164

LAWS OF MARYLAND

Ch. 24

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 percentage rate 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 percentage rate of the
earnable salary 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 1 percent 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 percentage rate 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 contributions
made on account of such members during the remainder of
their active service. The percentage rate 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.

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