168

LAWS OF MARYLAND

Ch. 24

next following the date of the election and shall constitute
a waiver of all rights and benefits provided by the
Teachers' Retirement System, except as otherwise provided.

(4) No election by an eligible employee of an
optional retirement program shall be effective unless it is
accompanied by an appropriate application, where required,
for the issuance of a contract or contracts under the
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)(l) and
86A of this article. However, in no event shall the
contribution be less than 5 percent of each participant's
earnable compensation] 5.84 PERCENT OF EACH PARTICIPANT'S
ANNUAL EARNABLE COMPENSATION. Each participant shall
contribute the amount which he would have been required to
contribute as a member of the Teachers' Retirement System OR
THE PENSION SYSTEM FOR THE TEACHERS. 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 OR THE PENSION SYSTEM FOR THE
TEACHERS 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 OR
THE PENSION SYSTEM FOR THE TEACHERS 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 OR THE PENSION SYSTEM FOR THE TEACHERS.
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 OR THE PENSION SYSTEM FOR THE TEACHERS.
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 OR THE PENSION
SYSTEM FOR THE TEACHERS.