WILLIAM DONALD SCHAEFER, Governor Ch. 430

(1) (a) The Annuity Savings Fund shall be a fund [in
which shall be] CONSISTING OF accumulated contributions [deducted
from the compensation] CREDITED TO INDIVIDUAL ACCOUNTS of members
to provide for their annuities.

(b) Commencing as of July 1, 1973, the head of
the department shall cause to be deducted from the salary of each
member on each and every payroll of such department for each and
every payroll period, eight per centum of his earnable
compensation. After June 30, 1981, or the termination date of
any prior contract, the full 8 percent of the member's earnable
compensation may not be provided for except as a deduction from
the salary of the member. In determining the amount earnable by
a member in a payroll period, the board of trustees may consider
the annual compensation payable to such member on the first day
of the payroll period as continuing throughout such payroll
period and it may omit deduction from compensation for any period
less than a full payroll period if an employee was not a member
on the first day of the payroll period, and to facilitate the
making of deductions it may modify the deduction required of any
member by such an amount as shall not exceed one tenth of one per
centum of the annual compensation upon the basis of which such
deduction is made.

(G) (I) AFTER JANUARY 1, 1989, THE STATE SHALL
PICK UP THE MEMBER CONTRIBUTIONS REQUIRED UNDER PARAGRAPH (B) OF
THIS SUBSECTION FOR SERVICE RENDERED BY THE MEMBER FROM JANUARY
1, 1989.

(II) THE CONTRIBUTIONS PICKED UP UNDER
ITEM (I) OF THIS PARAGRAPH SHALL:

1.  BE TREATED AS EMPLOYER CONTRIBUTIONS
IN DETERMINING TAX TREATMENT UNDER SECTION 414(H)(2) OF THE
INTERNAL REVENUE CODE, AS AMENDED;

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 JANUARY 1, 1989.

SECTION 2. AND BE IT FURTHER ENACTED, That Section(s)
10-205(f) and 10-207(t) through (w), respectively, of Article -

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