THEODORE R. MCKELDIN, GOVERNOR                            37

the Annotated Code of Maryland (1957 Edition), title "Public
Education", sub-title "Teachers' Retirement System", to provide
that all pensions be paid from the Pension Reserve Fund, and
relating to the reserves for payments of pensions and other benefits
to retired members of the Teachers' Retirement System.

Section 1. Be it enacted by the General Assembly of Maryland,
That Sub-sections (3) (a), (3) (g), (3) (h) and (4)(a) (4) of Sec-
tion 116 of Article 77 of the Annotated Code of Maryland (1957
Edition), title "Public Education", sub-title "Teachers' Retirement
ment System", be and the same are hereby repealed and re-enacted,
with amendments, to read as follows:

116. (Method of Financing)
(3)

(a) The Pension Accumulation Fund shall be the fund in which
shall be accumulated all reserves for the payment of all pensions
and other benefits payable from contributions made by the State of
Maryland and from which shall be paid [all pensions and other bene-
fits on account of members with prior service credit and.] the lump
sum death benefits [for all members] payable from the said contribu-
tions. Contributions to and payments from the Pension Accumula-
tion Fund shall be made as follows:

(g) [All pensions, and benefits in lieu thereof, with the exception
of those payable on account of members who receive no prior service
allowance, and] All lump sum death benefits on account of death in
active service payable from contributions of the State of Maryland
shall be paid from the Pension Accumulation Fund.

(h) Upon the retirement of a member [not entitled to credit for
prior service], an amount equal to his pension reserve shall be trans-
ferred from the Pension Accumulation Fund to the Pension Reserve
Fund.

(4)

(a) The Pension Reserve Fund shall be the fund in which shall
be held the reserves on all pensions granted to members [not entitled
to credit for prior service] and from which such pensions and bene-
fits in lieu thereof shall be paid. Should such a beneficiary retired
on account of disability be restored to active service with a com-
pensation 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 Pension Accumulation Fund-
Should the pension of such a disability beneficiary 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.

Sec 2. And be it further enacted. That this Act shall take effect
on June 1, 1958.

Approved March 6, 1958.