HARRY HUGHES, Governor                                     3675

165.

MEMBERSHIP IN THE EMPLOYEES RETIREMENT SYSTEM OR THE PENSION
SYSTEM FOR THE EMPLOYEES OF THE STATE OF MARYLAND FOR THE
EMPLOYEES WHO ARE ADMITTED UNDER SECTION 164 OF THIS SUBTITLE
SHALL BE OPTIONAL FOR THE EMPLOYEES WHO ARE IN THE SERVICE ON THE
DATE THE APPROVAL IS GIVEN AND ANY EMPLOYEE WHO ELECTS TO JOIN
THIS PENSION SYSTEM WITHIN 1 CALENDAR YEAR, SHALL BE ENTITLED TO
CREDIT FOR SERVICE RENDERED BEFORE THE DATE OF APPROVAL.

166.

(A)  IF 60 PERCENT OF THE MEMBERS OF ANY RETIREMENT OR
PENSION SYSTEM OF ANY MUNICIPAL CORPORATION (HEREAFTER REFERRED
TO AS A LOCAL PENSION SYSTEM) ELECT TO BECOME MEMBERS OF THE
PENSION SYSTEM OF THE STATE, BY A PETITION SIGNED BY THESE
MEMBERS, THE PARTICIPATION OF THESE MEMBERS IN THE PENSION SYSTEM
FOR EMPLOYEES OF THE STATE AND THE EMPLOYEES RETIREMENT SYSTEM
MAY BE APPROVED BY THE LEGISLATIVE BODY OF THE MUNICIPAL
CORPORATION AS THOUGH THE LOCAL PENSION SYSTEM WERE NOT IN
OPERATION AND THIS SUBTITLE SHALL APPLY, EXCEPT THAT THE EXISTING
PENSIONERS OR ANNUITANTS OF THE LOCAL PENSION SYSTEM WHO WERE
BEING PAID PENSIONS ON THE DATE OF THE APPROVAL SHALL BE
CONTINUED AND PAID AT THEIR EXISTING RATES BY THE PENSION SYSTEM
FOR EMPLOYEES OF THE STATE AND THE LIABILITY ON THIS ACCOUNT
SHALL BE INCLUDED IN THE COMPUTATION OF THE SPECIAL ACCRUED
LIABILITY BY THE ACTUARY AS PROVIDED BY THIS SECTION.

(B)  ANY CASH AND SECURITIES TO THE CREDIT OF THE LOCAL
PENSION SHALL BE TRANSFERRED TO THE PENSION SYSTEM FOR EMPLOYEES
OF THE STATE OF MARYLAND AS OF THE DATE OF APPROVAL. THE TRUSTEE
OR OTHER ADMINISTRATIVE HEAD OF THE LOCAL PENSION SYSTEM AS OF
THE DATE OF THE APPROVAL, SHALL CERTIFY THE PROPORTION, IF ANY,
OF THE FUNDS OF THE LOCAL SYSTEM THAT REPRESENTS THE ACCUMULATED
CONTRIBUTIONS OF THE MEMBERS, AND THE RELATIVE SHARES OF THE
MEMBERS AS OF THAT DATE. THESE SHARES SHALL BE CREDITED TO THE
RESPECTIVE ANNUITY SAVINGS ACCOUNTS OF THE MEMBERS IN THE PENSION
SYSTEM FOR EMPLOYEES OF THE STATE OF MARYLAND. THE BALANCE OF
FUNDS TRANSFERRED TO THE PENSION SYSTEM FOR THE EMPLOYEES OF THE
STATE OF MARYLAND SHALL BE OFFSET AGAINST THE SPECIAL ACCRUED
LIABILITY TO BE FUNDED BY THE MUNICIPAL CORPORATION AS PROVIDED
BY THIS SECTION. THE OPERATION OF THE LOCAL PENSION SYSTEM SHALL
BE DISCONTINUED AS OF THE DATE OF APPROVAL.

(C)  EACH PARTICIPATING MUNICIPAL CORPORATION SHALL MAKE A
SPECIAL ACCRUED LIABILITY CONTRIBUTION ON ACCOUNT OF ITS APPROVAL
OF THE PARTICIPATION OF ITS OFFICERS AND EMPLOYEES IN THE PENSION
SYSTEM FOR EMPLOYEES OF THE STATE.

(1) THIS SPECIAL ACCRUED LIABILITY CONTRIBUTION SHALL
BE DETERMINED BY AN ACTUARIAL VALUATION OF THE SPECIAL ACCRUED
LIABILITY, ON ACCOUNT OF THE EMPLOYEES OF SUCH PARTICIPATING
CORPORATION WHO ELECT TO BECOME MEMBERS, ON THE BASIS OF THE
ENTRY-AGE ACTUARIAL COST METHOD AND ANY OTHER ASSUMPTIONS ADOPTED
BY THE BOARD OF TRUSTEES OF THE MARYLAND STATE RETIREMENT AND