ROBERT L. EHRLICH, JR., Governor                         H.B. 1096

(5) THE BOARD OF TRUSTEES IS NOT SUBJECT TO DIVISION II OF THE
STATE FINANCE AND PROCUREMENT ARTICLE FOR:

(I)      OBTAINING SERVICES OF MANAGERS TO INVEST THE ASSETS
OF THE POSTRETIREMENT HEALTH BENEFITS TRUST FUND; AND

(II)     EXPENDITURES TO MANAGE, MAINTAIN, AND ENHANCE THE
VALUE OF THE ASSETS OF THE POSTRETIREMENT HEALTH BENEFITS TRUST FUND.

(E) (F) TO THE EXTENT POSSIBLE, THE ASSETS OF THE POSTRETIREMENT
HEALTH FUNDING SYSTEM BENEFITS TRUST FUND SHALL BE INVESTED IN THE
SAME MANNER AS THOSE OF THE OTHER SYSTEMS OF THE STATE RETIREMENT AND
PENSION SYSTEM SEVERAL SYSTEMS.

(F) (G) FOR FISCAL YEAR 2006 THROUGH FISCAL YEAR 2016, NO PAYMENTS
MAY BE MADE FROM THE ACCUMULATION FUND OF THE POSTRETIREMENT HEALTH
FUNDING SYSTEM BENEFITS TRUST FUND.

(G) (H) FOR FISCAL YEAR 2016 AND EACH FISCAL YEAR THEREAFTER, THE
STATE RETIREMENT AND PENSION SYSTEM BOARD OF TRUSTEES SHALL TRANSFER
TO THE GENERAL FUND, FOR THE SOLE PURPOSE OF ASSISTING IN THE PAYMENT OF
THE STATE'S POSTRETIREMENT HEALTH INSURANCE SUBSIDY, THE LESSER OF:

(1)      ONE-QUARTER OF THE PRIOR YEAR'S INVESTMENT GAINS OF THE
POSTRETIREMENT HEALTH FUNDING SYSTEM BENEFITS TRUST FUND; OR

(2)      THE AMOUNT NECESSARY TO PAY THE ANNUAL HEALTH INSURANCE
PREMIUMS AND OTHER COSTS THAT CONSTITUTE THE STATE'S POSTRETIREMENT
HEALTH INSURANCE SUBSIDY SPECIFIED IN § 2-508 OF THIS ARTICLE.

(H) (I) IF FOR ANY REASON THE STATE DISCONTINUES THE
POSTRETIREMENT HEALTH INSURANCE SUBSIDY SPECIFIED IN § 2-508 OF THIS
ARTICLE OR A SUCCESSOR SUBSIDY, THE ASSETS OF THE POSTRETIREMENT HEALTH
FUNDING SYSTEM BENEFITS TRUST FUND SHALL BE TRANSFERRED TO THE
GENERAL FUND.

(J) ON OR BEFORE OCTOBER 1, 2007, AND ON OR BEFORE OCTOBER 1
THEREAFTER, THE BOARD OF TRUSTEES SHALL PUBLISH AN ANNUAL
CONSOLIDATED REPORT THAT INCLUDES:

(1)      THE FISCAL TRANSACTIONS OF THE POSTRETIREMENT HEALTH
BENEFITS TRUST FUND FOR THE PRECEDING FISCAL YEAR; AND

(2)      THE AMOUNT OF THE ACCUMULATED CASH, SECURITIES, AND
OTHER ASSETS OF THE POSTRETIREMENT HEALTH BENEFITS TRUST FUND.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
July 1, 2004.

May 26, 2004

The Honorable Michael E. Busch

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