Ch. 6

1994 LAWS OF MARYLAND

THERE IS A SALARY REDUCTION SAVINGS PLAN FOR ELIGIBLE PARTICIPANTS
AS ALLOWED BY § 401(K) OF THE INTERNAL REVENUE CODE.

(B) FEDERAL APPROVAL REQUIRED.

THE BOARD SHALL OBTAIN APPROVAL FROM THE INTERNAL REVENUE
SERVICE FOR THE SALARY REDUCTION SAVINGS PLAN.

REVISOR'S NOTE: This section is new language substituted for former Art. 73C,
§ 4(b). This substitution reflects the existence of the salary reduction plan.

Throughout this subtitle; the term "salary reduction savings plan" is
substituted for the former, misleading term "profit sharing and salary
reduction plan". Profits are ho longer necessary for a plan under § 401(k) of
the Internal Revenue Code;

Defined term: "Board" § 35-101

35-502. PARTICIPANTS IN PLAN.

AN INDIVIDUAL IS ELIGIBLE TO PARTICIPATE IN THE SALARY REDUCTION
SAVINGS PLAN IF THE INDIVIDUAL IS:

(1)      AN OFFICER OF THIS STATE; OR

(2)      AN EMPLOYEE OF THIS STATE, INCLUDING A CONTRACTUAL
EMPLOYEE.

REVISOR'S NOTE: This section is new language substituted for former Art.

73C, § 4(a), which, as amended by Ch. 22, Acts of 1993, referred to "classified

service employees in the State Personnel Management System". The purpose

of Ch. 22 was to make technical changes throughout the Code to conform

            terminology to that used in Division I of this article.

The substitution in this section reflects the scope of the existing salary
reduction savings plan, and is supported by the reference to "employees as
defined in § 1 of Article 64A" that existed in former Art. 73C, § 4(a) before
the 1993 amendment. The following definitions of the term "employee"
existed in 1985, when former Art. 73C, § 4 was first enacted: (1) "employee",
which was defined as meaning "a person who holds under the terms of this
article, a position in the classified service, but shall not include a person
employed by contract to render a temporary special service for the State"; and
(2) "classified service", which was defined as meaning "all offices of profit or
trust and all places of employment; whether permanent or temporary, in the
service of any State officer, department, commission, board or institution,
other than those in the military forces, and other than those enumerated in §
3 of this article".

To reflect that Maryland allows all Officers and employees to participate in the
plan, contractual employees are specifically included as eligible participants.

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