990                                        LAWS OF MARYLAND                                Ch. 460

payment of salary or compensation less such deduction shall be a full and complete
discharge and acquittance of all claims and demands whatsoever for the services
rendered by such person during the period covered by such payment, except as to
the benefits provided under this article. The head of each department shall certify
to the board of trustees on each and every payroll, or in such other manner as the
board of trustees may prescribe, the amounts to be deducted; and each of said
amounts shall be deducted, and when deducted shall be paid into said Annuity
Savings Fund, and shall be credited, together with regular interest thereon, to the
individual account of the member from whose compensation said deduction was
made.

(d)  Notwithstanding the preceding provisions, no deduction shall be made from
any member's compensation with respect to which the State's contributions are in
default.

(e)   Subject to the approval of the board of trustees, in addition to the
contributions deducted from compensation as hereinbefore provided, any member
may redeposit in the Annuity Savings Fund by a single payment or by an increased
rale of contribution an amount equal to the total amount which he previously
withdrew therefrom as provided in this article, or any part thereof; or any member
may deposit therein by a single payment or by an increased rate of contribution an
amount computed to be sufficient to purchase an additional annuity which,
together with his prospective retirement allowance, will provide for him a total
retirement allowance not in excess of two thirds of his average final compensation
at the age of 60 or after 30 years of creditable service, whichever would first occur.
In addition to the contributions hereinbefore provided, subject to such conditions
as may be established by the board of trustees, any member may, in accordance
with a contract with his employer, have further contributions at a fixed percentage
of two percent or more, but not to exceed twenty percent of his compensation
made on his account, either by a reduction in his salary or in lieu of an increase in
his compensation. The cost of administering annuities qualifying under § 403 (b) of
the Internal Revenue Code as amended from time to time, shall be provided from
the funds invested in such annuities. Such additional amounts so deposited shall
become a part of his accumulated contributions except in the case of disability
retirement, when they shall be treated as excess contributions returnable to the
member in cash or as an annuity of equivalent actuarial value.

(f) The accumulated contributions of a member withdrawn by him, or paid to
his estate or to his designated beneficiary in event of his death, as provided in this
article, shall be paid from the Annuity Savings Fund. Upon the retirement of a
member his accumulated contributions shall be transferred from the Annuity
Savings Fund to the Annuity Reserve Fund.

[(2) The Annuity Reserve Fund shall be the fund in which shall be held the
reserves on all annuities in force and from which shall be paid all annuities and all
benefits in lieu of annuities, payable as provided in this article. Should a
beneficiary retired on account of disability be restored to membership, his annuity
reserve shall be transferred from the Annuity Reserve Fund to the Annuity Savings
Fund and credited to his individual account therein.]

[(3)] (2) (a) The [Pension] Accumulation Fund shall be the fund in which shall
be accumulated all reserves for the payment of all pensions and other benefits
payable from contributions made by the State and from which shall be paid ALL
RETIREMENT ALLOWANCES AND the lump sum death benefits payable
from said contributions. Contributions to and payments from the [Pension]
Accumulation Fund shall be made as follows: