HARRY HUGHES, Governor

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(B)   CONTRIBUTIONS SHALL BE MADE ON AND AFTER
THE DATE OF ESTABLISHMENT AT THE RATE OF 5 PERCENT OF THE
PART OF THE MEMBER'S EARNABLE COMPENSATION THAT IS IN EXCESS
OF THE TAXABLE WAGE BASE FOR EACH YEAR. EACH OF THE AMOUNTS
SHALL BE:

(I)   DEDUCTED UNTIL THE MEMBER RETIRES OR
OTHERWISE WITHDRAWS FROM SERVICE;

(II)  PAID INTO THE ANNUITY SAVINGS FUND;
AND

(III) CREDITED TO THE INDIVIDUAL ACCOUNT OF
THE MEMBER.

(C)   EVERY MEMBER SHALL BE DEEMED TO CONSENT TO
THE DEDUCTIONS MADE AND PROVIDED HEREIN AND SHALL RECEIPT
FOR HIS FULL COMPENSATION, AND PAYMENT OF COMPENSATION LESS
SUCH 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. ANY COUNTY SCHOOL SYSTEM, OR INSTITUTION
THAT FAILS TO PAY TO THIS PENSION SYSTEM THE DEDUCTIONS
FROM THE COMPENSATION OF ITS EMPLOYEES ON THE DATE THE
EMPLOYEES ARE PAID SHALL BE LIABLE FOR A PENALTY OF 10
PERCENT OF THE AMOUNTS DUE. HOWEVER, THE SECRETARY OF THE
BOARD 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 A
YEAR UNTIL THE DATE OF PAYMENT. THE STATE COMPTROLLER, IF
NOTIFIED BY THE SECRETARY THAT A DELINQUENCY EXISTS,
IMMEDIATELY SHALL EXERCISE THE RIGHT OF SETOFF AGAINST ANY
MONEY DUE OR TO BECOME DUE TO THE DELINQUENT SCHOOL SYSTEM
OR INSTITUTION.

(D)   SUBJECT TO THE APPROVAL OF THE BOARD OF
TRUSTEES, IN ADDITION TO THE CONTRIBUTIONS DEDUCTED FROM
EARNABLE COMPENSATION AS HEREINBEFORE PROVIDED 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 THAT, 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 THE AGE OF 62. IN
ADDITION TO THE CONTRIBUTIONS HEREINBEFORE PROVIDED, SUBJECT
TO THE CONDITIONS ESTABLISHED BY THE BOARD OF TRUSTEES, ANY
ELIGIBLE MEMBER, IN ACCORDANCE WITH A CONTRACT WITH HIS
EMPLOYER, MAY 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 INSTEAD OF AN INCREASE IN HIS
COMPENSATION. THE COST OF ADMINISTERING ANNUITIES THAT
QUALIFY UNDER § 403(B) OF THE INTERNAL REVENUE CODE, AS
AMENDED FROM TIME TO TIME, SHALL BE PROVIDED FROM THE FUNDS
INVESTED IN THESE ANNUITIES. THIS SECTION DOES NOT PROHIBIT
A LOCAL BOARD OF EDUCATION FROM ADOPTING A SIMILAR PLAN THAT