HARRY HUGHES, Governor

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ACTUARIAL EQUIVALENT OF THAT AMOUNT, IN THE SAME MANNER AS
THE BENEFIT OTHERWISE PAYABLE UNDER THIS PENSION SYSTEM.

(B)   CONTRIBUTIONS SHALL BE MADE ON AND AFTER
THE DATE OF ESTABLISHMENT AT THE RATE OF 5 PERCENT OF THE
PART OF THE MEMBER'S EARNABLE COMPENSATION THAT IS IN EXCESS
OF THE TAXABLE WAGE BASE FOR EACH YEAR. EACH OF THE AMOUNTS
SHALL BE:

(I)   DEDUCTED UNTIL THE MEMBER RETIRES OR
OTHERWISE WITHDRAWS FROM SERVICE;

(II)  PAID INTO THE ANNUITY SAVINGS FUND;
AND

(III) CREDITED TO THE INDIVIDUAL ACCOUNT OF
THE MEMBER.

(C)   EVERY MEMBER SHALL BE DEEMED TO CONSENT TO
THE DEDUCTIONS MADE AND PROVIDED HEREIN AND SHALL RECEIPT
FOR HIS FULL COMPENSATION, AND PAYMENT OF COMPENSATION LESS
SUCH DEDUCTION SHALL BE A FULL AND COMPLETE DISCHARGE AND
ACQUITTANCE OF ALL CLAIMS AND DEMANDS WHATSOEVER FOR THE
SERVICES RENDERED BY SUCH PERSON DURING THE PERIOD COVERED
BY SUCH PAYMENT. ANY DEPARTMENT THAT FAILS TO PAY TO THIS
PENSION SYSTEM THE DEDUCTIONS FROM THE COMPENSATION OF ITS
EMPLOYEES ON THE DATE THE EMPLOYEES ARE PAID SHALL BE LIABLE
FOR A PENALTY OF 10 PERCENT OF THE AMOUNTS DUE. HOWEVER,
THE SECRETARY OF THE BOARD MAY ALLOW A GRACE PERIOD NOT TO
EXCEED 10 ADDITIONAL CALENDAR DAYS. ALL AMOUNTS DUE AND
UNPAID ON THE DATE OF PAYMENT SHALL ALSO BEAR INTEREST AT
THE RATE OF 10 PERCENT A YEAR UNTIL THE DATE OF PAYMENT.
THE STATE COMPTROLLER, IF NOTIFIED BY THE SECRETARY THAT A
DELINQUENCY EXISTS, SHALL IMMEDIATELY EXERCISE THE RIGHT OF
SETOFF AGAINST ANY MONEY DUE OR TO BECOME DUE TO THE
DELINQUENT DEPARTMENT.

(D)   SUBJECT TO THE APPROVAL OF THE BOARD OF
TRUSTEES, IN ADDITION TO THE CONTRIBUTIONS DEDUCTED FROM
EARNABLE COMPENSATION AS PROVIDED IN THIS SECTION, ANY
MEMBER MAY DEPOSIT THEREIN BY SINGLE PAYMENT OR BY AN
INCREASED RATE OF CONTRIBUTION AN AMOUNT COMPUTED TO BE
SUFFICIENT TO PURCHASE AN ADDITIONAL ANNUITY WHICH, TOGETHER
WITH HIS PROSPECTIVE RETIREMENT ALLOWANCE, WILL PROVIDE FOR
HIM A TOTAL RETIREMENT ALLOWANCE NOT IN EXCESS OF TWO-THIRDS
OF HIS AVERAGE FINAL COMPENSATION AT THE AGE OF 62. IN
ADDITION TO THE CONTRIBUTIONS PROVIDED FOR IN THIS SECTION,
SUBJECT TO THE CONDITIONS ESTABLISHED BY THE BOARD OF
TRUSTEES, ANY ELIGIBLE MEMBER, IN ACCORDANCE WITH A CONTRACT
WITH HIS EMPLOYER, MAY HAVE FURTHER CONTRIBUTIONS AT A FIXED
PERCENTAGE OF 2 PERCENT OR MORE, BUT NOT TO EXCEED 20
PERCENT OF HIS COMPENSATION MADE ON HIS ACCOUNT, EITHER BY A
REDUCTION IN HIS SALARY OR INSTEAD OF AN INCREASE IN HIS
COMPENSATION. THE COST OF ADMINISTERING ANNUITIES THAT
QUALIFY UNDER § 403(B) OF THE INTERNAL REVENUE CODE AS
AMENDED FROM TIME TO TIME, SHALL BE PROVIDED FROM THE FUNDS
INVESTED IN THESE ANNUITIES. THESE ADDITIONAL AMOUNTS SO