BLAIR LEE III, Acting Governor

545

VALUE. THE ACCUMULATED CONTRIBUTIONS OF THE MEMBER

WITHDRAWN BY HIM, OR PAID TO HIS ESTATE OR TO HIS DESIGNATED

BENEFICIARY IN EVENT OF HIS DEATH AS PROVIDED IN THIS

SUBTITLE, SHALL BE PAID FROM THE ANNUITY SAVINGS FUND. UPON

THE RETIREMENT OF A MEMBER HIS ACCUMULATED CONTRIBUTIONS

SHALL BE TRANSFERRED FROM THE ANNUITY SAVINGS FUND TO THE
ACCUMULATION FUND.

(2) ACCUMULATION FUND.--(A) THE ACCUMULATION FUND

SHALL BE THE FUND IN WHICH SHALL BE ACCUMULATED ALL RESERVES
FOR THE PAYMENT OF ALL PENSIONS AND OTHER BENEFITS PAYABLE
FROM CONTRIBUTIONS MADE BY THE STATE OF MARYLAND AND FROM
WHICH SHALL BE PAID ALL RETIREMENT ALLOWANCES AND THE LUMP
SUM DEATH BENEFITS PAYABLE FROM THE SAID CONTRIBUTIONS.
CONTRIBUTIONS TO AND PAYMENTS FROM THE ACCUMULATION FUND
SHALL BE MADE AS FOLLOWS:

(B)  ON ACCOUNT OF EACH MEMBER THERE SHALL BE PAID
ANNUALLY INTO THE ACCUMULATION FUND BY THE SAID STATE, FOR
THE PRECEDING FISCAL YEAR AN AMOUNT EQUAL TO A CERTAIN
PERCENTAGE OF THE EARNABLE COMPENSATION OF EACH MEMBER TO BE
KNOWN AS THE "NORMAL CONTRIBUTION," AND AN ADDITIONAL AMOUNT
EQUAL TO A PERCENTAGE OF HIS EARNABLE COMPENSATION TO BE
KNOWN AS THE "ACCRUED LIABILITY CONTRIBUTION." THE
PERCENTAGE SATES OF SUCH CONTRIBUTIONS SHALL BE FIXED ON
THE BASIS OF THE LIABILITIES OF THE RETIREMENT SYSTEM AS
SHOWN BY ACTUARIAL VALUATION.

(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 PERCENTAGE RATE 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 PERCENTAGE RATE OF THE
EARNABLE SALARY OF ALL MEMBERS OBTAINED BY DEDUCTING FROM
THE TOTAL LIABILITIES OF THE ACCUMULATION FUND THE AMOUNT OF
THE FUNDS IN HAND TO THE CREDIT OF THAT FUND AND DIVIDING
THE REMAINDER BY 1 PERCENT 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,
1973, THE ACTUARY ENGAGED BY THE BOARD OF TRUSTEES SHALL
COMPUTE THE PERCENTAGE RATE OF THE TOTAL ANNUAL COMPENSATION
OF ALL MEMBERS WHICH IS EQUIVALENT TO 5 PERCENT OF THE
AMOUNT OF THE TOTAL PENSION AND DEATH BENEFIT LIABILITY ON