THEODORE R. MCKELDIN, GOVERNOR                    325

centum of his average final compensation. If such member at the
time of his death shall not leave a widow, child or children under
the age of eighteen years or dependent parent or parents, the ordi-
nary death benefit shall be the only death benefit payable.

(c) Provided, however, that the cost of Special Death Benefits
provided herein, exclusive of benefits for members whose death
arises out of or in the course of actual performane of duty, shall be
paid as follows: The State of Maryland shall pay the cost of such
special death benefits, including normal contribution rate and accrued
liability rate, provided such cost is not in excess of the current em-
ployer's contribution rate for Federal old-age and survivors' insur-
ance; any excess in cost of such Special Death Benefits over the
current rate for old-age and survivors' insurance shall be paid by
the members. Provided further that the State of Maryland shall
pay the full cost of Special Death Benefits applicable to members
whose death arises out of or in the course of actual performance of
duty.

56. Method of financing.

All of the assets of the Retirement System shall be credited, accord-
ing to the purpose for which they are held, among five funds, namely,
the Annuity Savings Fund, the Annuity Reserve Fund, the Pension
Accumulation Fund, the Pension Reserve Fund, and the Expense
Fund.

(1) Annuity Savings Fund.—(a) The Annuity Savings Fund shall
be a fund in which shall be accumulated contributions deducted from
the compensation 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 deter-
mine for each member the proportion of earnable compensation
which when deducted from each payment of his prospective com-
pensation earnable prior to his attainment of the age of 55 and
accumulated at regular interest until his attainment of said age,
shall be computed to provide 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 age an annuity equal to one one-hun-
dredth of the member's average final compensation for each of the
first twenty-five years of creditable service and one one-hundred-and-
twentieth of his average final compensation for each year after the
first twenty-five years of creditable service. Such proportion of com-
pensation shall be computed to remain constant and shall, with
respect to members who become employees prior to the date of estab-
lishment, be determined 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 department, and the head of the
department shall cause to be deducted from the salary of each mem-
ber 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 prayroll period, the board of trustees may consider
the rate of annual compensation payable to such member on the