Ch. 430                                          LAWS OF MARYLAND

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect June 1, 1988.

Approved May 17, 1988.

CHAPTER 430

(House Bill 561)

AN ACT concerning

Pensions - Employer Pickup and Income Taxes

FOR the purpose of providing that the State or other approved
employer of a member of the State retirement or pension
systems for employees and teachers, the Judges' Contributory
Plan and the State Police Retirement System for federal tax
purposes shall be determined to have picked up the
retirement or pension contributions required to be made by
the member after a certain date; requiring the contributions
to be treated as employer contributions for federal tax
purposes; providing for no State fiscal effect from the
pickup of contributions by specifying the treatment of
contributions for tax purposes, by implementing the pickup
through a reduction of the member's compensation, by
requiring the payment of the contributions from the funds
used in paying the compensation of the member, and by
providing that except for certain income tax consideration,
the pickup contributions shall be treated in the same manner
as contributions made by a member; altering the composition
of certain funds; redefining and defining certain terms;
providing that, for State income tax purposes, there shall
be added to federal adjusted gross income amounts of certain
contributions of a member of certain State retirement or
pension systems in order to have no impact on State income
tax revenues; providing for the effective date and
application of this Act; providing for corrections to
certain references to provisions that are renumbered by this
Act; and generally relating to an employer pickup of certain
contributions required to be made by a member of certain
State retirement or pension systems before a certain date.

BY repealing and reenacting, with amendments,

Article 73B - Pensions

Section 1(13) and (14), 14(l)(a), 57(b)(1), 81(13) and (14),
89(l)(a), 111(12) and (13), 122(l)(a), 140(12) and
(13), and 150(l)(a)
Annotated Code of Maryland
(1983 Replacement Volume and 1987 Supplement)

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