system. (2) The membership of the board of trustees shall consist of the following : (a) The Commissioner of Education of the State of New Jersey; provided, that the commissioner may ap- point the assistant commissioner, who acts in his place during his absence, to serve in his stead. (b) The Treasurer of the State of New Jersey. (c) One trustee appointed by the Governor of the State of New Jersey to serve until the first day of September, nineteen hundred and twenty-one. His suc- cessor shall be appointed each for a term of three years. (d) Three trustees elected from among the members of the retirement system, one to serve for one year, one to serve for two years and one to serve for three years from the first day of November following their election. One of such trustees shall be a resident of and employed in either the county of Hudson, Essex or Bergen; one a resident of and employed in either the county of Passaic, Sussex, Warren, Morris, Union, Hunterdon, Somerset, Middlesex, Mercer or Mon- mouth; and the third a resident of and employed in either the county of Ocean, Burlington, Camden, Glou- cester, Salem, Cumberland, Atlantic or Cape May. Their successors shall be elected for a term of three years from among the members of the retirement system. (e) One trustee, not a teacher nor an officer of the State, elected by the other trustees, to serve until the first day of January, nineteen hundred and twenty-one, whose successor shall be elected in the same manner for a term of three years. A vacancy occurring in the board of trustees shall be filled for the unexpired term in the same manner as herein provided for regular appointment or election. (3) Until the election of the three trustees from among the members of the retirement system the Com- missioner of Education, the State Treasurer and the trustee appointed by the Governor, are empowered to perform the duties of the board of trustees. All rules and regulations adopted by them shall be subject to 29 change by the entire board when the membership of such board shall be completely filled. (4) An annual convention of the retirement system Annual con- shall be held at the State House in Trenton, at twelve venti ° n ' o'clock, noon, on the second Saturday in October each year, beginning with the year nineteen hundred and nineteen, for the purpose of electing members of the Purposes of board of trustees of the retirement system, and receiv- convention - ing the report of said board of trustees and for the transaction of such other business as may properly be within its jurisdiction. Said convention shall be com- Delegates. posed of delegates from each county in the State, selected as hereinafter provided. Said convention shall Organization. be called to order by a member of the board of trustees, designated by said board, and shall organize by the elec- tion of a chairman and a secretary. Each county shall Basis of rep- be entitled to be represented in such convention by cue resentation - delegate for each two hundred members of the retire- ment system in said county and one delegate for any fraction over one hundred; provided, that each county, Proviso. shall be entitled to at least one delegate. ■ Said delegate Majority vote shall be elected by the vote of a majority of the mem- t0 determine - bers of the retirement system voting at a meeting held for the purpose of electing such delegates. Said^meet- ing for the election of delegates shall be held at such convenient place as shall be selected by the county superintendent of schools. Notice of the time and place Notice given. of said meeting shall be issued by said county superin- tendent at least ten days before the date of said meeting. Said meeting shall Organize by the election of a chair- man and secretary. Said secretary shall, within, rive County meet- days after said meeting, forward to the board of trus- ings " tees of the retirement system a certificate containing the Credentials names and addresses of the delegates elected to the ofdeIegates - annual convention, and shall furnish the delegates elected with a certificate of their election. In case cf a Fillin * vacancy in the delegation from any county, the remain- ing delegates from such county may nll'such vacancy by appointing a member in said county, who shall pos- sess the qualifications hereinbefore prescribed for dele- gates to such convention. A majority of all of the dele- Quot vacancy. 3° Oath of trustees. Voting by trustees. Records. Chairman, secretary, act- uary, etc., of trustees. P. Iy. 1921, Chap. 325. Duties of actuary. Legal advisor. Data as to funds. Annual report. gates entitled to seats in said convention shall constitute a quorum for the transaction of business. Administrative Staff and Proceduie. (5) Each member of the board of trustees shall, upon his appointment or election, take an oath of office that, so far as it devolves upon him, he will diligently and honestly administer the affairs of the said board, and that he will not knowingly violate or willingly per- mit to be violated any of the provisions of law applicable to the retirement system. Such oath shall be subscribed to by the member making it, and certified by the officer before whom it is taken, and shall be immediately filed in the office of the Secretary of State. (6) Each trustee shall be entitled to one vote in the board. Four votes shall be necessary for a decision by the trustees at the meeting of said board. The board of trustees shall keep a record of all of its proceedings, which record shall be open to public inspection. (7) The board of trustees shall elect from its mem- bership a chairman, shall by a majority vote of all its members appoint a secretary, who may be elected from its members, and shall fix his compensation and term of employment, shall engage such actuarial and other technical "service, and shall appoint such employees_ as may be necessary to transact the business of the retire- ment system. The actuary shall be the technical advisor of the board of trustees on matters regarding the opera- tion of the funds created by the provisions of this article, and shall perform such other duties as are required in connection therewith. The Attorney-General of the State of New Jersey shall be the legal advisor of the board of trustees. (8) The actuary of the board shall recommend and the board of trustees shall keep in convenient form such data as shall be necessary for actuarial valuation of the various funds of the retirement system. (9) The board of trustees shall publish annually a report showing a valuation of the assets and liabilities of the funds, certifying as to the accumulated cash and securities of the funds and giving an account of the operation of the system. The said board shall submit 3i said report to the Governor and shall furnish copies thereof to the office of the State Department of Edu- cation, the State Treasurer and to each employer for the use of the members and the public. (To) The members of the board of trustees shall Nocompensa- serve without compensation, but shall be reimbursed m °et expenses from the expense fund for any necessary expenditures. No teacher shall suffer loss of salary or wages through serving on the board of trustees. Compensation for all other personal service to the retirement system shall be fixed by the board. (n) The board of trustees shall establish itself in office of an office for the administration of the retirement sys- Stees! tern in such city as it shall consider most suitable for the transaction of its business. Management of Funds. (12) The board of trustees shall be the trustees of Management, the several funds created by this article and shall have .^nt oTvari- full power to invest the same, subject to all the terms, ousfuilds - conditions, limitations and restrictions imposed by law upon investment of sinking funds in the making and disposing of their investments; and, subject to like terms, conditions, limitations and restrictions, said trus- tees shall have full power to hold, purchase, sell, assign, transfer or dispose of any of the securities and invest- ments in which any of the funds created herein shall have been invested, as well as of the proceeds of said investments and any moneys belonging to said funds. (13) The board of trustees shall annually allow interest. regular interest on the mean amount for the preceding year in each of the funds, with the exception of the expense fund. The amount so allowed shall be due and payable to said funds, and shall be annually credited thereto by the board of trustees, from the interest and other earnings on the moneys of the retirement system. Any additional amount required to meet the interest Additional on the funds of the retirement system shall be included t a ra m eetin eeded in the amount certified to the State Comptroller as neces- terest sary to make the payments to the various funds of the retirement system from the school apportionment fund for the ensuing school year. 32 Custodian of various funds. Ready money on deposit. Proviso. Trustees not to have interest in investments. (14)' The Treasurer of the State of New Jersey shall be the custodian of the several funds. All payments from said funds shall be made by him only upon voucher signed by the chairman and countersigned by such other person as may be designated by the board of trustees. (15) For the purpose of meeting disbursements for pensions, annuities and other payments there may be kept an available fund, not exceeding ten per centum of the total amount in the several funds of the retire- ment system, on deposit in any bank in this State, or- ganized under the laws thereof, or under the laws of the United States or in any trust company incorporated by any law of this State; provided, that the sum de- posited in any one bank or trust company shall not ex- ceed twenty-five per centum of the paid-up capital and surplus of said bank or trust company. (16) Except as herein provided, no trustee and no employee of the board shall have any interest, direct or indirect, in the gains or profits of any investment made by the board of trustees, nor as such directly or indirectly receive any pay or emolument for his serv- ices. And no trustee or employee of the board shall, directly or indirectly, for himself or as an agent in any manner use the same, except to make such current and necessary payments as are authorized by the board of trustees ; nor shall any trustee or employee of the board become an endorser or surety or become in any manner an obliger for moneys loaned by or borrowed of the board of trustees. State super- vision of funds. Exemption from taxation. OTHER PROVISIONS. State Supervision. 256. (1) The various funds of the retirement sys- tem shall be subject to the supervision of the State De- partment of Insurance. Exemption from Taxation. (2) The right of a teacher to a pension, an annuity, or a retirement allowance, to the return of contributions, any benefit or right accrued or accruing to any person under the provisions of this article, and the moneys in 33 the various funds created hereunder, are hereby ex- empt from any State or municipal tax, and shall not be subject to execution garnishment, attachment or any other process whatsoever, and shall be unassignable except as in this act specifically provided. Protection Against Fraud. 1(3) Any person who shall knowingly make any False state- false statement, or shall falsify or permit to be falsified Sfsdemeln'or. any record or records of this retirement system in any attempt to defraud such system as a result of such act, shall be guilty of a misdemeanor, and shall be punish- able therefor under the laws of the State of New Jersey. Should any change or error in records result in any correction employee or beneficiary receiving from the retirement oferrors - system more or less than he would have been entitled to receive had the records been correct, then, on the discovery of any such error, the board of trustees shall correct such error, and, so far as practicable, shall adjust the payments in such a manner that the actuarial equivalent of the benefit to which he was correctly enti- tled shall be paid. 2. All acts and parts of acts inconsistent with the Repealer. provisions of this act, or any portion of the act to which this act is an amendment, which are inconsistent with the provisions of this act are hereby repealed. If any As to validity section," clause or part of this act shall be declared un- constitutional by the decision of any court of competent jurisdiction, such decision shall not invalidate or destroy the force or purpose of the remainder thereof. Approved April 10, 19 19. 34 Section 221 amended. Teachers may with- draw from membership. Proviso. CHAPTER 81, LAWS OF 1919. An Act to amend "An act to amend an act entitled 'An act to establish a thorough and efficient system of free public schools, and to provide for the maintenance, support and management thereof,' approved October nineteenth, one thousand nine hun- dred and three," approved May seventh, one thousand nine hundred and seven. i. Section two hundred and twenty-one of article XXV of the act to which this act is an amendment is hereby amended to read as follows : 221. I. Any member of the now existing Teachers' Retirement Fund shall be released from membership in said fund and from any obligation for the payment of dues or deduction from salary for the support of said fund, and the board or body by which he or she is em- ployed shall cease to deduct the percentages as hereto- fore deducted from his or her salary; provided^ such member shall, at any time after the passage of this act, give written notice duly witnessed declaring his or her withdrawal from membership in the Teachers' Retire- ment Fund, and waiving all his or her rights, benefits and privileges thereunder, in triplicate, and in substan- tially the following form : Notice of Withdrawal. To the Board of Trustees of the Teachers' Retirement Fund. This shall serve as a notice that I hereby withdraw from membership in the Teachers' Retirement Fund, and that I hereby waive all my rights, benefits and privi- leges in and to said fund by virtue of my membership in and contributions to the Teachers' Retirement Fund. Date Signed Witnessed by Address Address School One copy of such notice shall be delivered to the board of trustees of the Teachers' Retirement Fund, at the office of the Teachers' Retirement Fund, and one copy Form of notice of withdrawal. Three copies delivered to specified officers. 35 to the board of trustees of the Teachers' Pension and Annuity Fund, and the other copy to the board or body by which he or she is employed. In case such delivery Notices may is not made in person or by agent, it shall be deemed to bemailed - have been made when said notice is mailed properly addressed to the party to which such delivery should be made, postpaid and by registered mail. Such notice when effec- shall become effective and membership in the Teachers' tive ' Retirement Fund shall cease on the first day of the month next following such delivery of such notice. II. No person appointed as a teacher in this State Membership after the passage of this act shall be required to become not obligat0 ^ a member of the Teachers' Retirement Fund, but such person may do so if he or she so elects. Approved April 10, 1919. CHAPTER 339, LAWS OF 1920. A Supplement to an act entitled "An act to amend an act entitled 'An act to establish a thorough and efficient system of free public schools, and to provide for the maintenance, support and management thereof/ approved October nineteenth, one thousand nine hundred and three," which amendatory act was approved May seventh, one thousand nine hundred and seven, amended by chapter 106, P. L. 1915, approved March thirtieth,' chapter 180, P. L. 1918, approved March fourth, and chapter 81, P. L. 1919, approved April tenth. 1. The board of trustees of the Teachers' Retirement fund S sf a e n r d of Fund created by chapter 139 of the Laws of 1907, enti- re5>rd!. n tied "An act to amend an act entitled 'An act to amend an act entitled "An act to establish a thorough and effi- cient system of free public schools, and to provide for the maintenance, support and management thereof," ' approved October nineteenth, one thousand nine hun- dred and three," which amendatory act was approved Sale of securities. Sale of transferred securities. Legal action for effecting transfers. Board terminated. Repealer. 36 May seventh, one thousand nine hundred and seven, and all acts supplementary to and amendatory thereof is hereby authorized and directed on or before January first, one thousand nine hundred and twenty-one, to assign, tranf er and deliver its books, records, _ cash, securities, assets and property of every description to the board of trustees of the Teachers' Pension and An- nuity Fund created by chapter 80 of the Laws of 1919, and the board of trustees of the Teachers' Pension and Annuity Fund created by chapter 80, Laws of 1919, is hereby authorized and directed to receive and admin- ister the books, records, cash, securities and other assets of the board of trustees of the Teachers' Retirement Fund. 2. The board of trustees of the Teachers' Retirement Fund is hereby empowered in the meantime to sell securities belonging to the permanent principal of said fund when it shall be necessary to do so to provide money for the payment of annuities. 3. The board of trustees of the Teachers' Pension and Annuity Fund is hereby empowered to sell or dis- pose of securities received from the board of trustees of the Teachers' Retirement Fund according to their judgment, and apply proceeds of same to the payment of annuities, as provided bisection 251, paragraph 16, chapter 80, Laws of 19 19. 4. The board of trustees of the Teachers' Retirement Fund and the board of trustees of the Teachers' Pen- sion and Annuity Fund are hereby empowered jointly to take such lawful action as may in their judgment be necessary to transfer the business and assets of the board of trustees of the Teachers' Retirement Fund to the board of trustees of the Teachers' Pension and An- nuity Fund on or prior to January first, one thousand nine hundred and twenty-one, and close the business of the first-mentioned board. 5. The assignment, transfer and delivery herein pro- vided for shall terminate the existence of the board of trustees of the Teachers' Retirement Fund. 6. All acts and parts of acts inconsistent with the provisions of this act are hereby repealed, and this act shall take effect immediately.