MARVIN MANDEL, Governor                          593

General," SUBTITLES RESPECTIVELY "IN GENERAL" AND
"EMPLOYEES OF MUNICIPAL CORPORATIONS," to provide
for a change in interest rate and change in benefit rate upon
retirement. AND TO CHANGE THE CONTRIBUTIONS FOR
MUNICIPAL EMPLOYEES. EMPLOYERS.

Section 1. Be it enacted by the General Assembly of Maryland,
That Sections 1 (12), 11 (3), 11 (5), 13 (2), 14 (1) (a), 14 (3) (d),
and 26 (b) of Article 73B of the Annotated Code of Maryland (1957
Edition 1967 REPLACEMENT VOLUME and 1968 Supplement),
title "Pensions," subtitle "In General," SUBTITLES RESPECTIVE-
LY "IN GENERAL" AND "EMPLOYEES OF MUNICIPAL COR-
PORATIONS," be and they are hereby repealed and re-enacted, with
amendments, to read as follows:

1.

The following words and phrases as used in this Article, unless a
different meaning is plainly required by the context, shall have the
following meanings:

(12) "Regular interest" for the Annuity Savings Fund shall mean
interest at the rate [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
or rates as may be set [from time to time by the board of trustees]
in accordance with Section 13, subsection (2) of this Article, as
amended from time to time. Notwithstanding any provision of this
section to the contrary, the rate of interest credited 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 annum to the same extent as credited; provided, further, that

the maximum interest rate credited shall remain four per centum

per annum.

11.

(3) Upon retirement for service a member shall receive a service
retirement allowance which shall consist of:

(a)   An annuity which shall be the actuarial equivalent of his
accumulated contributions at the time of retirement; and

(b)   A pension which shall be equal to one one-hundred and
[fortieth] twentieth of his average final compensation multiplied
by the number of years of his service since he last became a member;
and

(c)   If he has a prior service certificate in full force and effect,
an additional pension which shall be equal