3074

LAWS OF MARYLAND

Ch. 803

determination or ruling from the Internal Revenue Service that
the program qualifies for the tax treatment under § 414(h) of the
Internal Revenue Code, as amended.

(D) Amendments to the law submitted by the Board of
Trustees under Item (C)(2) or (3) shall include;

(1) appropriate addition modifications and

subtraction modifications for State income tax purposes in order
to prevent:

(i) the reduction of State income tax revenues
through the federal tax treatment of the employer pickup of the
contributions of a member of the various State retirement or
pension systems; and

(ii) the double State income taxation of
retirement or pension contributions of a member of the various
State retirement or pension systems that would result from
taxation both at the time the contribution is made and at the
time a retirement allowance corresponding to the member's
contributions is received by the retired employees;

(2) proposed changes to the law relating to employee
compensation and benefits that the Board of Trustees deems
necessary to protect against the adverse impact of the employer
pickup program on any aspect of employee compensation and
benefits; and

(3) proposed changes to the law that the Board of
Trustees deems necessary to protect against the adverse impact of
the employer pickup program on employer costs.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall

take effect July 1, 1986.
Approved May 27, 1986.

CHAPTER 803

(House Bill 1582)

AN ACT concerning

Health Care Cost Containment - Institution-Specific Component
of the State Health Plan

FOR the purpose of providing for an institution specific

component of the State health plan; providing that the
institution specific component of the State health plan
shall terminate at a certain time unless that provision is