112

LAWS OF MARYLAND

Ch. 23

DEPOSITED SHALL BECOME A PART OF HIS ACCUMULATED
CONTRIBUTIONS EXCEPT IN THE CASE OF RETIREMENT, WHEN THEY
SHALL BE TREATED AS EXCESS CONTRIBUTIONS RETURNABLE TO THE
MEMBER IN CASH OR AS AN ANNUITY OF EQUIVALENT ACTUARIAL
VALUE.

(E) THE ACCUMULATED CONTRIBUTIONS OF A MEMBER
THAT ARE WITHDRAWN BY HIM OR PAID TO HIS PERSONAL
REPRESENTATIVE OR TO HIS DESIGNATED BENEFICIARY AT HIS
DEATH, SHALL BE PAID FROM THE ANNUITY SAVINGS FUND. ON THE
RETIREMENT OF A MEMBER, HIS ACCUMULATED CONTRIBUTIONS SHALL
BE TRANSFERRED FROM THE ANNUITY SAVINGS FUND TO THE
ACCUMULATION FUND.

(2) (A) THE ACCUMULATION FUND SHALL BE THE FUND IN
WHICH SHALL BE ACCUMULATED ALL RESERVES FOR THE PAYMENT OF
ALL ALLOWANCES AND OTHER BENEFITS PAYABLE FROM CONTRIBUTIONS
MADE BY THE STATE, ANY AMOUNTS TRANSFERRED THERETO FROM THE
ACCUMULATION FUND OF THE RETIREMENT SYSTEM, AMOUNTS
TRANSFERRED FROM THE ANNUITY SAVINGS FUND, AND FROM WHICH
SHALL BE PAID ALL BENEFITS PAYABLE UNDER THIS SYSTEM OTHER
THAN THOSE PAYABLE FROM THE ANNUITY SAVINGS FUND.

(B)   EACH YEAR, ON ACCOUNT OF EACH MEMBER, THE
STATE SHALL PAY INTO THE ACCUMULATION FUND AN AMOUNT AT
LEAST EQUAL TO A CERTAIN PERCENTAGE OF THE ANNUAL EARNABLE
COMPENSATION OF THE MEMBER, TO BE KNOWN AS THE "NORMAL
CONTRIBUTION", AND AN ADDITIONAL AMOUNT EQUAL TO A CERTAIN
PERCENTAGE OF HIS ANNUAL EARNABLE COMPENSATION, TO BE KNOWN
AS THE "ACCRUED LIABILITY CONTRIBUTION". THE RATES PERCENT
OF THESE CONTRIBUTIONS SHALL BE FIXED ON THE BASIS OF THE
LIABILITIES OF THIS PENSION SYSTEM AS SHOWN BY ACTUARIAL
VALUATION.

(C)   ON THE BASIS OF INTEREST AND THE MORTALITY
AND SERVICE TABLES ADOPTED BY THE BOARD OF TRUSTEES,
IMMEDIATELY AFTER MAKING EACH ACTUARIAL VALUATION, THE
ACTUARY SHALL DETERMINE THE "NORMAL CONTRIBUTION" ON ACCOUNT
OF EACH MEMBER, NET OF EMPLOYEE CONTRIBUTIONS, ON THE BASIS
OF THE ACCRUED BENEFIT ACTUARIAL COST METHOD. THE RATIO OF
THE SUM OF THE NORMAL CONTRIBUTIONS SO DETERMINED TO THE
TOTAL ANNUAL EARNABLE COMPENSATION OF ALL MEMBERS SHALL BE
KNOWN AS THE "NORMAL CONTRIBUTION" RATE.

(D)   THE ACCRUED LIABILITY CONTRIBUTION RATE
SHALL BE COMPUTED, ON THE BASIS OF THE ACCRUED BENEFIT
ACTUARIAL COST METHOD AND ANY OTHER ASSUMPTIONS ADOPTED BY
THE BOARD, AS THE RATE PERCENT OF THE TOTAL ANNUAL EARNABLE
COMPENSATION OF ALL MEMBERS THAT IS SUFFICIENT TO LIQUIDATE
OVER A PERIOD OF 40 YEARS FROM JULY 1, 1980, THE AMOUNT OF
THE TOTAL LIABILITIES OF THIS SYSTEM AS OF JUNE 30, 1980
BASED ON BENEFITS ACCRUED TO SAID DATE THAT ARE NOT
DISCHARGEABLE BY THE ASSETS TO THE CREDIT OF THE
ACCUMULATION FUND AND THE ANNUITY SAVINGS FUND. THE BOARD,
ON THE RECOMMENDATION OF THE ACTUARY, SHALL ADJUST THE
ACCRUED LIABILITY RATE TO REFLECT EXPERIENCE GAINS AND
LOSSES OR THE EFFECT OF CHANGES IN ACTUARIAL ASSUMPTIONS