HARRY HUGHES, Governor                                      4045

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.

164.

(A)  THE PURPOSE OF THIS SECTION IS TO ENABLE CERTAIN
MEMBERS OF THE EMPLOYEES' RETIREMENT SYSTEM OF THE STATE OF
MARYLAND AND, THE PENSION SYSTEM FOR EMPLOYEES OF THE STATE OF
MARYLAND, THE TEACHERS' RETIREMENT SYSTEM OF THE STATE OF
MARYLAND, AND THE PENSION SYSTEM FOR TEACHERS OF THE STATE OF
MARYLAND TO PARTICIPATE IN A TAX DEFERRED ANNUITY PLAN AND TO
OBTAIN THE TAX ADVANTAGES OF SUCH A PLAN:

(B)  (1) THE GENERAL ADMINISTRATION AND RESPONSIBILITY FOR
THE PROPER OPERATION OF THE ANNUITY PLAN AUTHORIZED BY THIS
SECTION IS VESTED IN THE BOARD OF TRUSTEES.

(2)  EXCEPT AS PROVIDED IN PARAGRAPH (3) OF THIS
SUBSECTION, ALL EXPENSES INCURRED FOR THE IMPLEMENTATION,
MAINTENANCE, AND ADMINISTRATION OF THE ANNUITY PLAN SHALL BE PAID
FROM EMPLOYEE CONTRIBUTIONS, INVESTMENT INCOME, OR ASSETS OF THE
ANNUITY PLAN.

(3)  AT THE REQUEST OF THE BOARD OF TRUSTEES, AND
SUBJECT TO AN AGREEMENT REGARDING THE PAYMENT OF COSTS, A STATE
DEPARTMENT OR AGENCY SHALL PROVIDE ASSISTANCE IN THE
IMPLEMENTATION, MAINTENANCE, AND ADMINISTRATION OF THE PLAN.

(C)  (1) FOR PURPOSES OF THIS SECTION, "EMPLOYEE" MEANS A
STATE EMPLOYEE WHO IS A MEMBER OF THE EMPLOYEES' RETIREMENT
SYSTEM OF THE STATE OF MARYLAND OR, THE PENSION SYSTEM FOR
EMPLOYEES OF THE STATE OF MARYLAND,, THE TEACHERS' RETIREMENT
SYSTEM OF THE STATE OF MARYLAND, OR THE PENSION SYSTEM FOR
TEACHERS OF THE STATE OF MARYLAND.

(2) THE BOARD OF TRUSTEES SHALL ESTABLISH A TAX
DEFERRED ANNUITY PLAN FOR EMPLOYEES, EFFECTIVE JANUARY 1, 1986,
IN ACCORDANCE WITH THE PROVISIONS OF § 403(B) OF THE INTERNAL
REVENUE CODE.

(D)  THE ANNUITY PLAN AUTHORIZED BY THIS SECTION SHALL
INCLUDE THE FOLLOWING PROVISIONS:

(1) (I) AT THE ELECTION OF EACH EMPLOYEE, THE
CONTRIBUTIONS, WITH ACCUMULATED INTEREST, MADE ON ACCOUNT OF THE
EMPLOYEE MAY BE ROLLED OVER TO THE ANNUITY PLAN AUTHORIZED BY
THIS SECTION IN ACCORDANCE WITH THE PROVISIONS OF § 403 OF THE
INTERNAL REVENUE CODE.