540

LAWS OF MARYLAND

Ch. 22

OF RATES. - IN THE YEAR 1930, AND AT LEAST ONCE IN EACH
FIVE-YEAR PERIOD THEREAFTER, THE ACTUARY SHALL MAKE AN
ACTUARIAL INVESTIGATION INTO THE MORTALITY, SERVICE AND
COMPENSATION EXPERIENCE OF THE MEMBERS AND BENEFICIARIES OF
THE RETIREMENT SYSTEM, AND SHALL MAKE A VALUATION OF THE
ASSETS AND LIABILITIES OF THE FUNDS OF THE SYSTEM, AND
TAKING INTO ACCOUNT THE RESULT OF SUCH INVESTIGATION AND
VALUATION, THE BOARD OF TRUSTEES SHALL

(A)    ADOPT FOR THE RETIREMENT SYSTEM SUCH MORTALITY,
SERVICE AND OTHER TABLES AS SHALL BE DEEMED NECESSARY;

(B)   CERTIFY THE RATES OF CONTRIBUTION PAYABLE BY
MEMBERS UNDER THE PROVISIONS OF THIS SUBTITLE; AND

(C)    CERTIFY THE RATES OF CONTRIBUTION PAYABLE BY THE
STATE OF MARYLAND ON ACCOUNT OF NEW ENTRANTS AT VARIOUS
AGES,

(16) SAME—ANNUAL VALUATION OF ASSETS AND LIABILITIES
OF FUNDS. —ON THE BASIS OF SUCH REGULAR INTEREST RATE OR
RATES AND TABLES AS THE BOARD OF TRUSTEES SHALL ADOPT, THE
ACTUARY SHALL MAKE AN ANNUAL VALUATION OF THE ASSETS AND
LIABILITIES OF THE FUNDS OF THE SYSTEM CREATED BY THIS
SUBTITLE.

87A. INDEMNIFICATION OF PERSON SERVING IN FIDUCIARY
CAPACITY.

(A)   AUTHORIZED. —THE STATE SHALL INDEMNIFY EVERY
PERSON WHO IS MADE, OR IS THREATENED TO BE MADE, A PARTY TO
ANY ACTION, SUIT, OR PROCEEDING, INCLUDING ADMINISTRATIVE
AND INVESTIGATIVE PROCEEDINGS BY REASON OF HIS SERVICE IN A
FIDUCIARY CAPACITY TO THE TEACHERS' RETIREMENT SYSTEM, IN
ACCORDANCE WITH AND SUBJECT TO THE CONDITIONS STATED IN THIS
SECTION.

(B)  "SERVICE IN FIDUCIARY. CAPACITY" DEFINED. —THE
TERM "SERVICE IN A FIDUCIARY CAPACITY," AS USED IN THIS
SECTION, MEANS THE EXERCISE OF ANY DISCRETIONARY AUTHORITY
OR CONTROL CONCERNING THE MANAGEMENT OR ADMINISTRATION OF
THE TEACHERS' RETIREMENT SYSTEM, OR THE EXERCISE OF ANY
DISCRETIONARY AUTHORITY OR CONTROL CONCERNING THE MANAGEMENT
OR DISPOSITION OF THE ASSETS OF THE SYSTEM. IT INCLUDES
MEMBERSHIP ON THE BOARD OF TRUSTEES OF THE TEACHERS'
RETIREMENT SYSTEM, MEMBERSHIP ON THE ADVISORY INVESTMENT
COMMITTEE AND SERVICE AS INVESTMENT ADMINISTRATOR OR ON HIS
STAFF.

(C)   INCLUDED EXPENSES. —IF, WITH RESPECT TO A CIVIL,
ADMINISTRATIVE, OR INVESTIGATIVE ACTION, SUIT, OR
PROCEEDING, THE PERSON ACTED IN GOOD FAITH AND IN A MANNER
HE REASONABLY BELIEVED TO BE IN OR NOT OPPOSED TO THE BEST
INTEREST OF THE TEACHERS' RETIREMENT SYSTEM, AND, WITH
RESPECT TO A CRIMINAL ACTION, HAD NO REASONABLE CAUSE TO
BELIEVE HIS CONDUCT WAS UNLAWFUL, THEN INDEMNIFICATION SHALL
BE AGAINST THOSE EXPENSES, INCLUDING REASONABLE ATTORNEY'S
FEES, JUDGMENTS, FINES, AND ACCOUNTS PAID IN SETTLEMENT