BLAIR LEE III, Acting Governor

519

(9)    "MEMBERSHIP SERVICE" MEANS SERVICE AS A TEACHER
RENDERED WHILE A MEMBER OF THE RETIREMENT SYSTEM.

(10)   "CREDITABLE SERVICE" MEANS "PRIOR SERVICE" PLUS
"MEMBERSHIP SERVICE" FOR WHICH CREDIT IS ALLOWABLE AS
PROVIDED IN §85 OF THIS ARTICLE.

(11)   "BENEFICIARY" MEANS ANY PERSON IN RECEIPT OF A
PENSION, AN ANNUITY, A RETIREMENT ALLOWANCE OR OTHER BENEFIT
AS PROVIDED BY THIS SUBTITLE.

(12)    "REGULAR INTEREST" FOR THE ANNUITY SAVINGS FUND
MEANS INTEREST AT AN ANNUAL PERCENTAGE RATE COMPOUNDED
ANNUALLY AS MAY BE SET FROM TIME TO TIME BY THE BOARD WITH A
MINIMUM RATE OF 3 PERCENT PER YEAR AND A MAXIMUM RATE OF 4
PERCENT PER YEAR. "REGULAR INTEREST" FOR THE PURPOSES OF
THE ACTUARIAL VALUATIONS SHALL MEAN INTEREST AT SUCH RATE OR
RATES AS MAY BE SET FROM TIME TO TIME BY THE BOARD OF
TRUSTEES IN ACCORDANCE WITH §88, SUBSECTION (2) OF THIS
ARTICLE.

AS TO ANY MEMBER WHO AFTER JUNE 1, 1958, LEAVES, AND IS
NO LONGER IN ACTIVE SERVICE AS A TEACHER, THE RATE OR
REGULAR INTEREST CREDITED TO THE MEMBER'S ACCUMULATED

CONTRIBUTIONS FROM THE TIME OF HIS LEAVING SHALL BE 3
PERCENT.

(13)   "ACCUMULATED CONTRIBUTIONS" MEANS 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
§89 OF THIS ARTICLE.

(14)     "EARNABLE COMPENSATION" MEANS THE NORMAL
COMPENSATION PAYABLE TO A TEACHER FOR WORKING THE NORMAL
TIME FOR HIS OR HER POSITION. AND FROM WHICH CONTRIBUTIONS
ARE DEDUCTED IN ACCORDANCE WITH §89(1) OF THIS ARTICLE.

(15)   "AVERAGE FINAL COMPENSATION" MEANS THE AVERAGE
ANNUAL EARNABLE COMPENSATION OF A TEACHER FOR THE THREE
YEARS OF SERVICE AS A TEACHER DURING WHICH THE TEACHER'S
EARNABLE COMPENSATION WAS HIGHEST, OR IF THE TEACHER HAD
LESS THAN THREE YEARS OF SERVICE, THEN THE TEACHER'S AVERAGE
EARNABLE COMPENSATION FOR HIS OR HER TOTAL SERVICE.

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.

(16)    "ANNUITY" MEANS PAYMENTS FOR LIFE DERIVED FROM
THE ACCUMULATED CONTRIBUTIONS OF A MEMBER. ALL ANNUITIES
SHALL BE PAYABLE IN EQUAL MONTHLY INSTALLMENTS.