3072

LAWS OF MARYLAND

Ch. 802

2. BE IMPLEMENTED BY A REDUCTION, EQUAL
TO THE AMOUNT OF THE PICKUP, OF THE COMPENSATION OF EACH MEMBER
REQUIRED TO MAKE CONTRIBUTIONS TO THE ANNUITY SAVINGS FUND UNDER
THIS SUBSECTION AND MAY NOT BE INCLUDED AS GROSS INCOME OF THE
MEMBER UNTIL THE PICKUP AMOUNTS ARE DISTRIBUTED OR MADE AVAILABLE
TO THE MEMBER;

3. BE PAID BY THE STATE FROM THE SAME
SOURCE OF FUNDS USED IN PAYING COMPENSATION TO THE MEMBER; AND

4. BE TREATED FOR ALL PURPOSES OF THIS

ARTICLE IN THE SAME MANNER AND TO THE SAME EXTENT AS

CONTRIBUTIONS MADE BY A MEMBER PRIOR TO JULY 1, 1986.

FOR the purpose of requiring the Board of Trustees for the State
Retirement and Pension Systems to develop by a certain date
a program for the State or other employer of a member of the
State retirement or pension systems for employees or
teachers, the Judge's Contributory Plan, and the State
Police Retirement System to pick up the retirement or
pension contributions required to be made by the member in
order to qualify for certain federal tax treatment;
requiring the Board of Trustees to apply by a certain date
for a certain letter of determination or ruling from the
Internal Revenue Service; authorizing the Board of Trustees
to define, by regulation, certain terms and provisions of
law for certain purposes; prohibiting further action of the
Board of Trustees and prohibiting the pursuit of the
employer pickup program if a certain unfavorable response is
obtained by a certain time from the Internal Revenue
Service; requiring the Board of Trustees under certain
circumstances to submit the employer program to the 1987
General Assembly for consideration of implementation;
requiring the implementation of the program to be contingent
on the receipt of a certain favorable response from the
Internal Revenue Service under certain circumstances;
requiring certain proposed amendments to law to include
certain provisions in order to assure no impact from the
employer pickup program on State income tax revenues, no
double taxation of retirement or pension benefits, and no
adverse impact on certain aspects of employee compensation
and benefits or employer costs; and generally relating to
the development, Internal Revenue Service approval, and
mechanism for proposing the implementation of a program of
employer pickup of certain contributions required to be made
by a member of certain State retirement or pension systems.

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That:

(A) On or before October 1, 1986, the Board of Trustees for
the State Retirement and Pension Systems shall;