Board, how composed; terms of, etc.

Board to report annually to the city council.

Legal advisor, treasurer, and

for the administration and transaction of the business of the retirement system, and shall perform such other functions as are required for the execution of this act.

(2) The membership of the retirement board shall consist of the mayor, the chairman of the joint standing committee on finance of the city council, and the city auditor, ex officio, and two members, who shall not be officers or employees of the city, who shall be elected by the city council in joint convention.

The first election of members of the retirement board shall be held in the month of December, 1924. At the first election one member shall be elected for a term ending with the first Monday in January, 1927, and one member for a term ending with the first Monday in January, 1929.

After the first terms of the elected members shall have expired the regular terms of elected members shall be four years. Should any vacancy occur among the elected members of the board, it shall be filled for the unexpired term in the manner provided for the original election.

The members of the retirement board shall serve without compensation.

(3) The retirement board shall report annually in detail to the city council on or before the first Monday in January, showing the fiscal transactions of the system for the fiscal year of the city of Providence next preceding, the amount of the accumulated cash and securities of the system and a copy of the last balance sheet showing the financial condition of the system by means of an actuarial valuation of the assets and liabilities.

(4) The city solicitor shall be the legal advisor clerk of board. of the board. The city treasurer shall be the cus

todian of the funds and the treasurer thereof. The city clerk shall be the clerk of the board.

auditor.

(5) The city auditor, under the supervision of Duties of city the retirement board, shall be charged with the establishment and maintenance of such accounts and statistical records as the retirement board may require and he shall employ such clerical assistance as shall be necessary to carry out properly the provisions of this act; the city council from time to time shall provide by appropriations sufficient sums to pay the cost of such services.

physicians.

The retirement board shall secure the services of Actuary and an actuary who shall be the actuarial advisor of the board and who shall make the actuarial computations and valuations required by this act. The retirement board shall secure the services of such physicians as shall be necessary to make the medical examinations required by this act. The city council from time to time shall provide by appropriation sufficient sums to pay the cost of such services and the necessary expenses of the board.

collect certain necessary data.

make actuarial

(6) The retirement board shall collect and keep Board to in convenient form such data as shall be necessary for the preparation of the mortality and service tables and for the compilation of such other information as shall be required for the actuarial valuation of the assets and liabilities of the retirement system. (7) In the five-year period, beginning with the Actuary to year nineteen hundred and twenty-five, and in investigation every five-year period thereafter, the actuary shall years, etc. make an actuarial investigation into the mortality, service and compensation experience of the members and beneficiaries of the retirement system and shall make a valuation of the assets and liabilities of the funds of the system and taking into account the result of such investigation and valuation, the

every five

Board to take certain action based on such investigation.

Actuary to

make investigation of

retirement board shall (a) adopt for the retirement system such mortality, service and other tables as shall be deemed necessary;

(b) certify the rates of contribution payable by members under the provisions of this act; and (c) certify the rates of contribution payable by the city of Providence under the provisions of this act.

(8) Immediately after his selection, the actuary shall make such investigation of the mortality, service and compensation experience of the ememployees, for ployees of the various occupational groups as pro

mortality, service and compensation

experience of

use of the

board.

Actuary to

make annual valuation.

Funds, how invested.

vided in section 7 of this act as the retirement board shall authorize for the purpose of determining upon the proper tables to be prepared and submitted to the retirement board for adoption. On the basis of such investigation and upon the recommendation of the actuary, the retirement board shall adopt such tables and certify such rates as are required in paragraphs (a), (b) and (c) of subdivision (7) of this section.

(9) On the basis of such tables as the retirement board shall adopt, the actuary shall make an annual valuation of the assets and liabilities of the funds of the system created by this act.

SEC. 4. INVESTMENT OF FUNDS. (1) All (1) All moneys not immediately required for the payment of retirement allowances or other benefits shall be invested by the retirement board for the benefit of the retirement system in any securities or investments in which the sinking funds of the city of Providence may be legally invested, or in such other investments or securities as the city council may from time to time authorize, and said board shall have full power to hold, purchase, sell, assign, transfer or dispose of any of the securities or invest

ments in which any of the funds shall have been invested as well as the proceeds of such investments and of any money belonging to said funds.

excess earn

deficiency.

(2) The retirement board shall annually allow Interest, regular interest on the average amount for the ins preceding year to the credit of the various funds of the retirement system from the interest and dividends earned from investments. Any excess earnings over the amount so credited shall be used in reducing the amount of contributions required of the city of Providence during the ensuing year. Any deficiency shall be paid by the city during the ensuing year.

(3) Except as herein provided, no member of the board and no employee of the board shall have any interest, direct or indirect, in the gains or profits of any investment made by the retirement board, nor as such directly or indirectly receive any pay or emolument for his services. And no member of the board 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 retirement board; nor shall any member or employee of the board become an endorser or surety or become in any manner an obligor for moneys loaned or borrowed from the retirement board.

Members of no interest in

board or employees to have investments,

etc.

created.

SEC. 5. METHOD OF FINANCING. The funds Funds hereby created are the annuity savings fund, the annuity reserve fund, the pension accumulation fund and the pension reserve fund.

savings fund.

(1) The annuity savings fund shall be a fund in Annuity which shall be accumulated contributions from the compensation of members to provide for their annuities and their withdrawal allowances. Upon the basis of such tables as the retirement board

Same subject. shall adopt and regular interest, the actuary of the retirement system shall determine for each member the proportion of compensation which, when deducted from each payment of his prospective earnable annual compensation prior to his eligibility for service retirement and accumulated at regular interest until his attainment of the minimum age of service retirement for his group, shall be computed to provide at that time an annuity equal to fiveeights of one per centum of his final compensation for each year of service as a member. Such proportion of compensation shall be computed to remain constant.

The proportion so computed for a member one year younger than the minimum retirement age for service retirement from his group shall be applied to any member who has attained a greater age before entrance into the retirement system. The retirement board shall certify to the head of each department and the head of each department shall deduct from the compensation of each member on each and every payroll of such department, for each and every payroll period, the proportion of earnable compensation of each member so computed; but the head of any department shall not make any deduction for annuity purposes from the annual compensation of a member who elects not to contribute if he has attained the minimum retirement age. In determining the amount earnable by a member in a payroll period, the retirement board may consider the rate of annual compensation payable to such member on the first day of the payroll period as continuing throughout such payroll period and it may omit deductions from compensasation for any period less than a full payroll period if an employee was not a member on the first day