HARRY HUGHES, Governor

165

(g) All retirement allowances and all lump-sum
death benefits on account of death in active service payable
from contributions of the State of Maryland shall be paid
from the Accumulation Fund.

(h) All interest and dividends earned on the
funds of the retirement system shall be credited to the
Accumulation Fund. The amounts needed to allow regular
interest on the reserves in the annuity savings fund shall
be transferred to said fund in accordance with the
provisions of this article from the Accumulation Fund.]

(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 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. ON 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