THEODORE R. MCKELDIN, GOVERNOR                    339

in which these individual portions of retirement pay are calculated
will understand why there is no relationship between the amounts
of the three components of the retirement benefit.

"Care must be exercised to avoid short cut methods of estimating
retirement pay which have led to the erroneous interpretation that
the annuity and the pension are equal. There is all too prevalent
the mistaken belief that the annuity and pension together will
equal l/70th of pay for each year of service, thereby making pos-
sible retirement at half pay, excluding Social Security, after
thirty-five years. As has been earlier discussed, various factors
have served to increase the pension at a much faster rate than the
annuity."; and

WHEREAS, increases in salary scale are a major factor contrib-
uting to the disparity between the pension and the annuity, and the
State has made it possible for members to increase their contribu-
tions by lump sum or periodic contributions, in order to augment
their annuities; 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 take the necessary steps recom-
mended in the foregoing quotation from the Committee report to
secure more complete member understanding of the operations of
the Retirement System; and be it further

Resolved, That the General Assembly recommends that considera-
tion be given to the desirability of furnishing written notice to an
employee at such time as he receives an increase in salary scale,
such notice to advise him that if he desires to increase his con-
tributions to the Retirement System he may thus reduce the disparity
between his annuity and his pension and add to his retirement
income.

Approved March 6, 1958.

No. 4
(House Joint Resolution 11)

House Joint Resolution urging the General Assembly of the State
of Delaware to give consideration to an income tax exemption in
their law for non-residents of that state on salary and wages re-
ceived by them from employment within the State of Delaware,
similar to the exemption provided in the Maryland income tax
law which is applicable to residents of Delaware who are em-
ployed within the State of Maryland.

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.