PUBLIC EDUCATION. 973

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
Trustees and regular interest. The normal rate of contribution shall be
determined by the actuary after each valuation.

(d) Immediately succeeding the first valuation the actuary engaged by
the Board of Trustees shall compute the rate per centum of the total
annual compensation of all members which is equivalent to four per centum
of the amount of the total pension and death benefit liability on account of
all members and beneficiaries which is not dischargeable by the aforesaid
normal contribution made on account of such members during the remain-
der of their active service. The rate per centum originally so determined
shall be known as the "accrued liability contribution" rate.

(e) The total amount payable in each year to the Pension Accumulation
Fund shall be not less than the sum of the rate per centum known as the
normal contribution rate and the accrued liability contribution rate of the
total compensation earnable by all members during the preceding year;
provided, however, that the amount of each annual accrued liability con-
tribution shall be at least three per centum greater than the preceding
annual accrued liability payment, and that the aggregate payment by the
State of Maryland shall be sufficient, when combined with the amount in
the fund to provide the pension and other benefits payable out of the fund
during the year then current.

(f) The accrued liability contribution shall be discontinued as soon as
the accumulated reserve in the Pension Accumulation Fund shall equal
the present value, as actuarially computed and approved by the Board of
Trustees, of the total liability of such fund less the present value, com-
puted on the basis of the normal contribution rato then in force, of the
prospective normal contributions to be received on account of persons who
are at that time members.

(g) All pensions, and benefits in lieu thereof, with the exception of
those payable on account of members who receive no prior service allow-
ance, and all lump sum death benefits on account of death in active
service payable from contributions of the State of Maryland shall be
paid from the Pension Accumulation Fund.

(h) Upon the retirement of a member not entitled to credit for prior
service, an amount equal to his pension reserve shall be transferred from
the Pension Accumulation Fund to the Pension Reserve Fund.

(4) Pension Reserve Fund.

(a) The Pension Reserve Fund shall be the fund in which shall be
held the reserves on all pensions granted to members not entitled to credit