BLAIR LEE III, Acting Governor

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PROGRAM.

(E)   THE STATE SHALL CONTRIBUTE ON BEHALF OF EACH
PARTICIPANT IN THE OPTIONAL RETIREMENT PROGRAM THE AMOUNT
WHICH IT WOULD HAVE BEEN REQUIRED TO ALLOCATE AND CONTRIBUTE
TO THE TEACHERS' RETIREMENT SYSTEM FOR EACH PARTICIPANT AS A
MEMBER OF THE TEACHERS' RETIREMENT SYSTEM, EXCEPT THE
AMOUNTS CONTRIBUTED IN ACCORDANCE WITH §§ 86(2)(D)(1) AND
86A OF THIS ARTICLE. HOWEVER, IN NO EVENT SHALL THE
CONTRIBUTION BE LESS THAN 5 PERCENT OF EACH PARTICIPANT'S
EARNABLE COMPENSATION. EACH PARTICIPANT SHALL CONTRIBUTE
THE AMOUNT WHICH HE WOULD HAVE BEEN REQUIRED TO CONTRIBUTE
AS A MEMBER OF THE TEACHERS' RETIREMENT SYSTEM.
CONTRIBUTIONS AUTHORIZED OR REQUIRED BY THE PROVISIONS OF
THIS SUBSECTION ON BEHALF OF EACH PARTICIPANT MAY BE MADE BY
PAYROLL DEDUCTION OR BY A REDUCTION IN SALARY IN ACCORDANCE
WITH THE PROVISIONS OF § 403 (B) OF THE UNITED STATES
INTERNAL REVENUE CODE. PAYMENT OF CONTRIBUTIONS SHALL BE
MADE BY THE APPROPRIATE GOVERNING BOARD TO THE DESIGNATED
COMPANY FOR THE BENEFIT OF EACH PARTICIPANT. IN THE EVENT
OF A QUALIFIED EMPLOYEE PARTICIPATING IN AN OPTIONAL
RETIREMENT PROGRAM WHOSE COMPENSATION IS PAID FROM SPECIAL
AND/OR FEDERAL FUNDS, THE STATE'S CONTRIBUTION TO SUCH
OPTIONAL RETIREMENT PROGRAM SHALL BE PAID FROM THE SPECIAL
AND/OR FEDERAL FUNDS.

(F)    ANY ELIGIBLE EMPLOYEE WHO IS A MEMBER OF THE
TEACHERS' RETIREMENT SYSTEM OF THE STATE OF MARYLAND AT THE
TIME HE ELECTS TO PARTICIPATE IN AN OPTIONAL RETIREMENT
PROGRAM ESTABLISHED PURSUANT TO THIS SECTION SHALL BE DEEMED
TO BE A PERSON WHO DISCONTINUES SERVICE IN THE TEACHERS'
RETIREMENT SYSTEM ON THE EFFECTIVE DATE OF THE ELECTION FOR
THE PURPOSE OF DETERMINING HIS ELIGIBILITY FOR IMMEDIATE
VESTED RIGHTS AND BENEFITS IN THE TEACHERS' RETIREMENT
SYSTEM. HOWEVER, ANY SUCH PERSON SHALL NOT WITHDRAW HIS
ACCUMULATED CONTRIBUTIONS IN THE ANNUITY SAVINGS FUND AS
LONG AS HE CONTINUES IN THE EMPLOYMENT OF A STATE
INSTITUTION WHOSE EMPLOYEES ARE ELIGIBLE FOR MEMBERSHIP IN
THE TEACHERS' RETIREMENT SYSTEM. THESE BENEFITS SHALL BE
COMPUTED ONLY ON THE BASIS OF YEARS OF SERVICE OTHERWISE
CREDITABLE TO HIM AS A CONTRIBUTING MEMBER OF THE TEACHERS'
RETIREMENT SYSTEM.

(G)    A GOVERNING BOARD ADOPTING AN OPTIONAL RETIREMENT
PROGRAM SHALL DESIGNATE THE COMPANY FROM WHICH CONTRACTS ARE
TO BE PURCHASED UNDER THE OPTIONAL RETIREMENT PROGRAM, AND
SHALL APPROVE THE FORM AND CONTENTS OF THE CONTRACTS. IN
MAKING THE DESIGNATION AND GIVING APPROVAL, THE BOARD SHALL
GIVE DUE CONSIDERATION TO THE FOLLOWING:

(1)  THE NATURE AND EXTENT OF THE RIGHTS AND BENEFITS TO
BE PROVIDED BY THE CONTRACTS FOR STAFF MEMBERS AND THEIR
BENEFICIARIES;

(2)  THE RELATION OF THOSE RIGHTS AND BENEFITS TO THE
AMOUNT OF CONTRIBUTIONS TO BE MADE;

(3)   THE SUITABILITY OF THE RIGHTS AND BENEFITS TO THE