Ch. 6

1994 LAWS OF MARYLAND

(C)     ANNUAL ESTIMATE; LIMITATION ON EXPENSES.
EACH YEAR THE BOARD OF TRUSTEES SHALL ESTIMATE:

(1)      THE AMOUNT, NOT EXCEEDING 0.2% OF THE PAYROLL OF MEMBERS,
NECESSARY FOR THE ADMINISTRATIVE AND OPERATIONAL EXPENSES OF THE
BOARD OF TRUSTEES AND THE STATE RETIREMENT AGENCY;

(2)      THE AMOUNT, NOT EXCEEDING 1.2% OF THE MARKET VALUE AS OF
DECEMBER 31 OF THE PRECEDING FISCAL YEAR OF ASSETS EXTERNALLY INVESTED
IN REAL ESTATE, NECESSARY FOR EXTERNAL REAL ESTATE INVESTMENT
MANAGEMENT SERVICES; AND

(3)      THE AMOUNT, NOT EXCEEDING 0.3% OF THE MARKET VALUE AS OF
DECEMBER 31 OF THE PRECEDING FISCAL YEAR OF INVESTED ASSETS THAT ARE
EXTERNALLY MANAGED EXCLUSIVE OF ASSETS INVESTED IN REAL ESTATE,
NECESSARY TO PROCURE AND RETAIN INVESTMENT MANAGEMENT SERVICES,
OTHER THAN EXTERNAL REAL ESTATE INVESTMENT MANAGEMENT SERVICES.

(D)  PRO RATA PAYMENT

THE AMOUNTS ESTIMATED UNDER SUBSECTION (C) OF THIS SECTION SHALL BE
PAID INTO THE EXPENSE FUNDS OF THE SEVERAL SYSTEMS DURING THE ENSUING
YEAR ON A PRO RATA BASIS ACCORDING TO THE TOTAL ASSETS HELD BY EACH
SYSTEM

(E)      COMBINING EXPENSE FUNDS.

THE BOARD OF TRUSTEES MAY COMBINE THE EXPENSE FUNDS OF THE
SEVERAL SYSTEMS FOR BUDGETARY AND ADMINISTRATIVE EFFICIENCY.

(F)      ANNUAL REPORT TO GENERAL ASSEMBLY.

ON OR BEFORE DECEMBER 31 OF EACH YEAR, THE BOARD OF TRUSTEES SHALL
REPORT TO THE GENERAL ASSEMBLY THE ACTUAL AMOUNT SPENT FOR
INVESTMENT MANAGEMENT SERVICES DURING THE PRECEDING FISCAL YEAR.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 73B, §§ 1-103(i)(1), 1-104(f), and 1-304.

In subsection (c)(3) of this section, the phrase "exclusive of assets invested in
real estate" is added to modify the phrase "invested assets that are externally
managed" for accuracy and reflecting administrative practice.

As to the references in subsection (b) of this section, to former Art. 73B, §§
2-206 and 3-206 of the Code, the sections referred to are transferred to the
Session Laws as apparently obsolete.

Defined terms: "Board of Trustees" § 20-101
"Employees' Retirement System" § 20-101
"Former member" § 20-101
"Member" § 20-101

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