J. MILLARD TAWES, Governor                     1047

"Teachers' Retirement System," relating to additional contribu-
tions by members SUBJECT TO CONDITIONS AND SAVING
PROVISIONS.

Section 1. Be it enacted by the General Assembly of Maryland,
That Section 116 (1) (d) of Article 77 of the Annotated Code of
Maryland (1962 Supplement 1957 EDITION), title "Public Educa-
tion," subtitle "Chapter 8. Teachers' Certificates, Salaries and Pen-
sions," subheading "Teachers' Retirement System," be and it is hereby
repealed and re-enacted, with amendments, to read as follows:

116.

(1) (d) In addition to the contributions deducted from compensa-
tion as hereinbefore provided, subject to the approval of the Board
of Trustees, any member may redeposit in the Annuity Savings Fund
by a single payment or by an increased rate of contribution an
amount equal to the total amount which he previously withdrew
therefrom as provided in this subtitle, or any part thereof; or any
member may deposit therein by a single payment or by an increased
rate of contribution an amount computed to be sufficient to purchase
an additional annuity, which, together with his prospective retire-
ment allowance, will provide for him a total retirement allowance
not in excess of two-thirds of his average final compensation at age
sixty or after thirty years of creditable service, whichever would first
occur. In addition to the contributions hereinbefore provided, sub-
ject to such conditions as may be established by the Board of Trustees,
any member may, in accordance with a contract with his employer,
have further contributions at a fixed percentage of two percent or
more, but not to exceed twenty percent of his compensation made on
his account, either by a reduction in his salary, or in lieu of an in-
crease in his compensation. THE COST OF ADMINISTERING AN-
NUITIES QUALIFYING UNDER SECTION 403 (B) OF THE
INTERNAL REVENUE CODE, AS AMENDED FROM TIME
TO TIME, SHALL BE PROVIDED FROM THE FUNDS IN-
VESTED IN SUCH ANNUITIES. NOTHING IN THIS SECTION
SHALL PRECLUDE THE CONSIDERATION AND ADOPTION
BY A LOCAL BOARD OF EDUCATION OF A SIMILAR PLAN
QUALIFYING UNDER SECTION 403 (B) OF THE INTERNAL
REVENUE CODE AS AMENDED FROM TIME TO TIME,
THROUGH A COMMERCIAL INSURANCE CARRIER, AND
PRIOR TO ENTERING INTO AN AGREEMENT WITH THE
BOARD OF TRUSTEES OF THE STATE TEACHERS RETIRE-
MENT SYSTEM, A COUNTY BOARD OF EDUCATION SHALL
CONSIDER A PROPOSAL OF AT LEAST ONE COMMERCIAL
INSURANCE CARRIER. THE CRITERIA FOR CHOOSING A
PLAN SHALL BE THE SAME FOR BOTH THE STATE
TEACHERS' RETIREMENT SYSTEM AND THE COMMERCIAL
PLANS. Such additional amounts so deposited shall become a part
of his accumulated contributions except in the case of disability re-
tirement, when they shall be treated as excess contributions return-
able to the member in cash or as an annuity of equivalent actuarial
value. The accumulated contributions of the member withdrawn by
him, or paid to his estate or to his designated beneficiary in event of
his death as provided in this subtitle, shall be paid from the An-
nuity Savings Fund. Upon the retirement of a member his accumu-