At June 30, 1988, membership in the System consisted of:

Retirees and beneficiaries currently receiving
benefits and terminated employees entitled
to benefits but not yet receiving them:

The System provides retirement, death and disability benefits in accordance with State statutes. A member
terminating employment before attaining retirement age but after completing 5 years of creditable service (15
years for the State Police Retirement System), becomes eligible for a vested retirement allowance, provided the
member lives to age 60, (age 62 for the Pension Systems, age 50 for the State Police Retirement System), and
does not withdraw his or her accumulated contributions. Members of the Retirement System may retire with
full benefits after attaining the age of 60, or after completing 30 years of creditable service regardless of age.
A member of the Pension Systems may retire with full benefits after completing 30 years of eligibility service
regardless of age, or at age 62 or older with specified years of eligibility service. A member of the State Police
Retirement System may retire with full benefits after attaining age 50, or after completing 25 years of creditable
service regardless of age.

The annual benefit for Retirement System members is equal to 1/55 of a member's high - three year average
salary times years of creditable service. A member may retire with reduced benefits after completing 25 years
of creditable service regardless of age. A member of the Pension System shall receive upon retirement an annual
service retirement allowance based on the member's high - three consecutive year average salary and years of
creditable service with a provision for additional benefits for compensation earned in excess of the social security
wage base. A member may retire with reduced benefits after attaining age 55 and completing 15 years of
eligibility service. The annual retirement allowance for a member of the State Police Retirement System is equal
to 1/45 of a member's high - three year average salary times the member's first 25 years of creditable service,
plus 1/90 of the average final compensation times the member's creditable years in excess of 25 years.

Members of the Employees' and Teachers' Retirement Systems are required to contribute to the System a
fixed percentage of their regular salaries and wages (e.g. 7%). Members of the Pension Systems are required
to contribute to the System 5% of their regular salaries and wages which exceed the social security wage base.
Members of the State Police Retirement System are required to contribute 8% of their regular salaries and
wages to the system. All contributions are deducted from each member's salary and wage payments and are
remitted to the System on a regular, periodic basis.

The State of Maryland, the University of Maryland Medical System and the participating municipal
corporations make all of the employer contributions to the System. In addition, the State of Maryland, which
is a non-employer contributor to the Teachers' Retirement and Pension Systems, makes virtually all of the non-
employee contributions to the Teachers' Systems. All contributions to the System are made in amounts required
by State statutes.

No investment of the System in any one organization represented 5% or more of the net assets available
for pension benefits. There were no investments in, loans to, or leases with parties related to the System.

57