HARRY HUGHES, Governor

161

LIABILITY CONTRIBUTION." THE RATES PERCENT OF THESE
CONTRIBUTIONS SHALL BE FIXED ON THE BASIS OF THE LIABILITIES
OF THE NONCONTRIBUTORY PLAN FOR JUDGES AS SHOWN BY ACTUARIAL
VALUATION.

(3)   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 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.

(4)   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 NONCONTRIBUTORY PLAN FOR JUDGES
AS OF JUNE 30, 1980 BASED ON BENEFITS ACCRUED TO SAID DATE
THAT IS NOT DISCHARGEABLE BY THE ASSETS TO THE CREDIT OF THE
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.

(5)   THE TOTAL AMOUNT PAYABLE TO THE 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 FUND, TO
PROVIDE THE ALLOWANCES AND OTHER BENEFITS PAYABLE OUT OF THE
FUND DURING THE YEAR THEN CURRENT.

(6)   ALL INTEREST AND DIVIDENDS EARNED ON THE
FUNDS OF THE NONCONTRIBUTORY PLAN FOR JUDGES SHALL BE
CREDITED TO THE FUND.

(7)   ALL RETIREMENT ALLOWANCES SHALL BE PAID
FROM THE FUND.

83.