544

LAWS OF MARYLAND

Ch. 22

SUCH OTHER MANNER AS THE BOARD OF TRUSTEES MAY PRESCRIBE,
THE AMOUNTS TO BE DEDUCTED; AND WHEN DEDUCTED SHALL BE PAID
INTO THE ANNUITY SAVINGS FUND, AND SHALL BE CREDITED,
TOGETHER WITH REGULAR INTEREST THEREON TO THE INDIVIDUAL
ACCOUNT OF THE MEMBER FROM WHOSE COMPENSATION SAID DEDUCTION
WAS MADE. ANY COUNTY OR BALTIMORE CITY SCHOOL SYSTEM OR
INSTITUTION FAILING TO PAY TO THE RETIREMENT SYSTEM THE
DEDUCTIONS FROM COMPENSATION OF TEACHERS ON THE DATE THE
TEACHERS ARE PAID SHALL BE LIABLE FOR A PENALTY OF 10
PERCENT OF THE AMOUNTS DUE. THE SECRETARY OF THE BOARD,
HOWEVER, MAY ALLOW A GRACE PERIOD NOT TO EXCEED 10
ADDITIONAL CALENDAR DAYS. ALL AMOUNTS DUE AND UNPAID ON THE
DATE OF PAYMENT SHALL ALSO BEAR INTEREST AT THE RATE OF 10
PERCENT UNTIL THE DATE OF PAYMENT. THE STATE COMPTROLLER,
UPON NOTIFICATION BY THE SECRETARY THAT A DELINQUENCY
EXISTS, SHALL IMMEDIATELY EXERCISE THE RIGHT OF SETOFF
AGAINST ALL OR ANY MONEY DUE OR TO BECOME DUE TO THE
DELINQUENT SCHOOL SYSTEM OR INSTITUTION.

(D) IN ADDITION TO THE CONTRIBUTIONS DEDUCTED FROM
COMPENSATION AS HEREINBEFORE PROVIDED, SUBJECT TO THE
APPROVAL OF THE BOARD OF TRUSTEES, ANY MEMBER MAY REDEPOSIT
IN THE ANNUITY SAVINGS FUND BY A SINGLE PAYMENT OR 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
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. 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, 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. THE CRITERIA FOR CHOOSING A
PLAN SHALL BE THE SAME FOR BOTH THE STATE TEACHERS'
RETIREMENT SYSTEM AND THE COMMERCIAL PLANS. 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