336                               JOINT RESOLUTIONS

JOINT RESOLUTIONS

No. 1
(House Joint Resolution 3)

Joint Resolution regarding interest rates credited to the accounts
of members of the State Teachers' Retirement System, State
Employees' Retirement System and State Police Retirement
System and calling upon the Boards of Trustees of the respective
systems to make a study and present recommendations to the
General Assembly.

WHEREAS, The Committee on Taxation and Fiscal Matters of the
Legislative Council has conducted a study of the State Teachers'
Retirement System, State Employees' Retirement System and State
Police Retirement System as requested under the terms of Joint
Resolution 10 of the 1957 General Assembly; and

WHEREAS, The Committee in its report has commented upon the
disparity between the rate of interest earned by the funds of the
several systems and the rate of interest credited to the accounts of
members thereof; and

WHEREAS, In order to avoid additional subsidy of the interest rate
credited to member accounts the 1955 General Assembly enacted
legislation reducing the interest rate to be credited from 4% to
3%, such reduction applicable only to new members of the systems:
and

WHEREAS, The actual yield on the investments of the funds should
increase and the retirement systems should be reorganized in order
to accomplish this objective; and

WHEREAS, It is hoped that the actual yield will soon exceed the
3% interest now credited to certain members' accounts; and

WHEREAS, As a general principle on a long range basis, equity
for both members and the State is best served when the rate of
interest credited is approximately the same as the actual rate of
interest earned; now, therefore, be it

Resolved by the General Assembly of Maryland, That the Boards
of Trustees of the State Teachers' Retirement System, State Em-
ployees' Retirement System and State Police Retirement System be
and they are hereby requested to study

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AND TO MAKE A REPORT

EXPLANATION: Italics indicate new matter added to existing law.

[Brackets] indicate matter stricken from existing law.
CAPITALS indicate amendments to bill.
Strike out indicates matter stricken out of bill.