A condensed balance sheet of MDIFC as of June 30, 1988 is as follows (amounts expressed in thousands):

Assets:

Cash and investments ..................................................... $ 20,886

Loans and notes receivable ................................................. 19,166

Deposits at Old Court Savings and Loan, First Maryland Savings and Loan
and three other associations .............................................. 189,962

Other assets ............................................................. 231

$230,245

Liabilities:

Estimated loss on insured savings deposits ................................... $400,000

Capital notes ............................................................ 5,247

Deferred federal income taxes .............................................. 14,800

Other liabilities .......................................................... 851

420,898

Deficiency in Assets:

Capital deposits by members ............................................... 144,224

Deficit .................................................................. (334,877)

(190,653)
$230,245

16. Retirement and Pension System:

The State of Maryland contributes to the Maryland Retirement and Pension Systems (System), an agent
multiple-employer public employee retirement system established by the State of Maryland to provide pension
benefits for State employees, the employees of the University of Maryland Medical System (a private, nonprofit,
nonstock corporation) and employees of 98 participating municipal corporations within the State. The System
is considered part of the State of Maryland's financial reporting entity and is included in the State's financial
statements as a Pension Trust Fund. For the year ended June 30, 1988, the State's covered payroll was
$3,916,851,000, which approximates the total employer payroll.

Plan Description:

The System consists of the following systems which are managed by the Board of Trustees for the System.
All retirement and pension systems discussed herein, except the Mass Transit Administration Pension Plan
(discussed in the last paragraph of this note), are included in the System.

"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 System.

"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" — retirement program for State judges.

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