HARRY HUGHES, Governor

143

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. ON THE
RECOMMENDATION OF THE ACTUARY, THE BOARD SHALL ADJUST THE
ACCRUED LIABILITY RATE TO REFLECT EXPERIENCE GAINS AND
LOSSES OR THE EFFECT OF CHANGES IN ACTUARIAL ASSUMPTIONS
WITHIN THE PERIOD REMAINING TO AMORTIZE THE ACCRUED
LIABILITY, BUT NOT LESS THAN 15 YEARS. IF THE ACCRUED
LIABILITY IS INCREASED BY LEGISLATION ENACTED AFTER JULY 1,
1980, THE ADDITIONAL LIABILITY SHALL BE FUNDED OVER A PERIOD
OF 30 YEARS FROM THE FIRST DAY OF JULY, COINCIDENT WITH OR
NEXT FOLLOWING THE EFFECTIVE DATE OF THE INCREASE. THE RATE
PERCENT SO DETERMINED SHALL BE KNOWN AS THE "ACCRUED
LIABILITY CONTRIBUTION" RATE.

(E)   THE TOTAL AMOUNT PAYABLE TO THE
ACCUMULATION FUND IN EACH YEAR AFTER THE FIRST YEAR
FOLLOWING THE DATE OF ESTABLISHMENT MAY NOT BE LESS THAN THE
SUM OF THE RATES PERCENT KNOWN AS THE NORMAL CONTRIBUTION
RATE AND THE ACCRUED LIABILITY CONTRIBUTION RATE, OF THE
TOTAL COMPENSATION EARNABLE BY ALL MEMBERS DURING THE
PRECEDING FISCAL YEAR, BUT THE AGGREGATE PAYMENT OF THE
STATE MUST BE SUFFICIENT, WHEN COMBINED WITH THE AMOUNT IN
THE ACCUMULATION FUND, TO PROVIDE THE ALLOWANCES AND OTHER
BENEFITS PAYABLE OUT OF THE FUND DURING THE YEAR THEN
CURRENT.

(F)   ALL INTEREST AND DIVIDENDS EARNED ON THE
FUNDS OF THIS PENSION SYSTEM SHALL BE CREDITED TO THE
ACCUMULATION FUND. EACH YEAR, THE BOARD OF TRUSTEES SHALL:

(I)   ALLOW REGULAR INTEREST ON THE
INDIVIDUAL ACCOUNTS OF MEMBERS IN THE ANNUITY SAVINGS FUND;
AND

(II)  TRANSFER THESE AMOUNTS FROM THE
ACCUMULATION FUND.

(G)   ALL RETIREMENT ALLOWANCES AND ALL LUMP SUM
DEATH BENEFITS ON ACCOUNT OF DEATH IN ACTIVE SERVICE THAT
ARE PAYABLE FROM CONTRIBUTIONS OF THE STATE SHALL BE PAID
FROM THE ACCUMULATION FUND.

(H) SHOULD A BENEFICIARY RETIRED ON ACCOUNT OF
DISABILITY BE RESTORED TO ACTIVE SERVICE WITH A COMPENSATION
NOT LESS THAN HIS AVERAGE FINAL COMPENSATION AT THE TIME OF
HIS LAST RETIREMENT, HIS ANNUITY RESERVE SHALL BE
TRANSFERRED TO THE ANNUITY SAVINGS FUND AND CREDITED TO HIS
INDIVIDUAL ACCOUNT THEREIN.

(I) THE BOARD OF TRUSTEES MAY IN ITS DISCRETION
FOR PURPOSES OF ACTUARIAL VALUATION ADOPT A GENERALLY
ACCEPTED METHOD FOR DETERMINING THE VALUE OF THE ASSETS HELD
BY THE RETIREMENT SYSTEM, PROVIDED THAT FOR GENERAL LEDGER
ACCOUNTING AND FINANCIAL REPORTING THE BOARD OF TRUSTEES
WILL USE GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.