1614

LAWS OF MARYLAND

Ch. 456

the context shall have the following meanings:

(12)   (A) "Regular interest" MEANS, for PURPOSES OF
INTEREST CREDITS TO the Annuity Savings Fund [shall mean
interest at the rate of four per centum per annum compounded
annually for members who became such on or before June 30,
1955; and for all other members shall mean], interest at a
rate per centum per annum compounded annually as may be set
from time to time by the board with a minimum rate of three
per centum per annum and a maximum rate of four per centum
per annum.

(B) "Regular interest" MEANS for [the] ALL
OTHER purposes [of the] INCLUDING actuarial valuations
[shall mean], interest at such rate as may be set from time
to time by the board of trustees in accordance with § 55[ ,
subsection] (2) of this article[ , as amended from time to
time].

(13)   "Accumulated contributions" shall mean the sum of
all the amounts deducted from the compensation of a member
and credited to his individual account in the Annuity
Savings Fund, together with regular interest thereon, as
provided in § 56 of this subtitle[, and all amounts
contributed by the State as provided in § 57 of this
subtitle ].

(15) (A) "Average final compensation" means the
average annual earnable compensation of an employee during
the three years of service as an employee, during which the
employee's earnable compensation was highest or if the
employee had less than three years of service, then the
employee's average earnable compensation for his or her
total service. IF AN EMPLOYEE TRANSFERRED FROM ANOTHER
ACTUARIAL RETIREMENT SYSTEM IN THE STATE AND HAD LESS THAN
THREE YEARS SERVICE AT THE TIME OF RETIREMENT, THE EARNABLE
COMPENSATION AS A MEMBER IN THE OTHER SYSTEM SHALL BE USED
IN DETERMINATION OF AVERAGE FINAL COMPENSATION.

(B) In the determination of average final
compensation, any extraordinary salary increase in the last
three years of service that would otherwise be included in
average final compensation shall be excluded, and the board
of trustees by a rule of general application shall determine
what constitutes an extraordinary salary increase. The
provisions of this paragraph of the definition of "average
final compensation" do not apply in cases of promotion.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1978.

Approved May 16, 1978,

CHAPTER 457