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Benefits, are paid from the Expense Fund. Md. Ann. Code, art.
73B, sec. 14(3) (1988 and Supp. 1991).
The Annuity Savings Fund holds a participant's "accumulated
contributions", which consist of the participant's total
contributions plus "regular interest". Md. Ann. Code, art. 73B,
secs. 1(13), (23), 14(1)(a), (2)(c) (1988 and Supp. 1990).
Regular interest is credited to a participant's account annually.
Md. Ann. Code, art. 73B, sec. 14(2)(c) (1988). The rate of
regular interest is set by the Board of Trustees at a statutorily
prescribed rate of 4 percent.4 Md. Ann. Code, art. 73B, sec.
14(1)(a) (1988 and Supp. 1990). If a participant withdraws his
or her accumulated contributions, or if such contributions are
paid to the estate or designated beneficiary of a participant,
such amount is paid from the Annuity Savings Fund. Md. Ann.
Code, art. 73B, sec. 14(1)(f) (1988).
All interest and dividends earned on the funds of the
Retirement System are credited to the Accumulation Fund. Md.
Ann. Code, art. 73B, sec. 14(2)(c) (1988). Upon a participant's
retirement, the participant's accumulated contributions are
transferred from the Annuity Savings Fund to the Accumulation
Fund, and the participant's annuity is then paid from the
Accumulation Fund. Md. Ann. Code, art. 73B, sec. 14(1)(f) and
4 See also Md. Ann. Code, art. 73B, sec. 1(12) (1988). Each
year, after a participant's account in the Annuity Savings Fund
is credited with "regular interest", such interest is transferred
from the Accumulation Fund to the Annuity Savings Fund. Md. Ann.
Code, art. 73B, sec. 14(2)(c) (1988).
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