HARRY HUGHES, Governor

91

(18)  "ACTUARIAL EQUIVALENT" MEANS A BENEFIT OF EQUAL
VALUE WHEN COMPUTED ON THE BASIS OF THE MORTALITY TABLES AND
INTEREST RATE ADOPTED FOR THE PARTICULAR PURPOSE BY THE
BOARD OF TRUSTEES.

(19)  "TAXABLE WAGE BASE" MEANS, WITH RESPECT TO EACH
CALENDAR YEAR, THE MAXIMUM AMOUNT OF ANNUAL EARNINGS FOR
EMPLOYEES SUBJECT TO TAX UNDER THE FEDERAL INSURANCE
CONTRIBUTIONS ACT, AS AMENDED.

(20)  "SOCIAL SECURITY INTEGRATION LEVEL" MEANS WITH
RESPECT TO THE CALENDAR YEAR IN WHICH A MEMBER RETIRES OR
OTHERWISE TERMINATES EMPLOYMENT, THE AVERAGE ANNUAL AMOUNT
OF EARNINGS FOR WHICH OLD-AGE AND SURVIVORS BENEFITS WOULD
BE PROVIDED UNDER TITLE 11 OF THE FEDERAL SOCIAL SECURITY
ACT FOR A MALE EMPLOYEE 65 YEARS OLD IN THAT CALENDAR YEAR,
COMPUTED AS THOUGH FOR EACH YEAR BEFORE THAT CALENDAR YEAR
ANNUAL EARNINGS ARE AT LEAST EQUAL TO THE MAXIMUM AMOUNT OF
ANNUAL EARNINGS SUBJECT TO TAX UNDER THE FEDERAL INSURANCE
CONTRIBUTIONS ACT. SUCH AVERAGE ANNUAL AMOUNT OF EARNINGS
SHALL BE ROUNDED TO THE NEXT LOWER MULTIPLE OF $100.

112. NAME AND DATE OF ESTABLISHMENT; PARTNERSHIP TO HOLD
SECURITIES.

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
EMPLOYEES 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 EMPLOYEES OF THE STATE OF
MARYLAND," AND SHALL TRANSACT ALL OF ITS BUSINESS BY THIS
NAME. 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. THERE SHALL BE THREE (3) PARTNERS
IN THIS PARTNERSHIP: 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 THIS PARTNERSHIP
MAY ACT ONLY AS THE AGENT OF THE BOARD OF TRUSTEES, AND
SHALL CONTAIN ANY OTHER TERMS AND CONDITIONS AS THE ATTORNEY
GENERAL MAY CONSIDER APPROPRIATE. THE PARTNERSHIP MAY ENTER
INTO AGREEMENTS WITH VARIOUS BANKS OR OTHER FINANCIAL
INSTITUTIONS TO GUARANTEE THE SIGNATURES MADE ON BEHALF OF
THE PARTNERSHIP.

113.

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