with a trustee for the purpose of settling due and unpaid obligations of the corporation which fund, if drawn upon, shall be reimbursed by the employers in proportion to their several premiums; nor, whichever of the five options above stated has been selected, until such corporation has made arrangements for its protection from extraordinary losses caused by disaster. Such protection may be afforded to a corporation as aforesaid, or to any existing mutual liability insurance company or association, by a company not authorized to transact an insurance business in Massachusetts in cases where reinsurance in authorized companies cannot be secured at reasonable rates or for any other reason satisfactory to the insurance commissioner, but any such arrangement for reinsurance must first be approved in writing by the insurance commissioner; nor shall any such policy be issued until a list of the subscribers for such insurance, with such other information as the insurance commissioner may require, shall have been filed in his department, nor until the president and secretary of the company shall have certified under oath that every subscription for insurance in the list so filed is genuine and made with an agreement with every subscriber that he will take the insurance subscribed for by him within thirty days after the granting by the insurance commissioner of a license to issue policies. If the said officers shall take a false oath relative to the said certificate, they shall be guilty of perjury. Upon the filing of such applications with the insurance commissioner, he may make such investigation as he deems proper and, if his findings warrant it, he may grant a license to such company to issue policies.

No such corporation which has at any time upon its books less insurance than the minimum amount required for one of the above options which it has selected as a basis for beginning business, shall make any further insurance until it has secured applications for policies which will restore the original condition in respect to the number and amount of applications, said applications to be subject to the same provisions of this section as apply to the subscriptions for a new insurance company, nor shall it make any further insurance if the security required by paragraphs (4) and (5) of this section becomes impaired until such impairment is made good.

The liability of any policy holder to pay his proportional part of any assessments which may be laid by the company, in accordance with law and his contract, on account of losses and expenses incurred while he was a member, shall continue so long as there are outstanding any obligations incurred while he was such member. [Acts, 1911, c. 251, § 3, as am. by Gen. Acts, 1915, c. 181.]

679A. Prompt payments of benefits by certain foreign insurance companies secured. — Every foreign insurance company transacting the business of workmen's compensation insurance in this commonwealth shall within five days after its withdrawal from the transaction of business herein, or after the revocation of its license issued by the insurance commissioner or of his refusal to renew the same, deposit with a trustee to be named by the industrial accident board, an amount equal to twenty-five per cent of its obligations, incurred or to be incurred, under workmen's compensation policies issued to employers in this commonwealth, and within thirty days after such withdrawal, revocation of license or refusal to renew a license, such company shall deposit with said trustee an amount equal to the remainder of such obligations, incurred or to be incurred, the amount of which obligations shall be determined by the industrial accident board. The amounts so deposited shall be available for the payment of the said obligations of the company to the same extent as if the company had continued to transact business in this commonwealth, and it shall

be the duty of the trustee so receiving said deposits to pay such obligations of the retiring company at the times and in a manner satisfactory to the industrial accident board. [Gen. Acts, 1915, c. 183, § 1.]

679B. Bond to be furnished by such companies. — Every such foreign insurance company shall, within sixty days after the passage of this act, furnish a bond running to the commonwealth, with some surety company authorized to transact business in this commonwealth as surety, for such amount and in such form and with such surety as may be approved by the insurance commissioner, the bond being conditioned upon the making by said company of the deposits required by section one of this act. In place of the said bond the company may furnish other security, satisfactory to the insurance commissioner, that said deposits will so be made. [Gen. Acts, 1915, c. 183, § 2.]

PUBLIC EMPLOYEES, COMPENSATION FOR INJURIES TO.

683A. Responsibility for the payment of compensation by the commonwealth, counties, cities, etc., fixed. Every board, commission and department of the commonwealth employing laborers, workmen and mechanics, the Boston transit commission, and every county, city, town and district which has accepted the provisions of Acts, 1913, c. 807 shall, through its executive officer or board, designate a person to act as its agent in furnishing the benefits due under Acts, 1911, c. 751, and acts in amendment thereof and in addition thereto. Such agent shall be held responsible for the proper carrying out of this act under the direction and supervision of the industrial accident board until his agency is revoked and a new agent designated. The name and address of every such agent shall be filed with the industrial accident board immediately upon his designation; and each of the foregoing boards, commissions, departments, counties, cities, towns and districts shall designate such an agent within thirty days after this act takes effect.

This act shall not apply to counties, cities, towns and districts which are insured under the provisions of Acts, 1911, c. 751, and acts in amendment thereof.

This act shall take effect on June 1, 1915. [Gen. Acts, 1915, c. 244, §§ 1, 2 and 3.] 694. Compensation for injuries to laborers, workmen and mechanics employed by Boston transit commission. Laborers, workmen and mechanics employed by the Boston transit commission shall be deemed to be in the service of the city of Boston within the provisions of Acts, 1913, c. 807, and shall be entitled to the compensation provided for by that act. Such compensation shall be paid out of the proceeds of the rapid transit loans and shall be included in the net cost of the tunnel or subway in the construction of which such laborers, workmen and mechanics receive personal injuries arising out of and in the course of their employment. [Acts, 1914, c. 636, as am. by Sp. Acts, 1915, c. 270.]

8. PENSION AND RETIREMENT SYSTEMS.

EMPLOYEES OF THE COMMONWEALTH.

696. Definitions of words and phrases. In this act, unless the context otherwise requires:

(a) The words "retirement system" mean the arrangements provided in this act for the payment of pensions.

(b) The word "annuities" means the payments for life derived from money contributed by the employees.

(c) The word "employees" means permanent and regular employees in the direct service of the commonwealth or in the metropolitan district service, whose only or principal employment is in such service.

(d) The word "pensions" means the payments for life derived from money contributed by the commonwealth.

(e) The words "regular interest" mean interest at three per cent per annum compounded semi-annually on the last days of December and June, and reckoned for full three and six months' periods only.

(f) The words "continuous service" mean uninterrupted employment, with these exceptions: a lay-off on account of illness or reduction of force, and a leave of absence, suspension or dismissal followed by reinstatement within two years. As to appointees of the sergeant-at-arms the interval between sessions of the general court shall not be considered as breaking the continuity of service, and engineers and inspectors in the intermittent service of the commonwealth shall not lose the benefit of continuity of service in the intervals between employments, and, for the purpose of computation, cumulative credit shall be given them for all periods of employment in the service of the commonwealth, as shown by the records of the civil service commission.

In the case of employees of any department or institution formerly administered by a city, county or corporation and later taken over by the commonwealth, service rendered prior to such transfer shall be counted as a part of the continuous service for the purposes of this act. In the case of employees who before entering the service of the commonwealth had been regularly employed as teachers in public schools, as defined by paragraphs (4) and (5) of Acts, 1913, c. 832, § 1, all periods of such employment rendered prior to July 1, 1914, shall be counted as a part of the continuous service for the purposes of this act: provided, however, that this clause shall not apply to employees entering the service of the commonwealth after July 1, 1914, who are not members of the teachers' retirement association established by said chapter 832. [Acts, 1911, c. 532, § 1, as last am. by Acts, 1914, c. 568, and by Gen. Acts, 1915, c. 198, § 1.]

CREATION OF THE RETIREMENT FUND.1

701. Retirement funds.

as follows:

The funds of the retirement system shall be raised

(1) Expense and Contingent Fund.

The general court shall appropriate annually such an amount as may be necessary to defray the whole expense of administration, according to estimates prepared by the treasurer.

(2) Annuity and Pension Fund.

A. Deposits by Members. Each member shall deposit in this fund from his salary or wages, as often as the same are payable, not less than one per cent and not more than five per cent of the amount of his wages or salary, as determined by the board of retirement under the provisions of section four (5): provided, however, that employees who receive more than thirty dollars weekly in salary or wages shall not be assessed for contribution to this fund on the excess above that amount.

1 See Handbook of Labor Laws (issued by this Bureau as Labor Bulletin No. 104), pages 137 to 144.

B. Contributions of the Commonwealth. (a) Each month the commonwealth shall contribute such amount as the board of retirement may determine to be necessary to pay current pensions for subsequent service, under section six (2) C (a).

(b) Each year, in January, the commonwealth shall contribute an amount equal to the surplus arising from annuity deposits. In case there should be a deficiency arising from such annuity deposits, instead of a surplus, then the commonwealth shall make good the deficiency.

(c) Each month the commonwealth shall contribute such amount as the board of retirement may determine to be necessary to pay current pensions for prior service under section six (2) C (b).

(d) Each month the commonwealth shall contribute such amount as the board of retirement may determine to be necessary to ensure the minimum payments_provided for in section six, E.

Members of the teachers' retirement association, established by Acts, 1913, c. 832, who enter the service of the commonwealth shall have the full amount of their contributions, with interest thereon as determined by the teachers' retirement board, transferred by the treasurer of the commonwealth to the retirement fund established by Acts, 1911, c. 532, as amended, and these amounts shall thereby become a part of their deposits.

(3) Provisions for Payments.

All amounts payable by members of the association under paragraph (2) A of this section shall be deducted by the commonwealth from the amounts payable to them as salary or wages, as often as the same are payable, and shall immediately be credited to the retirement fund by the state treasurer. [Acts, 1911, c. 532, §15, as am. by Gen. Acts, 1915, c. 198, § 2.]

DISTRIBUTION OF FUNDS.

702. Administering the funds. - The state treasurer shall administer the funds of the pension system in accordance with the following plan:

(2) Annuity and Pension Funds.

A. Refunds. (a) Should a member of the association cease to be an employee of the commonwealth for any cause other than death, or to enter the service of the public schools as defined by Acts, 1913, c. 832, § 1, ¶ 5, before becoming entitled to a pension, there shall be refunded to him all the money paid in by him under section five, (2) A, with such interest as shall have been earned thereon. [Acts, 1911, c. 532, § 6, as last am. by Acts, 1914, c. 582, and by Gen. Acts, 1915, c. 197, § 3.]

RETIREMENT SYSTEM FOR PUBLIC SCHOOL TEACHERS.1

CREATION OF FUNDS.

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

...

(4) Members of the retirement association, established by Acts 1911, c. 532, as amended, who enter the service of the public schools shall have the full amount of their contributions, together with such interest as shall have been earned thereon, transferred

1 See Acts, 1913, c. 832.

by the treasurer of the commonwealth to the annuity fund established by paragraph (2) of this section, and these amounts shall thereby become a part of their assessments. [Acts, 1913, c. 832, § 5, as am. by Gen. Acts, 1915, c. 197, § 1.]

PAYMENT OF RETIREMENT ALLOWANCES.

SECTION 6. . . . (7) In determining the retiring allowance of a member of the teachers' retirement association who prior to June 1, 1912, had been regularly employed by the commonwealth, credit shall be given in the manner provided for by paragraph (5) of this section [of chap. 832], for all such periods of employment rendered prior to June 1, 1912: provided, however, that this paragraph shall not apply to any person becoming a member of the teachers' retirement association, after July 1, 1915, who, at the time of entering the service of the public schools, was not a member of the retirement association established by Acts, 1911, c. 532. [Acts, 1913, c. 832, § 6, as am. by Gen. Acts, 1915, c. 197, § 2.]

WITHDRAWAL AND REINSTATEMENT.

SECTION 7. (1) Any member of the retirement association withdrawing from service in the public schools, except for the purpose of entering the service of the commonwealth, before becoming eligible to retirement shall be entitled to receive from the annuity fund all amounts contributed as assessments, together with regular interest thereon, in the manner hereinafter provided. [Acts, 1913, c. 832, § 7, as am. by Gen. Acts, 1915, c. 198, § 3.]

FORMER SYSTEM OF PENSIONS FOR TEACHERS IN THE STATE.

2. Boston Teachers' Pensions (Acts of 1908, Chapter 589 and amendments). Amendment to section 4. In addition to the amount which the school committee is now authorized by law to appropriate for the support of the public schools of the city, and for other purposes, it shall annually appropriate for the purpose of paying pensions at the rates already established by Acts, 1908, c. 589, § 7, as amended by Acts, 1910, c. 617, § 3, and in the same manner in which it makes appropriations for other school purposes, the sum of seven cents upon each one thousand dollars of the valuation on which the appropriations of the city council of the city are based, and shall from time to time pay to the treasurer of the permanent pension fund such portions of the proceeds of said seven cents upon each one thousand dollars of the valuation aforesaid as, in the opinion of the school committee, will not be needed for the purpose of paying pensions to teachers during that year. Accrued interest not expended during any year shall be available for the payment of pensions during any subsequent year.

Amendment to section 6. The total amount of pensions payable hereunder in any one year shall not exceed the proceeds of the said seven cents upon each one thousand dollars of the valuation aforesaid, together with the accrued interest of the permanent fund. In case the amount available in any one year under this act is not sufficient to pay the pensions that have been granted, the amount so available shall be divided pro rata among those to whom pensions have been or may be granted on the basis of the amount of the pension each is then receiving: provided, that in no case, nor in any year, shall the pension of any person retired after thirty years of service be