596                             LAWS OF MARYLAND                     [CH. 171

14.

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) (a) The Annuity Savings Fund shall be a fund in which shall
be accumulated contributions 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] an interest rate
of four per centum per annum compounded annually, the actuary
of the retirement system shall determine for each member the pro-
portion of earnable compensation which, when deducted from each
payment of his prospective compensation earnable prior to his
attainment of the age of 60 and accumulated at [regular interest]
interest of four per centum per annum compounded annually 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] one one-hundred and fortieth of his average
final compensation for each year of service as a member. Such pro-
portion of compensation shall be computed to remain constant.

(3) (d) Immediately succeeding the [first] valuation as of June
30, 1969, the actuary engaged by the board of trustees shall com-
pute the rate per centum of the total amount ANNUAL earnable
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 funds in hand and the aforesaid normal contribution made on
account of such members during the remainder of their active
service. The rate per centum [originally] so determined shall be
known as the "accrued liability contribution" rate.

26.

(b) Each participating municipal corporation shall make a special
accrued liability contribution on account of its approval of the par-
ticipation of its officers and employees in the Employees' Retirement
System of the State, which contribution shall be determined by an
actuarial valuation of the accrued liability on account of the officers
and employees of such participating municipal corporation who
elected to become members in the same manner as the accrued
liability rate was originally determined for State employees. This
special accrued liability contribution, subject to such adjustment as
may be necessary on account of any additional prior service credits
awarded to officers or employees of such participating municipal
corporation, shall be payable in lieu of the accrued liability con-
tribution payable on account of other employees in the system. The
expense of making such initial valuation shall be assessed against
and paid by the participating municipal corporation on whos