HARRY HUGHES, Governor

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(1) (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.

ARTICLE 73C - STATE SUPPLEMENTAL COMPENSATION PLANS

1.

THE PURPOSE OF THIS ARTICLE IS TO ENABLE STATE EMPLOYEES AND
TEACHERS TO PARTICIPATE IN VOLUNTARY TAX SHELTERED INCOME
DEFERRAL, TAX DEFERRED ANNUITY, AND PROFIT SHARING AND SALARY
REDUCTION PLANS AND TO OBTAIN THE TAX ADVANTAGES OF THESE PLANS
AS PROVIDED IN THIS ARTICLE.

2.

(A)  THE GENERAL ADMINISTRATION AND RESPONSIBILITY FOR THE
PROPER OPERATION OF THE PLANS AUTHORIZED BY THIS ARTICLE ARE
VESTED IN THE BOARD OF TRUSTEES OF THE MARYLAND TEACHERS AND
STATE EMPLOYEES SUPPLEMENTAL RETIREMENT PLANS.

(B)  THE BOARD SHALL CONSIST OF 9 MEMBERS APPOINTED BY THE
GOVERNOR:

(1) 3 MEMBERS APPOINTED FROM THE FOLLOWING
DEPARTMENTS AND OFFICES: THE DEPARTMENTS OF PERSONNEL, BUDGET AND