Additionally, as a result of the matters discussed above, MDIFC and MSSIC are parties to several lawsuits,
including one by a former member savings and loan association in an effort to obtain the return of its capital
deposits and capital notes aggregating approximately $82 million. The plaintiff also seeks to determine the powers
of MDIFC to manage and disburse monies credited to its reserve and insurance funds. In the opinion of the At-
torney General, if the association were to prevail, MDIFC's resources for paying insured losses of depositors at
its insured associations would be seriously depleted.

A condensed balance sheet of MDIFC as of June 30, 1985 is as follows (amounts expressed in thousands):

Assets:
Cash and investments ..................................................	$248,397
Loans and notes receivable ..............................................	51,215
Other assets ..........................................................	229
	$299,841
Liabilities:
Estimated loss on insured savings deposits ................................	$325,100
Capital notes ..........................................................	88,862
Notes payable .........................................................	12,000
Deferred federal income taxes ...........................................	25,282
Other liabilities ........................................................	8,300
	459,544
Deficiency in Assets:
Capital deposits by members ............................................	144,224
Deficit ...............................................................	(303,927)
	(159,703)
	$299,841

A copy of the audited financial statements of MDIFC are on file at the Office of the Comptroller of the Treasury.

As of June 30, 1985, 92 savings and loan associations, with savings deposits of $4.0 billion, were members
of MDIFC and as of October 31, 1985, there were 67 associations with deposits of $2.0 billion remaining.

15. Retirement and Pension Systems:

As of June 30, 1985, the State of Maryland had employee retirement and pension programs as follows:

"Retirement Systems" - for employees, teachers and State police - retirement programs for substantially all
State employees, teachers and State police who are not members of the State Pension Systems.

"Pension Systems"-for employees and teachers-retirement programs for employees and teachers hired after
January 1, 1980, and prior employees -who have elected to transfer from the Retirement Systems.

"Judges' Pension System"-a retirement program for State judges.

"Mass Transit Administration Pension Plan" - a retirement program for certain employees of the Mass Transit
Administration.

All Retirement and Pension Systems, other than the Mass Transit Administration Pension Plan, are jointly
contributory. Employee contributions are established at fixed percentages of total employee compensation, except
for the Pension Systems where employee contributions are established at fixed percentages of employee
compensation in excess of the F.I.C.A. taxable wage base. The Mass Transit Administration Pension Plan is a
pay-as-you-go plan and requires no employee contributions.

The consulting actuary for the retirement and pension systems, other than the Mass Transit Administration
Pension Plan, prepared valuations as of June 30, 1984, using the unit credit actuarial cost method. Retirement
costs for 1985 on this basis aggregated approximately $383,500,000 for governmental fund types and $51,375,000
for the higher education fund, including amortization of unfunded liabilities over 40 years and interest thereon.
Such amortization is being calculated using the straight-line method which began in fiscal year 1981.

The consulting actuary for the Mass Transit Administration Pension Plan prepared a valuation as of June
30,1985, using the entry age normal cost method. Retirement costs for 1985 on this basis aggregated approximately
$3,500,000 for governmental fund types, including amortization of unfunded liabilities over 30 years.

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