HARRY HUGHES, Governor

193

(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 THIS PENSION 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 ASSUMPTIONS 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 THIS SYSTEM AS OF JUNE 30, 1980
BASED ON BENEFITS ACCRUED TO SAID DATE THAT ARE NOT
DISCHARGEABLE BY THE ASSETS TO THE CREDIT OF THE
ACCUMULATION FUND AND THE ANNUITY SAVINGS FUND. THE BOARD,
ON THE RECOMMENDATION OF THE ACTUARY, 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 AFTER 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.