At June 30, 1989, membership in the System consisted of:

Retirees and beneficiaries currently
receiving

benefits and terminated employees
entitled

to benefits but not yet receiving them:

Retirement Systems	49,352
Pension Systems .......	20,139
Current employees:
Vested:
Retirement Systems	50,392
Pension Systems .......	67,921
Nonvested:
Retirement Systems	2,295
Pension Systems .......	38,365
Total members ...........	228,464

The System provides retirement, death and disability benefits in accordance with State statutes. Vesting
begins after completing 5 years of creditable service. A member terminating employment before attaining
retirement age but after completing 5 years of creditable service (15 years for State Police), becomes eligible
for a vested retirement allowance, provided the member lives to age 60, (age 62 for the Pension Systems, age
50 for State Police), 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.
State Police members 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 State Police member 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.
State Police members 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.

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