HARRY HUGHES, Governor                                     4043

provide for him a total retirement allowance not in excess of two
thirds of his average final compensation at age 60 or after 30
years of creditable service, whichever would first occur. [In
addition to the contributions hereinbefore provided, subject to
such conditions as may be established by the board of trustees,
any member may, in accordance with a contract with his employer,
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 in lieu of
an increase in his compensation. The cost of administering
annuities qualifying under § 403(b) of the Internal Revenue Code,
as amended from time to time, shall be provided from the funds
invested in such annuities.] Nothing in this section shall
preclude the consideration and adoption by a local board of
education of a similar plan qualifying under § 403(b) of the
Internal Revenue Code as amended from time to time, through a
commercial insurance carrier, or through a custodial account with
investments in regulated investment company stock as contemplated
by Section 403(b), and prior to entering into an agreement with
the board of trustees of the State Teachers' Retirement System, a
county board of education shall consider a proposal of at least
one commercial insurance carrier and at least one sponsor of a
custodial account. The criteria for choosing a plan shall be
the same for the State Teachers' Retirement System, a commercial
plan, and a custodial account. Such 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. The accumulated

contributions of the member withdrawn by him, or paid to his
estate or to his designated beneficiary in event of his death as
provided in this subtitle, shall be paid from the Annuity Savings
Fund. Upon the retirement of a member his accumulated
contributions shall be transferred from the Annuity Savings Fund
to the Accumulation Fund.

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.

(1) (d) Subject to the approval of the board of
trustees, in addition to the contributions deducted from earnable
compensation as provided in this section, any member may deposit
therein by single payment or by an increased rate of contribution
an amount computed to be sufficient to purchase an additional
annuity which, together with his prospective retirement