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LAWS OF MARYLAND

Ch. 23

QUALIFIES UNDER § 403(B) OF THE INTERNAL REVENUE CODE AS
AMENDED FROM TIME TO TIME, THROUGH A COMMERCIAL INSURANCE
CARRIER, AND BEFORE ENTERING INTO AN AGREEMENT WITH THE
BOARD OF TRUSTEES OF THIS PENSION SYSTEM, A COUNTY BOARD OF
EDUCATION SHALL CONSIDER A PROPOSAL OF AT LEAST ONE
COMMERCIAL INSURANCE CARRIER. THE STANDARDS FOR CHOOSING A
PLAN SHALL BE THE SAME FOR BOTH THIS PENSION SYSTEM AND THE
COMMERCIAL PLANS. THE 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 VALUE.

(E) THE ACCUMULATED CONTRIBUTIONS OF A MEMBER
THAT ARE WITHDRAWN BY HIM OR PAID TO HIS PERSONAL
REPRESENTATIVE OR TO HIS DESIGNATED BENEFICIARY AT HIS
DEATH, SHALL BE PAID FROM THE ANNUITY SAVINGS FUND. ON THE
RETIREMENT OF A MEMBER, HIS ACCUMULATED CONTRIBUTIONS SHALL
BE TRANSFERRED FROM THE ANNUITY SAVINGS FUND TO THE
ACCUMULATION FUND.

(2) (A) THE ACCUMULATION FUND SHALL BE THE FUND IN
WHICH SHALL BE ACCUMULATED ALL RESERVES FOR THE PAYMENT OF
ALL ALLOWANCES AND OTHER BENEFITS PAYABLE FROM CONTRIBUTIONS
MADE BY THE STATE, ANY AMOUNTS TRANSFERRED THERETO FROM THE
ACCUMULATION FUND OF THE RETIREMENT SYSTEM, AMOUNTS
TRANSFERRED FROM THE ANNUITY SAVINGS FUND, AND FROM WHICH
SHALL BE PAID ALL BENEFITS PAYABLE UNDER THE SYSTEM OTHER
THAN THOSE PAYABLE FROM THE ANNUITY SAVINGS FUND.

(B)   EACH YEAR, ON ACCOUNT OF EACH MEMBER, THE
STATE SHALL PAY INTO THE ACCUMULATION FUND AN AMOUNT AT
LEAST EQUAL TO A CERTAIN PERCENTAGE OF THE ANNUAL EARNABLE
COMPENSATION OF THE MEMBER, TO BE KNOWN AS THE "NORMAL
CONTRIBUTION," AND AN ADDITIONAL AMOUNT EQUAL TO A CERTAIN
PERCENTAGE OF HIS ANNUAL EARNABLE COMPENSATION, TO-BE KNOWN
AS THE "ACCRUED LIABILITY CONTRIBUTION." THE RATES PERCENT
OF THESE CONTRIBUTIONS SHALL BE FIXED ON THE BASIS OF THE
LIABILITIES OF THIS PENSION SYSTEM AS SHOWN BY ACTUARIAL
VALUATION.

(C)   ON THE BASIS OF INTEREST AND THE MORTALITY
AND SERVICE TABLES ADOPTED BY THE BOARD OF TRUSTEES,
IMMEDIATELY AFTER MAKING EACH ACTUARIAL VALUATION, THE
ACTUARY SHALL DETERMINE THE "NORMAL CONTRIBUTION" ON ACCOUNT
OF EACH MEMBER, ON THE BASIS OF THE ACCRUED BENEFIT
ACTUARIAL COST METHOD. THE RATIO OF THE SUM OF THE NORMAL
CONTRIBUTION SO DETERMINED TO THE TOTAL ANNUAL EARNABLE
COMPENSATION OF ALL MEMBERS SHALL BE KNOWN AS THE "NORMAL
CONTRIBUTION" RATE.

(D)   THE ACCRUED LIABILITY CONTRIBUTION RATE
SHALL BE COMPUTED, ON THE BASIS OF THE ACCRUED BENEFIT
ACTUARIAL COST METHOD AND ANY OTHER ASSUMPTIONS ADOPTED BY
THE BOARD, AS THE RATE PERCENT OF THE TOTAL ANNUAL EARNABLE
COMPENSATION OF ALL MEMBERS THAT IS SUFFICIENT TO LIQUIDATE
OVER A PERIOD OF 40 YEARS FROM JULY 1, 1980, THE AMOUNT OF