liquidate. Of the 103 associations initially insured by MDIFC, 97 have received federal insurance, have been
acquired by a federally insured institution, have converted to a mortgage company or a credit union, or have
voluntarily liquidated. Six institutions are currently in receivership. As of December 31, 1989, depositors of all
insured accounts at the associations in receivership were paid in full.
As successor to MSSIC, MDIFC assumed approximately $189,000,000 in assets of MSSIC. In addition, the
State has made available to MDIFC approximately $396,000,000 ($55,000,000 from direct general fund
appropriations, $241,000,000 from general fund appropriations to the State Reserve Fund designated for the use
of MDIFC, and a $100,000,000 transfer from the Transportation Trust Fund). To date, MDIFC has expended
approximately $576,000,000 to facilitate the acquisition of certain savings and loan associations by other financial
institutions, to fund payments to depositors of associations in receivership, to settle Internal Revenue Service tax
claims and to settle litigation. In addition, MDIFC has recovered $94,000,000 from depositor distributions and the
general fund has received $45,000,000 in recoveries from litigation and the $71,200,000 balance remaining in the
Dedicated Purpose Account of the State Reserve Fund was not required and therefore reverted June 1,1990.
Additionally, MDIFC and MSSIC are parties to numerous lawsuits. Furthermore, there may be additional
future litigation involving MDIFC. Management believes that the allowance for estimated insurance losses
remaining at June 30, 1991, of $325,000,000, will be sufficient to provide for MDIFC's ultimate liability after
liquidation of the remaining assets of the six institutions in receivership, after adjudication of the numerous
lawsuits and upon completion of MDIFC's operations.
16. Retirement and Pension System:
The State of Maryland contributes to the Maryland State 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 and employees of 103 participating municipal corporations within the State.
Additionally, the System provides benefits for the University of Maryland Medical System (a private, nonprofit,
nonstock corporation), the Maryland Automobile Insurance Fund, and the Injured Workers' Insurance Fund
(none of which are in the State's reporting entity). The non-State entities that participate within the System
receive separate actuarial valuations in order to determine their respective funding rates and actuarial liabilities.
Retirement benefits are paid from the State System's pooled assets rather than from assets relating to a
particular plan participant. The State is ultimately liable for benefits. 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 30,1991, the State's covered payroll was $5,093,708,000, which represents the State's
total employer payroll.
Plan Description:
The System, which is administered in accordance with Article 73B of the Annotated Code of Maryland,
consists of the following systems which are managed by the Board of Trustees for the System. All retirement and
pension systems discussed herein are included in the System. All State employees and employees of the
participating municipalities are covered by the systems.
"Retirement Systems"—retirement programs for substantially all State employees, teachers, State police
and judges who are not members of the State Pension System.
'Tension Systems"—retirement programs for employees and teachers hired after January 1,1980, and prior
employees who have elected to transfer from the Retirement Systems.
At June 30,1991, membership in the System consisted of:
Retirees and beneficiaries currently receiving benefits and terminated employees entitled to
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benefits but not yet receiving them:
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Retirement Systems ...........................................................
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52,901
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Pension Systems ..............................................................
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25,696
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Current employees:
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Vested:
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Retirement Systems ...........................................................
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45,761
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Pension Systems ..............................................................
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72,489
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Nonvested:
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Retirement Systems ...........................................................
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2,720
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Pension Systems ..............................................................
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44,444
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Total members ..............................................................
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244,011
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54
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