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688 A meeting of the Board of Governors of the Federal Reserve Sys'fl Was was held in Washington on Wednesday, May 12, 1937, at 12:30 p. m. PRESENT: Mr. Mr. Mr. Mr. Eccles, Chairman Broderick Szymczak McKee Mr. Mr. Mr. Mr. Morrill, Secretary Bethea, Assistant Secretary Carpenter, Assistant Secretary Clayton, Assistant to the Chairman Consideration was given to each of the matters hereinafter referred to and the action stated with respect thereto was taken by the 13csard: The minutes of the meeting of the Board of Governors of the Federal lieserve System held on May 11, 1937, were approved unanimously. Telegram to Mr. Young, President of the Federal Reserve Bank or liosto-11) stating that the Board approves the establishment without chat 86 bY the bank today of the rates of discount and purchase in its 6146ting schedule. Approved unanimously. or New Letter to Mr. Gidney, Vice President of the Federal Reserve Bank YcIrk, reading as follows: "In accordance with the request contained in your letter of May 6, the Board approves the appointments on a peri basis of Anthony Giachetti, Frank J. Humphrey, Jr., Robert L. Riedel, George C. Smith, and Howard D. Crosse as alstant examiners for the Federal Reserve Bank of New lark. re "It has been noted that the information submitted with e, ePeot to the appointees/ indebtedness and outside business 11:lasctions is as of July 1, 1936, the date such information ! an last formally reported to the Reserve bank. It is asti:ed, of course, that you have made sufficient investiga-11 in each instance to determine that there have been no 689 5/12/37 - "subsequent developments in these matters the results of which would have an undesirable effect upon their services as assistant examiners for the Federal reserve bank." Approved unanimously. Letter to Mr. Hill, Vice President of the Federal Reserve Bank Of p hil adelphia, reading as follows: "In accordance with the request contained in your letof May 6, the Board approves the designations of the en1Ployees listed as assistant examiners for the Federal Rerve Bank of Philadelphia. It has been noted that the des,Plations of such employees as assistant examiners has been 4-equested in order that they may be available to lend tem! ..?rarY assistance to your regular examiners, and that they 7 11 not be transferred permanently to examining work without the Board's approval." ter r Approved unanimously. Letter to Mr. Young, President of the Federal Reserve Bank of It°11) reading as follows: i "This refers to your letter of March 31, 1937, relatci R to the Board's condition of membership requiring the 117?sit of securities to secure funds of trusts administered eJ oanks and carried in their banking departments, as such ndition applies to Connecticut State member banks and rust companies. Ransom and members of the Board's staff have "Governor A discussed Problems with which State member banks the n4 trust companies in Connecticut are confronted in this th nection, and, as you know, Governor Ransom discussed haese Problems with you recently when he was in Boston. It ci been suggested that, if the interested Connecticut banks enS re, trust companies so desire, it might be helpful if their tIresentatives would come to Washington and discuss all !problems involved in this matter with Governor Ransom :7 other representatives of the Board. Of course, it is 1-2t emplated that you or such other representatives of the wZaral Reserve Bank of Boston as you deem appropriate lld also participate in any such discussion. the ."It will be appreciated if you will determine whether i nterested banks and trust companies would like to have j Z 690 5/12/37 a conference of this kind, and, if so, advise as to a date ?sii which it would be convenient for the representatives of banks and trust companies and your bank to be in Washington.” Approved unanimously. Memorandum dated April 20, 1937, from Mr. Baumann, Assistant e°411sel) with which were submitted, pursuant to the instructions of the Board revised drafts of letters to the Federal reserve banks and holdco mPsnY affiliates with respect to the modification of agreements e'ecuted as a condition precedent to the issuance of general voting 1)"11118 Prior to revision of the standard form of agreement in Decembel„, 1936. The draft of letter to the Federal reserve banks read as fol- lOws: "In its telegram of December 7, 1936, (Trans. 2433), 01 ; e Board advised you that it had revised the standard form agreement prescribed as a condition to the issuance of ivnel'al voting permits ana that, with respect to cases in ,'10/1 holding company affiliates had executed agreements the form theretofore required, appropriate action would me taken looking toward the modification of the requireora. ! .e of such Such agreements in accordance with the principles the described in such telegram. ,N1 herewith is a letter to (holding company af"Inc108 tiliat ) , inclosing three ) eoPi es of an agreement executed by the Board and to be exoebelltted bY such holding company affiliate if it desires to by ain the modification of the agreement previously executed fol, t so as to bring the latter into conformity with the te-11 now prescribed by the Board. Please transmit the letcoil ' la and the three copies of the agreement to the holding or 1.4.311Y affiliate. A copy of the letter and a fourth copy u"s agreement are also inclosed for your files. arril"If the agreement be executed by the holding company tate please forward to the Board one executed copy, 691 5/12/37 -4"together with a certified copy of the resolution authorizing the execution of the agreement. One executed copy of the agreement and one copy of the resolution are to be retained by you. You will note that, if the holding company affiliate desires to execute the agreement, it must do so within sixty days from the date of the inclosed letter. If the holding company affiliate does not desire to execute the agreement, please advise the Board. "Similar action is being taken with respect to all holdin e°mPany affiliates which executed agreements in the form .1&-Dequired by the Board prior to December 7, 1936. You are ing advised concerning any other such holding company afates in your district in separate letters." 2 The draft of letter, referred to in the letter to the Federal reserv e banks as the letter to be sent to the holding company affiliates, l'ead as follows: "This refers to the agreement which your organization executed on , 193_, in compliance with 11 condition to the granting of the general voting permit Which was granted to it under date of , 193_. "The Board recently reconsidered its policy with respect to the granting of general voting permits and revised the c standard form of agreement which it requires holding °111PanY affiliates to execute as a condition to the granti115 cf such permits. The Board desires that, in so far as POSSible holding company affiliates granted general votjts Permits be subject to uniform requirements of a general racter and that there be no discrimination, real or apreat, between such organizations. ti "Accordingly, the Board wishes to afford your organizathr opportunity to enter into an agreement modifying 1.11; agreement previously executed by it so as to bring the `ter into conformity with the form now prescribed by the meerd. Inclosed herewith are three copies of such an agreeWhich have been executed by the Board. If your organiel ion desires to enter into this agreement, please execute J of the copies within sixty days from the date of this letter and return two copies to the Federal Reserve Bank Of , together with two certified e°1311---s of the resolution authorizing the execution of such ergent- The date on which the agreement is executed by should be entered in the blanks in the first line of each copy. If your organization does not Z ZI: 692 5/12/3? -5"desire to enter into the agreement, please advise the FedReserve Bank of , returning ell of the copies of the agreement." The agreements referred to in the above letters were in the fol1°wing forna: "FORM FOR HOLDING COY,PAN'Y AFFILIATES WHICH ARE NOT NATIONAL BANKS "AGREE/INT 'THIS AGREEMENT entered into on the day of 1937, bY and between , hereinafter called 'Holding Company Affsiliate', and the Board of Governors of the Federal Reserve Ystem, hereinafter called 'Board': W1TNESSETH THAT the "WHEREAS, pursuant to the provisions of section 5144 of Revised Statutes of the United States, the Board has ;eretofore - granted to the Holding Company Affiliate a general rig permit entitling the latter to vote the stock which It °Ims or controls of the bank or banks specified therein; a„,"WH1REAS, prior to the granting of such voting permit in compliance with a condition of the granting thereof, i,e licilding Company Affiliate, in consideration of the grant- Of such voting permit, executed an agreement dated , 193_, (hereinafter called 'OrigAgreement'); and A„ "WHEREAS, the Board has offered to modify such Original 'eement by deleting paragraphs numbered 4 and 5 thereof ;P:11r1 the condition that the Holding Company Affiliate acPt another modification of such agreement: -0, THEREFORE, in consideration of the premises and Inutuel covenants herein contained, the parties hereto eree as follows: That the Original Agreement be and hereby is modified -- 1. (1) By deleting the word 'State' from paragraph numbered 2 thereof; and (2) By deleting paragraphs numbered 4 and 5 thereof and appropriately renumbering the succeeding numbered paragraphs; SO that such agreement, as modified, reads as follows: 693 5/12/37 -6"In consideration of the granting by the Board of Govern°rs of the Federal Reserve System, under authority of section 5144 of the Revised Statutes of the United States and Pursuant to an application heretofore filed with the B°ard of Governors of the Federal Reserve System by the Ilaersigned, of a general voting permit entitling the under' lgned to vote the stock which it owns or controls of the ember bank or banks specified in such permit at all meet, 1 11gs of shareholders of such bank or banks, the undersigned uersbY represents, undertakes and agrees as follows: T ti That, as soon as practicable and, in any event, Within two years from the date such voting permit is granted, the undersigned will charge off or Otherwise eliminate from its assets, (a) the part of the carrying value on its books of its investments in stocks of subsidiary and/or affiliated organizations which is in excess of the adjusted value of such stocks, after effect shall have been given to the deduction of all estimated losses of such subsidiary and/or affiliated organizations, all depreciation in stocks and defaulted securities, and all depreciation in all other securities not of the four highest grades, as classified by a recognized investment service organization regularly engaged in the business of rating or grading securities, as shown by the latest available reports of examination of such organizations by the appropriate supervisory authorities and/or as shown by the latest appraisal of their assets by other examiners, auditors or appraisers satisfactory to the designated representative of the Board of Governors of the Federal Reserve System in the district in which the undersigned is located, (b) (i) all depreciation in its other stocks and in its defaulted securities, (ii) all depreciation in its securities not of the four highest grades as classified by a recognized investment service organization regularly engaged in the business of rating or grading securities, (iii) all losses in all its other assets, - all as shown by the latest available reports of examination by the appropriate supervisory authorities and/or as shown by the latest appraisal of assets by other examiners, auditors or appraisers satisfactory 694 5/12/3? -7"'to the designated representative of the Board of Governors of the Federal Reserve System in the district in which the undersigned is located, (c) all its other known losses; •2. • 3. • 4. That the undersigned will take such action within its power as may be necessary to cause each of its subsidiary banking institutions to charge off or Otherwise eliminate from its assets as soon as practicable and, in any event, within two years from the date such voting pernit is granted, (a) all estimated losses in loans and discounts, (b) all depreciation in stocks and defaulted securities, (c) all depreciation in securities not of the four highest grades, as classified by a recognized investment service organization regularly engaged in the business of rating or grading securities, (d) all other losses, all such charge-offs or eliminations to be based upon the latest available reports of examination by the appropriate supervisory authorities and/or as shown by the latest appraisal of assets by other examiners, auditors or appraisers satisfactory to the designated representative of the Board of Governors of the Federal Reserve System in the district in which such institution is located; That the undersigned will take such action within Its power as may be necessary to cause each of its subsidiary banking institutions to maintain a sound financiel condition and to cause the net capital and surplus funds of each such subsidiary banking institution to be adequate in relation to the character and condition of its assets and to the deposit liabilities and other corporate responsibilities of such subsidiary banking institution; That the undersigned will take all necessary action Within its power to prevent any of its subsidiary banks and any other banks with which the undersigned or any of its subsidiaries is affilisted from hereafter making, any loans or extensions of credit to, or purchases of securities under repurchase agreements from, the undersigned or any of its subsidiaries or any other organizations with which the undersigned or any of its subsidiaries is affiliated, or any investments in, or advances against, securities of the undersigned or any of its subsidiaries or any other organizations with which the undersigned 695 5/12/37 -8"or any of its subsidiaries is affiliated, except Within the same limitations and subject to the same conditions end provisions as are applicable under section 23A of the Federal Reserve Act to such transactions involving member banks end their affiliates; That the management of the undersigned will be, and the undersigned will take such action within its Power as may be necessary to cause the management of each of its subsidiaries to be, conducted under sound policies governing its financial and other operations, including statements issued relating thereto; that the undersigned will maintain a sound financial condition; that its net capital and surplus funds shall be adequate in relation to the character and condition of its assets and to its liabilities and other corporate responsibilities; and that, except with the permission of the Board of Governors of the Federal Reserve System, it shall not cause or permit any change to be made in the general character of its business or investments. m 'The foregoing representations, undertakings and agreeellt are subject to the following understandings: ties '(A) In determining the amount of depreciation in securicwned by the undersigned or by any of its subsidiary or iliated organizations, appreciation in securities owned by snY slleh organization may be off-set against depreciation in aecUrities owned by the same organization, provided that such sP ePreciation shall first be off-set against depreciation in tieurities of the four highest grades owned by such organize" 88 classified by a recognized investment service organOn regularly engaged in the business of rating or gradeg securities. r elm '03) Whenever, under the terms of this agreement, any th° 1.1111-ta are required to be charged off or otherwise eliminated, tb 8 agreement shell be deemed to have been complied with to extent of any valuation reserve that may be set up for the poeurities or other assets involved; provided that, in all resj tE and published statements of condition, the amount of 1,0, h reserves be deducted from the respective assets against ".Leh they are allocated. '(C) Whenever the stock of any of its subsidiary or aftillated organizations is carried on the books of the underat less than its adjusted value, as determined in acWith the foregoing clause numbered 1, nothing in this ' eement shell prevent the undersigned from increasing the 696 5/1.2/37 -9mount at which such stock is carried on its books to an araount not exceeding such adjusted value. '(L) In case any dispute arises with any designated representative of the Board of Governors of the Federal Reserve System as to compliance with the terms of this agreement elm such dispute involves disagreement with respect to any aPpraisal or valuation by any examiner, auditor or appraiser, Or any recommendation or suggestion of such designated representative the undersigned shall have the right to appeal to he Board for review and final determination. 'This agreement is executed in duplicate.' "II. That the execution of this agreement shall not in !_tilY wise affect the force and effect of the Original Agreement except to the extent stated above. "III. That paragraph numbered 2 of the Original AgreeMent as hereby modified shall have the same force and effect : ! 1 though it had been so worded in the Original Agreement when It was executed by the Holding Company Affiliate. "IN VvITNESS WHEREOF the Bolding Company Affiliate, by s j "" duly authorized officers, and the Board, by its Assistant Secretary have caused this agreement to be signed as of the End year above written and their respective seals to be day, hereunto affixed. This agreement is executed in triplicate." "FORM FOR HOLDING COMPANY AFFILIATES WHICH ARE NATIONAL BANKS - EXCEPT NATIONAL SHAWMUT BANK OF BOSTON WI= THIRD RECITAL MUST BE OMITTED AND CERTAIN OTHER MINOR CHANGES MADE "AGREEMINT 140, "THIS AGREEMENT entered into on the day of and between , hereinafter called 'Holding Company Af. s,„- e', and the Board of Governors of the Federal Reserve m, hereinafter called 'Board': ,WITNESSETH THAT "INHEREAS, pursuant to the provisions of section 5144 of t'4 Revised Statutes of the United States, the Board has herein °re granted to the Holding Company Affiliate a general voto_g Permit entitling the latter to vote the stock which it owns controls of the bank or banks specified therein; hREAS, prior to the granting of such voting permit and c°111Pliance with a condition of the granting thereof, the 697 5/12/37 -10"Holding Company Affiliate, in consideration of the granting °I such voting permit executed an agreement dated • 193_1 (hereinafter celled 'Original Agreement'); "WHEREAS, the Board has heretofore advised the Holding CamPanY Affiliate that it would treat the following provision of Paragraph numbered 6 of such Original Agreement as ineffective and that such provision would not be binding on the Holding ComPany Affiliate: 'and that, except with the permission of the Board of Governors of the Federal Reserve System, it shall not cause or permit any change to be made in the general character of its business or investments.' .8111, "AND WHEREAS, the Board has offered to further modify A! 4 Original Agreement by deleting paragraphs numbered 3 and ;,hereof upon the condition that the Holding Company Affiliate accept certain other modifications of such agreement: "NOW, THEREFORE, in consideration of the premises and the ar.elmutual covenants herein contained, the parties hereto bales as follows: 1.That the Original Agreement be and hereby is modified (1) By deleting the word 'State' from paragraph numbered 1 thereof; (2) By deleting paragraphs numbered 3 and 4 thereof and appropriately renumbering the succeeding numbered paragraphs; (3) By adding a new paragraph numbered 5; and (4) By adding a new paragraph lettered (D); SO that such agreement, as herein and heretofore modified, reads as follows: 40 'In consideration of the granting by the Board of Governors of the Federal Reserve System, under authority of section to.t4 of the Revised Statutes of the United States and pursuant 4. ! 1 aPPlication heretofore filed with the Board of Governors Of 4 yo4ra Federal Reserve System by the undersigned, of a general lo,:ng permit entitling the undersigned to vote the stock i74ch it owns or controls of the member bank or banks specib4ad in such permit at all meetings of shareholders of such ank or banks, the undersigned hereby represents, undertakes agrees as follows: '1. That the undersigned will take such action within its power as may be necessary to cause each of its subsidiary banking institutions to charge off or otherwise eliminate from its assets as soon as 698 5/12/37 -11- '2 . 3. "practicable and, in any event, within two years from the date such voting permit is granted, (a) all estimated losses in loans and discounts, (b) all depreciation in stocks and defaulted securities, (c) all depreciation in securities not of the four highest grades, as classified by a recognized investment service organization regularly engaged in the business of rating Or grading securities, (d) all other losses, all such charge-offs or eliminations to be based upon the latest available reports of examination by the appropriate supervisory authorities and/or as shown by the latest appraisal of assets by other examiners, auditors or appraisers satisfactory to the designated representative of the Board of Governors of the Federal Reserve System in the district in which such institution is located; That the undersigned will take such action within its Power as may be necessary to cause each of its subsidiary banking institutions to maintain a sound financial condition and to cause the net capital and surplus funds of each such subsidiary banking institution to be adequate in relation to the character and condition of its assets and to the deposit liabilities and other corporate responsibilities of such subsidiary banking institution; That the undersigned will take all necessary action Within its power to prevent any of its subsidiary banks and any other banks with which the undersigned or any of its subsidiaries is affiliated from hereafter making, any loans or extensions of credit to, or purchases of securities under repurchase agreements from, the undersigned or any of its subsidiaries or any other organizations with which the undersigned or any of its subsidiaries is affiliated, or any investments in, or advances against, securities of the undersigned or anY of its subsidiaries or any other organizations With which the undersigned or any of its subsidiaries is affiliated, except within the same limitations and Subject to the same conditions and provisions as are aPplicable under section 23A of the Federal Reserve Act to such transactions involving member banks and their affiliates; 14 . That the management of the undersigned will be, and the undersigned will take such action within its power as may be necessary to cause the management of each of its subsidiaries to be, conducted under sound policies 699 5/12/37 -12"'governing its financial and other operations, including statements issued relating thereto; that the undersigned will maintain a sound financial condition; that its net capital and surplus funds shall be adequate in relation to the character and condition of its assets and to its liabilities and other corporate responsibilities; 5. That, as soon as practicable and, in any event, within two years from the date such voting permit is granted, the undersigned will Charge off or otherwise eliminate from its assets, (a) the part of the carrying value on its books of its investments in stocks of subsidiary and/or affiliated organizations which is in excess of the adjusted value of such stocks, after effect shall have been given to the deduction of all estimated losses of such subsidiary and/or affiliated organizations, all depreciation in stocks and defaulted securities, and all depreciation in all other securities not of the four highest grades, as classified by a recognized investment service organization regularly engaged in the business of rating or grading securities, as shown by the latest available reports of examination of such organizations by the appropriate supervisory authorities and/or as shown by the latest appraisal of their assets by other examiners, auditors or appraisers satisfactory to the designated representative of the Board of Governors of the Federal Reserve System in the district in which the undersigned Is located. (b) (i) all depreciation in its other stocks and in its defaulted securities, (ii) all depreciation in its securities not of the four highest grades as classified by a recognized investment service organization regularly engaged in the business of rating or grading securities, (iii) all losses in all its other assets, - all as shown by the latest available reports of examination by the appropriate supervisory authorities and/or as shown by the latest appraisal of assets by other examiners, auditors or appraisers satisfactory to the designated representative of the Board of Governors of the Federal Reserve System in the district in wnicb the undersigned is located, 700 5/12/37 "(c) all its other known losses. 'The foregoing representations, undertakings and agreements are subject to the following understandings: '(A) In determining the amount of depreciation in securities owned by the undersigned or by any of its subsidiary or affiliated organizations, appreciation in securities owned by anY such organization may be off-set against depreciation in Securities owned by the same organization, provided that such aPPreciation shall first be off-set against depreciation in seeill'ities of the four highest grades owned by such organization, 8 classified by a recognized investment service organization gUlarly engaged in the business of rating or grading securities. : '(B) Whenever, under the terms of this agreement, any oUnts are required to be charged off or otherwise eliminated, 4!ia agreement shall be deemed to have been complied with to extent of any valuation reserve that may be set up for the securities or other assets involved, provided that, in all reports and published statements of condition, the amount of such deducted from the respective assets against which they fleY are allocated. r '(C) In case any dispute arises with any designated reprelentetive of the Board of Governors of the Federal Reserve System as to compliance with the terms of this aareement and , s1;.ch dispute involves disaareement with respect to any apor valuation by any examiner, auditor or appraiser, or any recommendation or suggestion of such designated repretrt"ive, the undersigned shall have the right to appeal to "e Board for review and final determination. ar,, 'N) Whenever the stock of any of its subsidiary or ij'lliated organizations is carried on the books of the under' elgned at less than its adjusted value, as determined in acwith the foregoing clause numbered 5, nothing in this Zl'eament shall Prevent the undersigned from increasing the 7101-Int at which such stock is carried on its books to an amount not exceeding such adjusted value. 'This agreement is executed in duplicate.' That the execution of this agreement shall not in any e_q_ wise affect the force and effect of the Original Agreement ' eaPt to the extent stated above. "III. That paragraph numbered 1 of the Original AgreeCrites as hereby modified shall have the same force and effect it though it had been so worded in the Original Agreetient when was executed by the holding Company Affiliate. 701 5/12/37 -14"IV. That the new paragraphs hereby added to the Original Agreement shall have the same force and effect as though they had been contained in the Original Agreement when it was executed by the Holding Company Affiliate. "IN WITNESS WHEREOF the Holding Company Affiliate, by its d111Y authorized officers, and the Board, by its Assistant .Secretary, have caused this agreement to be signed as of the ,_lEtY and year above written and their respective seals to be hereunto affixed. This agreement is executed in triplicate." Mr. Baumann's memorandum suggested, for the reasons stated, that hereEttter the Board require holding campany affiliates which are national bEtriks that to execute agreements containing paragraph 1 of the agreement, and the Board authorize its Assistant Secretaries to sign letters and Prepared In accordance with the action taken relating to the °rgani 24tions which executed agreements prior to the revision of the -grd form of agreement and which, according to the Board's records, were still holding campany affiliates. The letters, inclosures, and Mr. Baumann's suggestions were approved unantmously. Letter to Mr. Harrison, President of the Federal Reserve Bank 4"k, reading as follows: Copy "Thank you for your letter of May 7 transmitting a a letter from Mr. B. A. Tompkins who represents the ' ti ziscal Agents in this country for the Polish Stabilize01°,11 Loan of 1927, together with a copy of a letter intherein, dated April 8, to the Polish Ambassador the French Ministry of Foreign Affairs. The State Department has advised the Board informalti7 , 1 t1 , 1 ," it has already received a copy of the letter from 4renoh Ministry of Foreign Affairs to the Polish Ambas:g°r describing the arrangement by which the French pro; ,vtse to collect payment in full on their share of the Polish tli4bilization Loan of 1927. The Department also indicated at it was working very closely with Mr. Reuben Clark 702 5/12/37 -15"of the Foreign Bondholders' Protective Council in New York City, It seems unnecessary, therefore, to furnish the SecretarY of State with copies of the correspondence inclosed with.Your letter. However, it is being brought to the attention of the members of the Board." Approved unanimously. Memoranda dated May 6, 1937, from Mr. Smead, Chief of the Divieion of Bank Operations, stating that at the meeting of the Board of Trustees of the Retirement System held in Chicago on April 20, 1937, the R4168 and Regulations of the Retirement System of the Federal Re" 8 e Batks, in addition to being amended to substitute the words "Board GI3vern°re of the Federal Reserve System" for "Federal Reserve Board", " El the word "President" for "Governor" wherever these terms appear in the Rules and Regulations, were amended in the following particulars, ellbjeet ePproval by the Board of Governors of the Federal Reserve SYsten: SeTon 1. A definition of the terms "beneficiary" or -pcneficiaries" was added as subsection 19. Section 3, subsection 2. The minimum age for retireMant under this provision was reduced from 55 to 50 Years and the 5/0 reduction in the pension for each Year the member lacks of having attained age 60 was e liminated. Seetin subsection 3(b). This provision was amended kfo make clear the fact that disability retirement is Payable only during the period of disability rather than throughout the life of the person retired beause of disability. ecticM 3, subsection 4(a). This subsection was amended to Clarify the subsection and to provide for the definite termination of all retirement allowance payments when recovery is complete, i.e., where payment of the Pension has been suspended because of apparent recovery 703 5/12/37 -16and there has been no recurrence of disability within the succeeding 5 years. Section 3, subsection 5(b). A provision was added to this subsection limiting, for a period of one year after retirement, the death benefit payable in the case of a disability pensioner to the same benefit to which he would have been entitled in the event of death in active service. Secti°n 3, subsection 6. The subsection was amended to effect a clarification of certain optional benefits. Section 3, subsection 7. This subsection was emended to give an employee the same optional choices as to the form of the annuity, provided under the subsection exclusively from the employees own contributions with interest accumulations, as would be available if he were 65 years of age, and to Permit him to receive an tmmediate annuity at any time after age 50 instead of an annuity beginning at age 65. Section 11. This section, which had to do with the organization committee under which the Retirement System was °rganized and which has no present applicability, was eliminated. The rneraoranda recommended that the Proposed amendments be approved by the 8°ard, and that the Secretary of the Retirement Connittee be advised that the, Board does not approve the change in subsection 17 of Section 1 cr the Rules and Regulations adopted by the Board of Trustees of the Retil'ergent System at its meetind5, in Chicago on April 21, 1936, which 11°111d substitute the reouirement that the maximum creditable salary to be liecd in calculating benefits and payments of contribution shall be fIXed by the Board of Trustees, subject to the approval of the Board of Q.c e/,hors, for the present requirement that such maximum salary shall 11 . 12,000 per annum. Approved unanimously. 704 -17- Thereupon the meeting adjourned. Chairman.
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