Ch. 460                             MARVIN MANDEL, Governor                                  991

(b)  On account of each member there shall be paid annually into the [Pension]
Accumulation Fund by the State for the preceding fiscal year an amount equal to
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 two and seven
hundredths per centum, and the accrued liability contribution shall be one and
ninety-four hundredths 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 article during the period over which the
[deficiency] 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 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.