HARRY HUGHES, Governor

205

A PENSION SYSTEM IS ESTABLISHED AND PLACED UNDER THE
MANAGEMENT OF THE BOARD OF TRUSTEES TO PROVIDE RETIREMENT
ALLOWANCES AND OTHER BENEFITS, UNDER THIS SUBTITLE, FOR
TEACHERS OF THE STATE OF MARYLAND. THIS PENSION SYSTEM
SHALL BE ESTABLISHED AS OF JANUARY 1, 1980, AND IT SHALL BE
PART OF THE DEPARTMENT OF PERSONNEL. IT SHALL HAVE THE
POWERS AND PRIVILEGES OF A CORPORATION, AND SHALL BE KNOWN
AS THE "PENSION SYSTEM FOR TEACHERS OF THE STATE OF
MARYLAND," AND BY THIS NAME SHALL TRANSACT ALL OF ITS
BUSINESS. THE BOARD OF TRUSTEES MAY AUTHORIZE THE STATE
TREASURER TO PLACE SECURITIES HELD BY THE BOARD IN THE NAME
OF A PARTNERSHIP TO BE FORMED UNDER THE LAWS OF MARYLAND FOR
THE SOLE PURPOSE OF HOLDING THESE SECURITIES AS THE NOMINEE
OF THE BOARD OF TRUSTEES. THE PARTNERSHIP SHALL CONSIST OF
THREE PARTNERS: THE STATE TREASURER, THE CHIEF DEPUTY
TREASURER, AND THE INVESTMENT ADMINISTRATOR, ANY ONE OF WHOM
MAY EXECUTE DOCUMENTS ON BEHALF OF THE PARTNERSHIP THAT MAY
BE NECESSARY OR PROPER TO TRANSFER ANY OF THESE SECURITIES.
THE ARTICLES OF PARTNERSHIP AND ANY AGREEMENT BETWEEN THE
PARTNERSHIP AND THE BOARD OF TRUSTEES SHALL BE PREPARED BY
THE ATTORNEY GENERAL AND SHALL PROVIDE THAT THE PARTNERSHIP
MAY ACT ONLY AS THE AGENT OF THE BOARD OF TRUSTEES, AND
SHALL CONTAIN ANY OTHER TERMS AND CONDITIONS THAT THE
ATTORNEY GENERAL CONSIDERS APPROPRIATE. THE PARTNERSHIP MAY
ENTER INTO AGREEMENTS WITH ANY BANK OR OTHER FINANCIAL
INSTITUTION TO GUARANTEE THE SIGNATURES MADE ON BEHALF OF
THE PARTNERSHIP.

142. MEMBERSHIP.

THE MEMBERSHIP OF THIS PENSION SYSTEM SHALL CONSIST OF
THE FOLLOWING:

(1)   ANY PERSON WHO BECOMES A TEACHER ON OR AFTER THE
DATE OF ESTABLISHMENT SHALL BECOME A MEMBER OF THIS PENSION
SYSTEM AS A CONDITION OF EMPLOYMENT, UNLESS THAT TEACHER
ELECTS TO PARTICIPATE IN AN OPTIONAL RETIREMENT PROGRAM AS
PROVIDED IN § 110 OF THIS ARTICLE.

(2)   ANY PERSON WHO, ON OR AFTER JANUARY 1, 1980, IS A
TEACHER AND IS A MEMBER OF THE RETIREMENT SYSTEM SHALL BE
ENTITLED TO MEMBERSHIP IN THIS PENSION SYSTEM, AND MAY
BECOME A MEMBER AS OF THAT DATE, OR THE FIRST DAY OF EACH
MONTH THEREAFTER THROUGH AND INCLUDING JULY 1, 1980, OR ANY
SUBSEQUENT JULY 1, BY FILING WITH THE BOARD OF TRUSTEES AN
EXECUTED WAIVER OF ALL BENEFITS THAT MIGHT INURE TO HIM
UNDER THE RETIREMENT SYSTEM.

(3)   THE BOARD OF TRUSTEES MAY DENY THE RIGHT TO
BECOME MEMBERS TO ANY CLASS OF TEACHERS WHOSE COMPENSATION
IS ONLY PARTLY PAID BY THE STATE OR WHO ARE SERVING ON A
TEMPORARY OR OTHER THAN YEARLY BASIS, AND IT ALSO MAY MAKE
OPTIONAL WITH MEMBERS IN THIS CLASS THEIR INDIVIDUAL
ENTRANCE INTO MEMBERSHIP.