Ch. 459                             MARVIN MANDEL, Governor                                  973

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.

(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.