854 LAWS OF MARYLAND. [CH. 349

53. (Method of Financing. ) All of the assets of the re-
tirement system shall be credited, according to the purpose
for which they are held, among five funds, namely, the An-
nuity Savings Fund, the Annuity Reserve Fund, the Pension
Accumulation Fund, the Pension Reserve Fund, and the Ex-
pense Fund.

(1) ANNUITY SAVINGS FUND

(a) The Annuity Savings Fund shall be a fund in which
shall be accumulated contributions deducted from the com-
pensation of members to provide for their annuities. Upon
the basis of such tables as the Board of Trustees shall adopt
and regular interest, the actuary of the retirement system
shall determine for each member the proportion of earnable
compensation which when deducted from each payment of
his prospective compensation, earnable prior to his attain-
ment of the age of 55 and accumulated at regular interest
until his attainment of said age, shall be computed to pro-
vide at that time an annuity equal to the pension to which
he will be entitled at that age on account of his service as a
member. Such proportion of compensation shall be computed
to remain constant and shall, with respect to members who
become employees prior to the date of establishment, be de-
termined upon the basis of his age on July 1, 1949, less his
years of prior service, provided the age so computed shall
not be greater than the age of 54.

(b) The proportion so computed for a member of the age
of 54 shall be applied to a member who attains a greater
age before he becomes a member of the retirement system.
The Board of Trustees shall certify to the head of the de-
partment, and the head of the department shall cause to
be deducted from the salary of each member on each and
every payroll of such department for each and every payroll
period, the proportion of earnable compensation of each
member so computed. In determining the amount earnable
by a member in a payroll period, the Board of Trustees may
consider the rate of annual compensation payable to such
member on the first day of the payroll period as continuing
throughout such payroll period, and it may omit deduction
from compensation for any period less than a full payroll
period if an employee was not a member on the first day of
the payroll period, and to facilitate the making of deductions
it may modify the deduction required of any member by such
an amount as shall not exceed one-tenth of one per centum
of the annual compensation upon the basis of which such
deduction is to be made.