HARRY HUGHES, Governor

1813

110.

(e) The State shall contribute on behalf of each
participant in the optional retirement program [5.84 percent or a
percent equal to the State's contribution rate to the Pension
System for the Teachers of the State of Maryland, whichever is
greater,] 7.25 PERCENT of each participant's annual earnable
compensation. 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 federal funds, the
State's contribution to such optional retirement program shall be
paid from the special and/or federal funds.

122.

All of the assets of this pension system shall be credited,
according to the purpose for which they are held, to the
following funds:

(i) The Annuity Savings Fund;

(ii) The Accumulation Fund; and

(iii) The Expense 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.

[(b) Each year, on account of each member, the State
shall pay into the Accumulation Fund an amount at least equal to
a certain percentage of the annual earnable compensation of the
member, to be known as the "normal contribution," and an
additional amount equal to a certain percentage of his annual
earnable compensation, to be known as the "accrued liability
contribution." The rates percent of these contributions shall be
fixed on the basis of the liabilities of this pension system as
shown by actuarial valuation.]

[(c) On the basis of interest and the mortality and
service tables adopted by the board of trustees, immediately
after making each actuarial valuation, the actuary shall
determine the "normal contribution" on account of each member,
net of employee contributions, on the basis of the accrued