ALBERT C. RITCHIE, GOVERNOR. 633

combined with the amount in the fund to provide the pensions
and other benefits payable out of the fund during the year then
current.

(f) The accrued liability contribution shall be discontinued
is 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, computed on the basis of
the normal contribution rate 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 ex-
ception of those payable on account of members who receive no
prior service allowance, 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 Accu-
mulation 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 Pen-
sion 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 for prior service and from which such
pensions and benefits in lieu thereof shall be paid. Should such
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 the pension
reserve thereon shall be transferred from the Pension Reserve
Fund to the Pension Accumulation Fund. Should the pension
of such a disability beneficiary be reduced as a result of an
increase in his earning capacity the amount of the annual
reduction in his pension shall be paid annually into the Pension
Accumulation Fund during the period of such reduction.

(5) EXPENSE FUND

The Expense Fund shall be the fund to which shall be
credited all money provided by the State of Maryland to pay
the administration expenses of the retirement system, and from
which shall be paid all the expenses necessary in connection
with the administration and operation of the system. Annually
the Board of Trustees shall estimate the amount of money not
in excess of three-tenths of one per centum of the payroll of