HARRY HUGHES, Governor

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(1) develop 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 so as to
qualify the program for the tax treatment under § 414(h) of the
Internal Revenue Code, as amended; and

(2) apply for a letter of determination or ruling
from the Internal Revenue Service that the program qualifies for
the tax treatment under § 414(h) of the Internal Revenue Code, as
amended.

(B) In developing the program for employer pickup of
employee contributions and for the purposes of the program, the
Board of Trustees may define, by regulation;

(1) accumulated contributions;

(2) earnable compensation;

(3) regular contributions; and

(4) any other provision of law relating to State
retirement and pension benefits that the Board of Trustees deems
necessary to define for purposes of qualifying the employer
pickup program for the tax treatment under § 414(h) of the
Internal Revenue Code, as amended.

(C) After developing the employer pickup program under Item
(A)(1), the Board of Trustees shall take the following
appropriate action;

(1) If the Internal Revenue Service rejects the
program for the tax treatment under § 414(h) of the Internal
Revenue Code, as amended, prior to the beginning of the 1987
Session of the General Assembly, no further action of the Board
of Trustees is required and an employer pickup program will not
be pursued.

(2) If the Internal Revenue Service issues a
favorable letter of determination or ruling on the program prior
to the beginning of the 1987 Session of the General Assembly, the
Board of Trustees shall submit to the General Assembly for
consideration during the 1987 Session amendments to the law to
implement the employer pickup program developed by the Board of
Trustees and approved by the Internal Revenue Service.

(3) If no final response is received from the
Internal Revenue Service prior to the beginning of the 1987
Session of the General Assembly, the Board of Trustees shall
submit to the General Assembly for consideration during the 1987
Session amendments to the law to implement the employer pickup
program developed by the Board of Trustees. The effective
implementation of the program shall be contingent on a letter of