192

LAWS OF MARYLAND

Ch. 24

ACQUITTANCE OF ALL CLAIMS AND DEMANDS WHATSOEVER FOR THE
SERVICES RENDERED BY SUCH PERSON DURING THE PERIOD COVERED
BY SUCH PAYMENT. ANY DEPARTMENT 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, SHALL IMMEDIATELY EXERCISE THE RIGHT OF
SETOFF AGAINST ANY MONEY DUE OR TO BECOME DUE TO THE
DELINQUENT DEPARTMENT.

(D)   SUBJECT TO THE APPROVAL OF THE BOARD OF
TRUSTEES, IN ADDITION TO THE CONTRIBUTIONS DEDUCTED FROM
EARNABLE COMPENSATION AS PROVIDED IN THIS SECTION, ANY
MEMBER MAY DEPOSIT THEREIN BY 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 THE AGE OF 62. IN
ADDITION TO THE CONTRIBUTIONS PROVIDED FOR IN THIS SECTION,
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. THESE 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THAT ARE WITHDRAWN BY HIM OR PAID TO HIS PERSONAL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 THIS SYSTEM OTHER
THAN THOSE PAYABLE FROM THE ANNUITY SAVINGS FUND.