WILLIAM DONALD SCHAEFER, Governor                               Ch. 6

31-303. DATE WITHDRAWAL TAKES EFFECT.

A WITHDRAWAL AND TRANSFER UNDER § 31-302 OF THIS SUBTITLE TAKES
EFFECT AT THE END OF THE STATE'S FISCAL YEAR.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 73B, §§ 10-106(a)(3) and 10-229(j).

The former reference to "June 30" is deleted as unnecessary in light of the
reference to "the end of the State's fiscal year".

31-304. TRANSFER OF ACCUMULATED CONTRIBUTIONS.

IF A PARTICIPATING GOVERNMENTAL UNIT WITHDRAWS FROM THE
EMPLOYEES' SYSTEMS OR THE LOCAL FIRE AND POLICE SYSTEM, THE
ACCUMULATED CONTRIBUTIONS OF THE WITHDRAWN EMPLOYEES SHALL BE
TRANSFERRED ON THE WITHDRAWAL DATE TO THE ADMINISTRATIVE BOARD OF
THE LOCAL PENSION SYSTEM AND CREDITED TO THE ACCOUNT OF THOSE
EMPLOYEES.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 73B, § 10-229(j) and the first sentence of §
10-106(b).

Defined terms: "Accumulated contributions" § 20-101
"Employees' system" § 31-301
"Local Fire and Police System" § 20-101
"Local pension system" § 31-301
"Participating governmental unit" § 20-101

31-305. TRANSFER OF RESERVES.

(A)     ACTUARIAL DETERMINATION OF RESERVES.

AS OF THE WITHDRAWAL DATE, THE ACTUARY SHALL DETERMINE THE
AMOUNT OF THE ANNUITY RESERVES AND PENSION RESERVES IN THE EMPLOYEES'
SYSTEMS OR THE LOCAL FIRE AND POLICE SYSTEM AS A RESULT OF THE PREVIOUS
CONTRIBUTIONS OF THE PARTICIPATING GOVERNMENTAL UNIT.

(B)     TRANSFER OF RESERVES.

THE BOARD OF TRUSTEES SHALL TRANSFER TO THE ADMINISTRATIVE BOARD
OF THE LOCAL PENSION SYSTEM THE PORTION OF THE RESERVES THAT ARE
ALLOCABLE TO THE WITHDRAWN EMPLOYEES.

(C)      RESERVES HELD IN TRUST.

THE ADMINISTRATIVE BOARD OF THE LOCAL PENSION SYSTEM SHALL HOLD
THE TRANSFERRED RESERVES IN TRUST TO PROVIDE RETIREMENT BENEFITS FOR
THE WITHDRAWN EMPLOYEES.

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