APPENDIX A. DRAFTS OF BILLS. AN ACT TO PROVIDE FOR COMPULSORY INSTRUCTION IN THRIFT IN THE PUBLIC SCHOOLS OF THE COMMONWEALTH. Be it enacted, etc., as follows: Section one of chapter forty-two of the Revised Laws of Massachusetts, relating to the subjects that shall be taught in the public. schools, is hereby amended by inserting in the twentieth line the word "thrift," after the word "ethics." AN ACT TO ESTABLISH THE MASSACHUSETTS COMMISSION ON OLD AGE INSURANCE AND PENSIONS. Be it enacted, etc., as follows: SECTION 1. The governor, by and with the consent of the council, shall appoint a commission of five persons, to be known as the Commission on Old Age Insurance and Pensions, one member of which shall be appointed for a term of five years, one for a term of four years, one for a term of three years, one for a term of two years and one for a term of one year. Upon the expiration of the term of any member, a successor for a term of five years shall be appointed. One member shall be a representative of employers and another member shall be a representative of employees. The commission shall employ a secretary as its executive officer, who shall not be a member of the commission, and may engage such further assistance as may be necessary for the proper performance of its duties. The members of the commission shall receive no compensation for their services, but necessary expenses for travelling, stationery and other purposes shall be paid out of the treasury of the commonwealth, subject to the approval of the governor and council. SECTION 2. The commission shall act as a bureau of information and assistance for employers and employees, for associations of employers and employees, and for municipalities and counties in this commonwealth, with a view to aiding and advising them regarding the establishment of systems of old age pensions, insurance or annuities. In rendering this service the commission may formulate plans and superintend their establishment in co-operation with the parties concerned. The commission shall also make such investigation regarding the operation of pension, insurance and annuity systems as it may deem advisable. SECTION 3. The commission shall report annually to the legislature on or before the second Wednesday in January. The report shall set forth the work done by the commission during the preceding year in accordance with the instructions of this act, and shall present such recommendations for legislation on the subject of old age insurance, pensions or annuities as the commission may deem advisable. The report shall also give a properly tabulated statement of the expenditures of the commission, and an estimate of the amount required for the purposes of the commission during the coming year. SECTION 4. This act shall take effect upon its passage. AN ACT TO AUTHORIZE EMPLOYERS AND EMPLOYEES TO ESTABLISH SECTION 1. Employees, officers and agents of any corporation, firm or individual, and the corporation, firm or individual by which they are employed, are hereby authorized to form an association for the purpose of providing annuities, pensions or endowments for employees retiring from their employment on account of age, under a system by which the participating employees contribute to the funds of the association a percentage or portion of their salaries or wages as fixed by the by-laws of the association, to be deducted by the employer and paid to the association, and the employer contributes to the funds of the association in the manner and to the extent fixed in said by-laws. The funds so provided shall be held by trustees independently of other funds of the employer, for the purchase or payment of annuities, pensions or endowments to participating employees upon their retirement from service on account of age, and for the payments to the representatives or appointees of any participator dying before reaching the age of retirement. An association formed under the authority of this act shall not be subject to the provisions of chapter five hundred and seventy-six of the acts of nineteen hundred and seven, or to such other provisions of law as relate to insurance companies or associations, except as herein provided. SECTION 2. The by-laws of any such association shall be approved by the insurance commissioner, and shall prescribe the manner in which and the officers and agents by whom the purpose of the association may be carried out and the manner in which its funds may be invested and paid out. Such association shall be deemed to be formed when its by-laws have been approved and agreed to by the employer and by the employees by vote of two-thirds of all employees present and voting at a meeting called by the employer for the purpose, and have been approved by said commissioner. Such association shall annually, on or before the first day of February, report to the insurance commissioner such statements of its membership and financial transactions for the year ending on the preceding thirty-first day of December as the commissioner may consider necessary to show its business and standing. Said commissioner may verify such statement by an examination of the books and papers of the corporation; and whoever, having charge or custody of said books and papers, neglects to comply with the provisions of this section shall be punished by a fine of not more than five hundred dollars. SECTION 3. The property of such association, and the portion of the wages or salary of an employee deducted or to be deducted under this act, the right of an employee to an annuity, pension or endowment, and all his rights in the funds of the association, shall be exempted from taxation and from the operation of any law relating to bankruptcy or insolvency, and shall not be liable to attachment by trustee process or be liable to be taken on execution or on any other process legal or equitable to satisfy any debt or liability of the employer or of any member of the association. SECTION 4. This act shall take effect upon its passage. AN ACT TO AUTHORIZE THE CITIES AND TOWNS OF THIS COMMONWEALTH TO ESTABLISH RETIREMENT SYSTEMS FOR THEIR EMPLOYEES. Be it enacted, etc., as follows: SECTION 1. In this act, unless the context otherwise requires: (a) The words "city council" mean the legislative branch of the city government, whether consisting of one chamber or two. (b) The words "retirement system " mean the arrangements provided in this act for the payment of annuities and pensions. (c) The word "annuities means the payments for life derived from money contributed by the employees. (d) The word "pensions means the payments for life derived from money contributed by the city or the town. (e) The words "regular interest " mean interest at three per cent. per annum compounded semi-annually on the last days of January and July, and reckoned for full three and six months periods only. (f) The words "continuous service" mean uninterrupted employment, with this exception: a lay-off on account of illness or reduction of force; and a leave of absence, suspension or dismissal followed by reinstatement within one year shall not be considered as breaking the continuity of service. ESTABLISHMENT OF RETIREMENT SYSTEM. SECTION 2. Any city or town in this commonwealth may establish a retirement system for its employees by accepting the provisions of this act in the manner hereinafter prescribed, as follows: In the case of a city, whenever a vote to accept the provisions of the act shall have been duly passed by the city council, the question of acceptance shall then be submitted to the voters of the city at the next municipal election. The vote shall be in answer to the question, to be placed upon the ballot: Shall an act passed by the general court in the year entitled "An Act authorizing the cities and the towns of this commonwealth to establish retirement systems for their employees," be accepted? In the case of a town, whenever a vote to accept the provisions of the act shall have been duly passed by the board of selectmen, the question of acceptance shall then be submitted to the voters of the town at the next town meeting. If a majority of the voters voting on the question at the city election or at the town meeting shall vote in the affirmative, this act shall take effect in such city or town as hereinafter provided. A copy of the vote of the city council or of the board of selectmen, certified by the city clerk or by the town clerk, and a copy of the vote at the city election or at the town meeting, sworn to by the local election commissioners or the officers corresponding thereto, shall, within thirty days respectively after the date of the latter vote, be filed in the office of the insurance commissioner of this commonwealth. The latter shall forthwith issue a certificate that the retirement system is declared established in said city or town, to become operative on the first day of February or the first day of August following the expiration of three months after the date of such certificate. THE RETIREMENT ASSOCIATION. SECTION 3. Whenever a city or town shall have voted to establish a retirement system under the provisions of section two, a retirement association shall be organized as follows: (1) All employees of the city or town, on the date when the retirement system is declared established by the issue of the certifi |