PARRIS N. GLENDENING, Governor

Ch. 661

THIS ARTICLE, THE PARTICIPATING GOVERNMENTAL UNIT AND ITS EMPLOYEES
ARE NOT REQUIRED TO MAKE ANY FURTHER CONTRIBUTIONS TO THE EMPLOYEES'
SYSTEMS FOR THOSE EMPLOYEES WHO ELECT TO WITHDRAW FROM THE
EMPLOYEES' SYSTEMS.

(2)     AS OF THE EFFECTIVE DATE OF WITHDRAWAL, THE PARTICIPATING
GOVERNMENTAL UNIT SHALL CONTINUE TO MAKE ANY CONTRIBUTIONS REQUIRED
UNDER § 21-305(B)(1) AND (2) OF THIS SUBTITLE ON BEHALF OF THOSE EMPLOYEES
WHO DO NOT ELECT TO WITHDRAW FROM THE EMPLOYEES' SYSTEMS.

(3)     AS OF THE EFFECTIVE DATE OF WITHDRAWAL OF A PARTICIPATING
GOVERNMENTAL UNIT, THE BOARD OF TRUSTEES SHALL TRANSFER TO THE
ADMINISTRATIVE BOARD OF THE LOCAL PENSION SYSTEM THE ASSETS THAT ARE
ALLOCABLE TO THE EMPLOYEES OF THE PARTICIPATING GOVERNMENTAL UNIT
WHO ELECT TO WITHDRAW FROM THE EMPLOYEES' SYSTEMS AS DETERMINED
UNDER SUBSECTION (E) OF THIS SECTION.

(D) (1) AS OF JUNE 30 OF EACH FISCAL YEAR, THE ACTUARY SHALL
DETERMINE THE ACTIVE PARTICIPANT FUNDING RATIO FOR THE PARTICIPATING
GOVERNMENTAL UNITS AS PROVIDED IN THIS SECTION.

(2)     THE ACTIVE PARTICIPANT FUNDING RATIO SHALL BE A FRACTION,
NOT TO EXCEED 1, THAT HAS:

(I)      AS ITS NUMERATOR, THE ASSETS TO THE CREDIT OF THE
PARTICIPATING GOVERNMENTAL UNITS IN THE ACCUMULATION FUND AND THE
ANNUITY SAVINGS FUND OF THE EMPLOYEES' SYSTEMS AS ADJUSTED UNDER
PARAGRAPH (3) OF THIS SUBSECTION, DECREASED BY THE SUM OF THE ACTUARIAL
LIABILITIES ALLOCABLE TO:

1. RETIREES OF THE EMPLOYEES' SYSTEMS WHO RETIRED
FROM THE SERVICE OF THE PARTICIPATING GOVERNMENTAL UNITS AND THE
DESIGNATED BENEFICIARIES OF THOSE RETIREES;

2 FORMER MEMBERS OF THE EMPLOYEES' SYSTEMS
ELIGIBLE FOR A VESTED ALLOWANCE WHO SEPARATED FROM EMPLOYMENT WITH
THE PARTICIPATING GOVERNMENTAL UNITS; AND

3. MEMBERS OF THE EMPLOYEES' SYSTEMS WHO
SEPARATED FROM EMPLOYMENT WITH THE PARTICIPATING GOVERNMENTAL
UNITS BUT WHO MAY BECOME ELIGIBLE TO RECEIVE PRIOR ELIGIBILITY SERVICE
CREDIT UNDER § 23-303 OF THIS ARTICLE; AND

(II)    AS ITS DENOMINATOR, THE ACTUARIAL LIABILITIES THAT ARE
ALLOCABLE TO THE EMPLOYEES OF THE PARTICIPATING GOVERNMENTAL UNITS
WHO ARE MEMBERS OF THE EMPLOYEES' SYSTEMS.

(3)     THE ASSETS TO THE CREDIT OF THE PARTICIPATING
GOVERNMENTAL UNIT AS OF THE VALUATION DATE SHALL BE:

(I) INCREASED BY THE SUM OF THE OUTSTANDING BALANCES OF:
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