148

LAWS OF MARYLAND

Ch. 23

(e)   The total amount payable in each year to
the Accumulation Fund shall not be less than the sum of the
rates per centum known as the normal contribution rate and
the accrued liability rate, of the total compensation
earnable by all members during the preceding year; provided,
however, that the aggregate payment by the State shall be
sufficient, when combined with the amount in the fund, to
provide the pensions and other benefits payable out of the
fund during the year then current.

(f)   The accrued liability contribution shall be
discontinued as soon as the accumulated reserve in the
Accumulation Fund shall equal the present value, as
actuarially computed and approved by the board of trustees,
of the total liability of such fund less the present value,
computed on the basis of the normal contribution rate then
in force, of the prospective normal contributions to be
received on account of persons who are at that time
members.]

(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, AMOUNTS TRANSFERRED FROM THE ANNUITY
SAVINGS FUND, AND FROM WHICH SHALL BE PAID ALL BENEFITS
PAYABLE UNDER THE 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 THE RETIREMENT 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 ASSUMPTION 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