ALBERT C. RITCHIE, GOVERNOR 1057

(4) Contributions returned as above provided shall be
paid in lump sums or in installments as the member may
elect, subject, however, to such reasonable rules and regu-
lations as may be prescribed by the retirement board.

SEC. 16. And be it further enacted, That that portion of
the salary or wages of a member deducted or to be deducted
under this Act, the right of a member to an annuity or allow-
ance hereunder, and all his rights in the funds of the retire-
ment system, shall be exempt from taxation, and from the
operation of any laws relating to bankruptcy or insolvency,
and shall not be attached or taken upon execution or other
process of any court. No assignment by a member of any
part of such funds to which he is or may be entitled, or of
any right to or interest in such funds, shall be valid.

SEC. 17. And be it further enacted, That (1) all funds
of the retirement systems shall be in the custody and charge
of the State Treasurer, who shall invest and reinvest such
funds as are not required for current disbursements in ac-
cordance with the laws of the State governing the invest-
ment of the assets of savings institutions.

(2) The State Treasurer shall make such payments to
the members of the retirement association from the annuity
fund as the retirement board shall order to be paid in
accordance with the provisions hereof.

(3) On or before the first day of August in each year,
the State Treasurer shall file with the Insurance Commis-
sioner and with the secretary of the retirement board a sworn
statement exhibiting the financial condition of the retirement
system on the thirtieth day of June in each year, and its
financial transactions for the year ending on such date. Such
statement shall be in the form prescribed by the retirement
board, and shall be published with the report of the State
Treasurer.

SEC. 18. And be it further enacted, That a reserve fund
is hereby created, to consist of gifts and receipts from sources
other than those herein specified, returns to the State of its
contributions to the annuity fund as hereinbefore provided,
and balances that may accrue on account of interest, savings
or otherwise, which fund shall be maintained and used, in
the discretion of the retirement board, for unforeseen con-
tingencies, expenses of administration, or any other purpose
within the scope of the retirement system.