HARRY HUGHES, Governor

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(10)  "BENEFICIARY" MEANS ANY PERSON WHO RECEIVES A
RETIREMENT ALLOWANCE OR ANY OTHER BENEFIT PROVIDED BY THIS
SUBTITLE.

(11)  "REGULAR INTEREST" FOR THE ANNUITY SAVINGS FUND
MEANS INTEREST AT 5 PERCENT A YEAR COMPOUNDED ANNUALLY.

(12)  "ACCUMULATED CONTRIBUTIONS" MEANS 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 ON IT, AS PROVIDED IN §
150 OF THIS SUBTITLE.

(13)  "EARNABLE COMPENSATION" MEANS THE NORMAL
COMPENSATION PAYABLE TO A TEACHER FOR WORKING THE NORMAL
TIME FOR HIS POSITION.

(14)  "AVERAGE FINAL COMPENSATION" MEANS THE AVERAGE
ANNUAL EARNABLE COMPENSATION OF A TEACHER DURING ANY 3
CONSECUTIVE YEARS THAT PROVIDE THE HIGHEST AVERAGE EARNABLE
COMPENSATION. HOWEVER, IF THE EARNABLE COMPENSATION EARNED
DURING ANY YEAR INCLUDED IN THE PERIOD USED TO DETERMINE
AVERAGE FINAL COMPENSATION EXCEEDS THAT OF THE AVERAGE OF
THE PREVIOUS 2 YEARS' COMPENSATION BY MORE THAN 20 PERCENT,
THE AMOUNT IN EXCESS OF 20 PERCENT MAY NOT BE INCLUDED IN
THE COMPUTATION OF AVERAGE FINAL COMPENSATION. IF, IN ANY
PERIOD INCLUDED IN THE COMPUTATION OF AVERAGE FINAL
COMPENSATION, THE TEACHER HAS COMPLETED LESS THAN THE NORMAL
NUMBER OF HOURS FOR A FULL-TIME TEACHER SIMILARLY EMPLOYED,
HIS EARNABLE COMPENSATION FOR THAT PERIOD SHALL BE ADJUSTED
TO A FULL-TIME BASIS FOR THE PURPOSES OF THE COMPUTATION.
IF THE PERIOD USED TO DETERMINE FINAL AVERAGE COMPENSATION
IS THE PERIOD THAT IMMEDIATELY PRECEDES THE DATE OF
RETIREMENT, ANY MONTHS (NOT IN EXCESS OF 12) THAT OTHERWISE
WOULD BE INCLUDED IN COMPUTING AVERAGE FINAL COMPENSATION
BUT DURING WHICH THE TEACHER WAS ON AUTHORIZED LEAVE OF
ABSENCE AT PARTIAL PAY OR WITHOUT PAY MAY NOT BE INCLUDED IN
THE COMPUTATION OF AVERAGE FINAL COMPENSATION AND THE MONTH
OR AN EQUAL NUMBER OF MONTHS IMMEDIATELY PRECEDING THE
PERIOD SHALL BE SUBSTITUTED INSTEAD.

(15)  "ANNUITY" MEANS THE PAYMENTS FOR LIFE DERIVED
FROM THE ACCUMULATED CONTRIBUTIONS OF A MEMBER. ALL
ANNUITIES SHALL BE PAYABLE IN EQUAL MONTHLY INSTALLMENTS.

(16)  "RETIREMENT ALLOWANCE" MEANS THE PAYMENTS FOR
LIFE OR ANY OPTIONAL BENEFIT THAT IS PAYABLE INSTEAD. ALL
RETIREMENT ALLOWANCES SHALL BE PAYABLE IN EQUAL MONTHLY
INSTALLMENTS.

(17)  "RETIREMENT" MEANS THE WITHDRAWAL FROM ACTIVE
SERVICE WITH A RETIREMENT ALLOWANCE GRANTED UNDER THIS
SUBTITLE.

(18)  "ACTUARIAL EQUIVALENT" MEANS A BENEFIT OF EQUAL
VALUE WHEN COMPUTED ON THE BASIS OF THE MORTALITY TABLES AND
INTEREST RATE LAST ADOPTED FOR THE PARTICULAR PURPOSE BY THE
BOARD OF TRUSTEES.