MD. State Personnel and Pensions Code Ann. §  21-304 (2021)
2021 Maryland Statutes|State Personnel and Pensions|Division II - Pensions|Title 21 - State Retirement and Pension System|Subtitle 3 - Funding|Section 21-304 - Employer Contributions -- State

      (a)      (1)     In this section the following words have the meanings indicated.           (2)     With respect to local employees, “aggregate annual earnable compensation” means the total annual earnable compensation payable by a local employer to all of its local employees, calculated as of June 30 of the second prior fiscal year before the fiscal year for which the calculation is made under this section, adjusted by any actuarial assumed salary increases that were used in the actuarial valuation prepared under § 21–125(b) of this title for the immediate prior fiscal year.           (3)     “Local employee” means a member of the Teachers’ Retirement System or the Teachers’ Pension System who is an employee of a day school in the State under the authority and supervision of a county board of education or the Baltimore City Board of School Commissioners, employed as:              (i)     a clerk;               (ii)     a helping teacher;               (iii)     a principal;               (iv)     a superintendent;               (v)     a supervisor; or               (vi)     a teacher.            (4)     “Local employer” means a county board of education or the Baltimore City Board of School Commissioners.           (5)     “State member” does not include a member on whose behalf a participating governmental unit is required to make an employer contribution under § 21–305 or § 21–306 of this subtitle.           (6)     “Total employer contribution for local employees” means that portion of the employer contribution calculated under subsection (b) of this section that is attributable to all local employees.        (b)      (1)     Subject to paragraphs (4) and (5) of this subsection, each fiscal year, on behalf of the State members of each State system, the State shall pay to the appropriate accumulation fund an amount equal to or greater than the sum of the amount, if any, required to be included in the budget bill under § 3–501(c)(2)(ii) of this article and the product of multiplying:              (i)     the aggregate annual earnable compensation of the State members of that State system; and               (ii)     the sum of the normal contribution rate and the accrued liability contribution rate for State members of that State system, as determined under this section.            (2)     The amount determined under paragraph (1) of this subsection for each State system shall be based on an actuarial determination of the amounts that are required to preserve the integrity of the funds of the several systems using:              (i)     the entry–age actuarial cost method; and               (ii)     actuarial assumptions adopted by the Board of Trustees.            (3)     For the purpose of making the determinations required under this section:              (i)     the Employees’ Retirement System, the Employees’ Pension System, the Correctional Officers’ Retirement System, and the Legislative Pension Plan shall be considered together as one State system; and               (ii)     the Teachers’ Retirement System and the Teachers’ Pension System shall be considered together as one State system.            (4)      (i)     Subject to § 21–309.1 of this subtitle, beginning on July 1, 2012 and each fiscal year thereafter, each local employer shall pay to the appropriate accumulation fund an amount equal to the local share of the total employer contribution for local employees as provided in this paragraph.               (ii)     For fiscal years 2013 through 2016, each local employer shall pay to the Board of Trustees its local share, which shall be equal to the following amounts: