946                                        LAWS OF MARYLAND                                Ch. 459

RESTORED TO MEMBERSHIP, HIS ANNUITY RESERVE SHALL BE
TRANSFERRED TO THE ANNUITY SAVINGS FUND AND CREDITED
TO HIS INDIVIDUAL ACCOUNTS THEREIN.

(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) Pension Reserve Fund. 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 a beneficiary
retired on account of disability be restored to membership, his pension reserve
shall be transferred from the Pension Reserve Fund to the Pension Accumulation
Fund. Should the pension of 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 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. Biennially 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 years 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) 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
to the Governor the amounts which will become due and payable during the
biennium next following to each of the funds of the retirement system. The amount
thus ascertained shall be included in the budget bill which is submitted to the
General Assembly.

The board of trustees shall certify one quarter of the amount so ascertained for
each year of the biennium to the State Comptroller on or before the last day of
December, February, May and September. The Comptroller shall, on or before the
first day of January, March, June and October, draw a warrant or warrants on the
State Treasurer for the respective amounts due the retirement system. On the
receipt of the warrant of the Comptroller, the State Treasurer shall immediately
transfer to the retirement system the amounts due.

[(7) The board of trustees is hereby authorized and directed subject to the
annual appropriation of the necessary funds and in addition to those provided in
accordance with and in the same manner as that provided in subsections (1), (2),
(3), (4), (5), and (6), of this section and subject to the conditions hereinafter
provided, to make a supplementary payment to any beneficiary who was retired
prior to July 1, 1971, in addition to the benefits provided in § 11 of this article, on
the following basis: