102                              Laws of Maryland                       [Ch. 112

the granting of interest on the contributions of members in active
service.

Section 1. Be it enacted by the General Assembly of Maryland,
That Section 1 (12) and Section 13 (2) of Article 73B of the An-
notated Code of Maryland (1957 Edition and 1960 Supplement),
title "Pensions", sub-title "In General", be and is hereby repealed
and re-enacted, with amendments, to read as follows:

1.

(12) "Regular Interest" for the Annuity Savings Fund shall mean
interest at [such] the rate [as may be set from time to time by the
Board of Trustees in accordance with Section 13, Sub-section (2) of
this Article.] of four per centum per annum compounded annually
for members who became such on or before June 30, 1955; and for
all other members shall mean interest at a rate per centum per annum
compounded annually as may be set from time to time by the Board
with a minimum rate of three per centum per annum and a maximum
rate of four per centum per annum. "Regular Interest" for the
Annuity Reserve Fund, the Pension Accumulation Fund and the
Pension Reserve Fund shall mean interest at such rate as may be
set from time to time by the Board of Trustees in accordance with
Section 13, Sub-section (2) of this Article, as amended from time
to time. NOTWITHSTANDING ANY PROVISION OF THIS SEC-
TION TO THE CONTRARY, THE RATE OF INTEREST CRED-
ITED IN THE ANNUITY SAVINGS FUND TO THE ACCOUNTS
OF ACTIVE MEMBERS WHO BECAME SUCH ON OR AFTER
JULY 1,1955, SHALL NOT EXCEED THREE PER CENTUM PER
ANNUM, UNLESS THE ACTUAL AVERAGE YIELD ON THE
INVESTMENTS OF THAT FUND FOR THE SAME PERIOD HAS
EXCEEDED THE RATE OF THREE PER CENTUM PER AN-
NUM TO THE SAME EXTENT AS CREDITED; PROVIDED,
FURTHER, THAT THE MAXIMUM INTEREST RATE CRED-
ITED SHALL REMAIN FOUR PER CENTUM PER ANNUM.

13.

(2) Allowance of Interest—[The Board of Trustees annually shall
allow regular interest on the mean amount for the preceding year
in each of the funds with the exception of the Expense Fund. The
amounts so allowed shall be due and payable to said funds, and shall
be annually credited thereto by the board of trustees from interest
and other earnings on the moneys of the Retirement System.
Any additional amount required to meet the interest on the funds
of the Retirement System shall be paid by the State, and any excess
of earnings over such amount required shall be deductible from the
amounts to be contributed by the State.

Regular interest shall mean such per centum rate to be compounded
annually as shall be determined by the board of trustees to be equi-
table, in its judgment, to both the employees and the taxpayers of
the State, after taking into consideration the actual interest earn-

Explanation: Italics indicate new matter added to existing law.

[Brackets] indicate matter stricken from existing law.

CAPITALS indicate amendments to bill.

Strike out indicates matter stricken out of bill.