WILLIAM DONALD SCHAEFER, Governor                               Ch. 6

(2) IF A RETIREE WHO HAS RETIRED BECAUSE OF DISABILITY IS
RESTORED TO MEMBERSHIP, THE BOARD OF TRUSTEES SHALL TRANSFER FROM
THE ACCUMULATION FUND OF THE APPROPRIATE STATE SYSTEM TO THE ANNUITY
SAVINGS FUND OF THAT STATE SYSTEM AN AMOUNT EQUAL TO THE REMAINING
PORTION OF THE RETIREE'S ANNUITY RESERVE.

(D) TRANSFERS FROM ACCUMULATION FUND TO EXPENSE FUND.

EACH YEAR, THE BOARD OF TRUSTEES SHALL TRANSFER FROM THE
ACCUMULATION FUND OF EACH STATE SYSTEM TO THE EXPENSE FUND OF THAT
SYSTEM THE AMOUNTS REQUIRED BY § 21-315 OF THIS SUBTITLE.

REVISOR'S NOTE: Subsections (a), (b), and (c) of this section are new language
derived without substantive change from former Art. 73B, § 1-303 (a), (e), the
first sentence of (c), and, as it related to the transfer of regular interest, the
second sentence of (c).

Subsection (d) of this section is new language added to state expressly that
amounts required to be paid into the expense funds are to be transferred from
the accumulation funds. This was implied by the requirement of former law
that the expenses be paid from the income of the systems and the fact that all
income of the systems is to be credited to the accumulation funds.

In subsection (a)(1) of this section, the requirement is expressly stated that
employer contributions be credited to the accumulation fund of a system. This
requirement was implied in the requirement under former law that reserves
for the payment of benefits payable from employer contributions be
accumulated in the accumulation fund.

Also in subsection (a)(1) of this section, the term "employer contributions" is
substituted for the former reference to "contributions made by the State"
because employers other than the State make contributions to the
accumulation funds of the State systems.

In subsection (a)(2) of this section, the reference to "other income" derived
from the assets of the State system is added for clarity and accuracy.

In subsection (c)(2) of this section, the phrase "attributable to the retiree's
accumulated contributions as a member", which formerly modified "annuity
reserve", is deleted in light of the definition of "annuity".

Also in subsection (c)(2) of this section, the reference to the "Board of
Trustees" is substituted for the former reference to the "State Retirement
Agency" for consistency reflecting the Board of Trustees' general
responsibility for the operation of the State systems.

The first clause of former Art. 73B, § 1-303(b) is deleted as obsolete in light
of the current minimum funding requirements under §§ 21-304 through
21-306 of this subtitle. As to the second clause of former Art. 73B, § 1-303(b),
see § 21-302(c) of this subtitle.

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