HARRY HUGHES, Governor

3497

not to exceed twenty percent of his compensation made on his
account, either by a reduction in his salary or in lieu of an
increase in his compensation. The cost of administering
annuities qualifying under § 403(b) of the Internal Revenue Code
as amended from time to time, shall be provided from the funds
invested in such annuities.] Such additional amounts so
deposited shall become a part of his accumulated contributions
except in the case of retirement, when they shall be treated as
excess contributions returnable to the member in cash or as an
annuity of equivalent actuarial value.

89.

All of the assets of the retirement system shall be credited
according to the purpose for which they are held to one of three
funds, namely, the Annuity Savings Fund, the Accumulation Fund,
and the Expense Fund.

(1) (d) In addition to the contributions deducted
from compensation as hereinbefore provided, subject to the
approval of the board of trustees, any member may redeposit in
the Annuity Savings Fund by a single payment or by an increased
rate of contribution an amount equal to the total amount which he
previously withdrew therefrom as provided in this subtitle, or
any part thereof; or any member may deposit therein by a single
payment or by an increased rate of contribution an amount
computed to be sufficient to purchase an additional annuity,
which, together with his prospective retirement allowance, will
provide for him a total retirement allowance not in excess of two
thirds of his average final compensation at age 60 or after 30
years of creditable service, whichever would first occur. [In
addition to the contributions hereinbefore provided, subject to
such conditions as may be established by the board of trustees,
any member may, in accordance with a contract with his employer,
have further contributions at a fixed percentage of 2 percent or
more, but not to exceed 20 percent of his compensation made on
his account, either by a reduction in his salary, or in lieu of
an increase in his compensation. The cost of administering
annuities qualifying under § 403(b) of the Internal Revenue Code,
as amended from time to time, shall be provided from the funds
invested in such annuities. Nothing in this section shall
preclude the consideration and adoption by a local board of
education of a similar plan qualifying under § 403(b) of the
Internal Revenue Code as amended from time to time, through a
commercial insurance carrier, or through a custodial account with
investments in regulated investment company stock as contemplated
by Section 403(b), and prior to entering into an agreement with
the board of trustees of the State Teachers' Retirement System, a
county board of education shall consider a proposal of at least
one commercial insurance carrier and at least one sponsor of a
custodial account. The criteria for choosing a plan shall be
the same for the State Teachers' Retirement System, a commercial
plan, and a custodial account.] Such additional amounts so
deposited shall become a part of his accumulated contributions
except in the case of retirement, when they shall be treated as