156

LAWS OF MARYLAND

Ch. 24

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 THE SYSTEM AS OF JUNE 30, 1980
BASED ON BENEFITS ACCRUED TO SAID DATE THAT IS NOT
DISCHARGEABLE BY THE ASSETS TO THE CREDIT OF THE
ACCUMULATION FUND AND ANNUITY SAVINGS FUND. UPON 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 SUBSEQUENT TO
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 BY 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 THE RETIREMENT SYSTEM SHALL BE CREDITED TO THE
ACCUMULATION FUND. EACH YEAR, THE BOARD OF TRUSTEES SHALL
ALLOW REGULAR INTEREST ON THE INDIVIDUAL ACCOUNTS OF MEMBERS
IN THE ANNUITY SAVINGS FUND AND TRANSFER THESE AMOUNTS FROM
THE ACCUMULATION FUND.

(G)   AS OF JULY 1, 1980, AND EACH JULY 1 AFTER,
THE ACTUARY SHALL DETERMINE THE PROPORTIONATE SHARE OF THE
ACCUMULATION FUND AS OF SAID DATE ALLOCABLE TO THOSE MEMBERS
OF THE RETIREMENT SYSTEM WHO FILED WITH THE BOARD OF
TRUSTEES AN EXECUTED WAIVER OF ALL BENEFITS UNDER THIS
RETIREMENT SYSTEM AND ELECTED TO TRANSFER TO THE PENSION
SYSTEM FOR EMPLOYEES OF THE STATE OF MARYLAND DURING THE
PREVIOUS 12 MONTHS. ASSETS OF THE ACCUMULATION FUND EQUAL
TO THIS PROPORTIONATE SHARE SHALL BE TRANSFERRED TO THE
ACCUMULATION FUND OF THE PENSION SYSTEM.