974 ARTICLE 77.

for prior service and from which such pensions and benefits in lieu thereof
shall be paid. Should such a beneficiary retired on account of disability
be restored to active service with a compensation not less than his average
final compensation at the time of his last retirement the pension reserve
thereon shall be transferred from the Pension Reserve Fund to the Pen-
sion Accumulation Fund. Should the pension of such a disability bene-
ficiary be reduced as a result of an increase in his earning capacity the
amount of the annual reduction in his pension shall be paid annually into
the Pension Accumulation Fund during the period of such reduction.

(5) Expense Fund.

The Expense Fund shall be the fund to which shall be credited all money
provided by the State of Maryland to pay the administration expenses of
the retirement system, and from which shall be paid all the expenses neces-
sary in connection with the administration and operation of the system.
Annually the Board of Trustees shall estimate the amount of money not
in excess of three-tenths of one per centum of the payroll of members which
shall be deemed necessary to be paid into the Expense Fund during the
ensuing year to provide for the expense of operation of the retirement
system and such amount shall be paid to the Expense Fund for this pur-
pose.

(6) State Contribution.

(a) On or before the first day of November next preceding each regular
meeting of the General Assembly of Maryland the Board of Trustees shall
certify to the State Superintendent of Schools, the amounts which will
become due and payable during the biennium next following each of the
funds of the retirement system together with a statement of the percentage
of the payroll of all members, which is equivalent to the total amount.
To this amount the State Superintendent of Schools shall add an amount
equal to such percentage of the payroll of teachers who are members of
local retirement funds in the cities and counties of the State, who are
excluded from membership in this retirement system as provided in Section
94 of this Article, but not in excess of the percentage certified for this
retirement system, as such respective cities or counties may have con-
tributed during the biennium preceding, to their own retirement or pension
system on account of their teachers, which latter amount shall be paid to
such cities and counties; the amounts thus ascertained shall be included by
the State Superintendent of Schools in his budget estimate and shall bo
included in the budget bill which is submitted to the General Assembly.

The State Superintendent of Schools shall certify one-quarter of the
amount so ascertained for each year of the biennium to the State Comp-
troller on or before the last day of December, February, May and Septem-
ber. The Comptroller shall on or before the first day of January, March,
June and October draw a warrant or warrants on the Treasurer of the
State of Maryland for the respective amounts due the State retirement