WILLIAM DONALD SCHAEFER, Governor

Ch. 6

(1)      IF A FORMER MEMBER TRANSFERS VESTED RIGHTS TO A PENSION
SYSTEM UNDER SUBSECTION (A) OF THIS SECTION, THE BOARD OF TRUSTEES SHALL
TRANSFER THE FORMER MEMBER'S EMPLOYER PICKUP CONTRIBUTIONS FOR THE
FORMER MEMBER'S BENEFIT TO THE ANNUITY SAVINGS FUND OF THE PENSION
SYSTEM TO WHICH THE FORMER MEMBER IS TRANSFERRING THE VESTED RIGHTS.

(2)      THE BOARD OF TRUSTEES SHALL TRANSFER:

(I)       AS ADDITIONAL CONTRIBUTIONS, THE PART OF A FORMER
MEMBER'S EMPLOYER PICKUP CONTRIBUTIONS OBTAINED BY MULTIPLYING THE
FORMER MEMBER'S TOTAL EMPLOYER PICKUP CONTRIBUTIONS AS OF THE DATE OF
TRANSFER BY THE FRACTION SPECIFIED IN SUBSECTION (B)(3) OF THIS SECTION,
PLUS REGULAR INTEREST; AND

(II)     AS MEMBER CONTRIBUTIONS, ANY BALANCE OF THE FORMER
MEMBER'S EMPLOYER PICKUP CONTRIBUTIONS, PLUS REGULAR INTEREST.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 73B, §§ 2-205 and 3-205.

In subsection (a) of this section, the former reference to "90 days before" the
transfer of vested rights is deleted to reflect long-standing administrative
practice.

In subsection (a)(1) of this section, the references to former membership in
the "Employees' Retirement System" and the "Teachers' Retirement System"
are added to reflect that the provisions for the two State systems are
consolidated in this section. Correspondingly, in subsections (a)(2), (b)(2) and
(4), and (c)(1) of this section, the references to the system "from which the
vested rights are being transferred" or "to which the individual is transferring
the vested rights" is substituted for the specific references to particular
pension systems.

In subsection (b)(1) of this section, the former definition of "accumulated
contributions" is revised as a scope provision to avoid conflicting definitions.

In subsection (b)(2) and (4) of this section, the references to "regular interest"
are added for clarity and to reflect the use of the defined term "member
contribution" instead of the former defined term "accumulated
contributions".

In subsection (b)(3)(ii) of this section, the term "earnable compensation" is
substituted for the former references to "normal rates of earnings" for clarity
and consistency.

In subsections (b)(4) and (c)(2) of this section, the references to the "Board of
Trustees" are added for clarity.

In subsection (c)(2) of this section, the references to "regular interest" are
added to conform to subsection (b)(2) and (4) of this section.

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