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THE LIBRARY OF THE UNIVERSITY OF GEORGIA
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GEORGIA SCHOOL LAWS
Enactments of THE GENERAL ASSEMBLY
1943 Session (Including Proposed Constitutional Amendments.)
Published by the
STATE DEPARTMENT OF EDUCATION-
June 1943
M. D. COLLINS State Superintendent of Schools
Atlanta, Georgia

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Supplement to
GEORGIA SCHOOL LAWS
Enactments of THE GENERAL ASSEMBLY
1943 Session (Including Proposed Constitutional Amendments.)
Published by the
STATE DEPARTMENT OF EDUCATION
June 1943
M. D. COLLINS State Superintendent of Schools
Atlanta, Georgia

INDEX

ANNUAL REPORTS. County Superintendent of Schools

BOARD OF EDUCATION. County. Members

Prohibited From Selling

,

Supplies to

Per Diem

BOARD OF EDUCATION. State. Constitutional Provisions for New State Board Created

CLERICAL HELP. County School Superintendent's Office

CONSOLIDATION. School Districts Having Outstanding Bonds

GOVERNOR. Authority to Borrow Funds. Repayment No Authority to Impress Funds

ILLITERACY. Duties of State and County Board of Education

INTANGIBLE TAX. Division of

PHYSICAL Training and Discipline

SCHOOL LUNCHES. Taxation for

STATE LIBRARY COMMISSION. Transferred to State Board of Education

SUPERINTENDENT OF SCHOOLS. The State. Salary Fixed

TEACHER RETIREMENT. An Act to Provide for Constitutional Provision for Taxation for

VOCATIONAL EDUCATION. Provision for

Page 11
11 11 11
4 5 11
5 12 13
9 17 - 16
9
7
10 18 3 13

CONSTITUTIONAL PROVISIONS
The following is the Text of the Proposed Constitutional Amendments submitted by the General Assembly at the 1943 Session for ratification by the people in the General Election of August 3, 1943:
ARTICLE 7. FINANCE, TAXATION AND PUBLIC DEBT.
CHAPTER 2-49. POWER OF TAXATION.
SECTION 1. That Paragraph 1, Section 1, Article 7, of the Constitution of Georgia, be and the same is hereby amended by adding at the end of said paragraph the following language "To authorize the levy of taxes for, and to make provisions for the payment of benefits and other cost under a teacher's retirement system of Georgia, provided that no person shall be entitled to the benefits herein authorized, who does not qualify for such provisions in every respect, in accordance with enactments of the General Assembly, which may be in force and effect, prescribing the qualifications for beneficiaries hereunder; provided no indebtedness against the State shall ever be created for the purpose herein stated, in excess of the taxes lawfully levied each fiscal year under Acts of the General Assembly authorized hereunder."
(Approved February 26, 1943.)
Section 18. The powers of taxation may be exercised by the State through the General Assembly and by counties and municipalities, for the purpose of paying pensions and other benefits and costs under a teacher retirement system or systems; provided no indebtedness against the State shall ever be created for the purpose herein stated in excess of the taxes lawfully levied each fiscal year under acts of the General Assembly authorized hereunder. (Approved March 18, 1943.)
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ARTICLE 8. EDUCATION
Section 2.
#2-6701. (6577). Par. 2. There shall be a State Board of Education, composed of one member from each Congressional District in the State, who shall be appointed by the Governor, by and with the advice and consent of the Senate. The Governor shall not be a member of the State Board of Education. The first State Board of Education under this provision shall consist of those in office at the time this constitutional amendment is adopted, with the terms provided by law. Thereafter, all succeeding appointments shall be for seven years terms from the expiration of the previous term. Vacancies upon said Board caused by expiration of term of office shall be similarly filled by appointment and confirmation. In case of a vacancy on said Board by death, resignation of a member, or from any other cause other than the expiration of such member's term of office, the Board shall by secret ballot elect his successor, who shall hold office until the end of the next session of the General Assembly, or if the General Assembly be then in session to the end of that session. During such session of the General Assembly the Governor shall appoint the succssor member of the Board for the unexpired term and shall submit his name to the Senate for confirmation. All members of the Board shall hold office until their successors are appointed and qualify. The members of the State Board of Education shall be citizens of this State who shall have resided in Georgia continuously for at least five years preceding their appointment. No person employed in a professional capaciiv by a private or public educational institution, or by the State Department of Education, shall be eligible for appointment or to serve on said Board. No person who is or has been connected with or employed by a schoolbook publishing concern shall be eligible to membership on the Board (and if any person shall be so connected or employed after becoming a member of the board) his place shall immediately become vacant. The said State Board of Education shall have such powers and duties as provided by law existing at the time of the adoption of this amendment, together with such further powers and duties as may be hereafter provided by law.
(Approved Feb. 4, 1943)

Section 4.
CHAPTER 2-69. EDUCATIONAL TAX.
No. 2-6901. (No. 6579). Par. 1. Provided further, that where one of such local school districts voting on consolidation shall have outstanding any bonds and another school district voting thereon has no outstanding bonds, a majority only of those voting in such district having such bonds shall be sufficient to carry such election in that particular district, while two-thirds of the qualified voters shall be required as to the district having no such outstanding bonds; and upon such consolidation, the consolidated district shall possess and retain any and all taxing powers that may have existed in either of such districts, but the levying of such tax shall apply to all property in any consolidated districts without any additional election therefor.
(Approved Feb. 13, 1943)
STATE BOARD OF EDUCATION
Georgia Laws As Amended 1943
(New Board Created, Members, Terms of Office, Vacancies, etc.) SECTION 1. The present State Board of Education is hereby
abolished. SECTION 2. A new State Board of Education is hereby created. SECTION 3. The State Board of Education, hereby created,
shall be composed of one member from each Congressional District in this State, who shall be appointed by the Governor, by and with the advice and consent of the Senate. The Governor shall not be a member of the State Board of Education. The said State Board of Education provided for by this Act shall have the powers and duties now provided by law for the State Board of Education, and such as may be hereafter provided; and shall be subject to all provisions of law with respect to the State Board of Education, not inconsistent with this Act.
SECTION 4. The first State Board of Education appointed hereunder shall hold office as follows: two for three years; four for five years; and four for seven years. All of said terms shall date

from January 1, 1943. The Governor in making said appointments shall designate the holders of the respective terms. Successors to persons so appointed shall hold terms of office of seven years from the expiration of the previous term. All members of the Board appointed for a first or succeeding full term shall hold office until their successors are appointed and qualify. Any appointment of a member of the Board for a full term made when the Senate is not in session, shall be effective until the same is acted on by the Senate.
SECTION 5. In case of a vacancy on said Board, by death or resignation or from any other cause other than such member's term of office, the Board shall by secret ballot elect his successor, who shall hold office until the end of the next session of the General Assembly, or if the General Assembly be then in session, to the end of that session, and such election shall be effective for such interim. During such session of the General Assembly the Governor shall appoint the successor member of the Board for the unexpired term and submit his name to the Senate for confirmation.
SECTION 6. That the portion of Section 1 of the Act of the General Assembly, approved February 10, 1937 (Georgia Laws 1937, page 864) relating to the State Board of Education, its creation, members and appointment as set forth in the 1933 Georgia Code, Annotated, Supplement Section 32-401, be, and it is, hereby amended by striking the same in its entirety and substituting therefor Section 3 of this Act.
SECTION 7. That the portion of Section 1 of the Act of the General Assembly, approved February 10, 1937 (Georgia Laws 1937, page 864) relating to the State Board of Education and terms of office of members as set forth in the 1933 Georgia Code, Annotated, Supplement Section 32-402 be, and it is, hereby amended by striking the same in its entirety and substituting therefor Section 4 of this Act.
SECTION 8. That the portion of Section 1 of the Act of the General Assembly, approved February 10, 1937 (Georgia Laws 1937. page 864) relating to the State Board of Education and vacancies, how filled, as set forth in the 1933 Georgia Code, Annotated. Supplement Section 32-403, be and it is, hereby amended by striking the same in its entirety and substituting therefor Section 5 of this Act.

SECTION 9. Nothing in this Act shall be construed as repealing those provisions of the Act of the General Assembly, approved February 10, 1937 (Georgia Laws, 1937, pages 864-869) as amended by (Georgia Laws 1941, page 568) as set forth in the 1933 Georgia Code Annotated, Supplement Sections 32-404, 32-405, 32-406, 32-407, 32-408, 32-409, 32-410, 32-411, 32-412, 32-413, 32-414, 32-415, 32-416, 32-504, 32-511, relating to the State Board of Education, elegibility of membership oath, meeting for organization, officers, meetings, per diem and mileage for members, rules and regulations for supervision of schools; courses of study; curriculum revision, administration of school funds, estimate of funds needed, control of employees, set aside funds for maintenance of Department, powers of old Board, acceptance of funds appropriated by Congress, meeting terms of grants, appeals to State Board; standard requirements for college, certificate for charter, gifts, compensation or remuneration from school book house to member of appointee forbidden; State Superintendent of Schools as executive secretary of the State Board of Education, and compensation as Secretary of the Board, but all of said provisions of law, and all other existing provisions of law relating to the State Board of Education, not inconsistent with this Act, shall remain of full force and effect, and shall apply to the new State Board of Education hereby created.
SECTION 10. Should any section or sections of this Act be declared unconstitutional the remaining sections shall remain of force and effect.
SECTION 11. This Act shall take effect immediately on its passage and approval by the Governor.
(Approved January 25, 1943)
PUBLIC LIBBARY SYSTEM TO SUPPLANT 'STATE LIBRARY COMMISSION"
Section 2
The State Board of Education shall give aid, advise and counsel to all libraries and communities which may propose to establish libraries as to the best means of establishing and administering them, the selection of books, cataloging and other details of library man-

agement, and shall exercise supervision over all public libraries, and shall endeavor to improve libraries already established. The State Board may also conduct a book-lending and information service for the benefit of the citizens of the State, free of cost except postage. The Board is also authorized to purchase for such purposes, books, periodicals and other instructional materials. The Board may also employ the necessary professional and clerical staff upon the recommendation of the State Superintendent of Schools, to carry on the work as herein stated, and pay their necessary traveling expenses while engaged in such work.
Section 3
That State Board shall have authority to accept gifts of books, money or other property from any public or private source, including the Federal Government, and shall have authority to perform any and all functions necessary to carry out the intention and purposes of this Act. All public libraries in the State shall submit reports annually to the State Board. It is hereby declared to be the policy of the State as a part of the provisions for public education to promote the establishment and development of public library service throughout the State.
Section 4
The funds now appropriated or otherwise available to the State Library Commission for the carrying on of said work are hereby transferred to the State Board of Education. In order to effectuate the purposes of this Act there shall be made available to the State Board of Education whatever funds may be duly allocated to it by the proper authority, either by specific appropriation or otherwise as now provided by law, and the said State Board of Education shall be authorized to disburse such funds to public libraries serving persons of all ages through legally constituted municipal library boards and/or to the other legally constituted local library boards as may now or hereafter be established by law. Said State Board of Education shall, by virtue hereof, use such funds for the purpose of aiding and supplementing the establishment and development of public library services.
(Approved March 8, 1943).

JAi
COUNTY TAXES FOR SCHOOLS
Section 92-3701. School lunches. To provide for the payment of old age assistance to aged persons in need and for the payment of assistance to the needy blind, and to dependent children, and other welfare benefits: Provided, no person shall be entitled to the assistance herein authorized who does not qualify for such assistance in every respect in accordance with enactments of the General Assembly which may be in force and effect prescribing the qualifications for beneficiaries hereunder: Provided, the taxes authorized hereby shall not exceed three mills in any one year: Provided, the arrangement for and expense of lunches for children of school age in the public schools of this State shall be deemed a welfare benefit for which county taxes may be levied and used within the total limit authorized by the Act approved December 24, 1938.
(Approved March 11, 1943).
ILLITERACY Chapter 32-24. Duties, etc., of State Board of Education
Regarding Illiteracy. (As Amended 1943 Session) Section 32-2401. Duties; reports; authority to use funds, etc. It shall be the duty of the State Board of Education and it shall have the power to make researches, collect data and statistics and procure surveys of any and all communities, districts, or vicinities of the State, looking to the obtaining of a more detailed, definite and particular knowledge as to the true conditions of the State with regard to its adult illiteracy, and to encourage and promote the establishment of schools for adult illiterates and to cooperate with other State, County and Federal agencies in the elimination of adult illiteracy; and report regularly the results of its labors to the General Assembly; and to interest persons and institutions in the dispensation of any and all funds and endowments of whatsoever kind which will or may aid in the elimination of the adult illiteracy of the State, and to do or perform any other act which in their discretion will contribute to the elimination of the State's adult illiteracy by means
..-.

of education, instruction and enlightenment; and said Board shall be empowered to receive, accept, hold, own, distribute and expend, to the end of educating, instructing, enlightening and assisting in the education, instruction and enlightenment of illiterate persons in the State of Georgia, and all funds or other things of value with which it may be endowed or may otherwise receive; and in the expenditure and disbursement thereof said board shall be controlled by such expedient and discreet regulations as it may from time to time adopt; provided, however, that any and all such funds which may come to the hands of said board shall be expended in keeping with the general purpose of this Chapter."
(Approved March 16, 1943)
Section 32-2503. In those counties where neither the county Commissioners nor the ordinaries make provision for the establishment of schools for instructing adult illiterates in the elementary branches of an English education, the county boards of education shall have the power in their discretion to establish and conduct such adult schools and provide for the expenses of maintaining said schools out of any school funds which may be available for that purpose, and to cooperate with any State or Federal agency or authority in promoting adult education and reducing adult illiteracy within their respective counties."
(Approved March 2, 1943.)
SALARY OF STATE SCHOOL SUPERINTENDENT AS FIXED IN 1943 SESSION
SECTION 1. That the State Superintendent of Schools shall receive as compensation for his services as Executive Secretary of The State Board of Education and the administrative officer of the State Department of Education four thousand dollars ($4000.) per annum, payable in monthly installments, which shall be in addition to the salary provided by the Constitution for the State Superintendent of Schools, and shall not be otherwise compensated for any rservice rendered the State in any capacity.
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CHAPTER 32-9. COUNTY BOARD OF EDUCATION
SECTION 32-904, COMPENSATION OF MEMBERS From and after the passage of this Act the members of ehe
Board of Education in each county of this State shall be paid a perdiem not to exceed $5.00 for each days actual service out of the school fund appropriation to the county; and their accounts for service thall be submitted for approval to the Ordinary or County Superintendent of Schools; and they shall not receive any other compensation, such as exemption from road duty or jury duty. Provided, that nothing herein shall apply to any county in the state having a population of 80,000 or over according to the last United States Federal Census or any further Census,
(Approved March 5, 1943.)
A new section to be appropriately numbered as follows: "No member of any county board of education in this State shall sell to any county board of education any supplies or equipment used, consumed or necessary in the operation of any public school in this State." Section 2 Any member of any county Board of Education violating the
provisions of the above section shall be guilty of a misdemeanor and, upon conviction, shall be punished as for a misdemeanor.
Section 3 Should any provision of this Act be declared unconstitutional, it is hereby declared to be the intent of the General Assembly that the part of this Act not declared unconstitutional would have been enacted without the unconstitutional provision. (Approved March 17, 1943.)
CHAPTER 32-10 COUNTY SUPERINTENDENT OF SCHOOLS SECTION 32-1006. EMPLOYMENT OF CLERICAL HELP.
Each county superintendent of schools shall receive a minimum salary of $450 per annum, and an annual allowance of $150 for
11
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the purpose of defraying the expenses of visiting the schools within his county at least every 60 days, or a total of $600, which salary shall be paid out of the school funds of Georgia monthly; and in addition thereto, the county board of education shall allow such additional compensation for the services to be rendered as may be in their judgment proper and just. The county board of education may authorize the county superintendent of schools to employ clerical and office help and may compensate him for the expenses of such help as in their judgment is just and proper."
(Approved February 22, 1943.)
SECTION 32-1014. ANNUAL REPORTS.
"It shall be the duty of the County Superintendent of Schools to make a report of the School operations of the preceding fiscal year to the Grand Jury, at the Fall Term of the court, and to place his books before them for examination; and in making up the general presentments it shall be the duty of the jury to take proper notice of the matters thus brought to their attention."
(Approved March 17, 1943.)
CHAPTER 32-13. PAYMENT OF TEACHERS
SECTION 32-1301. BORROWING TO PAY TEACHERS.
''Pursuant to the amendment to Article VII, Section III, Paragraph 1 (Sec. 2-5101) of the Constitution of this State, authorizing the contraction by or on behalf of the State of a debt in an amount of $3,500,000 for the purpose of paying the public school teachers, the Governor is hereby authorized and empowered to execute a note or notes for such amount and for such time of payment as the condition of the treasury may demand, at any time in his discretion, for the purpose of paying the public school teachers. The aggregate of said note or notes shall not at any time exceed the aforesaid constitutional
12

limit and said note or notes shall not mature later than the last day of the fiscal year of this State during which the money is borrowed, and the principal amount so borrowed shall be repaid each fiscal year out of the common school appropriation, and the interest thereon shall be paid each fiscal year out of the general funds of the State, accrued during the fiscal year of issue of said notes. Said notes shall be signed by the Governor and countersigned by the Comptroller General and the Secretary of State."
SECTION 32-1301. GOVERNOR HAS NO AUTHORITY TO IMPRESS FUNDS.
"The Governor shall not during any fiscal year of this State, impress, use, or employ any funds in the treasury allocated or belonging to any special fund or purpose in excess of the borrowing power of the Governor under this Chapter." (Approved February 5, 1943.)
VOCATIONAL EDUCATION
CHAPTER 32-22. VOCATIONAL EDUCATION.
SECTION 1. It shall be the purpose of this act to more nearly equalize the educational opportunities in certain phases of vocational education, especially trade and industrial and distributive occupations, to persons of the state, who, in the discretion of the State Board of Education, are of the age that will make it possible for them to profitably pursue training for a specific occupation.
SECTION 2. Definition of local units.. For the purposes of this act, the several counties of the state and the various public independent school systems established by law shall be the local units of administration and shall be referred to in this act as local school units.
SECTION 3. All funds, whether state or federal or other funds, which may be made available to the State Board of Education for
13

carrying out the purposes of vocational education as provided by this act, shall be apportioned and distributed by the State Board of Education to the various local school units as additional aid for use in helping such local school units in defraying the cost involved in maintaining and operating approved vocational training courses or departments, subject to such reasonable rules and regulations as may be prescribed by the State Board of Education and in accordance with the approved State Plan for vocational education.
SECTION 4. The funds apportioned and distributed to local units for the purposes set forth in this act shall be apportioned on a per-trainee cost basis, as determined by the State Board of Education, for only those trainees living outside of the jurisdictional area of the local school unit.
SECTION 5. Nothing in this act shall give the State Board of Education authority to make it mandatory for local school units to establish and maintain vocational training progams or to participate in the use of funds that may be made available for carrying out the provisions of this act.
SECTION 6. The State Board of Education shall have the authority to:
(1) Approve applications from local school units within the state and to apportion and distribute any funds that may be made available as special or additional aid to local school units to pay for the cost of training persons enrolled in the vocational courses who come from sections of the state not under the jurisdictional area of the local school units:
(2) Set up standards of training in each occupation that must be maintained by a local school unit in order to obtain special aid for trainees enrolled in such training courses who live outside the jurisdictional area of the local school system;
(3) Establish age limits of trainees and entrance requirements to be met by trainees for each occupation in which training is offered;
(4) Provide for the inspection of courses or training programsto determine if the approved standards are being met;
14

'JR.
(5) Discontinue special or additional aid to a local school unit if, in the discretion of the State Board of Education, approved standards are not being maintained or other prescribed rules and regulations are not being followed.
SECTION 7. In order for a school system to receive any of the funds which may be made available for the purpose of vocational education and other purposes set forth in this act, the local school unit must allow enrollment of trainees from outside its jurisdictional area and permit them to attend approved vocational courses without cost of tuition to trainees.
SECTION 8. In the discretion of the State Board of Education, any funds that are made available for the purposes of this act may be used for providing transportation to and from the vocational training center for trainees living outside the jurisdictional area of the the local school unit.
SECTION 9. That in the discretion of the State Board of Education, any equipment, material, machinery, or other property, now owned and possessed, or may hereafter be acquired by purchase or gift by said State Board of Education, such as are now used in connection with teaching vocational education, may be apportioned and distributed by said State Board of Education to local units, herein defined, who desired to avail themselves of the benefits of this act, same to be so alloted, apportioned, and distributed under such rules and regulations as will more nearly equalize the vocational education opportunities of all in every section of the state.
SECTION 10. There shall be established by the State Board of Education a State Advisory Committee, composed of equal representation of labor and management, to advise the State Board of Education and its authorized representatives regarding policies and regulations governing the vocational education program which may be developed to carry out the provisions of this act.
SECTION 11. Nothing in this act shall affect the distribution of funds appropriated to the common schools under the SevenMonths School Eaw (Georgia Law, 1937, pages 882 to 892) ; Section 32-614 of Supplement to Code 1933, nor Section 32-948 of the Code of Georgia of 1933, relating to creating an equalization fund
15

for the public schools and providing for its distribution, but said law and section shall remain in full force and effect.
SECTION 12. That nothing in this act shall affect any of the provisions of Section 32-934 or of Section 32-2202 of the Code of 1933, but said sections shall remain of full force and effect, and the provisions of this act shall be an enlargement of such provisions therein made.
(Approved March 20, 1943.)
A RESOLUTION TO ENCOURAGE PHYSICAL TRAINING AND DISCIPLINE
WHEREAS, in this time of national crisis it is imperative that the youth of the State of Georgia be given the benefit of the maximum physical training and discipline which will insure their ability to share with their elders the responsibilities of winning this war for the preservation of American ideals and the perpetuation of democracy.
THEREFORE, BE IT RESOLVED BY THE SENATE (the House concurring) that we urge upon all of ihe school authorities of this State the immediate adoption of massed physical training classes in both the higher grades of the Grammar Schools as well as the High Schools, fo*~ both boys and girls.
BE IT FURTHER RESOLVED THAT in order to inculate the proper sense of discipline among the youth of school age it is desirable that wherever possible and where facilities can be provided and the necessary instructional talent made available, that orderly and regular voluntary military drill for boys be instituted and the proper time be allowed for these drill exercises during school hours, both indoors and outdoors, and that in pursuing this program appropriate provision also be made for universal instruction in first aid and physical fitness activities among the girls and that credit be allowed on school work for time devoted to these types of patriotic instruction.
(Approved February 4, 1943.)
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J*

SECTION 11 (d)--Intangibles--Classification Act.
Revenue derived from taxes on intangible personal property the taxable situs of which is within the county having a county-wide school system, shall be divided between the State, County General Fund, County School Fund, and the Municipal General Fund in the proportion that the millage rate for State purposes, for county purposes, for County School purposes, and for municipal purposes respectively bear to the grand total millage rate for all purposes applicable to real and tangible personal property similarly located;
PROVIDED, That the revenue derived from taxes on intangible personal property now paid into the General Fund of Incorporated Municipalities having Independent School Districts located therein, and for the support of which a tax is levied by the Municipality, shall be divided between the General Fund of said Incorporated Municipality and the Independent School District within such municipality, in the proportion that the millage rate levied for school purposes by such municipality bears to the total millage rate levied for all purposes by such municipality applicable to real and tangible personal property similarly situated.
(Approved March 17, 1943.)

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'--^--

AN ACT
To establish a retirement system for aged and incapacitated teachers in the State Public Schools and other state supported schools; to determine membership and conditions of membership in said system; To provide for a Board of Trustees of said system and for the administration of its affairs; To provide for the management of the funds of said system; To provide a method of financing said system; To repeal conflicting laws; and for other purposes. Be it enacted by the General Assembly of the State of Georgia, and it is hereby enacted by authority of the same:
Section 1
DEFINITIONS
The following words and phrases as used in this Act, unless a different meaning is plainly required by the context, shall have the following meanings:
(1) 'Retirement System" shall mean the Teachers' Retirement System of Georgia as defined in Section 2 of this Act.
(2) "Board of Trustees" shall mean the board of trustees as provided for in Section 6 of this Act to administer the retirement system.
(3) ''Public School" shall mean any day school conducted within the State under the authority and supervision of a duly elected or appointed county or independent board of education.
(4) "Employer" shall mean the State of Georgia, the county or independent board of education, the State Board of Education, the Board of Regents of the University System of Georgia, or any other agency of and within the State by which a teacher is paid.
(5) "Teacher" shall mean any person employed not less than half time in the public day schools as a classroom teacher, or in the supervision of the public schools, or any employee of the State Board of Education employed in a teaching or supervisory capacity
18

or any bona fide teacher or supervisor of teachers in any school operated by the State Department of Education, or any teacher or supervisor of teachers employed and paid by the Board of Regents of the University System of Georgia and all non clerical personnel of the Agricultural Extension Service of the University of Georgia. The word "teacher" shall include school librarians, and administrative officials who supervise teachers, and shall include Registrars of each unit of the University System and shall include Secretary and Treasurer of the Board of Regents. The Board of Trustees shall determine in doubtful cases whether any person is a teacher, as defined in this Act. In the event the Georgia Education Association and any full-time employee thereof requests the Board of Trustees to permit the Association as employer and such employee to make contributions as herein defined to provide retirement benefits for such employee, the Board may permit such employee to come under the operation of this Act as a teacher but the State shall make no contributions on account of such employee. The word "Teacher" shall not be deemed to include any emergency or temporary employee.
(6) "Member" shall mean any teacher included in the membership of the retirement system as provided in Section 3 of this Act.
(7) "Service" shall mean service rendered as a teacher a*nd paid for by the State or other employer.
(8) 'Prior service" shall mean service rendered prior to July 1, 1943, for# which credit is allowable as provided in Section 4 of this Act.
(9) "Membership Service" shall mean service as a teacher rendered while a member of the retirement system for which credit is allowable as provided in Section 4 of this Act.
(10) "Creditable Service" shall mean prior service plus membership service.
(11) ''Regular Interest" shall mean interest compounded annually at such a rate as shall be determined by the Board of Trustees in accordance with Section 6, Subsection (14) of this Act.
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(12) "Accumulated contributions" shall mean the sum of all the amounts deducted from the compensation of a member and credited to his individual account in the annuity savings fund, together with regular interest thereon, as provided in Section 8, Subsection (1), of this Act.
(13) "Earnable compensation" shall mean the full rate of regular compensation, excluding any part of compensation in excess of three thousand dollars per annum, payable to a member teacher for his full normal working time; in cases where compensation includes maintenance, the Board of Trustees shall fix the value of that part of the compensation not paid in money.
(14) "Average final compensation" shall mean the average annual earnable compensation of a teacher during the last five years of creditable service, or, if he has had less than five years of creditable service, his average annual earnable compensation during his total creditable service.
(15) "Annuity" shall mean annual payments for life derived from the accumulated contributions of a member.
(16) "Pension" shall mean annual payments for life derived from contributions of the State or other employer.
(17) 'Retirement allowance" shall mean the sum of the annuity and the pension, or any optional benefit payable in lieu thereof as provided in Section 5, Subsection (8), of this Act. All retirement allowances shall be payable in equal monthly installments: except that the Board of Trustees may pa,y in lieu of a retirement allowance of less than ten dollars per month, a lump sum equivalent actuarial value.
(18) "Retirement" shall mean withdrawal from service with a retirement allowance granted under the provisions of this Act.
(19) "Beneficiary" shall mean any person in receipt of a pension, an annuity, a retirement allowance or other benefit as provided by this Act.
(20) "Annuity reserve" shall mean the present value of all payments to be made on account of an annuity, or benefit in lieu
20

of an annuity, computed at regular interest upon the basis of the mortality tables adopted by the Board of Trustees.
(21) ''Pension reserve" shall mean the present value of all payments to be made on account of a pension, or benefit in lieu of a pension, computed at regular interest upon the basis of the mortality tables last adopted by the Board of Trustees.
(22) "Actuarial equivalent" shall mean a benefit of equal value when computed at regular interest upon the basis of the mortality tables last adopted by the Board of Trustees.
(23) "Local retirement fund" shall mean any teachers' retirement fund or other arrangement for the payment of retirement benefits to teachers, maintained during the calendar year 1943 wholly or in part by contributions made by an employer as defined by this Act, exclusive of the system created by this Act.
(24) "Commencement date" shall mean January 1, 1945, or as soon thereafter as the Board of Trustees shall determine, for the commencement of contributions by the State, by employers and members, for the annuities and pensions provided by this Act.
Section 2
NAME OF ESTABLISHMENT.
A retirement system is hereby established and placed under the management of the Board of Trustees for the purpose of providing retirement allowances and other benefits under the provisions of this Act for teachers of the State of Georgia. It shall have the power and privileges of a corporation, the right to sue and be sued, to implead and be impleaded, and shall be known as the "Teachers Retirement System of Georgia," and by such name all of its business shall be transacted, all of its funds invested and all of its cash and securities and other property held.
Section 3
MEMBERSHIP.
(1) Any person who becomes a teacher after January 1, 1944,
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shall become a member of the retirement system as a condition of his employment, except as herein otherwise provided.
(2) Any person who was a teacher on January 1, 1943, or becomes a teacher prior to January 1, 1944, shall become a member unless prior to January 1, 1944 he files with the Board of Trustees on a form provided by the Board a notice of his election not to be included in the membership of the system and a duly executed waiver of all present and prospective benefits which would otherwise accrue to him by participating in the system. Such a teacher who elects not to become a member may thereafter apply for and be admitted to membership, but without credit for service rendered after July 1, 1943, and prior to the time he becomes a member, and without prior service credit.
(3) A teacher otherwise eligible shall be classified as a member only while he is in the service of an employer not operating a local retirement system.
(4) The membership of any member shall terminate if he dies, retires under this retirement system, or withdraws his contributions, or if in a period of three consecutive years after becoming a member he renders less than one year of service, or if after he becomes a member he is employed by an employer operating a local retirement fund. Notwithstanding the foregoing, the Board of Trustees may continue the membership of a member while in the armed forces of the United States or other emergency wartime service of the United States approved in advance by the Board of Trustees, or if he ceases to be a member by reason of illness preventing him from rendering service for as much as one year in a period of three consecutive years, or if the failure of such teacher to render service for the required time is due to absence on maternity leave. No benefit under the retirement system other than the payment of the contributions of such a teacher with allowable interest credits shall become payable to him or on his account while he is not in service as a teacher and no contribution shall be made to this system by the State or other employer by reason of his service during any such time, except as herein otherwise provided.
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Section 4
CREDITABLE SERVICE.
(1) The Board of Trustees shall fix and determine by appropriate rules and regulations how much service in any year is equivalent to one year of service, but in no case shall more than one year of service be creditable for all service in one calendar year. Service rendered for a regular school year shall be equivalent to one year's service.
(2) Under such rules and regulations as the Board of Trustees shall adopt, each member who was a teacher at any time during the calendar year 1943, shall file a detailed statement of all service as a teacher rendered by him prior to July 1, 1943, for which he claims credit. In the event any person who would otherwise have qualified under this Subsection shall be on leave in the armed forces of the United States, any such person shall have until six months after termination of his military service to qualify under the provisions hereof. Upon verification of such statement of service, the Board of Trustees shall issue a prior service certificate, certifying to the member the period of service prior to July 1, 1943 with which he is credited on the basis of his statement of service, and certifying the amount of his "prior service accumulations" as defined in Subsection (3) of this Section 4. So long as membership continues a prior service certificate shall be final and conclusive for retirement purposes as to such service; provided, however, that a member may, within one year from the date of issuance or modification of such certificate, request the Board of Trustees to modify or correct his prior service certificate. When membership ceases, such prior service certificate shall become void.
(3) The prior service accumulations of a member shall be equal to the amount of the contributions he would have made had the retirement system been in operation, together with regular interest thereon to July 1, 1943 at the rate of regular interest in effect on that date, if he had made contributions during his prior service with respect to his earnable compensation as defined in Section 1, Subsection (13), including service in a school system in this State which operates or operated a local retirement fund. In determining the
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earnable compensation of any member for the years of his prior service, the Board may use, in lieu of the compensation received by the member during his prior service, the rates of compensation which, if they had progressed during such prior service in accordance with the tables adopted by the Board as provided in Section 6, Subsection (14) of this Act, would have resulted in the same average final compensation on July 1, 1943 as the records show the member received.
(4) Creditable service at retirement on which the retirement allowance of a member shall be based shall consist of the membership service rendered by him since he last became a member, after the commencement date, and, if he has a prior service certificate in full force and effect, the amount of the service certified on his prior service certificate.
Section 5
BENEFITS.
SERVICE RETIREMENT BENEFIT
(1) (a) Any member in service may retire on a service retirement allowance upon written application to the Board of Trustees setting forth at what time, not less than thirty days, nor more than ninety days, subsequent to the execution and filing thereof, he desires to be retired, provided the member at the time so specified for retirement has attained age sixty and notwithstanding that during such period of notification he may have separated from service.
(b) Any member in service who on the commencement date has attained age seventy or who thereafter attains age seventy shall be retired forthwith on a service retirement allowance; except that with the approval of his employer he may remain in service until the end of the school year. Upon the recommendation of the employer and approval by the Board of Trustees a member may be continued in service for a period of one year following each such recommendation and approval, but not beyond June 30, 1949.
ALLOWANCE ON SERVICE RETIREMENT
(2) Upon service retirement a member shall receive a service retirement allowance which shall consist of:
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(a) An annuity which shall be the actuarial equivalent of his accumulated contributions at the time of his retirement; and
(b) A pension equal to the annuity allowable at age sixty computed on the basis of his contributions made prior to the attainment of age sixty.
(c) If he has a prior service certificate in full force and effect, and additional pension which shall be equal to the annuity which would have been provided at age sixty by twice the amount of his prior service accumulations as defined in Section 4, Subsection (3), of this Act, with regular interest thereon as from time to time in effect from the. date of establishment to his attainment of age sixty.
DISABILITY RETIREMENT BENEFIT
(3) Any member in service may be retired by the Board of Trustees on a disability retirement allowance upon written application to the Board of Trustees made by such member or by his employer, not less than thirty days nor more than ninety days subsequent to the execution and filing thereof, provided such member has fifteen or more years of creditable service, and provided the Medical Board, after a medical examination of such member, shall certify that he is mentallv or physically incapacitated for the further performance of duty, that such incapacity is likely to be permanent and that he should be retired.
ALLOWANCE ON DISABILITY RETIREMENT
(4) Upon disability retirement a member shall receive a service retirement allowance if he has attained age sixty, otherwise he shall receive a disability retirement allowance which shall consist of:
(a) An annuity which shall be the actuarial equivalent of his accumulated contributions at the time of his retirement.
(b) A pension equal to seventy-five per centum of the pension that would have been payable upon service retirement at age sixty had he continued in service to age sixty without further change in compensation.
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RE-EXAMINATION OF BENEFICIARIES RETIRED ON ACCOUNT OF DISABILITY
(5) Once each year during the first five years following retirement of a member on a disability retirement allowance, and once in every three-year period thereafter, the Board of Trustees may require a disability beneficiary who has not yet attained age sixty to undergo a medical examination, such examination to be made at his place of residence or other place mutually agreed upon, by a physician or physicians designated by the Medical Board, and such a beneficiary may himself request such an examination. Should any disability beneficiary who has not yet attained age sixty refuse to submit to such medical examination, his pension may be discontinued by the Board of Trustees until his withdrawal of such refusal, and should his refusal continue for one year all his rights in and to his pension may be revoked by the Board of Trustees. Should the Medical Board report and certify to the Board of Trustees that a disability beneficiary is engaged in or is able to engage in a gainful occupation paying more than the difference between his retirement allowance and his average final compensation, the Board of Trustees may reduce his pension to an amount which, together with his annuity and the amount earnable by him, equals his average final compensation. Should his earning capacity be later changed, the amount of his pension may be further modified; provided that the new pension shall not exceed the amount of the pension originally granted nor an amount which, when added to the amount earnable by him together with his annuity, equals his average final compensation.
RESTORATION OF BENEFICIARIES TO MEMBERSHIP
(6) If a beneficiary is restored to service and received annual compensation of not less than his average final compensation, his retirement allowance shall cease, and he shall again become a member of the retirement system and contribute thereafter. Anything in this Act to the contrary notwithstanding, any prior service certificate on the basis of which his creditable service was computed at the time of his retirement shall be restored to full force and effect, and upon his subsequent retirement he shall be credited with
26


all his service as a member but should he be restored to service on or after the attainment of age 50, his pension upon subsequent retirement shall not exceed the sum of the pension which he was receiving immediately prior to his last restoration to membership and the pension payable in respect to his service since his last restoration to membership.
RETURN OF CONTRIBUTIONS
(7) If a member ceases to be a teacher other than by death or by retirement under this retirement system, the amount of his contributions to this retirement system shall be payable to him upon his request, with no interest credits thereon if he has less than five years of membership service or with three-quarters of the regular interest credited thereon to the time he ceases to be a member, if he has five or more years but less than fifteen years of membership service, or with the full regular interest thereon to the time he ceases to be a member if he has fifteen years or more membership service. If a member dies, the amount of his accumulated contributions, with interest credits, thereon, according to his length of service as in this subsection specified, shall be paid to the person, if any, nominated by him by written designation duly executed and filed with the Board of Trustees; otherwise, to the member's estate.
OPTIONAL ALLOWANCES
(8) Until the first payment of any member's retirement allowance becomes normally due, he may elect to convert the retirement allowance, otherwise payable to him, into a modified retirement allowance of equivalent actuarial value in accordance with one of the optional forms named below; provided, however, that if he dies within thirty days after retirement, his optional election shall not be effective, and he shall be considered to be a member in active service at the time of his death.
Option 1. A reduced retirement allowance payable during the life of the retired member, with the provision that if he dies before he has received in payments of his annuity the amount of
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his accumulated contributions at the time of his retirement, the balance of such amount shall be paid to the person, if any, nominated by him by written designation duly executed and filed with the Board of Trustees, otherwise to the retired member's estate.
Option 2. A reduced retirement allowance payable during the life of the retired member, with the provision that after his death the reduced retirement allowance shall be continued throughout the life of and paid to the person nominated by him by written designation duly executed and filed with the Board of Trustees at the time of his retirement.
Option 3. A reduced retirement allowance payable during the life of the retired member, with the provision that after his death one-half of the reduced retirement allowance shall be continued throughout the life of and paid to the person nominated by him by written designation duly executed and filed with the Board of Trustees at the time of his retirement; or
Option 4. A reduced retirement allowance payable during the life of the retired member, with the provision that upon his death some other benefit shall be payable; provided, that the total value of the retirement allowance payable during his life and the succeeding benefit shall be computed to be of equivalent actuarial value to the retirement allowance which he would receive without optional modification and provided that the benefit shall be approved by the Board of Trustees.
TIME WHEN SERVICE BENEFITS BECOME EFFECTIVE
(9) No member shall retire or receive benefits under this retirement system prior to the commencement date, but any person eligible for service retirement or disability benefits after January 1, 1943, and prior to the commencement date shall be entitled to the benefits provided by this Act, even though he is not a teacher on the commencement date.
Section 6
ADMINISTRATION-BOARD OF TRUSTEES
(1) The administration and responsibility for the proper
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operation of the retirement system and for making effective the provisions of this Act are hereby vested in the Board of Trustees, which shall be organized immediately after a majority of the trustees provided for in this Section 6 have qualified and taken the oath of office.
(2) The Board of Trustees shall consist of seven trustees as follows:
(a) The State Auditor, ex-officio.
(b) The State Insurance Commissioner, ex-officio.
(c) The Secretary of the Georgia Education Association, ex-officio.
(d) One member, a school administrator or a school principal; one member, an employee of the Board of Regents of the University System of Georgia; and, one member, a classroom teacher not an employee of said Board of Regents. The members referred to in this paragraph shall be elected for a term of three years each by the Assembly of the Georgia Education Association in accordance with such rules as the Board of Trustees shall adopt to govern such election; provided, however, that two of the three members herein referred to shall first be appointed by the State Board of Education, one for a term from the date of appointment to June 30, 1944, and one for a term from the date of appointment to June 30, 1946, and the third member shall be first appointed by the Board of Regents to serve for a term from the date of appointment to June 30, 1945.
(e) The seventh trustee shall be a citizen of the StaLe, not a member of the retirement system, who shall be experienced in the investment of moneys and who shall be elected by the remaining six trustees for a term of four years. The first such term to expire June 30, 1947.
(3) If a vacancy occurs in the office of a trustee, the vacancy shall be filled for the unexpired term by the remaining trustees.
(4) The trustees shall serve without compensation, but shall be reimbursed from the expense fund provided for in Section. 8, Sub-
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section (5), of this Act, for all necessary expenses that thev mav incur through service on the Board of Trustees.
(5) Each trustee shall, within ten days after 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 Board of Trustees, and that he will not knowingly violate or willingly permit to be violated any of the provisions of law applicable to the retirement system. Such oath shall be subscribed to by the trustee making it and certified by the officer before whom it is taken, and shall be filed immediately in the office of the Secretary of State.
(6) Five trustees at any meeting of the Board of Trustees shall constitute a quorum to transact business. Each trustee shall be entitled to one vote in the Board, and four votes shall be necessary for a decision by the Board.
(7) Subject to the limitations of this Act, the Board of Trustees may, from time to time, establish rules and regulations for the administration of the funds created by this Act and for the transaction of its business.
(8) The Board of Trustees shall elect from its membership a Chairman and shall elect a Secretary who shall not be one of its members. The Board shall engage such actuarial and other services as shall be requied to transact the business of the retirement system. The compensation of all persons engaged by the Board, and all other expenses of the Board necessary for the operation of the system shall be paid at such rates and in such amounts as the Board of Trustees shall approve.
(9) The Board of Trustees shall keep in convenient form such data as shall be necessary for actuarial valuations of the various funds of the retirement system, and for checking the experience of the system.
(10) The Board of Trustees shall keep a record of all of its proceedings, which shall be open to public inspection. It shall publish annually a report showing the fiscal transactions of the retirement system for the preceding year, the amount of the accumulated cash and securities of the system, and the last balance sheet showing
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the financial condition of the system by means of an actuarial valuation of the contingent assets and liabilities of the system.
Legal Advisor
(11) The State Attorney General shall be the legal advisor of the Board of Trustees.
Medical Board
(12) The Board of Trustees shall designate a Medical Board of three physicians not eligible to participate in the retirement system. If required, other physicians may be employed to report on special cases. The Medical Board shall arrange for and pass upon all medical examinations required under the povisions of this Act, and shall report in writing to the Board of Trustees its conclusions and recommendations upon all the matters referred to it.
Duties of Actuary
(13) The Board of Trustees shall designate an actuary who shall be the technical advisor of the Board on matters regarding the operation of the funds created by the provisions of this Act, and who shall perform such duties as are required in connection therewith.
(14) From time to time and at least in every five year period, the actuary shall make an actuarial investigation into the mortality, service and compensation experience of the members and the beneficiaries of the retirement system, and recommned for adoption by the Board of Trustees mortality, service and other tables needed in the operation of the system, and taking into account the results of such investigations the Board from time to time shall adopt for the system such mortality, service and other tables as it shall deem necessary, for use in all calculations required in connection with this system. The Board shall also determine from time to time the rate of regular interest for use in all calculations required in connection with the system, limited to a minimum of 2 per centum and a maximum of 4 per centum, with the rate of 3% per centum applicable until changed by the Board.
(15) On the basis of regular interest and the tables last adopted
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a

by the Board of Trustees, the actuary shall make annual valuations of the contingent assets and liabilities of the retirement system.
Section 7
MANAGEMENT OF FUNDS
(1) The members of the Board of Trustees shall be the trustees of the retirement system, and shall have full power to invest and reinvest such assets, subject to all the terms, conditions, limitations and restrictions imposed upon the laws of the State of Georgia upon domestic life insurance companies in the making and disposing of their investments; and, subject to like terms, conditions, limitations and restrictions, and trustees shall have full power to hold, purchase, sell, assign, transfer and dispose of any of the securities and investments in which any of the assets of the system are invested, including the proceeds of any investments and any money belonging to the system.
(2) The Treasurer of the Board of Trustees who shall be appointed by the Board, and subject to the rules and regulations of the Board, shall be the Treasurer of the Assets of the retirement system. All payments of the funds of the system shall be made by the Treasurer only upon vouchers signed by the Treasurer and countersigned by one other person designated by the Board of Trustees. The Treasurer of the Board of Trustees shall furnish the Board of Trustees a surety bond in a company authorized to do business in the State of Georgia in such an amount as shall be required by the Board, the premium to be paid from the expense fund provided for in Section 8 Subsection (5), of this Act; provided that if the Treasurer is a corperate trustee authorized to do business as such under the laws of this State, no such bond shall be required in the discretion of the Trustees.
(3) For the purpose of meeting disbursements for pensions, annuities and other payments, there may be kept available cash on deposit in one or more banks or trust companies organized under the laws of the State of Georgia or of the United States; provided that the sum on deposit in any one bank or trust company shall not exceed twenty-five per centum of the paid up capital and surplus of
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each bank or trust company; and provided, that each bank shall give a depository bond in an amount sufficient to cover the deposits or each bank shall place in trust a sufficient amount of Federal or State securities to cover the deposits.
(4) Except as otherwise provided in this Act, no trustee or employee of the Board of Trustees shall have any personal interest in the gains or profits from any investment made by the Board, or use in any manner, directly or indirectly, for himself or as an agent, the assets of the retirement system, except to make such payments as are authorized by the Board in accordance with the provisions of this Act.
Section 8
METHOD OF FINANCING
All of the assets of the retirement system shall be credited according to the purpose for which they are held among five funds to be known as the annuity saving funds, the annuity reserve fund, the pension accumulation fund, the pension reserve fund and the expense fund.
ANNUITY SAYINGS FUND
(1) The annuity savings fund shall be the fund in which shall be accumulated the contributions deducted from the compensations of members to provide for their annuities. Contributions to and payments from annuities savings fund shall be made as follows:
(a) Each employer shall cause to be deducted from the salary of each member for each and every payroll period (after the commencement date) five per centum of his earnable compensation, but the employer shall not have any such deduction made from the compensation of a member who elects not to contribute if he has attained age sixty and has completed thirty-five or more years of service. In determining the amount earnable by a member in a payroll period, the employer may consider the annual rate of compensation payable to such member on the first day of the payroll period as continuing throughout such payroll period, and it may omit the
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^^B^^HH^^^^MMHMH
deduction from compensation for any period less than a full payroll period if a teacher was not a member on the first day of the payroll period, and to facilitate in making of deductions the employer may modify the deductions required of any member but not more than one-tenth of one per centum of the annual compensations upon the basis of which such deductions are to be made. Each employer shall immediately pay to the Board of Trustees, in such manner as the Board shall prescribe, the amounts deducted, which shall be credited by the Board to the individual accounts in the annuity savings fund of the member from whose compensation the deductions were made.
fb) The deductions provided for herein shall be made notwithstanding that the minimum compensation provided for by law for any member shall be reduced thereby. Every member shall be deemed to consent and agree to the deductions made and provided for herein, and payment of salary or compensation less such deductions shall be a full and complete discharge and acquittance of all claims and demands whatsoever for the services rendered by such person during the period covered by such payment, except as to the benefits provided under this Act.
(c) In addition to the contributions deducted from the compensation of members as herein before provided, any member may, subject to the approval of the Board of Trustees, and such conditions as the Board may prescribe, redeposit in the annuity savings fund by a single payment or by an increased rate of contribution an amount equal to the total amount which he previously withdrew therefrom as provided in this Act, or any part thereof; or any member may, subject to the approval of the Board and such conditions as the Board may prescribe, deposit therein by a single payment or by an increased rate of contribution an amount computed to be sufficient to purchase an additional annuity which, together with his prospective retirement allowance, will provide for him a total retirement allowance of not more than one-half of his average final compensation at age sixty. Such additional amounts so deposited shall become a part of his accumulated contributions; provided that upon retirement they shall be treated as excess contributions return-
34

it
able to the member as an annuity of equivalent actuarial value and shall not be considered in computing the pension.
(d) The contributions of a member withdrawn by him, or payable in the event of his death, shall be paid from the annuity savings fund, and any balance of the accumulated contributions standing to the credit of his individual account shall be transferred from the annuity savings fund to the pension accumulation fund. Upon the retirement of a member, his accumulated contributions shall be transferred from the annuity savings fund to the annuity reserve fund.
(e) Notwithstanding the preceding provisions, no deductions shall be made from a member's salary if the employer's contribution as to such member is in default.
ANNUITY RESERVE FUND.
(2) The annuity reserve fund shall be the fund in which shall be held the reserves on all annuities in force and from which shall be paid all annuities, and all benefits in lieu of anuities, payable as provided in this Act. Should a beneficiary be restored to membership, his annuity reserve shall be transferred from the annuity reserve fund to the annuity savings fund and credited to his individual account herein.
PENSION ACCUMULATION FUND (3) The pension accumulation fund shall be the fund in which shall be accumulated all reserves for the payment of all pensions and other benefits payable from contributions made by employers, as follows:
(a) The contributions of employers of members shall consist of a percentage of the earnable compensation of members to be known as the normal contribution, and an additional percentage of such earnable compensation to be known as the accrued liability contribution. The rate per centum of such contribution shall be fixed on the basis of the liabilities of the retirement system as shown by actuarial valuation, as provided for in Section 6, Subsection (15) of
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HMHHBi
this Act. Until the first valuation, the percentage normal contribution rate shall be 2.73 per centum of each member's earnable compensation and the percentage accrued liability contribution rate shall be 4.10 per centum of each member's earnable compensation.
(b) The percentage normal contribution rate shall be determined after each actuarial valuation. Until all accrued liability contributions have been completed, the percentage normal contribution rate shall be determined on the basis of regular interest and the tables last adopted by the Board of Trustees, as the uniform and constant percentage of the earnable compensation of the average new entrant member which, if contributed on the basis of his prospective earnable compensation throughout his entire period of active service would be sufficient to provide for the payment of any pension payable on his account. After all accrued liability contributions have been completed, the normal contribution rate shall be the rate per centum of the earnable compensation of all members obtained by deducting from the total liabilities of the pension accumulation fund the amount of the funds in hand standing to the credit of the pension accumulation fund, and dividing the remainder by one per centum of the present value of the prospective future earnable compensation of all members.
(c) Immediately following, the first actuarial valuation, the percentage accrued liability contribution rate shall be computed as the rate per centum of the total earnable compensation of all members which is equivalent to four per centum of the total liability of the pension accumulation fund in excess of the funds in hand standing to the credit of the pension accumulation fund, which is not dischargable by the normal contributions payable in respect of members during the remainder of their active service. The amount of funds for the credit of each annual accrued liability contribution account shall be at least three per centum greater than the amount placed to the credit of each accrued liability contribution account in the previous year and in no event shall the accrued liability contribution in any year be less than the amount which when combined with the normal contributions and the amount of funds in hand standing to the credit of the pension accumulation fund (will pro-
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'
vide all payments and transfers from the pension accumulation) as required by this subsection (3) during the year then current. The accrued liability contribution shall be discontinued as soon as the amount of the funds standing to the credit of the pension accumulation fund equals the present value, as actuarially computed, and approved by the Board of Trustees, of the total liabilities of the pension accumulation fund less the present value of the normal contributions to be made at the normal contribution rate then in force in respect of all persons who are at that time members.
(d) In addition to the 5% contribution of each member for an annuity savings fund as provided for in Section 8, Subsection (la) that part of the cost for pensions under this retirement system which is to be borne by appropriation from the State payable to the Board of Trustees shall consist of the normal and accrued liability contributions based on the part of the earnable compensation of members payable from State Teacher salary funds as provided by law, or from funds of the Board of Regents of the University System of Georgia, or from other funds of the State, at the rates provided in Section 8, Subsection (3a) and the balance of the cost for pensions, consisting of the normal and accrued liability contributions at the rates provided in Section 8, Subsection (3a), based on the part of the earnable compensation of members not payable from State teachers' salary funds, or from other funds of the State, shall be borne by the employers having contributing members in their employ, and each employer having contributing members in its employ shall pay immediately such contributions to the Board of Trustees, to be credited to the pension accumulation fund.
(e) All interest and dividends earned on the funds of the retirement system shall be credited to the pension accumulation fund. Once each year the Board of Trustees shall transfer from the pension accumulation fund to the annuity savings fund, the annuity reserve fund and the pension reserve fund, respectively, amounts sufficient to allow regular interest on the balances of the individual accounts of members in the annuity savings fund and to allow regular interest on the mean amounts of the reserves in the annuity reserve fund and the pension reserve fund.
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M
(f) All pensions, or benefits in lieu of pension, payable to or on account of members entitled to credit for prior service shall be paid from the pension accumulation fund. Upon the retirement of the member not entitled to credit for prior service, an amount equal to his pension reserve shall be transferred from the pension accumulation fund to the pension reserve fund. The Board of Trustees in its discretion may transfer from time to time to the pension accumulation fund the amount of any surplus which may develop in the reserves held in the annuity reserve fund or the pension reserve fund as shown by actuarial valuation, or may transfer from time to time from the pension accumulation fund the amount of any deficit which develops in the reserves held in the annuity reserve fund or the pension reserve fund as shown by actuarial valuation.
PENSION RESERVE FUND (4) The pension reserve fund shall be the fund in which shall be held the reserves on all pensions granted to members not entitled to credit for prior services, and from which such pensions, and benefits in lieu thereof, shall be paid. If a beneficiary receiving a pension from the pension reserve fund is restored to membership. his pension reserve shall be transferred from the pension reserve fund to the pension accumulation fund. If the pension of a disability beneficiary receiving a pension from the pension reserve fund is reduced as a result of an increase in his earning capacity, the amount of the reduction in his pension shall be transferred annually from the pension reserve fund to the pension accumulation fund.
EXPENSE FEND (5) The expense fund shall be the fund to which shall be credited from the State funds provided by an appropriation to pay the administrative expense of the retirement system, and from which shall be paid all expense incurred in the administration and operation of the system.
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J*.
APPROPRIATION REQUESTS
(6) Thirty days prior to the time the State Board of Education fixes the minimum schedule of teachers' salaries for the ensuing year, the percentage normal and accrued contribution rates as determined on the basis of the last annual actuarial valuation shall be certified by the Board of Trustees to each employer having members in its employ. Each employer other than the State having members in its employ shall include in its budget filed with the State Superintendent of Schools, amounts equal to the contributions on account of contributing members in its employ for the ensuing year. The State Board of Education and the Board of Regents in their estimates submitted to the Governor and General Assembly of the funds necessary for the operation of their respective School Systems shall include a request for an appropriation payable to the Board of Trustees, in an amount equal to the aforesaid percentages of the part of the earnable compensation of members payable from State teacher salary or from friends of the Board of Regents or from other State funds and for an additional amount as expense for the operation of the Act, provided that the percentage contribution rates for pensions beginning on the commencement date and until changed, as herein provided shall be as set forth in Subsection (3), Paragraph (a), of this Section 8. The General Assembly shall make appropriations to the Board of Trustees sufficient to provide for the said contributions equal to the aforesaid percentages as a part of the earnable compensation of members payable from State teacher salary funds and for the necessary expense to carry out this act.
DATE OF COMMENCEMENT OF CONTRIBUTIONS
(7) No contributions to the retirement system shall be made by the State, by employers or by members prior to the commencement date, except the contributions of the State for an expense fund to pay the expenses of setting up and operating the retirement system prior to that date. On January 1, 1945, or as soon thereafter as the Board of Trustees shall determine, herein defined, as the "commencement date," the Board of Trustees shall notify all employers and the employers shall notify the members, that contribu-
39

tions will commence on said date, and thereupon the provisions of this act with reference to such contributions will go into effect. In determining the commencement date, the Board of Trustees shall be governed by the money made available by the State to carry this Act into effect.
Section 9
MEMBERS OF LOCAL RETIREMENT FUNDS
(1) Teachers in the service of an employer operating a local retirement fund shall not be members of the retirement system established in this Act and such teachers shall make no contributions to this retirement system and shall be eligible for pension benefits under this retirement system only as provided in this Section 9. If such a teacher retires under the provisions of his local retirement fund and if at the time of his retirement he would have been eligible for service retirement under the provisions of his retirement system had he been a member, the Board of Trustees shall pay from this system to the managing board of the local retirement fund a pension equal to the pension for membership service which would have been payable under this system in respect of the part of his earnable compensation payable from State funds if such member had been classified as a member of this system immediately prior to the time of his retirement; and, if, as hereafter provided, he has a prior service certificate in full force and effect, the Board shall also pay the pension that would have been payable on account of the prior service accumulations certified thereon; provided that the excess of any such pension payable under this system over the retirement income provided by the local retirement fund by contributions of the employer, shall be payable to the retired teacher, and not to the local retirement fund. It shall be the duty of the employers operating local retirement funds to report to the Board of Trustees annually or at such other intervals as shall be set by the Board, the earnable compensation paid from State funds of each teacher in their employ paid from State funds and such other information as
may be needed for establishing the prospective benefit of the member.
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(2) Within ninety days, prior to January 1, 1944, each employer having a local retirement fund shall report to the Board of Trustees a complete list of all teachers in his employ, giving for each such teacher the date of birth, years of service, and salary, showing the amount of such salary which is paid from State funds and such other information as shall be needed by the Board of Trustees in order to establish for each teacher a prior service credit on account of the salary of such teacher paid from State funds, and such Board of Trustees shall then issue to such teacher a prior service certificate which shall continue in force so long as such teacher remains in the employ of such employer, or in the service of an employer not having a local retirement fund, without a break in service which would have resulted in the cancelling of such certificate had the teacher been a member of such system. Should a member of the system enter the employ of an employer operating a local retirement fund, he shall cease to contribute to this retirement system and become subject to the provisions of the local retirement fund but he shall not lose his previous accrued credits in the State Retirement system so long as he continues in the service of such employer, and he shall accrue additional credits on such part of his salary as is paid from State funds.
(3) Should a teacher in the service of an employer operating a local retirement fund become a member of this retirement system by entrance into the service of an employer, without a local retirement fund, he shall contribute to the State System while so employed and continue with the previous credits in the State System which he had at the time of becoming a member.
(4) Notwithstanding any other provisions of this Act, the actuary in determining the normal and accrued liability contributions, and the Board in setting such contributions and the amount of the appropriations to be paid by the State to the Pension Accumulation Fund, shall include the liabilities on account of the State Compensation paid to teachers in the employ of employers having local retirement funds, and the pension payable from the Pension Accumulation Fund and the Pension Reserve Fund shall include those payable on account of teachers in the service of employers having local funds as provided in this Section.
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(5) If the majority of teachers in the service of an employer operating a local retirement fund vote to discontinue the local retirement fund and the employer approved such discontinuance, the local retirement fund shall be dissolved and its operation discontinued as of a date to be set by the employer. Teachers in the employ of such employer shall thereupon become eligible for membership in this retirement system. Within one year after the dissolution of the local retirement fund, its managing board shall pay to each teacher covered by the local retirement fund the amount, if any, which would have been payable under the local retirement fund as a withdrawal benefit and his employment terminated on the date of dissolution. If the assets of the local fund are not sufficient to make the aforesaid payments in full to or in respect of all teachers, the payments made shall be reduced in the ratio that the amount of such asset bears to the total of such payments, if made in full or if a balance remains after making such payments in full, to or in respect of all teachers, such balance shall be paid by the managing board of the local retirement fund to the employer. Upon the dissolution of any local retirement fund, in accordance with this Subsection (5), the employer shall become liable for and shall pay all pensions entered upon and in effect at the time the local retirement fund is dissolved.
(6) If any local retirement fund shall be dissolved as herein provided within six months after the commencement date, teachers in the service of such employer shall be entitled to become members of this system as of the date of such dissolution, and shall be entitled to prior service credits as herein provided for other members, for service previous to July 1", 1943, and shall be entitled to creditable service after the date of such dissolution.
(7) Anything in this Section 9 to the contrary notwithstanding, an employer operating a local retirement fund may elect to have benefits payable under this system in respect of earnable compensation in excess of the part of earnable compensation payable from the State Funds, and, if the Board of Trustees of this system approved, an actuarial valuation shall be made by the actuary of this system to determine the amount of the additional contributions payable by the employer to provide such additional benefits. Upon
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agreement of the employer to provide such additional contributions by uniform payments over a period of not more than twenty years, such additional credits shall be allowed the members in the employ of such employer as will result in the payment of such additional benefits at retirement.
Section 10
EXEMPTIONS FROM EXECUTION
The right to a pension, an annuity, or a retirement allowance, to the returns of contributions, the pension, annuity or retirement allowance itself, any optional benefits or any other right accrued or accruing to any person under the provisions of this Act, and the moneys in the various accounts created by this Act, are hereby exempt from any State, county or municipal tax, and exempt from levy and sale, garnishment, attachment or any other process whatsoever, and shall be unassignable except as in this Act, specifically other-wise provided.
Section 11
PROTECTIONS AGAINST FRAUD: ERRORS
Any person who shall knowingly make any false statements or shall falsify or permit to be falsified any record or records of the retirement system, in any attempt to defraud the system as a result of such Act shall be guilty of misdemeanor, and on conviction thereof by any court of competent jurisdiction shall be punished by a fine not exceeding five hundred dollars, or imprisonment not exceeding twelve months, or both, such fine and imprisonment to be at the discretion of the court. Should any change or error in the records result in any member of beneficiary receiving from the retirement system more or less than he would have been entitled to receive had the records been correct, the Board of Trustees shall have the power to correct such error and to adjust as far as practicable the payments in such a manner that the actuarial equivalent of the benefit to which such member or beneficiary was correctly entitled shall be paid.
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