Ch. 888                            MARVIN MANDEL, Governor                                   1799

CHAPTER 888
(Senate Bill 842)

AN ACT to repeal and re-enact, with amendments, [[Subsection]] Section
192(3a) of Article 77 of the Annotated Code of Maryland (1972 Supplement),
title "Public Education," subtitle "Chapter 17. Teachers' Retirement System,"
[[amending the laws concerning the Teachers' Retirement System with
particular respect to the provisions applicable to certain members and
beneficiaries of the Employees' Retirement System of Baltimore City who are
members and/or beneficiaries of the State system. ]] to provide for lump sum
refunds to certain Baltimore City teachers of contributions previously made by
these teachers to the Teachers' Retirement System.

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That [[Subsection]] Section 192(3a) of Article 77 of the
Annotated Code of Maryland (1972 Supplement), title "Public Education," subtitle
"Chapter 17. Teachers' Retirement System," be and it is hereby repealed and
re-enacted, with amendments, to read as follows:

192.

(3a) (A) Anything to the contrary notwithstanding, effective July 1, 1971, all
members and/or beneficiaries of the employees' retirement system of the City of
Baltimore who in the absence of the city system would have qualified for
membership or benefits hereunder shall become members and/or beneficiaries of
this State system.

(b)    Commencing July 1, 1971, the board of trustees of this retirement system
and the board of trustees of the employees' retirement system of the City of
Baltimore shall proceed to implement as soon as practicable thereafter, and before
July 1, 1973, the administrative processes necessary for orderly transition of the
membership arrangements provided under this subsection. Within these time limits
the board of trustees shall arrange for the commencement of the payment of
retirement allowances and supplementary payments to transferred beneficiaries in
receipt of benefits in such amounts as are payable from the city system, consistent
with the provisions of this subsection and article. Provided, however, that the
system from which each member or beneficiary is transferred has the absolute
obligation for and shall pay any amount to which the member or beneficiary would
have been entitled under the provisions of the local system as they exist as of July
1, 1971, to the extent, if any, that amount exceeds what is provided under this
article.

(c)   The rate of contribution payable under this retirement system by each
transferee who has not retired shall be determined on the basis of his age and time
of entry into the city system.

(d)  The assets transferable from the city system to the State system shall be
determined on a basis satisfactory to both boards. The transfer shall include the
actuarial value of the unexpended balance of the State's contributions to the city
system with interest to the date of transfer, the accumulated contributions of active
members, and the actuarial value of the annuities payable to beneficiaries as of the
date of transfer. The assets shall be transferred on or before June 30, 1973. Prior
to this transfer, the city system shall determine and advise the State system the
amount of contributions, with interest, made by each active and retired Class "A"
city teacher which represents the difference in cost between Class "A" and Class
"B" membership of each city teacher. EFFECTIVE AS OF JULY 1, 1973 THE
VALUE OF ANY DIFFERENCE DETERMINED UNDER THE
PRECEDING SENTENCE SHALL BE REFUNDED IN A SINGLE SUM TO