Marvin Mandel, Governor                       1541

Section 14(3)(i) thereof; and that Section 16 of said article, title
and subtitle of the Code be and it is hereby repealed and re-enacted,
with amendments; and all to read as follows:

14.

(3) (j) The board of trustees may in its discretion adopt a gen-
erally accepted method of writing up the book value of the common
stock portion of the assets held by the retirement system, provided
that the annual amount of any such write-up shall not exceed 3
per centum of the total book value of the common stocks held as
of the determination date of the write-up. One-half of the amount
of any such write-up shall be offset against the employer contribu-
tions otherwise payable hereunder and, notwithstanding any other
provision of this article, the other half shall be accumulated in a
special account under the Pension Accumulation Fund to be used
at the direction of the board of trustees to provide all or part of
the cost of benefit improvements.

16.

The creation and maintenance of reserves in the Pension Accumu-
lation Fund, the maintenance of annuity reserves and pension re-
serves as provided for, and regular interest creditable to the various
funds as provided in Section 14 of this article, and the payment
of all pensions, annuities, retirement allowances, refunds and other
benefits granted under the provisions of this article and all expenses
in connection with the administration and operation of this retire-
ment system, are hereby made obligations of the State. All income,
interest and dividends derived from deposits and investments author-
ized by this article shall be used for the payment of the said obliga-
tions of the State. Any amounts derived [therefore] therefrom
which, when combined with the regular amounts otherwise con-
tributable by the State, exceed the amount required to provide said
obligations, shall be used to reduce the regular appropriations other-
wise required, except as otherwise provided in Section 14(3)(j) of
this article.

Sec. 2. And be it further enacted, That new Section 198(3) (i)
198(3)(J) be and it is hereby added to Article 77 of the Annotated
Code of Maryland (1969 Replacement Volume), title "Public Educa-
tion," subtitle "Chapter 17. Teachers' Retirement System," to follow
immediately after Section 198(3) (h) 198(3) (I) thereof; and that Sec-
tion 205 of said article, title and subtitle of the Code be and it is here-
by repealed and re-enacted, with amendments; and all to read as
follows:

198.

(3) (i) (3) (J) The board of trustees may in its discretion adopt a
generally accepted method of writing up the book value of the common
stock portion of the assets held by the retirement system, provided
that the annual amount of any such write-up shall not exceed 3
per centum of the total book value of the common stocks held as of
the determination date of the write-up. One-half of the amount
of any such write-up shall be offset against the employer contribu-
tions otherwise payable hereunder and, notwithstanding any other