Ch. 460                             MARVIN MANDEL, Governor                                1007

(b)  On account of each member there shall be paid annually into the [Pension]
Accumulation Fund by the said State, for the preceding fiscal year an amount
equal to a certain percentage of the earnable compensation of each member to be
known as the "normal contribution," and an additional amount equal to a
percentage of his earnable compensation to be known as the "accrued liability
contribution." The rates per centum of such contributions shall be fixed on the
basis of the liabilities of the retirement system as shown by actuarial valuation.
[Until the first valuation the normal contribution shall be two and eighty-nine
hundredths per centum, and the accrued liability contribution shall be three and
fifty-six hundredths per centum of the annual compensation of all members.]

(c)  On the basis of regular interest and of such mortality and other tables as
shall be adopted by the board of trustees, the actuary engaged by the board to
make each valuation required by this subtitle during the period over which the
[deficiency] ACCRUED LIABILITY contribution is payable, immediately after
making such valuation, shall determine the uniform and constant percentage of the
earnable compensation of the average new entrant, which if contributed on the
basis of compensation of such new entrant throughout his entire period of active
service would be sufficient to provide for the payment of any death benefit or
pension payable on his account. The rate per centum so determined shall be known
as the "normal contribution" 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 1 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 valuation as of June 30, [1969] 1973, 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] FIVE 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 contributions made on account of such members during the
remainder of their active service. The rate per centum 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 liability contribution 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, 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.