Ch. 459                             MARVIN MANDEL, Governor                                  945

making such valuation, shall determine the uniform and constant percentage of the
earnable compensation of the average new entrant, which is 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 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 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 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 rates 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 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 ALL 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] 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 TO SAID FUND IN ACCORDANCE
WITH THE PROVISIONS OF THIS ARTICLE FROM THE
ACCUMULATION FUND.

(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]
SHOULD A BENEFICIARY RETIRED ON ACCOUNT OF DISABILITY BE