962                                        LAWS OF MARYLAND                                Ch. 459

[(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
system together with a statement of the percentage of the payroll of all members,
which is equivalent to the total amount. To this amount the State Superintendent
of Schools shall add an amount equal to such percentage of the payroll of teachers
who are members of local retirement funds in the cities and counties of the State,
who are excluded] from membership in this retirement system as provided in § 192
of this article, but (until June 30, 1969), not in excess of the percentage certified
for this retirement system, as such respective cities or counties may have
contributed during the biennium preceding, to their own retirement or pension
system on account of their teachers, which latter amount shall be paid to such
cities and counties; and beginning on July 1, 1969, as is determined by the actuary
of this retirement system on the basis of an actuarial valuation of the cost to such
subdivision of funding the same benefits as are provided under this retirement
system, which latter amount shall be paid to such cities and counties; the amounts
thus ascertained shall be included by the State Superintendent of Schools in his
budget estimate and shall be included in the budget bill which is submitted to the
General Assembly.

The State Superintendent of Schools shall certify one quarter of the amount so
ascertained for the year 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
Treasurer of the State of Maryland for the respective amounts due the State