Percentage of Annual Pension Cost Contributed

The State contributed 100% of the annual pension cost for each of the fiscal years ending June 30, 1996, 1995
and 1994 for each of the six plans listed.

Net Pension Obligation

The State's net pension obligation was zero as of June 30, 1996, 1995 and 1994 for each of the six plans listed.
In addition, there was no transition liability determined in accordance with GASB Statement No. 27. This transition
resulted in no difference between the 1995 and 1996 reported liability.

The fiscal year 1996 annual pension cost and net pension obligations were determined as a part of an actuarial
valuation as of June 30, 1996. The significant actuarial assumptions listed below were used for all plans.

Valuation method .......................................................................................	.......Aggregate Entry Age Normal
Cost method of valuing assets................................................ .................	.......Smoothing (difference in experienced and assumed return)
Rate of return on investments.................................................................	.......7.50%
Rate of salary increase........... ...................................................................	.......Varies
Projected inflation rate .............................................................................	.......5.00%
Postretirement benefit increase........ .......................................................	.......Varies
Amortization method........... ......................................................................	.......Level Percent of Payroll
Amortization period. ..................................................................................	.......25 years as of June 30, 1996
Status of period (Open or Closed) .........................................................	.......Closed

During fiscal year 1996, there were no changes in actuarial assumptions or benefit provisions from 1995 and
1994 which significantly affected the valuation of the annual pension cost and net pension obligation. No
significant changes hi these assumptions are planned in the near term.

Mass Transit Administration Pension Plan (Plan):

The Mass Transit Administration Pension Plan is a single employer non-contributory plan which covers all
Mass Transit Administration (Administration) employees covered by a collective bargaining agreement and all
those management employees who were employed by the Baltimore Transit Company. In addition, employees who
enter the management group as a result of a transfer from a position covered by a collective bargaining agreement
maintain their participation. The Plan is part of the State's financial reporting entity and is included in the State's
financial statements as a Pension Trust Fund. For the year ended June 30, 1996, the Administration's covered
payroll was $95,550,000 and, its total payroll was $111,683,000. The Plan is administered and funded in compliance
with the collective bargaining agreements which established the Plan. Separate statements for the Plan are not
issued.

Plan Description:

The Plan provides retirement (normal and early), death and disability benefits. Members may retire with full
benefits at age 65 with five years of credited service or age 55 with 30 years of credited service. The annual normal
retirement benefit is 1.3% of final average compensation multiplied by credited service, with minimum and
maximum benefit limitations. Participants are fully vested after five years of credited service.

As of June 30, 1996, membership in the Plan includes 805 retirees and beneficiaries currently receiving
benefits, 231 terminated members entitled to, but not yet receiving benefits and 2,554 current active members.

There were no investments in loans to or leases with parties related to the Plan. In addition, no investment in
any one organization constituted 5% or more of the net plan assets available for pension benefits.

Summary of Significant Accounting Policies:

As a part of the Pension Trust Fund, the accounts of the Plan, including benefits and refunds, are maintained
using the accrual basis of accounting. Fair value of the investments by the Plan is determined by the State
Retirement and Pension System of Maryland based on published securities data,

Funding Policy:

The Administration's required contributions are based on actuarial valuations. Effective January 1, 1990, in
accordance with the law governing the Plan, all benefits of the Plan are funded hi advance. The entry age normal

65