976                             LAWS OF MARYLAND                     [CH. 407

CHAPTER 407
(Senate Bill 151)

AN ACT to repeal and re-enact, with amendments, Sections 108(12),
113 (2) (a), (b), (c) and (e) (1), 443 113 (4A), 113 (4B), 113 (4),
115 (2), 116 (1) (a) and 116 (3) (d) of Article 77 of the Anno-
tated Code of Maryland (1965 Replacement Volume and 1968 Sup-
plement) , title "Public Education," subtitle "Teachers' Certificates,
Salaries and Pensions," subheading "Teachers' Retirement Sys-
tem," to provide for a change in interest rate and a change in
benefit rate upon retirement.

Section 1. Be it enacted by the General Assembly of Maryland,
That Sections 108 (12), 113 (2) (a), (b), (c), and (e) (1), 443
(4A), 113 (4B), 113(4), 115 (2), 116 (1) (a), and 116 (3) (d) of
Article 77 of the Annotated Code of Maryland (1965 Replacement
Volume and 1968 Supplement), title "Public Education," subtitle
"Teachers' Certificates, Salaries and Pensions," subheading "Teach-
ers' Retirement System," be and they are hereby repealed and re-en-
acted, with amendments, to read as follows:

108.

(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 inter-
est" 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 115, 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.]

As to any member who after June 1, 1958, leaves, and is no longer
in active service as a teacher, the rate or regular interest credited to
the member's accumulated contributions from the time of his leaving
shall be three per centum.

113.

(2) 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 ac-
cumulated contributions at the time of retirement; and

(b)  A pension [in addition to his annuity] which shall be equal