974                                        LAWS OF MARYLAND                                Ch. 459

(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.] SHOULD A BENEFICIARY RETIRED ON ACCOUNT OF
DISABILITY BE RESTORED TO MEMBERSHIP. HIS ANNUITY
RESERVE SHALL BE TRANSFERRED FROM THE ACCUMULATION
FUND TO THE ANNUITY SAVINGS FUND AND CREDITED TO HIS
INDIVIDUAL ACCOUNT THEREIN.

(i) [The board of trustees may in its discretion transfer to and from the Pension
Accumulation Fund the amount of any surplus or deficit which may develop in the
reserve held in the Annuity Reserve Fund or 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 IN ACCORDANCE WITH THE
PROVISIONS OF THIS ARTICLE TO SAID FUND FROM THE
ACCUMULATION FUND.

(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 I
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 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. Annually the board of trustees
shall estimate the amount of money, not in excess of one and four-tenths 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) 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 year
next following to each of the funds 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.