Ch. 6

1994 LAWS OF MARYLAND

In subsection (a)(3) of this section, the phrase "annuity savings funds of the
several systems" is substituted for the former phrase "several funds" for
precision, reflecting the fact that regular interest is creditable to a member's
individual account in the annuity savings fund of a system.

In subsection (b) of this section, the former reference to "all income, interest;
and dividends derived from deposits and investments" is deleted to conform to
administrative practice.

The State Personnel and Pensions Article Review Committee notes, for the
consideration of the General Assembly, that subsection (c) of this section
specifies a minimum funding requirement for the State retirement and
pension systems that may as a practical matter be obsolete in light of current
minimum funding requirements under §§ 21-304 through 21-306 of this
subtitle together with the commingling of the assets of the several systems
allowed under § 21-123(e) of this article.

Defined terms: "Allowance" § 20-101                                 

"Regular interest" § 20-101
           "Several systems" § 20-101
"State system" § 20-101

21-303. ACCUMULATION FUNDS.         

(A) CREDITS TO ACCUMULATION FUND.

THE BOARD OF TRUSTEES SHALL CREDIT TO THE ACCUMULATION FUND OF
EACH STATE SYSTEM:                                                                           

(1)      ALL EMPLOYER CONTRIBUTIONS TO THE STATE SYSTEM;

(2)      ALL INTEREST, DIVIDENDS, AND OTHER INCOME DERIVED FROM
THE ASSETS OF THE STATE SYSTEM; AND

(3) AMOUNTS TRANSFERRED UNDER § 21-311(C) OF THIS SUBTITLE.

(B) PAYMENTS FROM ACCUMULATION FUND.

THE BOARD OF TRUSTEES SHALL PAY FROM THE ACCUMULATION FUND OF A
STATE SYSTEM ALL BENEFITS PAYABLE UNDER THAT. STATE SYSTEM EXCEPT FOR
BENEFITS PAYABLE/FROM THE ANNUITY SAVINGS FUND OF THAT STATE SYSTEM.

(C) TRANSFERS FROM ACCUMULATION FUND TO ANNUITY SAVINGS FUND.

(1) EACH YEAR THE BOARD OF TRUSTEES SHALL TRANSFER FROM THE
ACCUMULATION FUND OF EACH STATE SYSTEM TO EACH MEMBER'S ACCOUNT IN
THE ANNUITY SAVINGS FUND OF THAT STATE SYSTEM REGULAR INTEREST ON THE
ACCOUNT AS PROVIDED IN THIS DIVISION II.

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