Ch. 661                                    1996 LAWS OF MARYLAND

AGGREGATE ANNUAL EARNABLE COMPENSATION OF THE PARTICIPATING
GOVERNMENTAL UNIT AS OF JULY 1, 1995, THE PARTICIPATING GOVERNMENTAL
UNIT MAY LIQUIDATE THE DEFICIT OVER A 40-YEAR TERM BEGINNING AS OF JULY
1, 1995.

(3) (I) SUBJECT TO SUBPARAGRAPH (II) OF THIS PARAGRAPH, WITH
THE CONCURRENCE OF THE BOARD OF TRUSTEES, A PARTICIPATING
GOVERNMENTAL UNIT MAY PREPAY ALL OR A PORTION OF THE DEFICIT.

(II) A PARTICIPATING GOVERNMENTAL UNIT THAT ELECTS TO
PREPAY A PORTION OF THE DEFICIT:

1.       MAY NOT PREPAY LESS THAN THE GREATER OF $100,000
OR 10% OF THE OUTSTANDING BALANCE OF THE DEFICIT AS OF THE PAYMENT
DATE;

2.       MAY NOT MAKE MORE THAN 2 ADDITIONAL PAYMENTS
DURING ANY FISCAL YEAR; AND

3.       SHALL BE LIABLE FOR PAYMENT OF THE EXPENSES
INCURRED BY THE AGENCY FOR THE ACTUARY TO RECALCULATE THE ANNUAL
DEFICIT PAYMENTS REQUIRED UNDER § 21-305(B)(2)(IV) OF THIS SUBTITLE.

(D) ON THE RECOMMENDATION OF THE ACTUARY, THE BOARD OF TRUSTEES
SHALL ADOPT REGULATIONS THAT ARE NECESSARY TO CARRY OUT THIS SECTION,
AND THAT SET FORTH THE AMOUNT OF ANY SURPLUS OR DEFICIT ALLOCABLE TO A
PARTICIPATING GOVERNMENTAL UNIT AS OF JUNE 30, 1995.

21-305.5.

(A)     (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANING
INDICATED.

(2)     "ACTIVE PARTICIPANT FUNDING RATIO" MEANS THE RATIO
DETERMINED BY THE ACTUARY AS PROVIDED UNDER SUBSECTION (D) OF THIS
SECTION.

(3)     "COMPLEMENT OF THE ACTIVE PARTICIPANT FUNDING RATIO" IS A
RATIO EQUAL TO 1 MINUS THE ACTIVE PARTICIPANT FUNDING RATIO.

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

(5)     "TRANSITION AMOUNT' MEANS THE AMOUNT DETERMINED BY THE
ACTUARY AS PROVIDED UNDER SUBSECTION (G) OF THIS SECTION.

(B)     THIS SECTION APPLIES ONLY TO A PARTICIPATING GOVERNMENTAL UNIT
THAT ELECTS TO WITHDRAW FROM PARTICIPATION IN THE EMPLOYEES' SYSTEMS
AND TRANSFER TO A LOCAL PENSION SYSTEM ALL EMPLOYEES OF THE
PARTICIPATING GOVERNMENTAL UNIT WHO CONSENT TO THE WITHDRAWAL.

(C) (1) ON AND AFTER THE DATE OF A PARTICIPATING GOVERNMENTAL
UNITS WITHDRAWAL FROM THE EMPLOYEES' SYSTEMS UNDER § 31-302(A)(1) OF

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