Article - State Personnel and Pensions

21-315.

(a) The Board of Trustees shall credit to the expense fund of each State system
its pro rata share of:

(1) the amount provided in the annual State budget to pay the
administrative and operational expenses of the Board of Trustees and the State
Retirement Agency;

(2) the amounts authorized by the Board of Trustees under this section
for investment management services; and

(3) the amount authorized by the Board of Trustees to implement a
closing agreement with the Internal Revenue Service regarding former members of
the Employees' Retirement System or the Teachers' Retirement System who elected to
become members of or participate in those State systems under former Article 73B, §§
2-206 and 3-206 of the Code.

(b) The Board of Trustees shall pay from the expense fund of each State
system its pro rata share of:

(1) the administrative and operational expenses of the Board of Trustees
and the State Retirement Agency, in accordance with the annual State budget;

(2) the amounts as authorized by the Board of Trustees necessary for
investment management services; and

(3) the amounts as authorized by the Board of Trustees necessary to
implement a closing agreement with the Internal Revenue Service regarding former
members of the Employees' Retirement System or the Teachers' Retirement System
who elected to become members of or participate in those State systems under former
Article 73B, §§ 2-206 and 3-206 of the Code.

(c) Each year the Board of Trustees shall estimate the amount, not exceeding
[0.2%] 0.22% of the payroll of members, necessary for the administrative and
operational expenses of the Board of Trustees and the State Retirement Agency.

(d) Each quarter of the fiscal year the Board of Trustees shall estimate:

(1) one-fourth of an amount, not exceeding 1.2% of the market value as
of the last day of the preceding quarter of assets externally invested in real estate,
necessary for external real estate investment management services; and

(2) one-fourth of an amount, not exceeding 0.3% of the market value as
of the last day of the preceding quarter 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.