Ch. 459                             MARVIN MANDEL, Governor                                  961

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] 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.

(g)  All RETIREMENT ALLOWANCES AND ALL lump sum death benefits
on account of death in active service payable from contributions of the State of
Maryland 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) SHOULD A BENEFICIARY RETIRED ON ACCOUNT OF
DISABILITY BE RESTORED TO ACTIVE SERVICE WITH A
COMPENSATION NOT LESS THAN HIS AVERAGE FINAL
COMPENSATION AT THE TIME OF HIS LAST RETIREMENT, HIS
ANNUITY RESERVE SHALL BE TRANSFERRED TO THE ANNUITY
SAVINGS FUND AND CREDITED TO HIS INDIVIDUAL ACCOUNT
THEREIN.