998                                        LAWS OF MARYLAND                                Ch. 460

date of his employment. The rate of contribution of such employee shall be
determined [by his age] at the time he actually joins the system, and will not be
reduced for reason of service prior to joining, provided, however, that any such
employee may purchase credit for service before joining by paying the
contributions due, BASED ON THE RATE DETERMINED PURSUANT TO §
198(1)(A) FOR HIS AGE AT THE DATE OF MEMBERSHIP WITHOUT
REGARD TO THE MAXIMUM RATE OF FIVE PERCENTUM OF
EARNABLE COMPENSATION, plus interest ON SUCH CONTRIBUTIONS.
Such purchase may be made at any time prior to retirement.

(2)  Teachers and persons on waiting list at time of establishment. — All persons
who are teachers on the date as of which the retirement system is established,
including those who are on the "waiting list" and eligible for retirement, and who
are not beneficiaries of any other retirement system, except those specifically
excluded under subsection (3) of this section, shall become members as of that date
unless within a period of thirty days next following, any such teacher shall file with
the board of trustees on a form prescribed by such board a notice of his election
not to be covered in the membership of the system and a duly executed waiver of
all present and prospective benefits which would otherwise inure to him on account
of his participation in the retirement system.

(3)  Members of local funds. —Teachers who are members and those who under
the existing law are entitled to become members of any fund operated for the
retirement of teachers by a city, county or other political subdivision of the State
of Maryland shall not be entitled to membership in this retirement system unless
on or before a date not more than one year next following the establishment of this
retirement system a majority of the members of such fund shall indicate by a
notice filed with the board of trustees on a form prescribed by the board that they
vote to have the privilege to participate in this retirement system. Should a
majority of the members of any such fund so vote, then the board of trustees of
this retirement system shall announce by a notice duly filed with the persons in
charge of the administration of such fund, that on and after a certain date to be set
by the board of trustees of this retirement system not more than thirty days next
succeeding the date of the majority vote, but not prior to the date this system is
established, all members of that fund shall be eligible to participate in this
retirement system. All members of said fund shall then become members of this
system on such date, unless within thirty days next succeeding they shall elect not
to become members. All new teachers in said city or county shall thereafter
become members of this system as a condition of their employment. Any teacher
eligible to participate who shall elect not to become a member of this system shall
file with the board of trustees on the form prescribed by the board an election not
to be covered in the membership of the system and a duly executed waiver of all
present and prospective benefits which otherwise would inure to him on account of
his participation in the retirement system.

If the majority of the members of a retirement or pension fund do vote to enter
this retirement system as described above, the local fund shall be discontinued
within thirty days next succeeding the date of the majority vote, but not prior to
the establishment of this retirement system, the payment of all pensions to
members on the pension roll as of the date of discontinuance shall become an
obligation of the city or county in which the fund was operated and shall be
continued and paid by such city or county. The moneys and securities of the fund,
not exceeding the present value of the payments to be made on account of all
pensions to the pensioners on the rolls of the fund as of the date of discontinuance
shall be transferred to the said city or county as an offset to the payments required
for the existing pension roll; and the amount of the excess of the moneys and
securities of the fund over and above the present value of the payments to be made
on account of all pensions to pensioners shall be distributable among the active