BLAIR LEE III, Acting Governor                              543

ACCUMULATION FUND, AND THE EXPENSE FUND.

(1) ANNUITY SAVINGS FUND. —(A) THE ANNUITY SAVINGS
FUND SHALL BE A FUND IN WHICH SHALL BE ACCUMULATED
CONTRIBUTIONS FROM THE COMPENSATION OF MEMBERS TO PROVIDE
FOR THEIR ANNUITIES. UPON THE BASIS OF SUCH TABLES AS THE
BOARD OF TRUSTEES SHALL ADOPT AND AN INTEREST RATE OF 4
PERCENT PER YEAR COMPOUNDED ANNUALLY, THE ACTUARY OF THE
RETIREMENT SYSTEM SHALL DETERMINE FOR EACH MEMBER WHO SHALL
HAVE BECOME A MEMBER PRIOR TO JULY 1, 1973 THE PROPORTION OF
COMPENSATION WHICH, WHEN DEDUCTED FROM EACH PAYMENT OF HIS
PROSPECTIVE EARNABLE ANNUAL COMPENSATION PRIOR TO HIS
ATTAINMENT OF AGE 60 AND ACCUMULATED AT INTEREST OF 4
PERCENT PER YEAR COMPOUNDED ANNUALLY, UNTIL HIS ATTAINMENT
OF SUCH AGE SHALL BE COMPUTED TO PROVIDE AT THAT TIME AN
ANNUITY EQUAL TO ONE ONE-HUNDRED AND FORTIETH OF HIS AVERAGE
FINAL COMPENSATION FOR EACH YEAR OF SERVICE AS A MEMBER.
SUCH PROPORTION OF COMPENSATION SHALL BE COMPUTED TO REMAIN
CONSTANT, HOWEVER, COMMENCING AS OF JULY 1, 1973, THE
PROPORTION OF COMPENSATION PAYABLE BY ANY MEMBER AS OF JUNE
30, 1973 SHALL BE THE LESSER OF (I) THE PROPORTION SO
DETERMINED, OR (II) 5 PERCENT OF HIS EARNABLE COMPENSATION,
AND THE PROPORTION OF COMPENSATION PAYABLE BY ANY PERSON WHO
BECOMES A MEMBER AFTER JUNE 30, 1973 SHALL BE 5 PERCENT OF
HIS EARNABLE COMPENSATION.

(B)   THE BOARD OF TRUSTEES SHALL CERTIFY TO THE
SUPERINTENDENT OF SCHOOLS OF EACH COUNTY, AND THE
SUPERINTENDENT OF SCHOOLS OF EACH COUNTY SHALL CAUSE TO BE
DEDUCTED FROM THE SALARY OF EACH MEMBER ON EACH AND EVERY
PAYROLL OF SUCH COUNTY, FOR EACH AND EVERY PAYROLL PERIOD
THE PROPORTION OF EARNABLE COMPENSATION OF EACH MEMBER SO
COMPUTED. IN DETERMINING THE AMOUNT EARNABLE BY A MEMBER IN
A PAYROLL PERIOD, THE BOARD OF TRUSTEES MAY CONSIDER THE
RATE OF ANNUAL COMPENSATION PAYABLE TO SUCH MEMBER ON THE
FIRST DAY OF THE PAYROLL PERIOD AS CONTINUING THROUGHOUT
SUCH PAYROLL PERIOD, AND IT MAY OMIT DEDUCTION FROM
COMPENSATION FOR ANY PERIOD LESS THAN A FULL PAYROLL PERIOD
IF A TEACHER WAS NOT A MEMBER ON THE FIRST DAY OF THE
PAYROLL PERIOD, AND TO FACILITATE THE MAKING OF DEDUCTIONS
IT MAY MODIFY THE DEDUCTION REQUIRED OF ANY MEMBER BY SUCH
AN AMOUNT AS SHALL NOT EXCEED 0.1 PERCENT OF THE ANNUAL
COMPENSATION UPON THE BASIS OF WHICH SUCH DEDUCTION IS TO BE
MADE.

(C)   THE DEDUCTIONS PROVIDED FOR HEREIN SHALL BE MADE
NOTWITHSTANDING THAT THE MINIMUM COMPENSATION PROVIDED FOR
BY LAW FOR ANY MEMBER SHALL BE REDUCED THEREBY. EVERY
MEMBER SHALL BE DEEMED TO CONSENT AND AGREE TO THE
DEDUCTIONS MADE AND PROVIDED FOR HEREIN AND SHALL RECEIPT
FOR HIS OR HER FULL SALARY OR COMPENSATION, AND PAYMENT OF
SALARY OR COMPENSATION LESS SAID DEDUCTION SHALL BE A FULL
AND COMPLETE DISCHARGE AND ACQUITTANCE OF ALL CLAIMS AND
DEMANDS WHATSOEVER FOR THE SERVICES RENDERED BY SUCH PERSON
DURING THE PERIOD COVERED BY SUCH PAYMENT, EXCEPT AS TO THE
BENEFITS PROVIDED UNDER THIS SUBTITLE. THE SUPERINTENDENT
OF SCHOOLS FOR EACH COUNTY, AND BALTIMORE CITY SHALL CERTIFY
TO THE BOARD OF TRUSTEES ON EACH AND EVERY PAYROLL OR IN