1008                                      LAWS OF MARYLAND                                Ch. 460

(g) All RETIREMENT ALLOWANCES AND ALL lump sum death benefits
on account of death in active service payable from contributions of the State of
Maryland shall be paid from the [Pension] Accumulation Fund.

(h) [Upon the retirement of a member, an amount equal to his pension reserve
shall be transferred from the Pension Accumulation Fund to the Pension Reserve
Fund.] ALL INTEREST AND DIVIDENDS EARNED ON THE FUNDS OF
THE RETIREMENT SYSTEM SHALL BE CREDITED TO THE
ACCUMULATION FUND. THE AMOUNTS NEEDED TO ALLOW
REGULAR INTEREST ON THE RESERVES IN THE ANNUITY SAVINGS
FUND SHALL BE TRANSFERRED TO SAID FUND IN ACCORDANCE
WITH THE PROVISIONS OF THIS ARTICLE FROM THE
ACCUMULATION FUND.

(I) SHOULD A BENEFICIARY RETIRED ON ACCOUNT OF
DISABILITY BE RESTORED TO ACTIVE SERVICE WITH A
COMPENSATION NOT LESS THAN HIS AVERAGE FINAL
COMPENSATION AT THE TIME OF HIS LAST RETIREMENT, HIS
ANNUITY RESERVE SHALL BE TRANSFERRED TO THE ANNUITY
SAVINGS FUND AND CREDITED TO HIS INDIVIDUAL ACCOUNT
THEREIN.

[(i)] (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 contributions 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 to provide all or part of the cost of benefit
improvements.

[(4) The Pension Reserve Fund shall be the fund in which shall be held the
reserves on all pensions granted to members and from which such pensions and
benefits in lieu thereof shall be paid. Should such a beneficiary retired on account
of disability be restored to active service with a compensation not less than his
average final compensation at the time of his last retirement the pension reserve
thereon shall be transferred from the Pension Reserve Fund to the Pension
Accumulation Fund. Should the pension of such a disability beneficiary be reduced
as a result of an increase in his earning capacity the amount of the annual
reduction in his pension shall be paid annually into the Pension Accumulation
Fund during the period of such reduction.]

[(5)] (3) The Expense Fund shall be the fund to which shall be credited all
money provided by the State of Maryland to pay the administration expenses of
the retirement system, and from which shall be paid all the expenses necessary in
connection with the administration and operation of the system. Annually the
board of trustees shall estimate the amount of money not in excess of three tenths
of one per centum of the payroll of members which shall be deemed necessary to
be paid into the Expense Fund during the ensuing year to provide for the expense
of operation of the retirement system and such amount shall be paid to the
Expense Fund for this purpose.

[(6)] (4) [(a)] On or before the first day of November next preceding each
regular meeting of the General Assembly of Maryland the board of trustees shall
certify the State Superintendent of Schools, the amounts which will become due
and payable during the year next following each of the funds of the retirement