PARRIS N. GLENDENING, Governor

Ch. 661

(ii) the participating governmental unit shall continue to make the
normal contribution on behalf of each employee who does not elect to withdraw from the
Local Fire and Police System; and

(iii) the participating governmental unit shall make a withdrawal
liability contribution as determined under this subsection.

(3)     The withdrawal liability contribution shall be determined by an actuarial
valuation of the withdrawal liability as of the date of withdrawal.

(4)     Except as provided in paragraph (5) of this subsection, the annual
withdrawal liability contribution of each participating governmental unit shall be the level
annual payment that is sufficient to liquidate, over not more than 10 years beginning on
the date of withdrawal, the amount by which the withdrawal liability of the participating
governmental unit exceeds the sum of:

(i) the present value, as of the date of withdrawal, of future normal
contributions and future member contributions on behalf of or by those employees of the
participating governmental unit who do not elect to withdraw; and

(ii) the allocable portion of the reserve as of the date of withdrawal
attributable to those employees of the participating governmental unit who do not elect to
withdraw.

(5)     Subject to the approval of the Board of Trustees and the actuary's
concurrence, a participating governmental unit may liquidate its unfunded withdrawal
liability by means of annual payments other than level annual payments.]

(I)      IN THIS SUBSECTION THE FOLLOWING WORDS HAVE THE
MEANINGS INDICATED.

(II)     "ACTIVE PARTICIPANT FUNDING RATIO" MEANS THE RATIO
DETERMINED BY THE ACTUARY AS PROVIDED UNDER PARAGRAPH (3) OF THIS
SUBSECTION.

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

(2) (I) ON AND AFTER THE DATE OF A PARTICIPATING
GOVERNMENTAL UNITS WITHDRAWAL FROM THE LOCAL FIRE AND POLICE SYSTEM
UNDER § 31-302(B) OF THIS ARTICLE, THE PARTICIPATING GOVERNMENTAL UNIT
AND ITS EMPLOYEES ARE NOT REQUIRED TO MAKE ANY FURTHER CONTRIBUTIONS
TO THE LOCAL FIRE AND POLICE SYSTEM FOR THOSE EMPLOYEES WHO ELECT TO
WITHDRAW FROM THE LOCAL FIRE AND POLICE SYSTEM.

(II) AS OF THE EFFECTIVE DATE OF WITHDRAWAL THE
PARTICIPATING GOVERNMENTAL UNIT SHALL CONTINUE TO MAKE ANY
CONTRIBUTIONS REQUIRED UNDER SUBSECTION (A) OF THIS SECTION ON BEHALF
OF THOSE EMPLOYEES WHO DO NOT ELECT TO WITHDRAW FROM THE LOCAL FIRE
AND POLICE SYSTEM.

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