2872

LAWS OF MARYLAND

Ch. 997

by an increased rate of contribution an amount equal to the
total amount which he previously withdrew therefrom as
provided in this subtitle, 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 age 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 2 percent or more, but not to exceed
20 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 OR
CUSTODIAL ACCOUNTS 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 OR
CUSTODIAL ACCOUNTS. Nothing in this section shall preclude
the consideration and adoption by a local board of education
of a similar plan qualifying under § 403 (b) of the Internal
Revenue Code as amended from time to time, through a
commercial insurance carrier, OR THROUGH A CUSTODIAL ACCOUNT
WITH INVESTMENTS IS REGULATED INVESTMENT COMPANY STOCK AS
CONTEMPLATED BY SECTION 403(B), and prior to entering into
an agreement with the board of trustees of the State
Teachers' Retirement System, a county board of education
shall consider a proposal of at least one commercial
insurance carrier AND AT LEAST ONE SPONSOR OF A CUSTODIAL
ACCOUNT. THIS SECTION DOES NOT PRECLUDE A MEMBER FROM
DIRECTING THE STATE TEACHERS' RETIREMENT SYSTEM TO TRANSFER
HIS MONEYS UNDER SECTION 403(B) OF THE INTERNAL REVENUE
CODE, AS AMENDED FROM TIME TO TIME, UNDER THE STATE
TEACHERS' RETIREMENT SYSTEM TO A COMMERCIAL PLAN OR
CUSTODIAL ACCOUNT ADOPTED BY A LOCAL BOARD OF EDUCATION.
The criteria for choosing a plan shall be the same for both
the State Teachers' Retirement System and the commercial

plans. THE CRITERIA FOR CHOOSING A PLAN SHALL BE THE SAME

FOR THE STATE TEACHERS' RETIREMENT SYSTEM, A COMMERCIAL

PLAN, AND A CUSTODIAL ACCOUNT. Such additional amounts so

deposited shall become a part of his accumulated
contributions except in the case of retirement, when they
shall be treated as excess contributions returnable to the
member in cash or as an annuity of equivalent actuarial
value. The accumulated contributions of the member
withdrawn by him, or paid to his estate or to his designated
beneficiary in event of his death as provided in this
subtitle, 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
Accumulation Fund.

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