WILLIAM DONALD SCHAEFER, Governor Ch. 430

(14) "Earnable compensation" means the normal monthly
compensation payable to a teacher for working the normal time for
the teacher's position and that is equal to one-twelfth of the
employee's annual salary rate, INCLUDING THE MONTHLY PICKUP
CONTRIBUTION PROVIDED FOR IN § 89(1)(F) OF THIS ARTICLE.

(24) "REGULAR CONTRIBUTIONS" MEANS THE AMOUNTS
DEDUCTED FROM THE COMPENSATION OF A MEMBER AND CREDITED TO THE
MEMBER'S INDIVIDUAL ACCOUNT IN THE ANNUITY SAVINGS FUND PRIOR TO
JANUARY 1, 1989.

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) (a) The Annuity Savings Fund shall be a fund [in
which shall be] CONSISTING OF accumulated contributions [from the
compensation] CREDITED TO INDIVIDUAL ACCOUNTS of members to
provide for their annuities. Upon the basis of such tables as
the board of trustees shall adopt and an interest rate of 4
percent per year compounded annually, the actuary of the
retirement system shall determine for each member who shall have
become a member prior to July 1, 1973 the proportion of
compensation which, when deducted from each payment of his
prospective earnable annual compensation prior to his attainment
of age 60 and accumulated at interest of 4 percent per year
compounded annually, until his attainment of such age shall be
computed to provide at that time an annuity equal to one
one-hundred and fortieth of his average final compensation for
each year of service as a member. Such proportion of
compensation shall be computed to remain constant. However,
commencing as of July 1, 1973, the proportion of compensation
payable by any member as of June 30, 1973 shall be the lesser of
(i) the proportion so determined, or (ii) 5 percent of his
earnable compensation, and the proportion of compensation payable
by any person who becomes a member after June 30, 1973 shall be
5 percent of his earnable compensation. Any member who elects
under § 85(2)(c) of this article a full service credit for
regular part-time service in the computation of the retirement
allowance or benefit shall contribute 5 percent of the
compensation the member would have earned had the member been a
full-time employee during the period of disability.

(F) (I) IN THIS PARAGRAPH "APPROVED EMPLOYER"
MEANS AN EMPLOYER OF MEMBERS IN THE RETIREMENT SYSTEM, WHO HAS
OBTAINED THE APPROVAL OF THE INTERNAL REVENUE SERVICE TO HAVE AN
EMPLOYER PICKUP PROGRAM IN ACCORDANCE WITH § 414(H)(2) OF THE
INTERNAL REVENUE CODE.

- 3205 -