HARRY HUGHES, Governor

87

(II) ELIGIBLE EMPLOYEES INITIALLY
APPOINTED BEFORE THE EFFECTIVE DATE OF THE ESTABLISHMENT OF
AN OPTIONAL RETIREMENT PROGRAM WHO DID NOT ELECT TO
PARTICIPATE IN THE OPTIONAL RETIREMENT PROGRAM, ON OR AFTER
JANUARY 1, 1980, MAY TRANSFER FROM THE TEACHERS' RETIREMENT
SYSTEM TO THE PENSION SYSTEM FOR TEACHERS OF THE STATE OF
MARYLAND. ELIGIBLE EMPLOYEES INITIALLY APPOINTED BEFORE THE
EFFECTIVE DATE OF THE ESTABLISHMENT OF AN OPTIONAL PROGRAM
WHO ELECT TO TRANSFER FROM THE TEACHERS' RETIREMENT SYSTEM
TO THE PENSION SYSTEM FOR THE TEACHERS OF THE STATE OF
MARYLAND MAY NOT TRANSFER TO AN OPTIONAL RETIREMENT PROGRAM.

(3)   Any State employee who becomes eligible to
elect an optional retirement program by reason of (i) the
certification of the position held by him as professional
staff pursuant to §§ 81(2) and (3) AND (4), 99, or 100 of
this article or §§ 12-104(d), 14-104(d), or 16-105 of the
Education Article, or (ii) his appointment, promotion,
transfer or reclassification to a position previously so
certified, may elect the optional retirement program
established pursuant to this section. This election shall
be made in writing and filed with the retirement system and
with the employing institution within 90 days after notice
in writing to the employee of his eligibility, and shall
become effective on the first day of July coinciding with or
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