Section 40: By-laws and statements

Summary

Section 40 sets governance requirements for private pension associations formed under Section 39. By-laws must be approved by PERAC and must specify how the association is conducted and how funds are invested and disbursed. An association is formally established when its by-laws are approved by both the employer and a two-thirds vote of employees and by PERAC. The association must file an annual report with PERAC by March 1 covering membership and financial transactions from the prior year. PERAC may audit the association's books, and failure to comply with reporting requirements is punishable by a fine of up to $500.

Statutory Text

Section 40. The by-laws of every such association shall be approved by the public employee retirement administration commission, and shall prescribe the manner in which and the officers and agents by whom the association may be conducted and the manner in which its funds may be invested and paid out. Such association shall be deemed to be formed when its by-laws have been approved and agreed to by the employer and by the employees by vote of two-thirds of all employees present and voting at a meeting called by the employer for the purpose, and have been approved by said public employee retirement administration commission. Such association shall annually, on or before March first, report to the commission such statements of its membership and financial transactions for the year ending on the preceding thirty-first day of December as the commission may consider necessary to show its business and standing. Said commission may verify such statement by an examination of the books and papers of the association; and whoever, having charge or custody of said books and papers, neglects to comply with this section shall be punished by a fine of not more than five hundred dollars.