WILLIAM DONALD SCHAEFER, Governor

Ch. 6

In subsection (b) of this section, the reference to the Board of Trustees is
added to clarify who has the responsibility to credit the assets to the
appropriate fund. Throughout this subtitle, similar references to the Board of
Trustees are added to clarify who has the responsibility for various obligations
set out in this subtitle with respect to the funds of the State systems.

Defined terms: "Board of Trustees" § 20-101
"State system" § 20-101

21-302. STATE GUARANTY.

(A)     OBLIGATIONS OF THE STATE.

THE FOLLOWING ARE OBLIGATIONS OF THE STATE:

(1)      THE PAYMENT OF ALL ALLOWANCES AND OTHER BENEFITS
PAYABLE UNDER THIS DIVISION II;

(2)      THE CREATION AND MAINTENANCE OF RESERVES IN THE
ACCUMULATION FUNDS OF THE SEVERAL SYSTEMS;

(3)      THE CREDITING OF REGULAR INTEREST TO THE ANNUITY SAVINGS
FUNDS OF THE SEVERAL SYSTEMS; AND

(4)      THE PAYMENT OF THE EXPENSES FOR ADMINISTRATION AND
OPERATION OF THE SEVERAL SYSTEMS.

(B)     PAYMENT OF OBLIGATIONS.

THE ASSETS OF THE SEVERAL SYSTEMS SHALL BE USED TO PAY THE
OBLIGATIONS OF THE STATE SPECIFIED IN THIS SECTION.

(C)      MINIMUM ANNUAL PAYMENTS BY STATE.

EACH FISCAL YEAR THE STATE SHALL PAY TO THE ACCUMULATION FUND OF
EACH STATE SYSTEM AT LEAST AN AMOUNT THAT WHEN COMBINED WITH THE
AMOUNT IN THE ACCUMULATION FUND OF THE SYSTEM IS SUFFICIENT TO PROVIDE
THE ALLOWANCES AND OTHER BENEFITS PAYABLE OUT OF THE FUND DURING
THAT FISCAL YEAR.

REVISOR'S NOTE: Subsections (a) and (b) of this section are new language
derived without substantive change from former Art. 73B, § 1-501.

Subsection (c) of this section is new language derived without substantive
change from the second clause of former Art. 73B, § 1-303(b).

In subsection (a)(1) of this section, the general reference to "all allowances
and other benefits payable" is substituted for the former reference to
"pensions, annuities, retirement allowances, refunds, and other benefits
granted".

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