Ch. 460                             MARVIN MANDEL, Governor                                  989

14.

All of the assets of the retirement system shall be credited, according to the
purpose for which they are held, [among five] TO ONE OF THREE funds,
namely the Annuity Savings Fund, the [Annuity Reserve] ACCUMULATION
Fund, [the Pension Accumulation Fund, the Pension Reserve Fund,] and the
Expense Fund.

(1) (a) The Annuity Savings Fund shall be a fund in which shall be accumulated
contributions from the compensation of members to provide for their annuities.
Upon the basis of such tables as the board of trustees shall adopt and an interest
rate of four per centum per annum compounded annually, the actuary of the
retirement system shall determine for each member WHO SHALL HAVE
BECOME A MEMBER PRIOR TO JULY 1, 1973, the proportion of earnable
compensation which, when deducted from each payment of his prospective
compensation earnable prior to his attainment of the age of 60 and accumulated at
interest of four per centum per annum compounded annually until his attainment
of said age, shall be computed to provide at that time an annuity equal to one
one-hundred and fortieth of his average final compensation for each year of service
as a member. Such proportion of compensation shall be computed to remain
constant.

HOWEVER, COMMENCING AS OF JULY 1, 1973, THE PROPORTION
OF COMPENSATION PAYABLE BY ANY MEMBER AS OF JUNE 30, 1973
SHALL BE THE LESSER OF (I) THE PROPORTION SO DETERMINED
OR (II) FIVE PER CENTUM OF HIS EARNABLE COMPENSATION, AND
THE PROPORTION OF COMPENSATION PAYABLE BY ANY PERSON
WHO BECOMES A MEMBER AFTER JUNE 30, 1973 SHALL BE FIVE PER
CENTUM OF HIS EARNABLE COMPENSATION.

(b)  [The proportion so computed for a member of the age of 59 shall be applied
to a member who attains a greater age before he becomes a member of the
retirement system.] The board of trustees shall certify to the head of each
department, and the head of each department shall cause to be deducted from the
salary of each member on each and every payroll of such department for each
payroll period, the proportion of earnable compensation of each member so
computed, except that the percentage rate of contribution of any member who was
contributing prior to July 1, 1947, on the basis of retirement at age 65 shall not be
changed unless the member elects to contribute on the basis of retirement at age 60
and makes retroactive contributions with accrued interest accounting from July 1,
1947, to and including the date he elects to contribute on the basis of retirement at
age 60. But the head of any department shall not have any deduction made for
annuity purposes from the compensation of a member who elects not to contribute
if he has attained the age of 60 and has completed thirty years of service. In
determining the amount earnable by a member in a payroll period, the board of
trustees may consider the rate of annual compensation payable to such member on
the first day of the payroll period as continuing throughout such payroll period,
and it may omit deduction from compensation for any period less than a full
payroll period if an employee was not a member on the first day of the payroll
period, and to facilitate the making of deductions it may modify the deduction
required of any member by such an amount as shall not exceed one-tenth of one
per centum of the annual compensation upon the basis of which such deduction is
to be made.

(c)  The deductions provided for herein shall be made notwithstanding that the
minimum compensation provided for by law for any member shall be reduced
thereby. Every member shall be deemed to consent and agree to the deductions
made and provided herein and shall receipt for his full salary or compensation; and