HARRY HUGHES, Governor

191

(6) THE STATE MAY PROVIDE INSURANCE FOR EVERY PERSON
ELIGIBLE FOR INDEMNIFICATION UNDER THIS SECTION AGAINST ANY
LIABILITY ASSERTED AGAINST HIM OR INCURRED BY HIM ARISING
OUT OF HIS STATUS AS A FIDUCIARY. THE STATE MAY PROVIDE
SELF INSURANCE FOR THIS PURPOSE, IN WHOLE OR IN PART, UNDER
TERMS AND CONDITIONS THAT ARE SATISFACTORY TO THE STATE
TREASURER. IF THE STATE FAILS TO PROVIDE ADEQUATE INSURANCE
COVERAGE OR IF THE STATE FAILS TO PROVIDE INDEMNIFICATION
UNDER THIS SECTION, A FIDUCIARY MAY NOT BE REQUIRED TO PAY
THE AMOUNTS ATTRIBUTABLE TO LIABILITY DESCRIBED IN THIS
SECTION BECAUSE THE STATE FAILED TO PROVIDE THE
INDEMNIFICATION.

122. METHOD OF FINANCING.

ALL OF THE ASSETS OF THIS PENSION SYSTEM SHALL BE
CREDITED, ACCORDING TO THE PURPOSE FOR WHICH THEY ARE HELD,
TO THE FOLLOWING FUNDS:

(I)   THE ANNUITY SAVINGS FUND;

(II)  THE ACCUMULATION FUND; AND

(III) THE EXPENSE FUND.

(1) (A) THE ANNUITY SAVINGS FUND SHALL BE THE FUND
IN WHICH THE CONTRIBUTIONS DEDUCTED FROM THE COMPENSATION OF
MEMBERS TOGETHER WITH ANY AMOUNTS TRANSFERRED THERETO FROM
THE ANNUITY SAVINGS FUND OF THE RETIREMENT SYSTEM SHALL BE
ACCUMULATED. THE AMOUNTS TRANSFERRED SHALL BE ALLOCATED
BETWEEN REGULAR AND ADDITIONAL CONTRIBUTIONS. ON HIS
RETIREMENT OR OTHER WITHDRAWAL FROM SERVICE ON THE BASIS OF
WHICH A RETIREMENT ALLOWANCE IS PAYABLE, THE MEMBER'S
ADDITIONAL CONTRIBUTIONS, WITH INTEREST, SHALL BE PAID AS AN
ADDITIONAL ALLOWANCE EQUAL TO AN ANNUITY THAT IS THE
ACTUARIAL EQUIVALENT OF THAT AMOUNT, IN THE SAME MANNER AS
THE BENEFIT OTHERWISE PAYABLE UNDER THIS PENSION SYSTEM.

(B)   CONTRIBUTIONS SHALL BE MADE ON AND AFTER
THE DATE OF ESTABLISHMENT AT THE RATE OF 5 PERCENT OF THE
PART OF THE MEMBER'S EARNABLE COMPENSATION THAT IS IN EXCESS
OF THE TAXABLE WAGE BASE FOR EACH YEAR. EACH OF THE AMOUNTS
SHALL BE:

(I)   DEDUCTED UNTIL THE MEMBER RETIRES OR
OTHERWISE WITHDRAWS FROM SERVICE;

(II)  PAID INTO THE ANNUITY SAVINGS FUND;
AND

(III) CREDITED TO THE INDIVIDUAL ACCOUNT OF
THE MEMBER.

(C)   EVERY MEMBER SHALL BE DEEMED TO CONSENT TO
THE DEDUCTIONS MADE AND PROVIDED HEREIN AND SHALL RECEIPT
FOR HIS FULL COMPENSATION, AND PAYMENT OF COMPENSATION LESS
SUCH DEDUCTION SHALL BE A FULL AND COMPLETE DISCHARGE AND