PARRIS N. GLENDENING, Governor

Ch. 661

ACCRUED BENEFIT OF THE EMPLOYEES OF THE PARTICIPATING GOVERNMENTAL
UNIT WHO ARE MEMBERS OF THE EMPLOYEES' RETIREMENT SYSTEM EXCEEDS THE
ACTUARIAL VALUE OF THE ASSETS TO THE CREDIT OF THE PARTICIPATING
GOVERNMENTAL UNIT IN THE EMPLOYEES' RETIREMENT SYSTEM.

(3)     "EMPLOYEES' SYSTEMS" MEANS THE EMPLOYEES' PENSION SYSTEM
AND THE EMPLOYEES' RETIREMENT SYSTEM.

(4)     "REQUIRED EMPLOYER CONTRIBUTION" MEANS THE AMOUNT
PAYABLE EACH FISCAL YEAR UNDER § 21-305(B)(1), (2)(I) AND (III) OF THIS SUBTITLE
BY A PARTICIPATING GOVERNMENTAL UNIT.

(5)     "SURPLUS" MEANS, AS TO ANY PARTICIPATING GOVERNMENTAL
UNIT, THE AMOUNT, AS OF JUNE 30, 1995, BY WHICH THE ACTUARIAL VALUE OF THE
ASSETS TO THE CREDIT OF THE PARTICIPATING GOVERNMENTAL UNIT EN THE
EMPLOYEES' SYSTEMS EXCEEDS THE PRESENT VALUE OF THE FUTURE BENEFITS OF
THE EMPLOYEES OF THE PARTICIPATING GOVERNMENTAL UNIT WHO ARE
MEMBERS OF THE EMPLOYEES' SYSTEMS.

(B) (1) THE ACTUARY SHALL DETERMINE THE SURPLUS ALLOCABLE TO A
PARTICIPATING GOVERNMENTAL UNIT AS OF JUNE 30, 1995, BASED ON AN
ACTUARIAL VALUATION.

(2)     THE SURPLUS OF A PARTICIPATING GOVERNMENTAL UNIT MAY
NOT BE LESS THAN ZERO.

(3)     THE ANNUAL CREDIT OF A PARTICIPATING GOVERNMENTAL UNIT
SHALL BE THE AMOUNT THAT IS SUFFICIENT TO AMORTIZE OVER A 25 YEAR TERM
COMMENCING ON JULY 1, 1995, THE SURPLUS ALLOCATED TO A PARTICIPATING
GOVERNMENTAL UNIT AS OF JUNE 30, 1995, BY MEANS OF AN ANNUAL CREDIT THAT
INCREASES EACH YEAR BASED ON THE ACTUARIAL ASSUMPTIONS ADOPTED BY THE
BOARD OF TRUSTEES ON THE RECOMMENDATION OF THE ACTUARY.

(4)     EACH FISCAL YEAR, A PARTICIPATING GOVERNMENTAL UNIT'S
REQUIRED EMPLOYER CONTRIBUTION SHALL BE REDUCED BY THE ANNUAL
CREDIT OF THE PARTICIPATING GOVERNMENTAL UNIT, BUT NOT BELOW ZERO.

(C) (1) THE ACTUARY SHALL DETERMINE THE DEFICIT ALLOCABLE TO A
PARTICIPATING GOVERNMENTAL UNIT AS OF JUNE 30, 1995, BASED ON AN
ACTUARIAL VALUATION.

(2) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS
PARAGRAPH, THE ANNUAL DEFICIT PAYMENT OF A PARTICIPATING
GOVERNMENTAL UNIT SHALL BE THE PAYMENT THAT IS SUFFICIENT TO LIQUIDATE
OVER A 25 YEAR TERM BEGINNING AS OF JULY 1, 1995, THE DEFICIT ALLOCATED TO
THE PARTICIPATING GOVERNMENTAL UNIT BY MEANS OF ANNUAL PAYMENTS
THAT INCREASE EACH YEAR BASED ON THE ACTUARIAL ASSUMPTIONS ADOPTED
BY THE BOARD OF TRUSTEES ON THE RECOMMENDATION OF THE ACTUARY.

(II) IF, AS OF JULY 1, 1995, THE ANNUAL DEFICIT PAYMENT OF A
PARTICIPATING GOVERNMENTAL UNIT INCREASES THE PARTICIPATING
GOVERNMENTAL UNITS REQUIRED CONTRIBUTION BY MORE THAN 2% OF THE

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