Ch. 460                             MARVIN MANDEL, Governor                                1019

Savings Fund to the [Annuity Reserve] ACCUMULATION Fund.

(2) (The Annuity Reserve Fund shall be the fund in which shall be held the
reserves on all annuities in force and from which shall be paid all annuities and all
benefits in lieu of annuities, payable as provided in this subtitle. Should a
beneficiary retired on account of disability be restored to membership, his annuity
reserve shall be transferred from the Annuity Reserve Fund to the Annuity Savings
Fund and credited to his individual account therein.

(3)] (a) The [Pension] Accumulation Fund shall be the fund in which shall be
accumulated all reserves for the payment of all pensions and other benefits payable
from contributions made by the State and from which shall be paid ALL
RETIREMENT ALLOWANCES AND the lump sum death benefits payable
from said contributions. Contributions to and payments from the [Pension]
Accumulation Fund shall be made as follows:

(b)    On account of each member there shall be paid annually in the [Pension]
Accumulation Fund by the State for the preceding fiscal year an amount equal to
a certain percentage of the annual earnable compensation of each member to be
known as the "normal contribution," and an additional amount equal to a
percentage of his annual 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 six and
ninety-nine hundredths per centum, and the accrued liability contribution shall be
four and thirty-five hundreds per centum, of the annual earnable 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
"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 compensation of all members obtained by deducting from the total
liabilities of the [Pension] 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 [first] valuation AS OF JUNE 30, 1973, the
actuary engaged by the board of trustees shall compute the rate per centum of the
total annual earnable 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
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.