1020                                      LAWS OF MARYLAND                                Ch. 460

(e)  The total amount payable in each year to the [Pension] Accumulation Fund
shall not be less than the sum of the rates per centum known as the normal
contribution rate and the accrued liability rate, of the total compensation earnable
by all members during the preceding year; provided, however, that the [amount of
each annual accrued 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 shall be sufficient, when combined with the amount in the
fund, to provide the pensions 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.

(g)  All RETIREMENT ALLOWANCES AND lump sum death benefits on
account of death in active service payable from contributions of the State, shall be
paid from the [Pension] Accumulation Fund.

(h) [Upon the retirement of a member, an amount equal to his pension reserve
shall be transferred from the Pension Accumulation Fund to the Pension Reserve
Fund.] SHOULD A BENEFICIARY RETIRED ON ACCOUNT OF
DISABILITY BE RESTORED TO MEMBERSHIP, HIS ANNUITY
RESERVE SHALL BE TRANSFERRED FROM THE ACCUMULATION
FUND TO THE ANNUITY SAVINGS FUND AND CREDITED TO HIS
INDIVIDUAL ACCOUNT THEREIN.

(i) [The board of trustees may in its discretion transfer to and from the Pension
Accumulation Fund the amount of any surplus or deficit which may develop in the
reserve held in the Annuity Reserve Fund or the Pension Reserve Fund.] ALL
INTEREST AND DIVIDENDS EARNED ON THE FUNDS OF THE
RETIREMENT SYSTEM SHALL BE CREDITED TO THE
ACCUMULATION FUND. THE AMOUNTS NEEDED TO ALLOW
REGULAR INTEREST ON THE RESERVES IN THE ANNUITY SAVINGS
FUND, SHALL BE TRANSFERRED IN ACCORDANCE WITH THE
PROVISIONS OF THIS ARTICLE TO SAID FUND FROM THE
ACCUMULATION FUND.

(j) The board of trustees may in its discretion adopt a generally accepted
method of writing up the book value of the common stock portion of the assets
held by the retirement system, provided that the annual amount of any such
write-up shall not exceed 3 per centum of the total book value of the common
stocks held as of the determination date of the write-up. One half of the amount of
any such write-up shall be offset against the employer contributions otherwise
payable hereunder and, notwithstanding any other provision of this article, the
other half shall be accumulated in a special account under the [Pension]
Accumulation Fund to be used to provide all or part of the cost of benefit
improvements.

[(4) The Pension Reserve Fund shall be the fund in which shall be held the
reserves on all pensions granted to members and from which such pensions and
benefits in lieu thereof shall be paid. Should a beneficiary retired on account of
disability be restored to membership, his pension reserve shall be transferred from
the Pension Reserve Fund to the Pension Accumulation Fund. Should the pension
of a disability beneficiary be reduced as a result of an increase in his earning
capacity, the amount of the annual reduction in his pension shall be paid annually