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said committee whose term of office has expired, shall be elected for a term of three years; provided, however, that said Retirecommittee shall always consist of at least one class teacher committee from some primary school, one from some grammar school, and must one from some high school within the county, or consolidated city and county, whenever such election is possible.

SEC. 6. A new section is hereby added to said Act, to be known as section six, and to read as follows, viz.:

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Section 6. The board of education of any incorporated Committee city or town, and the board of trustees of any school districts on retireoutside of said city or town, shall refer all applications for investigate retirement to said committee on retirement, or may, of its own tions for remotion, submit the name of any person or persons, whom it tirement. desires to have retired, to the said committee on retirement, and it shall thereupon be the duty of said committee to investigate the case and report to said board of education or board of trustees, whether or not said teacher should be retired, and the annuity to which said teacher is entitled, if entitled to any. At least three members of the said committee must concur in the report, if it be in favor of granting said annuity. This report of said committee shall be final. Said board of education, or board of trustees, shall thereupon certify and send this report to the public school teachers' retirement fund commissioners, who shall be bound by its decision.

SEC. 7. A new section is hereby added to said Act, to be known as section seven, and to read as follows, viz.:

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Section 7. In addition to the powers heretofore granted to committee said committee on retirement, it shall have the power (1) to on retiresubpœna and compel witnesses to attend and testify before it subpoena on all matters relating to the operation of this Act, and any etc. member of said committee may administer an oath or affirmation to such witness in the form prescribed in courts of justice; (2) to make such rules and regulations for the transaction of its business as may from time to time be necessary.

SEC. 8. Section three of said Act is hereby amended so as to read as follows, and to be known as section eight of said Act, viz.:

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Section 8. (a) Any teacher who shall have served in the qualificapublic schools of this State for a period of thirty years, as a retirement. teacher or school officer, and who shall have been subject to the burdens imposed by this Act for thirty years, shall be entitled to retire and to receive from the public school teachers' annuity and retirement fund the sum of thirty dollars ($30) per month Amount of in counties, and fifty dollars per month in consolidated cities annuity. and counties, payable quarterly; and any teacher who shall have become incapacitated for performing the duties of a teacher, and who shall have been a contributor to the annuity fund for at least five years, shall be entitled to retire and to receive an annuity from the public school teachers' annuity and retirement fund equal to such proportion of the maximum annuity granted under this Act, as the time that he or she has been subject to the burdens imposed by this Act bears to the period of thirty years; provided, however, that any annuity

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Suspension shall be suspended if its recipient return to service in the public of annuity. schools, and any annuity less than two thirds of the maximum annuity shall cease if the committee on retirement constituted in section five of this Act shall, at any time, decide that its recipient has been restored to the capacity of performing the duties of a teacher, and has been reimbursed from the annuity fund at least the full amount of his or her contribution thereto; Method of provided further, that such proportionate reduction shall not qualifying. apply to those now employed in the public schools who shall have filed the notice hereinafter specified within ninety days. after the passage of this Act in counties, or in consolidated cities and counties, where the provisions of the Act to which this Act is amendatory are now applicable, and within ninety days after the establishment of the fund hereinafter specified in all other counties, or consolidated cities and counties, and who shall have paid at the time of their retirement an amount equal to what they would have paid into the fund had they been contributing thirty years; provided further, that if a perticipation. son cease to teach in any county, or city and county, where he or she has been subject to the burdens imposed by this Act, then after such person has taught in the public schools of this State for thirty years, he or she shall be entitled to retire and to receive from the public school teachers' annuity and retirement fund of the county, or consolidated city and county, to which he or she has contributed, an annuity equal to such proportion of the maximum annuity granted under this Act, as the time that he or she has been subject to the burdens imposed by this Act in such county, or city and county, bears to the period of thirty years; and provided further, that if any teacher shall be compelled, by reason of ill health, to retire from the profession of teaching after the expiration of five years and before the expiration of thirty (30) years of service in the public schools of this State, such retiring teacher, if a contributor to the annuity fund at the time of retirement, shall be entitled to as many thirtieths (30ths) of the full annuity as he or she has had years of service, by paying into the annuity fund the contributions to that fund corresponding to those years of service rendered at a time when or in a place where it was impossible to make such contributions by reason of the non-existence of an annuity fund.

Teachers of night schools.

Pro rata division.

(b) Teachers of evening schools receiving a salary of fifty dollars or less, shall be subject to one half its burdens and shall be entitled to one half of the benefits of this Act; provided, that any teacher who is employed both in a day and in an evening school shall be considered for the purposes of this Act to be employed in a day school only.

SEC. 9. A new section is hereby added to said Act, to be known as section nine, and to read as follows, viz.:

Section 9. If at the end of any quarter year there shall not be a sufficient amount of money in the "annuity fund" hereinafter described, to pay all warrants or demands of annuitants in full, then the money in that fund shall be divided pro rata

fund, how

among them, and the sum received by each annuitant shall be in full discharge of all claims against said fund to that date. SEC. 10. Section six of said Act is hereby amended so as to read as follows, and to be known as section ten of this Act, viz.: Section 10. The public school teachers' annuity and retire- Annuity ment fund herein provided for, shall consist of the following, provided. with the income and interest thereof: (I) Twelve dollars ($12) per school year, of the salaries paid to all those subject to the burdens of this Act, in each county or consolidated city and county, shall be deducted from the warrants for salary, and paid by the treasurer of the county, or consolidated city and county, to the public school teachers' retirement fund commissioners of said county, or consolidated city and county; and it shall be the duty of the secretary of the board of education in every incorporated city or town, or consolidated city and county, and the secretary of the board of trustees of every school district outside of such city or town, or consolidated city and county, to note in each warrant the amount to be deducted by the treasurer; (II) All moneys received from gifts, bequests, and devises, or from any other source; (III) All money, pay, compensation, or salary forfeited, deducted, or withheld from the warrant or demand for salary of any teacher or teachers for and on account of absence from duty from any cause, which the board of education of every incorporated city or town, or the board of trustees of every school district outside of such city or town, may appropriate and set apart for the aforesaid fund; and said board of education, or boards of trustees, are hereby empowered to appropriate such moneys, or any part thereof, for such fund; provided, that in consolidated cities and counties, after the establishment of an annuity fund therein, it is hereby made the duty of boards of education to appropriate, monthly, at least one half of such moneys for such fund.

SEC. 11. A new section is hereby added to said Act, to be known as section eleven, and to read as follows, viz.:

fund.

Section 11. The public school teachers' annuity and retire- Division of ment fund herein provided for shall be divided into two distinct funds, or accounts, (1) the permanent fund, and (2) the annuity fund.

(1) The permanent fund:

fund.

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

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

C. It shall be the duty of the public school teachers' retirement fund commissioners to invest the aforesaid permanent fund in interest-bearing bonds issued by the federal, state,

Annuity fund.

Surplus.

Who shall be bound by this Act.

Form of notice.

be bound

county, city and county, or municipal governments, and to apply the interest thereon as herein directed.

(2) The annuity fund:

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

B. The annuity fund shall be the only one from which annuitants shall be paid.

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

SEC. 12. Section seven of said Act is hereby amended so as to read as follows, and to be known as section twelve of said. Act, viz.:

Section 12. This Act shall be binding (1) upon such public school teachers, and such other officers of the school department as possess teachers' certificates, who, after the passage of this Act, shall sign and deliver to the public school teachers' retirement fund commissioners, and to the secretary of the board of education of the incorporated city or town, or consolidated city and county, or to the secretary of the board of trustees of the school district in which they are employed, a notice in substantially the following form:

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To the Public School Teachers' Annuity and Retirement Fund
Commissioners, of County (or city and county):

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You are hereby notified that I agree to be bound by, and desire to avail myself of, the provisions of the Act of the Legislature of the State of California, approved eighteen hundred and ninety-seven, entitled "An Act to amend an Act approved March twenty-six, eighteen hundred and ninety-five, entitled 'An Act to create and administer a public school teachers' annuity and retirement fund in the several counties, and cities and counties in the State.'

Public School Teacher.

Who shall And provided, that at least thirty teachers within the county, or by this Act, consolidated city and county, have filed the notice herein before set forth; provided further, that in all counties, or in consolidated cities and counties, when there is a less number of teachers than thirty, this Act shall be binding on all those who signify their intention of being bound thereby.

(2) In consolidated cities and counties it shall be binding upon all teachers elected or appointed to teach in the public schools of such consolidated cities and counties after the

of this Act.

passage

(3) Annuities heretofore granted under the provisions of the Annuities Act of which this Act is amendatory shall be continued for continued. the same amount as heretofore paid; subject, however, to the conditions imposed by sections nine (9) and eleven (11) of this Act.

SEC. 13. Section eight of said Act is hereby amended so as to read as follows, and to be known as section thirteen of this Act, viz.:

Section 13. All Acts or parts of Acts in conflict with the pro- Repealed. visions of this Act are hereby repealed.

SEC. 14. Section nine of said Act is hereby amended so as to read as follows, and to be known as section fourteen of said Act, viz.:

Section 14. This Act shall take effect and be in force from In effect. and after its passage.

CHAPTER CLXX.

An Act requiring every corporation doing business in this State to pay their employés, and each of them, at least once in each and every month, the wages earned by such employé; to limit the defenses which may be set up by such corporation to assignments of wages, set-off or counter claims, or the absence of such employé at the time of making payment, and in case of such absence the wages are payable upon demand; to prohibit assignments of wages for the purpose of evading the provisions of this Act, and agreements to accept wages at longer periods than as herein provided as a condition of employment; to fix a penalty for this violation of the provisions of this Act by such corporation, and to provide for the disposition of any fines recovered from corporations violating the same.

[Approved March 29, 1897.]

The People of the State of California, represented in Senate and
Assembly, do enact as follows:

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pay

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SECTION 1. Every corporation doing business in this State Corporashall pay, at least once a month, each and every employé employed by such corporation, in transacting or carrying on employés its business, or in the performance of labor for it, the wages month. earned by such employé during the preceding month; provided, however, that if at the time of payment any employé shall be absent, or not engaged in his usual employment, he shall be entitled to said payment at any time thereafter upon demand.

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SEC. 2. A violation of any of the provisions of section one Violation of this Act shall entitle each of the said employés to a lien on employé all the property of said corporation for the amount of their to a lien. wages, which lien shall take preference over all other liens, except duly recorded mortgages or deeds of trust; and in any action to recover the amount of such wages, or to enforce said

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