HARRY HUGHES, Governor

1753

account adopted by a local board of education; and
generally relating to the State Teachers' Retirement

System.

BY repealing and reenacting, with amendments,

Article 73B — Pensions
Section 89(1) (d)
Annotated Code of Maryland
(1978 Replacement Volume)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
be repealed, amended, or enacted to read as follows:

Article 73B — Pensions

89.

All of the assets of the retirement system shall be
credited according to the purpose for which they are held to
one of three funds, namely, the Annuity Savings Fund, the
Accumulation Fund, and the Expense Fund.

(1) (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 [or
custodial accounts] 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 [or
custodial accounts]. 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 [, or through a custodial
account with investments in regulated investment company
stock as contemplated by Section 403(b)], and prior to