WILLIAM DONALD SCHAEFER, Governor

Ch. 6

(1)      IN THIS SUBSECTION, "WITHDRAWAL LIABILITY" MEANS, AS TO ANY
PARTICIPATING GOVERNMENTAL UNIT WITHDRAWING FROM THE LOCAL FIRE AND
POLICE SYSTEM, THE LIABILITY OF THE LOCAL FIRE AND POLICE SYSTEM ON
ACCOUNT OF:

(I)       EMPLOYEES OF THE PARTICIPATING GOVERNMENTAL UNIT
WHO DO NOT ELECT TO WITHDRAW;

(II)     RETIREES OF THE LOCAL FIRE AND POLICE SYSTEM WHO
RETIRED FROM THE SERVICE OF THE PARTICIPATING GOVERNMENTAL UNIT AND
THE DESIGNATED BENEFICIARIES OF THOSE RETIREES; AND

(III)    FORMER MEMBERS OF THE LOCAL FIRE AND POLICE SYSTEM
ELIGIBLE FOR A VESTED ALLOWANCE WHO SEPARATED FROM EMPLOYMENT WITH
THE PARTICIPATING GOVERNMENTAL UNIT.

(2)      ON AND AFTER THE DATE OF A PARTICIPATING GOVERNMENTAL
UNIT'S WITHDRAWAL FROM THE LOCAL FIRE AND POLICE SYSTEM UNDER §
31-302(B) OF THIS ARTICLE:

(I)       THE PARTICIPATING GOVERNMENTAL UNIT AND ITS
EMPLOYEES ARE NOT REQUIRED TO MAKE ANY FURTHER CONTRIBUTIONS TO THE
LOCAL FIRE AND POLICE SYSTEM FOR THOSE EMPLOYEES WHO ELECT TO
WITHDRAW FROM THE LOCAL FIRE AND POLICE SYSTEM;

(II)     THE PARTICIPATING GOVERNMENTAL UNIT SHALL CONTINUE
TO MAKE THE NORMAL CONTRIBUTION ON BEHALF OF EACH EMPLOYEE WHO DOES
NOT ELECT TO WITHDRAW FROM THE LOCAL FIRE AND POLICE SYSTEM; AND

(III)    THE PARTICIPATING GOVERNMENTAL UNIT SHALL MAKE A
WITHDRAWAL LIABILITY CONTRIBUTION AS DETERMINED UNDER THIS
SUBSECTION.

(3)      THE WITHDRAWAL LIABILITY CONTRIBUTION SHALL BE
DETERMINED BY AN ACTUARIAL VALUATION OF THE WITHDRAWAL LIABILITY AS
OF THE DATE OF WITHDRAWAL.

(4)      EXCEPT AS PROVIDED IN PARAGRAPH (5) OF THIS SUBSECTION, THE
ANNUAL WITHDRAWAL LIABILITY CONTRIBUTION OF EACH PARTICIPATING
GOVERNMENTAL UNIT SHALL BE THE LEVEL ANNUAL PAYMENT THAT IS
SUFFICIENT TO LIQUIDATE, OVER NOT MORE THAN 10 YEARS BEGINNING ON THE
DATE OF WITHDRAWAL, THE AMOUNT BY WHICH THE WITHDRAWAL LIABILITY OF
THE PARTICIPATING GOVERNMENTAL UNIT EXCEEDS THE SUM OF:

(I)       THE PRESENT VALUE, AS OF THE DATE OF WITHDRAWAL, OF
FUTURE NORMAL CONTRIBUTIONS AND FUTURE MEMBER CONTRIBUTIONS ON
BEHALF OF OR BY THOSE EMPLOYEES OF THE PARTICIPATING GOVERNMENTAL
UNIT WHO DO NOT ELECT TO WITHDRAW; AND

(II)     THE ALLOCABLE PORTION OF THE RESERVE AS OF THE DATE
OF WITHDRAWAL ATTRIBUTABLE TO THOSE EMPLOYEES OF THE PARTICIPATING
GOVERNMENTAL UNIT WHO DO NOT ELECT TO WITHDRAW.

- 409 -