HARRY HUGHES, Governor                                 221

SELF INSURANCE FOR THIS PURPOSE, IN WHOLE OR IN PART, UNDER
TERMS AND CONDITIONS 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 AMOUNTS
ATTRIBUTABLE TO LIABILITY DESCRIBED IN THIS SECTION BECAUSE
THE STATE FAILED TO PROVIDE THE INDEMNIFICATION.

150. 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; OR

(III) THE EXPENSE FUND.

(1) (A) THE ANNUITY SAVINGS FUND SHALL BE THE FUND
IN WHICH 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 THIS 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
ACQUITTANCE OF ALL CLAIMS AND DEMANDS WHATSOEVER FOR THE
SERVICES RENDERED BY SUCH PERSON DURING THE PERIOD COVERED
BY SUCH PAYMENT. ANY COUNTY SCHOOL SYSTEM, OR INSTITUTION
THAT FAILS TO PAY TO THIS PENSION SYSTEM THE DEDUCTIONS
FROM THE COMPENSATION OF ITS EMPLOYEES ON THE DATE THE