WILLIAM DONALD SCHAEFER, Governor Ch. 580

SYSTEM, PROVIDED THAT FOR GENERAL LEDGER ACCOUNTING AND FINANCIAL
REPORTING THE BOARD OF TRUSTEES WILL USE GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES.

(D) (1) THE EXPENSE FUND SHALL BE THE FUND TO WHICH SHALL
BE CREDITED ALL MONEY PROVIDED IN THE BUDGET TO PAY:

(I)  THE ADMINISTRATION EXPENSES OF THIS PENSION
SYSTEM AND FROM WHICH SHALL BE PAID ALL THE EXPENSES NECESSARY IN
CONNECTION WITH THE ADMINISTRATION AND OPERATION OF THIS SYSTEM;
AND

(II)  THE EXPENSES NECESSARY TO PROCURE AND
RETAIN EXTERNAL INVESTMENT COUNSELING ORGANIZATIONS.

(2)  EACH YEAR, THE BOARD OF TRUSTEES SHALL ESTIMATE:

(I)  THE AMOUNT OF MONEY, NOT IN EXCESS OF 0.2
PERCENT OF THE PAYROLL OF MEMBERS, NECESSARY TO PROVIDE FOR THE
EXPENSE OF ADMINISTRATION AND OPERATION OF THIS PENSION SYSTEM;
AND

(II)  THE AMOUNT OF MONEY, NOT TO EXCEED 0.5
PERCENT OF THE MARKET VALUE AS OF DECEMBER 31 OF THE PRECEDING
FISCAL YEAR OF INVESTED ASSETS THAT ARE EXTERNALLY MANAGED,
NECESSARY TO PROCURE AND RETAIN THE SERVICES OF EXTERNAL
INVESTMENT COUNSELING ORGANIZATIONS.

(3)  THE AMOUNTS OF MONEY. SPECIFIED IN PARAGRAPHS
(B)(1) AND (II) OF THIS SUBSECTION SHALL BE PAID INTO THE EXPENSE
FUNDS OF THE SEVERAL RETIREMENT AND PENSION SYSTEMS DURING THE
ENSUING YEAR ON A PRO RATA BASIS ACCORDING TO THE TOTAL ASSETS
HELD BY EACH SYSTEM.

(4)  THE BOARD OF TRUSTEES MAY COMBINE THE EXPENSE
FUNDS OF THE SEVERAL STATE RETIREMENT AND PENSION SYSTEMS FOR
BUDGETARY AND ADMINISTRATIVE EFFICIENCY.

157C.

(A) (1) IF 60 PERCENT OF THE LAW ENFORCEMENT OFFICERS OF A
MUNICIPAL CORPORATION WHO ARE MEMBERS OF A LOCAL PENSION SYSTEM
ELECT TO BECOME MEMBERS OF THIS PENSION SYSTEM BY A PETITION
SIGNED BY THE LAW ENFORCEMENT OFFICERS, THE PARTICIPATION BY
THESE LAW ENFORCEMENT OFFICERS MAY BE APPROVED BY THE LEGISLATIVE
BODY OF THE MUNICIPAL CORPORATION AS THOUGH THE LOCAL PENSION
SYSTEM WERE NOT IN OPERATION AND THIS SUBTITLE SHALL APPLY.

(2) ANY CASH AND SECURITIES TO THE CREDIT OF THE
LOCAL PENSION SYSTEM THAT RELATE TO THE LAW ENFORCEMENT OFFICERS
WHO ELECT TO BECOME MEMBERS SHALL BE TRANSFERRED TO THIS PENSION
SYSTEM AS OF THE DATE OF APPROVAL THE TRUSTEE OR OTHER
ADMINISTRATIVE HEAD OF THE LOCAL PENSION SYSTEM SHALL CERTIFY THE

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