74

LAWS OF MARYLAND

Ch. 23

uniform and constant percentage of the earnable compensation
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 rate per centum 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 rate per centum of the
earnable compensation 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 one per centum 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, 1973, the actuary engaged by the board of trustees
shall compute the rate per centum of the total annual
earnable compensation of all members which is equivalent to
five per centum of the amount of 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 contribution made on account
of such members during the remainder of their active
service. The rate per centum so determined shall be known
as the "accrued liability contribution" rate.

(e)   The total amount payable in each year to
the Accumulation Fund shall be not less than the sum of the
rates per centum 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 shall be sufficient, when combined with the amount in
the fund, to provide the pensions 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.

(g)   All retirement allowances and all lump sum
death benefits on account of death in active service payable
from contributions of the State, 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