HARRY HUGHES, Governor

147

payments from the Accumulation Fund shall be made as
follows:

(b)   On account of each member there shall be
paid annually in the 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.

(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 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 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, 1976, the actuary engaged by the board of trustees
shall compute the rate per centum of the total annual
compensation of all members which is equivalent to the level
annual payment required over a 40-year period to liquidate
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 originally so
determined shall be known as the "accrued liability
contribution" rate. The board of trustees, on the
recommendation of the actuary, may increase this rate when
necessary to reflect experience deficiencies. If the
accrued liability is increased by legislation, the accrued
liability rate shall be increased to the extent required to
liquidate the additional liability in a period not exceeding
40 years.