PUBLIC EDUCATION 2937

be paid from the Annuity Savings Fund. Upon the retirement of a mem-
ber his accumulated contributions shall be transferred from the Annuity
Savings Fund to the Annuity Reserve Fund.

(2) Annuity Reserve Fund.

The Annuity Reserve Fund shall be the fund in which shall be held the
reserves on all annuities in force and from which shall be paid all annui-
ties and all benefits in lieu of annuities, payable as provided in this sub-title.
Should a beneficiary retired on account of disability be restored to active
service with a compensation not less than his average final compensation
at the time of his last retirement his annuity reserve shall be transferred
from the Annuity Reserve Fund to the Annuity Savings Fund and
credited to his individual account therein.

(3) Pension Accumulation Fund.

(a) The Pension Accumulation Fund shall be the fund in which shall
be accumulated all reserves for the payment of all pensions and other
benefits payable from contributions made by the State of Maryland and
from which shall be paid all pensions and other benefits on account of
members with prior service credit and the lump sum death benefits for all
members payable from the said contributions. Contributions to and pay-
ments from the Pension Accumulation Fund shall be made as follows:

(b) On account of each member there shall be paid annually into the
Pension Accumulation Fund by the said State, for the preceding fiscal
year an amount equal to a certain percentage of the earnable compensa-
tion of each member to be known as the "normal contribution," and an
additional amount equal to a percentage of his earnable compensation to be
known as the "accrued liability contribution." The rates per centum of
such contributions shall be fixed on the basis of the liabilities of the retire-
ment system as shown by actuarial valuation. Until the first valuation the
normal contribution shall be two and eighty-nine hundreds per centum,
and the accrued liability contribution shall be three and fifty-six hun-
dredths per centum of the annual compensation of all members.

(c) On the basis of regular interest and of such mortality and other
tables as shall be adopted by the Board of Trustees, the actuary engaged by
the Board to make each valuation required by this sub-title during the
period over which the deficiency contribution is payable, immediately after
making such valuation, shall determine the uniform and constant per-
centage of the earnable compensation of the average new entrant, which
if contributed on the basis of compensation of such new entrant throughout
his entire period of active service would be sufficient to provide for the
payment of any death benefit or pension payable on his account. The rate
per centum so determined shall be known as the "normal contribution"
rate. After the accrued liability contribution has ceased to be payable,
the normal contribution rate shall be the rate per centum of the earnable
salary of all members obtained by deducting from the total liabilities of
the Pension Accumulation Fund the amount of the funds in hand to the
credit of that fund and dividing the remainder by one per centum of the
present value of the prospective future salaries of all members as computed
on the basis of the mortality and service tables adopted by the Board of