222

LAWS OF MARYLAND

Ch. 24

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,
IMMEDIATELY SHALL EXERCISE THE RIGHT OF SETOFF AGAINST ANY
MONEY DUE OR TO BECOME DUE TO THE DELINQUENT SCHOOL SYSTEM
OR INSTITUTION.

(D)   SUBJECT TO THE APPROVAL OF THE BOARD OF
TRUSTEES, IN ADDITION TO THE CONTRIBUTIONS DEDUCTED FROM
EARNABLE COMPENSATION AS HEREINBEFORE PROVIDED 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 THAT, 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 HEREINBEFORE PROVIDED, 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. THIS SECTION DOES NOT PROHIBIT
A LOCAL BOARD OF EDUCATION FROM ADOPTING A SIMILAR PLAN THAT
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THAT ARE WITHDRAWN BY HIM OR PAID TO HIS PERSONAL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