3678                                          LAWS OF MARYLAND                                      Ch. 785

OF TRUSTEES THE AMOUNT OF THE DEDUCTIONS FROM THE COMPENSATION OF
OFFICERS AND EMPLOYEES MADE IN ACCORDANCE WITH SECTION 14(1)(C)
AND SECTION 122(1)(C) OF THIS ARTICLE. ANY PARTICIPATING
MUNICIPAL CORPORATION THAT FAILS TO PAY THE AMOUNTS CERTIFIED
UNDER THIS SECTION WITHIN THE TIME REQUIRED BY LAW IS LIABLE FOR
A PENALTY OF 10 PERCENT OF THE AMOUNTS DUE. HOWEVER, THE
SECRETARY OF THE BOARD MAY ALLOW A GRACE PERIOD NOT TO EXCEED 10
ADDITIONAL CALENDAR DAYS. ALL AMOUNTS DUE AND UNPAID ON THE DATE
OF PAYMENT ALSO SHALL BEAR INTEREST AT THE RATE OF 10 PERCENT A
YEAR UNTIL THE DATE OF PAYMENT. THE STATE COMPTROLLER, ON
NOTIFICATION BY THE SECRETARY THAT A DELINQUENCY EXISTS,
IMMEDIATELY SHALL EXERCISE THE RIGHT OF SETOFF AGAINST ANY MONEY
DUE OR TO BECOME DUE TO THE DELINQUENT PARTICIPATING MUNICIPAL
CORPORATION.

(H) ON RECEIPT OF THE PAYMENTS FROM THE TREASURER OR OTHER
OFFICER OF EACH PARTICIPATING MUNICIPAL CORPORATION, THE
CUSTODIAN OF THE FUNDS OF THIS PENSION SYSTEM FOR EMPLOYEES OF
THE STATE, SHALL CREDIT THESE AMOUNTS TO THE APPROPRIATE FUND OR
ACCOUNT OF THE MARYLAND STATE RETIREMENT AND PENSION SYSTEMS.

168.

(A)  THE LEGISLATIVE BODY OF ANY MUNICIPAL CORPORATION WHOSE
EMPLOYEES ARE MEMBERS OF THE EMPLOYEES' RETIREMENT OR EMPLOYEES'
PENSION SYSTEMS MAY WITHDRAW ITS EMPLOYEES WHO CONSENT TO THE
WITHDRAWAL, AND TRANSFER THESE EMPLOYEES TO A LOCAL RETIREMENT
SYSTEM ESTABLISHED BY THE MUNICIPAL CORPORATION. THE WITHDRAWAL
AND TRANSFERAL SHALL BECOME EFFECTIVE ONLY AT THE END OF THE
FISCAL YEAR, NAMELY, JUNE 30.

(B)  AS OF THE DATE OF WITHDRAWAL, THE AMOUNT OF THE
ACCUMULATED CONTRIBUTIONS OF THE WITHDRAWING EMPLOYEES OF THE
MUNICIPAL CORPORATION SHALL BE TRANSFERRED TO THE ADMINISTRATIVE
BOARD OF THE LOCAL RETIREMENT SYSTEM AND CREDITED TO THE ACCOUNT
OF ITS EMPLOYEES. THE AMOUNT OF THE TOTAL RESERVES IN THE
EMPLOYEES' RETIREMENT AND PENSION SYSTEMS AS A RESULT OF THE
PREVIOUS CONTRIBUTIONS OF THE MUNICIPAL CORPORATION SHALL BE
DETERMINED BY THE ACTUARY AS OF THE EFFECTIVE DATE OF TRANSFER.
THE PORTION OF SUCH RESERVE WHICH IS ALLOCABLE TO THE WITHDRAWING
EMPLOYEES OF THE MUNICIPAL CORPORATION SHALL BE TRANSFERRED TO
THE ADMINISTRATIVE BOARD OF THE LOCAL RETIREMENT SYSTEM. THE
ALLOCABLE PORTION OF THE RESERVES SO DETERMINED BY THE ACTUARY
SHALL BE PAID TO THE ADMINISTRATIVE BOARD OF THE LOCAL RETIREMENT
SYSTEM TO BE HELD IN TRUST TO PROVIDE RETIREMENT BENEFITS FOR THE
EMPLOYEES WHO ARE TRANSFERRED TO THE LOCAL RETIREMENT SYSTEM. ON
AND AFTER THE EFFECTIVE DATE OF THE ESTABLISHMENT OF THE LOCAL
RETIREMENT SYSTEM BY THE MUNICIPAL CORPORATION, THE MUNICIPAL
CORPORATION AND ITS EMPLOYEES MAY NOT BE REQUIRED TO MAKE ANY
FURTHER CONTRIBUTIONS TO THE EMPLOYEES' RETIREMENT AND PENSION
SYSTEMS FOR THE EMPLOYEES WHO ELECT TO WITHDRAW FROM THE SYSTEMS.
ANY MUNICIPAL CORPORATION THAT WITHDRAWS ITS EMPLOYEES FROM THE
EMPLOYEES' RETIREMENT AND PENSION SYSTEMS AS PROVIDED IN THIS
SECTION, OR THAT REENTERS ITS EMPLOYEES INTO THE SYSTEMS AFTER
HAVING WITHDRAWN THEM, SHALL PAY ALL ADMINISTRATIVE COSTS
INVOLVED IN THE WITHDRAWAL OR REENTRY.