of service credit, with a provision for additional benefits for compensation earned in excess of the Social Security Wage base. A member
of either type of Pension System may retire with reduced benefits after attaining age 55 and completing 15 years of service.

The annual retirement allowance for a State Police member is equal to 2.6% of the member's highest three-year average salary
multiplied by each year of service up to a maximum of 28 years. The annual retirement allowance for a member of the Law Enforcement
Officers Pension System is 2.0% of the member's highest three-consecutive year average salary multiplied by each year of service up to
a maximum of 30 years. Neither the State Police Retirement System nor Law Enforcement Officers Pension System provide for an
early retirement. Recent legislation and Internal Revenue Service approval has created a Deferred Retirement Option Program
(DROP) for members of the State Police and Law Enforcement Officers System. This program allows for a member to retire from the
system, accrue retirement earnings (which is held in a separate account) and continue employment until a pre-determined date.

Funding Policy:

The State's required contributions are based upon actuarial valuations. Effective July 1,1980, in accordance with the kw governing the
Systems, all benefits of title System are funded in advance. The aggregate entry age normal cost method is the actuarial cost method used
to determine the employers' contribution rates and the actuarial accrued liability. Members of the Retirement System are required to
contribute to the System a fixed percentage of their regular salaries and wages (7.0% or 5.0% depending on the retirement plan selected).
Members of the Contributory Pension System are required to contribute to the System 2.0% of their regular salaries and wages. Members
of the Non-Contributory Pension System are required to contribute to the System 5.0% of their regular salaries and wages which exceed
the Social Security wage base. State Police members are required to contribute 8.0% of their regular salaries and wages to the System.
Members of the Law Enforcement Officers Pension System are required to contribute 4.0% of their regular salaries and wages. All
contributions are deducted from each member's salary, and wage payments are remitted to the System on a regular, periodic basis.

The contribution requirements of the System members, as well as the State and participating governmental employers, are
established and may be amended by the Board of Trustees for the System. During fiscal year 2000, the State made the required
contribution totaling $644,432,000, which was 10.7% of covered payroll. The State makes non-employer contributions to the
System for local school system teachers. The covered payroll amount includes amounts for employees for whom the State pays
retirement benefits, but does not pay the payroll. As of June 30,2000,1999 and 1998 the State had made all required contributions,
and thus as of June 30,2000,1999 and 1998 the State did not have a net pension obligation.

Annual Pension Cost and Net Pension Obligation:

Three Year Historical Trend Information for the System is as follows (amounts expressed in thousands).

	Annual	Pension	Cost
	Fiscal	Year Ended	June 30,
Plan	2000	1999	1998
Teachers' Retirement and Pension System.. .................................................................................	$435,434	$460,592	$496,020
Employees' Retirement and Pension System........................ ........................................................	182,650	162,410	170,146
State Police Retirement System...................................................................................................	1,075	8,270	8,841
Judges' Retirement System...........................................................................................................	14,730	15,216	13,292
Law Enforcement Officers Pension System ................................................................................	10,543	8,360	4,373

Percentage of Annual Pension Cost Contributed

The State contributed 100% of the annual pension cost for each of the fiscal years ending June 30, 2000, 1999 and 1998 for each
of the five plans listed above.

Net Pension Obligation

The State's net pension obligation was zero as of June 30, 2000, 1999 and 1998 for each of the five plans listed. In addition, there
was no transition liability determined in accordance with GASB Statement No. 27.

The fiscal year 2000 annual pension cost and net pension obligations were determined as a part of an actuarial valuation as of
June 30,2000. The significant actuarial assumptions listed below were used for all plans.

Valuation method .................................................................................	Aggregate Entry Age Normal
Cost method of valuing assets. ..............................................................	Smoothing (difference in experienced and assumed return)
Rate of return on investments... ............................................................	8.0%
Rate of salary increase...........................................................................	Varies
Projected inflation rate..........................................................................	5.0%
Post retirement benefit increase ............................................................	Varies
Amortization method ...........................................................................	Level Percent of Payroll
Remaining amortization period ...........................................................	20 years as of June 30, 2000
Status of period (Open or Closed)........................................................	Closed
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